Taiwan's Silicon Motion Q2 revenue jumps 127%, beats estimates

Silicon Motion Technology

29/07/2026 23:17

Overview
Taiwan NAND controller maker's Q2 revenue rose 127% yr/yr, beating analyst expectations
Adjusted EPS for Q2 rose to $2.43 per ADS from $1.58 in Q1
Growth driven by embedded eMMC & UFS, SSD controller, and storage solutions businesses

Outlook
Silicon Motion expects Q3 2026 revenue between $519 mln and $541 mln
Company sees Q3 2026 gross margin between 49.9% and 50.9%
Company expects record annual revenue in 2026, growing more than 100% Y/Y

Result Drivers
EMBEDDED CONTROLLER GROWTH - Co said embedded eMMC & UFS controller sales rose 15% to 20% Q/Q and 95% to 100% Y/Y, driving overall revenue growth
STORAGE SOLUTIONS SURGE - Ferri & Boot Drive solutions sales jumped 110% to 115% Q/Q and 1,690% to 1,695% Y/Y, contributing to record results
BUSINESS DIVERSIFICATION - CEO said shift from consumer NAND controllers to diversified storage solutions for AI infrastructure and edge markets accelerated growth

Company press release: ID:nGNX6GmyFl

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$451 mln
$403.41 mln (9 Analysts)
Q2 Adjusted Gross Margin
 
50.2%
 
Q2 Adjusted Gross Profit
 
$226.3 mln
 
Q2 Adjusted Operating Expenses
 
$122.1 mln
 
Q2 Adjusted Operating Income
 
$104.2 mln
 
Q2 Adjusted Operating Margin
 
23.1%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Silicon Motion Technology Corp is $262.12, about 18.4% above its July 28 closing price of $221.42
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads
July 28 - Seagate Q4 adjusted EPS beats estimates on cloud demand
July 29 - Taiwan's UMC Q2 revenue rises on strong end-market demand
July 28 - Netherlands' ASM International Q2 revenue rises on AI-related demand, raises FY forecast

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)