Revenue Growth
Reported revenue of $113.6M in Q1 2026, up 88% year-over-year and essentially flat sequentially vs Q4 (better than expected).
SiTime Corporation
· SITM
May 6th, 2026
Summary
- Earnings Call Date:
- 2026-05-06
- Change Since:
- +11.09%
- Next Earnings Date:
- 2026-08-05
Earnings Call Sentiment
PositiveThe call conveyed a strongly positive operational and financial inflection driven by AI/data-center (CED) demand, with substantial revenue and margin expansion, upgraded forward guidance, robust cash and a healthy product funnel. Remaining risks include modest consumer softness, increased inventory and receivable days, backend execution sensitivities, and integration/investment needs for the Renesas acquisition. Overall, the positives (rapid growth, material margin expansion, strong guidance and liquidity) materially outweigh the manageable lowlights.
Company Guidance
SiTime guided 2026 revenue growth of at least 80% (well above its prior long‑term 25–30% target) and Q2 revenue of $140–$150M (up >100% YoY), with Q2 gross margin ~65% ±1 point, operating expenses of $46–$47M, interest income of ~$5M, a share count of ~27.5M and Q2 non‑GAAP EPS of $1.85–$2.00; management said it expects to achieve ~65% gross margin and ~30% operating margin in Q2 and to keep gross margins above 60% for the year. Guidance excludes any benefit from the pending Renesas timing acquisition and was presented against Q1 results of $113.6M revenue (+88% YoY), 64.5% gross margin, 28% operating margin, $41.5M OpEx, $31.2M operating cash flow, $789M cash & short‑term investments, $55M AR (DSO 44 days) and $91.1M inventory.
Earnings and Profitability Expansion
Non-GAAP EPS increased to $1.44 from $0.26 a year ago (more than fivefold). Operating income was $31.8M and operating margin expanded to 28% (up ~25 percentage points YoY).
Gross Margin Improvement
Gross margin reached 64.5%, up 7.1 percentage points year-over-year; company expects ~65% gross margin in Q2 ±1 point.
Data Center / CED Outperformance
Communications, enterprise and data center (CED) revenue was $75.7M (66.6% of total), up 158% YoY and 17% sequentially. CED business grew 158% YoY and marked the eighth consecutive quarter of triple-digit growth.
Strong Guidance and Re-accelerated Growth Target
Company increased full-year revenue growth expectations to at least 80% (well above prior long-term 25%-30% target). Q2 revenue guide: $140M–$150M (over 100% YoY). Q2 non-GAAP EPS guide: $1.85–$2.00.
Cash, Liquidity and Cash Flow Strength
Ended Q1 with $789M in cash and short-term investments. Operating cash flow more than doubled to $31.2M vs $15M a year ago.
Product and TAM Tailwinds
Launched Elite 2 Super TCXO (up to 3x better synchronization vs prior Elite). Company addresses a $4B SAM within an $11B timing TAM and cites $1.5B cumulative SAM for high-margin product class over 5 years; Titan resonator funnel grew to $400M.
Aerospace & Defense Opportunity
Aerospace/defense funnel ~ $0.5B lifetime revenue, funnel-to-revenue conversion twice that of other businesses; company expects to achieve $100M in aerospace & defense revenue over the next few years.
Operational Execution and Supply Chain Resilience
Reports solid supply chain: MEMS sourced from Bosch and analog from TSMC; investments in backend automation and AI testing improved productivity and helped support rapid ramping with limited CapEx.
Renesas Timing Acquisition Progress
Renesas timing business acquisition remains on track; initial assessment of cost structure aligns with prior modeling and expected to add ~150 engineers and complementary product capabilities.
Operator
Good day, and thank you for standing by. Welcome to SiTime's First Quarter 2026 Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Leanne Sievers, President of Shelton Group. Please go ahead.
Leanne Sievers
Thank you, James. Good afternoon, and welcome to today's conference call for SiTime's First Quarter 2026 Financial Results. Joining us on today's call from SiTime are Rajesh Vashist, Chief Executive Officer; and Beth Howe, Chief Financial Officer. Before we begin, I'd like to point out that during the course of this call, the company may make forward-looking statements regarding expected future results, including financial position, strategy and plans, future operations, the timing market and other areas of discussion. It's not possible for the company's management to predict all risks nor can the company assess the impact of all factors on its business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. In light of these risks, uncertainties and assumptions, the forward-looking events discussed during this call may not occur, and actual results could differ materially and adversely from those anticipated or implied. Neither the company nor any person assumes responsibility for the accuracy and completeness of forward-looking statements. The company undertakes no obligation to publicly update forward-looking statements for any reason after the date of thi...
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