Silicon Labs Posts First Quarterly GAAP Profit in 2026

The Tip Desk · November 10, 2026 · 3 min read

Non-GAAP diluted earnings were $1.05 a share as revenue reached $251 million, up 22% from a year earlier.

Silicon Laboratories Inc. (SLAB), the low-power wireless connectivity chipmaker, reported GAAP diluted earnings of $0.26 a share for the quarter ended October 3, 2026, reversing a $0.30 loss a year earlier and ending two consecutive GAAP losses of $0.32 and $0.48 a share in the prior two quarters.

Revenue was $251 million, up 22% from a year earlier, after $228 million in the second quarter (up 18% year-over-year) and $214 million in the first quarter (up 20% year-over-year). Sequential growth was 10%.

GAAP operating income was $8 million, versus an $11 million operating loss in the second quarter and a $17 million operating loss in the first quarter. Non-GAAP operating income was $40 million, after $27 million and $18 million in the two prior quarters. Non-GAAP diluted earnings were $1.05 a share, up 228% from the year-ago period.

President and Chief Executive Officer Matt Johnson said earnings significantly outpaced revenue growth, a result of strong operational execution, and that the company delivered revenue up 10% sequentially, underpinned by broad-based growth across many end applications and another record quarter for medical revenue as known customer ramps continued.

Industrial & Commercial revenue was $141 million, up 20% year-over-year, after $135 million (up 23% year-over-year) in the second quarter and $128 million (up 33% year-over-year) in the first quarter. Home & Life revenue was $110 million, up 24% year-over-year, after $93 million (up 12% year-over-year) and $86 million (up 5% year-over-year).

Medical revenue reached a new quarterly record, increasing 48% sequentially and more than 300% year-over-year, after record medical revenue up 78% year-over-year in the second quarter and 21% year-over-year growth in the first quarter.

GAAP gross margin was 60.8%, down from 61.6% in the second quarter and 59.5% in the first quarter. Non-GAAP gross margin was 61.0%, versus 61.9% and 59.7%. GAAP operating expenses were $145 million, down from $151 million in the second quarter. Non-GAAP operating expenses were $113 million, versus $114 million in the second quarter and $109 million in the first quarter.

The company said bookings implied a healthy demand environment, while distributor inventory declined further to a multi-year low and end-customer inventory was near record lows during the quarter, continuing the inventory-decline trend it described in the prior two quarters.

Cash and cash equivalents were $423 million at October 3, 2026, compared with $364 million at January 3, 2026. Inventories were $133 million.

Due to the announced pending acquisition of Silicon Labs by Texas Instruments, the company has suspended providing forward-looking guidance, as it had in the prior two quarters. Johnson said current backlog and design-win ramps position the company for continued revenue growth and meaningful earnings expansion.