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

Silicom (NASDAQ:SILC) posted its earnings results on Thursday. The technology company reported ($0.34) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.37) by $0.03, FiscalAI reports. The company had revenue of $16.91 million during the quarter, compared to analysts’ expectations of $15.65 million. Silicom had a negative net margin of 22.47% and a negative return on equity of 10.83%.

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 Trading Up 28.6%

Shares of SILC stock opened at $19.37 on Friday. The stock has a market cap of $109.83 million, a P/E ratio of -8.31 and a beta of 1.04. Silicom has a 1 year low of $12.44 and a 1 year high of $23.00. The stock has a 50 day simple moving average of $14.97 and a 200 day simple moving average of $15.97.

Institutional Trading of Silicom

Institutional investors have recently modified their holdings of the stock. Citadel Advisors LLC increased its position 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 worth $292,000 after purchasing an additional 1,117 shares during the period. Bank of America Corp DE acquired a new stake in Silicom during the fourth quarter worth about $29,000. Goldman Sachs Group Inc. bought a new position in Silicom in the 1st quarter valued at about $151,000. Finally, Susquehanna International Group LLP acquired a new position in shares of Silicom in the 3rd quarter valued at approximately $277,000. 52.85% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

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

Silicom Company Profile

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.