SiTime (NASDAQ:SITM) Releases Quarterly Earnings Results, Beats Expectations By $0.39 EPS

Key Points

• SiTime exceeded quarterly expectations: Revenue rose 126.5% year over year to $157.43 million, while EPS reached $2.34 versus the $1.95 consensus estimate.
• AI-related data-center demand drove growth. Communications, enterprise, and data-center revenue increased 181% to $101.2 million, supported by demand for higher-speed optical modules and synchronization products.
• Management expects significant near-term expansion following Renesas’ timing-business acquisition. The company guided for third-quarter revenue of $285 million–$295 million and non-GAAP EPS of $3.50–$3.65, though integration and supply-chain execution remain risks.

SiTime (NASDAQ:SITM - Get Free Report) announced its earnings results on Wednesday. The company reported $2.34 earnings per share for the quarter, topping analysts' consensus estimates of $1.95 by $0.39, FiscalAI reports. The business had revenue of $157.43 million during the quarter, compared to the consensus estimate of $146.46 million. SiTime had a negative net margin of 6.38% and a positive return on equity of 0.53%. SiTime's quarterly revenue was up 126.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.47 earnings per share. SiTime updated its Q3 2026 guidance to 3.500-3.650 EPS.

Here are the key takeaways from SiTime's conference call:

• Exceptional Q2 results: Revenue rose 127% year over year to $157.4 million, while gross margin expanded to 67.1%, operating margin reached 34%, and non-GAAP EPS increased 400% to $2.34.
• AI-driven data-center demand remained the primary growth engine. Communications, enterprise, and data-center revenue increased 181% to $101.2 million, supported by 800G/1.6T optical modules, greater synchronization needs, and expanding AI infrastructure beyond traditional hyperscalers.
• Renesas’ timing-business acquisition closed July 1 and is expected to contribute approximately $85 million of Q3 revenue; management said TPD is tracking ahead of its initial $300 million 12-month revenue expectation and accelerates SiTime’s path toward $1 billion in revenue.
• Integration and supply-chain execution remain risks. SiTime is relying on Renesas transition-service agreements for manufacturing and testing during the next several quarters, while the Q3 outlook also reflects lower interest income after acquisition funding and higher operating expenses.
• Q3 guidance implies a sharp step-up in scale: Combined revenue is expected at $285 million–$295 million, gross margin at approximately 68% plus or minus one point, and non-GAAP EPS at $3.50–$3.65; management also reported strong backlog visibility extending into 2027.

SiTime Price Performance

Shares of SITM stock traded down $39.94 during trading hours on Wednesday, reaching $543.12. The company had a trading volume of 661,817 shares, compared to its average volume of 423,840. The company has a market cap of $14.34 billion, a price-to-earnings ratio of -537.74 and a beta of 2.94. SiTime has a 12 month low of $187.56 and a 12 month high of $901.81. The business has a fifty day simple moving average of $637.07 and a 200-day simple moving average of $525.29.

Insider Transactions at SiTime

In other SiTime news, CEO Rajesh Vashist sold 5,000 shares of SiTime stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $750.00, for a total transaction of $3,750,000.00. Following the transaction, the chief executive officer owned 9,781 shares of the company's stock, valued at $7,335,750. This trade represents a 33.83% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Christine Heckart sold 1,290 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $700.00, for a total value of $903,000.00. Following the completion of the transaction, the director owned 790 shares in the company, valued at $553,000. The trade was a 62.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 69,709 shares of company stock worth $50,230,546. 1.40% of the stock is owned by insiders.

Institutional Trading of SiTime

A number of hedge funds have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd bought a new position in SiTime in the 4th quarter valued at $33,000. Larson Financial Group LLC increased its holdings in SiTime by 3,200.0% during the third quarter. Larson Financial Group LLC now owns 99 shares of the company's stock worth $30,000 after buying an additional 96 shares during the last quarter. Sunbelt Securities Inc. bought a new stake in SiTime in the third quarter worth about $71,000. State of Wyoming bought a new stake in SiTime in the second quarter worth about $58,000. Finally, Harvest Fund Management Co. Ltd boosted its stake in SiTime by 418.5% in the third quarter. Harvest Fund Management Co. Ltd now owns 280 shares of the company's stock valued at $84,000 after acquiring an additional 226 shares during the last quarter. 84.31% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on SITM shares. Wall Street Zen raised SiTime from a "hold" rating to a "buy" rating in a research note on Sunday, July 12th. Barclays raised SiTime from an "equal weight" rating to an "overweight" rating and boosted their price target for the company from $400.00 to $850.00 in a research note on Thursday, May 7th. Roth Capital reiterated a "buy" rating and issued a $900.00 price objective on shares of SiTime in a research note on Thursday, May 7th. Weiss Ratings reiterated a "sell (d-)" rating on shares of SiTime in a research report on Friday, July 17th. Finally, Stifel Nicolaus lifted their price target on shares of SiTime from $450.00 to $500.00 and gave the company a "buy" rating in a research note on Thursday, April 16th. Eight research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $661.88.

SiTime Company Profile

SiTime Corporation is a fabless semiconductor company specializing in silicon timing solutions that leverage micro-electromechanical systems (MEMS) technology as an alternative to traditional quartz crystals. Its portfolio of programmable oscillators, resonators, clock generators, jitter attenuators and network synchronizers addresses precision timekeeping requirements across a wide range of electronic systems. By integrating MEMS resonators with advanced mixed-signal control circuitry, SiTime's products offer enhanced reliability, resistance to shock and vibration, and a smaller footprint compared with conventional quartz devices.

The company's timing devices serve diverse end markets, including telecommunications infrastructure, data center and enterprise networking, consumer electronics, automotive systems, industrial automation, and aerospace and defense applications.

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