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Silicom
(NASDAQ:SILC)
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Rating:50Neutral
Price Target:
$47.00
▲(18.33% Upside)
Action:Reiterated
Date:07/30/26
SILC’s score is held back primarily by weak recent financial performance (multi-year losses and a negative 2025 cash-flow turn) and a technically soft setup with the stock below key moving averages (20/50/100-day). Offsetting these are a strong, low-debt balance sheet and a highly positive earnings-call update featuring raised revenue guidance, improving margins, and a clearer path toward non-GAAP profitability, which supports a more balanced (but still cautious) overall view.
Positive Factors
Balance Sheet Strength
Silicom's conservative capital structure and ~$55M cash plus ~$107M working capital provide durable liquidity and strategic optionality. This reduces refinancing and dilution risk, funds intentional inventory builds and customization work for design wins, and supports multi-quarter execution without immediate external capital.
Negative Factors
Sustained Net Losses
Silicom has been loss-making across recent years, eroding returns and shareholder equity. Continued negative operating and net margins reduce internal reinvestment capacity, raise the bar for execution to reach durable profitability, and heighten dependency on cash reserves or external financing if improvements stall.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Silicom's conservative capital structure and ~$55M cash plus ~$107M working capital provide durable liquidity and strategic optionality. This reduces refinancing and dilution risk, funds intentional inventory builds and customization work for design wins, and supports multi-quarter execution without immediate external capital.
Read all positive factors
Silicom (SILC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$282.45M
Dividend YieldN/A
Average Volume (3M)165.75K
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth28.60%
EPS Growth24.86%
CountryUS
Employees260
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-1.71
Shares Outstanding5,706,142
10 Day Avg. Volume169,196
30 Day Avg. Volume165,752
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)0.71
Price to Sales (P/S)1.35
P/FCF Ratio-25.05
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$60.00Price Target Upside51.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.88
Revenue Forecast (FY)$82.58M
Silicom Business Overview & Revenue Model
Company Description
Silicom Ltd., including its various subsidiaries, specializes in providing comprehensive networking and data infrastructure solutions. The company is involved in the entire lifecycle of these solutions, from their design and manufacturing to marke...
How the Company Makes Money
Silicom primarily makes money by selling specialized networking hardware and platform products to other businesses (B2B), including OEMs/ODMs, network appliance vendors, and service providers. Revenue is generated mainly from product sales of: (1)...
Silicom Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operational momentum: revenue growth accelerated to 59% YoY with raised full-year guidance, multiple meaningful design wins (including PQC, white-label switching and AI inference), improving margins and a clear path to quarterly non-GAAP profitability in H2 2026. Balance sheet strength supports deliberate inventory builds and growth investments. Key risks include remaining quarterly losses, large intentional inventory build that ties capital, supply-chain/cost pressures, geographic/customer concentration, and timing risk on when new design wins (and AI) reach full run rates. Overall, the positive operational and financial trends materially outweigh the risks highlighted.Positive Updates
Revenue Growth and Guidance Raise
Q2 revenue of $23.8M, up 59% year-over-year (from $15.0M); beat prior guidance of $20M–$21M. Raised full-year 2026 revenue guidance to $93M–$95M (from $82M–$83M), representing over 50% year-over-year growth; Q3 guidance $25M–$26M implying up to 66% YoY growth at the upper end.
Negative Updates
Still Operating at a Net Loss (Though Improving)
Company remains non-GAAP net loss ($0.9M) and operating loss ($1.1M) in Q2, with profitability expected only in H2 2026; not yet consistently profitable on a quarterly basis.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Guidance Raise
Q2 revenue of $23.8M, up 59% year-over-year (from $15.0M); beat prior guidance of $20M–$21M. Raised full-year 2026 revenue guidance to $93M–$95M (from $82M–$83M), representing over 50% year-over-year growth; Q3 guidance $25M–$26M implying up to 66% YoY growth at the upper end.
Read all positive updates
Company Guidance
Management raised full‑year 2026 revenue guidance to $93–95M (up from $82–83M), implying >50% YoY growth, and guided Q3 revenue of $25–26M (up to ~66% YoY at the high end); Q2 results were $23.8M revenue (+59% YoY), $7.2M gross profit with 30.4% gross margin (in the 27–32% target range), operating expenses $8.3M (+16% YoY), operating loss $1.1M, net loss $0.9M and non‑GAAP loss per share $0.16 (vs $0.35 LY). Management expects a return to quarterly non‑GAAP profitability in H2 2026, forecasts AI inference revenues of roughly $3–4M for 2026, has secured 7 design wins YTD (target 7–9 for 2026), and finished June with $107M of working capital and marketable securities (~$19/share), including $55M cash and $71M inventory, with no debt.Silicom Financial Statement Overview
Summary
Income Statement
33
Negative
Balance Sheet
74
Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.43M | 61.93M | 58.11M | 124.13M | 150.58M | 128.46M |
| Gross Profit | 22.75M | 18.93M | 16.60M | 28.69M | 51.96M | 44.39M |
| EBITDA | -7.43M | -9.02M | -9.10M | -616.00K | 24.88M | 15.39M |
| Net Income | -9.79M | -11.48M | -13.71M | -26.41M | 18.31M | 10.54M |
Balance Sheet | ||||||
| Total Assets | 162.90M | 152.52M | 150.41M | 167.73M | 216.20M | 219.60M |
| Cash, Cash Equivalents and Short-Term Investments | 31.34M | 48.11M | 72.14M | 54.93M | 34.75M | 37.55M |
| Total Debt | 6.44M | 10.52M | 6.47M | 5.95M | 7.84M | 9.19M |
| Total Liabilities | 48.06M | 35.03M | 22.57M | 19.47M | 36.90M | 61.14M |
| Stockholders Equity | 114.84M | 117.49M | 127.84M | 148.26M | 179.29M | 158.46M |
Cash Flow | ||||||
| Free Cash Flow | -3.35M | -3.35M | 17.36M | 30.80M | -6.18M | -1.51M |
| Operating Cash Flow | -2.16M | -2.16M | 18.29M | 31.93M | -4.09M | 1.08M |
| Investing Cash Flow | -12.42M | -12.42M | -4.28M | -7.52M | 8.27M | 16.77M |
| Financing Cash Flow | -1.66M | -1.66M | -9.88M | -7.97M | -1.05M | -9.78M |
Silicom Risk Analysis
Silicom disclosed 50 risk factors in its most recent earnings report. Silicom reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Silicom Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $157.12M | 152.53 | 4.67% | ― | 13.61% | ― | |
52 Neutral | $144.76M | -26.24 | -3.82% | ― | 15.83% | 6.44% | |
51 Neutral | $52.73M | -0.80 | -9.10% | ― | -8.31% | 77.99% | |
51 Neutral | $72.18M | -9.67 | -24.30% | ― | -9.62% | 2.86% | |
50 Neutral | $282.45M | -28.95 | -8.37% | ― | 28.60% | 24.86% |
* Technology Sector Average
SILC
Silicom
49.50
33.86
216.50%
CMTL
Comtech Telecommunications
1.76
-0.25
-12.44%
KVHI
KVH Industries
7.98
2.54
46.69%
OCC
Optical Cable
17.80
12.48
234.59%
AIRG
Airgain
5.51
0.98
21.63%
FKWL
Franklin Wireless
2.43
-1.55
-38.94%
Silicom Corporate Events
Silicom Ramps Q2 2026 Growth and Raises 2026 Revenue Outlook on AI-Inference Momentum
Jul 29, 2026
On July 29, 2026, Silicom reported its second-quarter 2026 results, highlighting a 59% year-over-year revenue jump to $23.8 million and sharply reduced losses, with GAAP net loss narrowing to $2.1 million and non-GAAP net loss to $0.9 million. For...
Silicom Lands New Custom Server Adapter Design Win, Revenue Set to Climb
Jul 17, 2026
On July 16, 2026, Silicom Ltd. announced that an existing blue-chip customer awarded it a new Design Win for a custom high-speed server adapter tailored to the client’s exact specifications. The adapter serves a distinct functionality within...
Silicom Sets July 29, 2026 Date for Second-Quarter Results and Investor Call
Jul 1, 2026
Silicom Ltd., a provider of high-performance networking and data infrastructure solutions for cloud, data center and edge markets, offers products ranging from high-speed server adapters and AI NICs to FPGA-based smart cards, PQC accelerators, whi...
Silicom Secures First AI Inference Production Order, Targets Multi-Million 2026 Revenue
Jun 30, 2026
On June 30, 2026, Silicom announced it had secured its first production order for a high-performance AI inference solution, marking a shift from evaluation to commercial deployment. The order, scheduled for delivery in 2026, is expected to lift th...
Silicom Overrides Shareholder RSU Rejection with Performance-Linked CEO Grant
Jun 25, 2026
Silicom reported that at its Annual General Meeting on June 3, 2026, shareholders approved the re-election of director Yeshayahu (“Shaike”) Orbach, salary increases for CEO Liron Eizenman and Active Chairman Avi Eizenman effective retr...
Silicom Wins $5 Million Annual White-Label Switch Deal With Tier-1 Cybersecurity Leader
May 26, 2026
On May 26, 2026, Silicom announced that a Tier-1 global cyber security company has chosen a range of Silicom-designed white-label switches as the networking backbone for its security platforms. The switches were engineered to the customer’s ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.