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

SiTime (NASDAQ:SITM) released its earnings results on Wednesday. The company reported $2.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.95 by $0.39, FiscalAI reports. SiTime had a positive return on equity of 0.53% and a negative net margin of 6.38%.The firm had revenue of $157.43 million during the quarter, compared to analysts’ expectations of $146.46 million. During the same quarter in the prior year, the company earned $0.47 EPS. The company’s revenue was up 126.5% on a year-over-year basis. 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 Stock Performance

NASDAQ SITM opened at $543.12 on Thursday. SiTime has a fifty-two week low of $187.56 and a fifty-two week high of $901.81. The stock has a market cap of $14.34 billion, a PE ratio of -537.74 and a beta of 2.94. The firm’s fifty day moving average price is $637.07 and its two-hundred day moving average price is $525.29.

Key SiTime News

Here are the key news stories impacting SiTime this week:

• Positive Sentiment: Q2 results exceeded expectations. SiTime reported adjusted earnings of $2.34 per share, above estimates of approximately $1.93-$1.95 and up sharply from $0.47 a year earlier. Revenue increased 126.5% year over year to $157.43 million, beating the roughly $146.5 million consensus estimate. SiTime Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Q3 outlook is far ahead of Wall Street expectations. Management guided for earnings of $3.50-$3.65 per share and revenue of $285 million-$295 million, compared with consensus estimates of $1.90 per share and $163.8 million in revenue. The forecast signals continued momentum, potentially tied to strong demand for precision-timing products in communications, data-center and artificial-intelligence infrastructure. SiTime Reports Second Quarter 2026 Financial Results
• Neutral Sentiment: The earnings call provided additional management commentary on the quarterly performance and outlook, which investors will use to assess whether the unusually strong growth rate can continue. SiTime Q2 2026 Earnings Call Transcript
• Negative Sentiment: Valuation and profitability remain risks. SiTime’s market capitalization is about $14.3 billion, while its reported net margin remains negative. With the stock trading at a very high valuation and exhibiting elevated volatility, investors may be selling on the news even after the earnings and guidance beats.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on SITM shares. Roth Capital reaffirmed a “buy” rating and issued a $900.00 target price on shares of SiTime in a research report on Thursday, May 7th. The Goldman Sachs Group reiterated a “buy” rating and set a $800.00 target price on shares of SiTime in a report on Thursday, May 7th. Barclays raised SiTime from an “equal weight” rating to an “overweight” rating and increased their price objective for the company from $400.00 to $850.00 in a report on Thursday, May 7th. Wall Street Zen raised shares of SiTime from a “hold” rating to a “buy” rating in a report on Sunday, July 12th. Finally, Zacks Research cut shares of SiTime from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Eight equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, SiTime currently has an average rating of “Moderate Buy” and a consensus price target of $668.12.

Insider Activity

In other news, CEO Rajesh Vashist sold 5,000 shares of the firm’s stock in a transaction 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 completion of the transaction, the chief executive officer owned 9,781 shares of the company’s stock, valued at approximately $7,335,750. This trade represents a 33.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 firm’s stock in a transaction 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 transaction, the director directly owned 790 shares of the company’s stock, valued at approximately $553,000. This represents a 62.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 69,709 shares of company stock worth $50,230,546. Company insiders own 1.40% of the company’s stock.

Hedge Funds Weigh In On SiTime

Several institutional investors have recently added to or reduced their stakes in SITM. Kestra Advisory Services LLC acquired a new position in SiTime during the fourth quarter worth $172,000. Smartleaf Asset Management LLC raised its holdings in shares of SiTime by 17.6% in the 4th quarter. Smartleaf Asset Management LLC now owns 502 shares of the company’s stock worth $183,000 after acquiring an additional 75 shares during the last quarter. State of Wyoming lifted its position in SiTime by 20.9% in the 4th quarter. State of Wyoming now owns 347 shares of the company’s stock valued at $123,000 after acquiring an additional 60 shares in the last quarter. Advisory Services Network LLC acquired a new position in SiTime during the 3rd quarter valued at about $85,000. Finally, Harvest Fund Management Co. Ltd increased its holdings in SiTime by 418.5% during the 3rd quarter. Harvest Fund Management Co. Ltd now owns 280 shares of the company’s stock worth $84,000 after purchasing an additional 226 shares in the last quarter. 84.31% of the stock is owned by institutional investors and hedge funds.

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.