Silicom Reports Q2 2026 Results

Silicom Ltd. (NASDAQ: SILC) , an industry-leading provider of high-performance server/appliance networking solutions, today reported its financial results for the second quarter ended June 30, 2026. Financial Results Second quarter: Silicom's revenues for the second quarter of 2026 rose 59% to $23.8 million compared with $15.0 million for the second quarter of 2025. On a GAAP basis, the company's net loss for the quarter totalled $2.1 million, or $0.37 per ordinary share (basic and diluted), a 37% improvement compared with $3.3 million, or $0.59 per ordinary share (basic and diluted), for the second quarter of 2025. On a non-GAAP basis (as described and reconciled below), net loss for the quarter totalled $0.9 million, or $0.16 per ordinary share (basic and diluted), compared with $2.0 million, or $0.35 per ordinary share (basic and diluted), for the second quarter of 2025. First Six Months: Silicom's revenues for the first half of 2026 rose by 46% to $42.9 million from $29.4 million for the first half of 2025. On a GAAP basis, net loss for the period totalled $4.5 million, or $0.78 per ordinary share (basic and diluted), a 27% improvement compared with $6.1 million, or $1.08 per ordinary share (basic and diluted), for the first half of 2025. On a non-GAAP basis (as described and reconciled below), net loss for the period totalled $2.4 million, or $0.41 per ordinary share (basic and diluted), a 42% improvement compared with $4.1 million, or $0.71 per ordinary share (basic and diluted), for the first half of 2025. Guidance Based on the faster-than-projected growth of our core business, our third quarter revenues are expected to reach $25-$26 million, representing 66% growth year-over-year at the upper end of the guidance. With the continued strong momentum of our core business and the additional multi-million-dollar revenues expected from AI-Inference production orders, we are now raising our full-year revenue guidance significantly to $93 to $95 million, representing more than 50% growth on a year-over-year basis. Comments of Management Liron Eizenman, Silicom's President and CEO, commented, "We are pleased to report 59% year-over-year revenue growth for the quarter and to project continued strong momentum in the quarters ahead. Based on our current trajectory and the leverage inherent in our business model, we now expect to return to quarterly non-GAAP profitability during the second half of the year, significantly earlier than originally anticipated. These results validate our strategic roadmap, which combines the strength of our established, fast-growing core business with the game-changer growth potential of the rapidly expanding AI-Inference market. Together, these complementary growth engines position Silicom to deliver sustainable, long-term value creation. "Execution across the business has been exceptionally strong. So far this year, we secured seven new Design Wins, already reaching the lower end of our full-year target of seven to nine wins. These Design Wins demonstrate not only the competitiveness of our technology, but also the long-term value of the trusted relationships we have cultivated over decades with blue-chip customers. These relationships continue to generate recurring opportunities, with each Design Win opening the door to the next, strengthening the visibility we have into continued growth in 2027 and beyond." Mr. Eizenman continued, "Equally important, we achieved a major strategic milestone during the quarter with our first production order for an AI-Inference-specific solution. This marks the commercial launch of our AI-Inference product family and establishes a foundation for what we believe can become an exceptional revenue stream. In parallel, we continue to advance multiple AI-Inference development pro...