Key Highlights

  • Third quarter EPS was USD 1.05 against an estimated USD 0.85, and Revenue of USD 250.89 million beat the estimate.
  • Gross profit rose USD 33.6 million to USD 152.6 million, and gross Margin widened to 60.8% from 57.8%.
  • Revenue rose on higher unit volumes, and distributors accounted for 75% of revenue over the nine months.
  • The company's filing describes a Merger agreement with Texas Instruments, approved by stockholders on April 30, 2026.

Silicon Laboratories (NASDAQ:SLAB) reported third quarter 2026 results for the quarter ended October 3, with revenue of USD 250.89 million against the USD 242.01 million estimate. EPS was USD 1.05, compared with an estimate of USD 0.85, on the basis used in the Earnings data. The filing states revenue increased on higher unit volumes of its products compared with the prior year.

Gross profit was USD 152.6 million against USD 119.0 million a year earlier, an increase of USD 33.6 million, and gross margin was 60.8% against 57.8%. For the nine months, Gross Profit was USD 420.3 million at a 60.7% margin, against USD 324.9 million and 56.4%.

Nine-month net loss was USD 17.6 million, against USD 62.2 million in the prior-year period. Operating cash flows reflected that loss, adjustments of USD 97.0 million for depreciation, amortization, stock-based compensation and deferred income taxes, and a net cash outflow of USD 42.1 million from changes in operating Assets and liabilities. Research and Development expense for the nine months was USD 276.8 million, or 40.0% of revenue.

About 90% of nine-month revenue came from outside the United States, with end customers in China accounting for 19% and revenue attributed to China by shipped-to location at 31%. Distributors accounted for 75% of revenue, and the two largest, Arrow Electronics and Edom Technology, together accounted for 50%. No end customer represented more than 10% of revenue. As of October 3, no amounts were outstanding on the Credit facility.

Merger Agreement With Texas Instruments

On February 4, 2026 the company entered into a merger agreement with Texas Instruments Incorporated and a merger subsidiary, under which the Subsidiary is to merge into the company, which would continue as a wholly owned subsidiary. The company's board unanimously approved the agreement, and stockholders approved it on April 30, 2026.

The risk factors in the filing state that the merger may not be completed within the anticipated time frame or at all, that the company is subject to restrictions on its Business activities while the agreement is in effect, and that lawsuits relating to the merger could be costly or delay completion. The filing also references a termination fee of USD 259 million and notes ongoing transaction costs.

Legal Disclosure

The filing's commitments and contingencies note states that the company is involved in various legal proceedings arising in the normal course of business and does not expect them to have a material adverse effect on its financial statements.

Items to Follow

Completion steps for the merger, gross margin against the 60.8% level, distributor concentration and spending on research and development are the measurable items in the filing.