Silicom (NASDAQ:SILC) Releases Earnings Results, Beats Estimates By $0.03 EPS

Silicom (NASDAQ:SILC) released its quarterly earnings data on Thursday. The technology company reported ($0.34) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.37) by $0.03, FiscalAI reports. Silicom had a negative return on equity of 9.41% and a negative net margin of 18.54%.The firm had revenue of $16.91 million during the quarter, compared to analysts’ expectations of $15.65 million.

Here are the key takeaways from Silicom’s conference call:

• Q4 revenue grew 17% year‑over‑year to $16.9 million, beating prior guidance of $15–$16 million and signaling resilient demand for Silicom’s core products.
• Silicom secured eight major design wins in 2025 and says its pipeline is the largest it’s seen, targeting an additional 7–9 design wins in 2026, which management says gives strong visibility for continued growth.
• Management flagged three strategic upside opportunities — AI inference, post‑quantum cryptography (PQC), and white‑label switching — with initial POCs and early orders but emphasized these initiatives are still in early stages and not expected to be major contributors in 2026.
• The balance sheet is strong with working capital and marketable securities of $111 million, including $74 million in cash and no debt (about $20 per share), providing flexibility to invest in growth.
• Non‑GAAP operating expenses rose to $7.5 million (partly due to currency weakness), and the company reported a net loss of $1.9 million (loss per share $0.34) in Q4.

Silicom Stock Down 6.5%

Shares of SILC opened at $18.11 on Friday. The firm has a market capitalization of $102.68 million, a PE ratio of -9.01 and a beta of 1.04. Silicom has a 12-month low of $12.44 and a 12-month high of $23.00. The stock’s fifty day simple moving average is $15.05 and its 200-day simple moving average is $15.99.

Wall Street Analysts Forecast Growth

SILC has been the subject of a number of recent research reports. Weiss Ratings restated a “sell (d-)” rating on shares of Silicom in a research note on Monday, December 29th. Wall Street Zen upgraded shares of Silicom to a “hold” rating in a research note on Friday, October 3rd. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Silicom has an average rating of “Reduce”.

Key Headlines Impacting Silicom

Here are the key news stories impacting Silicom this week:

• Positive Sentiment: Q4 top-line and EPS beat: revenue of $16.91M and EPS of ($0.34) beat consensus; company highlighted ahead‑of‑plan core performance. Silicom Reports Q4 and Full Year 2025 Results
• Positive Sentiment: Management emphasized growth opportunities from AI, post‑quantum cryptography and white‑label switching — potential high‑margin, venture‑scale markets that could drive upside if commercialized. Silicom Ltd (SILC) Q4 2025 Earnings Call Highlights
• Positive Sentiment: Q1 revenue guide raised to $16.5M–$17.5M (vs. consensus ~$16.0M), signaling near‑term revenue momentum. Silicom Reports Q4 and Full Year 2025 Results
• Neutral Sentiment: Full earnings materials and transcripts available (slides and calls released) — useful for digging into customer cadence, backlog and AI-related pipeline. Silicom Ltd. (SILC) Q4-2025 Earnings Call Transcript
• Negative Sentiment: Profitability remains a clear concern — analysts estimate Silicom needs roughly 50% revenue growth to reach breakeven; at current growth rates that could take 2–3 years. That long runway keeps valuation pressured. Silicom Is Earning Its Revenue Back But Profitability Seems Far Away
• Negative Sentiment: Operating losses persist (negative net margin and negative ROE reported), so even with revenue growth the company still burns earnings relative to sales. Silicom Q4 Results Summary

Institutional Trading of Silicom

Several large investors have recently bought and sold shares of SILC. Bank of America Corp DE acquired a new position in shares of Silicom during the fourth quarter worth $29,000. Goldman Sachs Group Inc. bought a new stake in Silicom during the 1st quarter worth approximately $151,000. Susquehanna International Group LLP acquired a new stake in Silicom in the third quarter valued at $277,000. Finally, Citadel Advisors LLC increased its stake in shares of Silicom by 7.3% in the third quarter. Citadel Advisors LLC now owns 16,492 shares of the technology company’s stock valued at $292,000 after buying an additional 1,117 shares during the period. 52.85% of the stock is owned by institutional investors and hedge funds.

About Silicom

Silicom Ltd. is an Israel‐based provider of advanced networking infrastructure products designed to enhance data throughput, security, and functionality in enterprise, cloud, telecommunications, and edge‐computing environments. The company develops and manufactures a range of network interface cards (NICs), specialized adapters, and turnkey network appliances that support high‐performance packet processing, encryption, compression, and traffic optimization. Silicom’s solutions are engineered to offload complex network functions from central processing units, enabling customers to achieve greater efficiency, reliability, and scalability in their data centers.

Founded in 1987 and headquartered in Lod, Israel, Silicom has grown from a niche hardware developer into a global supplier of connectivity and networking solutions.