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Silicon Motion (SIMO) Q3 2026 Earnings Report
SIMO Q3 2026 EPS Results
- Actual EPS
- $4.35
- Consensus EPS
- $3.30
- Beat/Miss
- Beat by +$1.05
- One Year Ago EPS
- $1.00
SIMO Q3 2026 Revenue Results
- Actual Revenue
- $561.07M
- Expected Revenue
- $529.10M
- Beat/Miss
- Beat by +$31.97M
- YoY Revenue Growth
- +134.73%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
Silicon Motion's next earnings date is estimated for February 9, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was strongly positive, characterized by record revenue and earnings, accelerating contributions from automotive, boot drives, Edge SSDs, and MonTitan enterprise SSDs, a strengthened balance sheet, secured 2027 supply capacity, and guidance for at least 40% revenue growth in 2027. The main challenges were consumer-market weakness, elevated memory and storage costs, ongoing supply constraints, near-term eMMC/UFS pressure, and a pending arbitration result, but these lowlights were outweighed by the company's stated growth, backlog, and diversification achievements.
For the December quarter, revenue is expected to grow 5%-10% sequentially to $588 million-$616 million, gross margins are expected to increase sequentially to 54%-55%, operating margin is expected to grow to 36%-37%, the effective tax rate is expected to be 20%, and stock-based comp and dispute-related expenses are expected to be in the range of $34.6 million-$35.6 million; 2026 is on track to deliver record revenue, with top line expected to more than double year-over-year and operating margins expected to exceed 30% exiting this year, while 2027 revenue is expected to grow by at least 40% with gross profitability in the low to mid 50% range, PCIe 5 is expected to reach 20%-25% of the PC market by the end of 2027, MonTitan sampling is expected to begin in the first quarter of 2027, all NAND makers are expected to begin shipping 2 terabit QLC by end of 2027, near CPU boot drive production is expected to ramp in the second half of 2027, and the near CPU boot drive market is estimated to reach over $10 billion by 2030.
- Record Third-Quarter Revenue and EarningsThird-quarter revenue reached $560 million, up 24% sequentially and 131% year over year, exceeding the guided range of $519 million-$541 million and marking the fourth consecutive quarter of record revenue. Gross margin was 53.7%, operating margin was 32.1%, and earnings per ADS was $4.35, up 79% sequentially and 333% year over year.
- Strong Full-Year 2026 Growth OutlookThe company is on track to deliver record revenue in 2026, with top-line growth expected to exceed 100% year over year. Management also expects operating margins to exceed 30% exiting 2026.
- Fourth-Quarter Guidance Calls for Continued GrowthFourth-quarter revenue is expected to grow 5%-10% sequentially to $588 million-$616 million. Gross margin is expected to increase to 54%-55%, operating margin is expected to reach 36%-37%, and the effective tax rate is expected to be 20%.
- Ferri and Boot Drive Solutions Delivered Exceptional GrowthThe Ferri automotive, edge, and enterprise boot drive solution business generated its strongest result in the third quarter, with revenue up over 75% sequentially and representing over 40% of total revenue. Automotive delivered better-than-expected top-line results and higher gross margins.
- Automotive Backlog and Multi-Year Engagements ExpandedThe company reported significant automotive backlog and continued share gains, supported by more than a decade of automotive products and certifications. Management said automotive projects are often multi-year engagements, with qualified products positioned for three- to five-year projects.
- Enterprise Boot Drive Momentum IncreasedSilicon Motion won designs with several new Tier One customers for networking and AI infrastructure products in the third quarter. These programs are expected to ramp over the next two years and substantially improve backlog visibility, while management expects enterprise boot drives to grow much faster next year.
- Near-CPU Boot Drive Opportunity Could Exceed $10 BillionThe company is pursuing near-CPU boot drives with onboard DRAM, targeting a market management estimates will exceed $10 billion by 2030. Silicon Motion is discussing solutions with multiple customers and expects its own total solution to begin ramping in the second half of 2027, with some module-maker-supported shipments potentially earlier.
- MonTitan Enterprise SSD Customer RampThe first two MonTitan customers began shipping TLC enterprise SSDs for compute in the second quarter. All seven announced customers are on track to begin commercial ramps in 2026 across TLC-based compute and QLC-based data-storage products.
- Next-Generation PCIe 6 MonTitan Controller AdvancedSilicon Motion taped out its next-generation 4nm PCIe 6 MonTitan controller in the third quarter and expects to begin sampling in the first quarter of 2027. The controller has one design with multiple Tier One customers, including NAND makers, hyperscalers, and cloud service providers.
- PCIe 5 Edge SSD Position StrengthenedThe company's PCIe 5 investment continued to produce growth in both four-channel and eight-channel controllers. PCIe 5 currently represents approximately 10% of the PC market and is expected to reach 20%-25% by the end of 2027. Management said it is tracking well ahead of expectations toward a 40% market-share goal through Apple by 2028.
- Embedded Controller Share Gains and New Product RoadmapeMMC and UFS revenue was up over 100% year over year in the first half of 2026 as module makers gained share in the mobile market and increasingly used third-party controllers. Management expects the business to return to growth next year and beyond as its UFS 4.1 and UFS 5 controllers ramp and drive higher ASPs.
- 2027 Revenue Growth and Margin OutlookBased on its backlog, management expects revenue to grow by at least 40% in 2027, with gross profitability in the low to mid 50% range. The company expects increased contributions from enterprise controllers and Ferri automotive solutions to support the higher margin level.
- Supply Capacity Secured for 2027 GrowthManagement said it secured its 2027 wafer supply, primarily with TSMC, as well as test capacity, assembly capacity, and substrate material. The company believes these arrangements will support at least 40% year-over-year growth in 2027.
- Convertible Offering Strengthened the Balance SheetSilicon Motion raised an aggregate $1.15 billion through a convertible bond offering, with net proceeds of $1.127 billion. The 0% interest convertible bond had an initial conversion price of $380.50, representing a 65% conversion premium over the August 10 sale price. Cash and restricted cash increased to $953.6 million from $181.8 million at the end of the second quarter.
- Working Capital Funding VisibilityManagement said the convertible offering is sufficient to fund working capital needs for the next couple of years based on current expectations. The company is targeting approximately two quarters of turnaround time between receiving NAND and generating cash flow from it.
- China Enterprise Ecosystem ExpansionSilicon Motion plans to balance China and the rest of the world, collaborate with YMTC directly or indirectly through module makers, grow local China R&D, and work with China CSPs and hyperscalers. The company said it sells controllers and firmware while enabling module makers and NAND makers to provide enterprise solutions.
- Dividend Increased and Capital Allocation Priorities MaintainedThe company increased its dividend from $2.00 to $2.30 per ADS per year. Management reiterated three capital-return priorities: dividends, opportunistic share buybacks, and M&A when appropriate.
SIMO Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 09, 2027 | 2026 (Q4) | 5.06- | 1.26 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 3.304.35 | 1 | 335.00% (+3.35) | |
| Jul 29, 2026 | 2026 (Q2) | 2.132.43 | 0.69 | 252.17% (+1.74) | |
| Apr 28, 2026 | 2026 (Q1) | 1.281.58 | 0.6 | 161.59% (+0.98) | |
| Feb 03, 2026 | 2025 (Q4) | 1.261.26 | 0.91 | 38.46% (+0.35) | |
| Oct 31, 2025 | 2025 (Q3) | 0.841.00 | 0.92 | 8.70% (+0.08) | |
| Jul 31, 2025 | 2025 (Q2) | 0.560.69 | 0.96 | -28.13% (-0.27) | |
| Apr 30, 2025 | 2025 (Q1) | 0.450.60 | 0.64 | -5.63% (-0.04) | |
| Feb 05, 2025 | 2024 (Q4) | 0.740.91 | 0.93 | -2.15% (-0.02) | |
| Oct 30, 2024 | 2024 (Q3) | 0.840.92 | 0.63 | 46.03% (+0.29) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.