SiTime Corporation (SITM) Earnings & Analysis

Latest quarter

SiTime reported Q2 FY2026 revenue of $157.4 million, above the consensus estimate of $145.1 million. Adjusted earnings per share were $2.34, also above the consensus estimate of $1.93. Revenue exceeded the company’s own Q2 guidance of $140.0 million to $150.0 million.

Revenue rose from $69.5 million a year earlier. SiTime’s filing attributed the increase primarily to demand for products used in AI and data-center applications. CFO Beth Howe said communications, enterprise and data-center revenue reached $101.2 million, while automotive, industrial, aerospace and defense revenue was $24.8 million and mobile, IoT and consumer revenue was $31.4 million.

SiTime’s gross margin rose to 63.0% from 51.9% a year earlier; its filing cited higher revenue and a change in product mix. Operating margin moved to 5.22% from −35.4%, while diluted earnings per share moved to $0.66 from −$0.84. SiTime reported free cash flow of $26.9 million, compared with −$2.9 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Rajesh Vashist said communications, enterprise and data centers remained a driver of growth as optical modules moved toward higher bandwidth and data centers adopted more synchronization. He said synchronization requires more precise oscillators and adds timing content across each rack. Vashist also pointed to demand from data-center customers beyond traditional hyperscalers.

On pricing, Vashist said the move from 800G to 1.6T optical modules brings SiTime higher market share and higher average selling prices. He said orders placed well in advance were improving visibility into future demand. Howe attributed the quarter’s gross-margin improvement to “product mix as well as better manufacturing absorption” and said operating expenses included investment in personnel, products, sales and acquisition readiness.

Vashist said SiTime closed its acquisition of Renesas’s timing business on July 1 and named it the Timing Products Division. Howe said integration priorities include expanding supply, transferring customer relationships and moving the business onto SiTime’s operating platform. She said convertible-note financing helped fund the acquisition, and that interest income from the proceeds would not recur at the same level after the cash was used for the purchase.

Asked about the acquired business, Howe said its performance had continued to improve but that SiTime was still working through integration and would have more to say as it learned more about the operation. On supply, she said, “We are relying on them for the next several quarters for the production,” referring to Renesas. Howe said SiTime was working with Renesas to address constraints and expected more growth as supply improved.

Looking ahead, Howe said she expected core communications, enterprise and data-center revenue to keep growing, and consumer growth to accelerate as a large customer used SiTime’s products across its platform. Vashist said SiTime saw opportunities to combine its timing technology with the acquired team’s clock-design experience.

Guidance

For Q3 FY2026, Howe said SiTime expects revenue of $285.0 million to $295.0 million and non-GAAP earnings per share of $3.50 to $3.65. Her previous guidance was for Q2 FY2026 revenue of $140.0 million to $150.0 million and non-GAAP earnings per share of $1.85 to $2.00.