SiTime Second-Quarter Revenue Rises 126.5% Before Renesas Deal Enters Results

Key Facts

SiTime reported second-quarter revenue of $157.43 million, up 126.5% from a year earlier, for the period ended June 2026. GAAP net income reached $18.16 million, or $0.66 per diluted share. Those results reflect the business SiTime owned during the quarter, without revenue from the timing assets it later purchased from Renesas. The accounting period ended June 30, while the acquisition closed July 1. That sequence establishes the right starting point for assessing growth in the existing business before measuring the acquisition's contribution in later periods.

Revenue in the comparable quarter was $69.49 million in the second quarter of 2025. The first quarter of 2026 generated $113.57 million of revenue. The 126.5% increase measures year-on-year growth, while the sequential comparison confirms that sales kept rising before the acquired operation joined the company. GAAP gross profit was about $99.14 million after $58.29 million of revenue costs, putting gross margin at roughly 63.0%. Reading revenue alongside gross profit shows how much of each sales dollar remained before research, administrative and acquisition-related expenses.

Communications, enterprise and data centers supplied the largest growth engine, producing $101.2 million of revenue, up 181% year on year. Management linked that performance to demand for precision timing in AI infrastructure, including optical modules, switches and accelerators. Those components need signals to be coordinated across computing and networking systems, making timing performance part of what the customer buys. Adjusted gross margin reached 67.1%, a measure that excludes specified items from GAAP results. Management attributed its improvement to product mix and better absorption of manufacturing costs, two drivers whose persistence later disclosures can test.

Sales growth extended beyond data centers: automotive, industrial, aerospace and defense revenue reached $24.8 million, up 51% year on year. Mobile, internet-of-things and consumer revenue totaled $31.4 million, up 85% from the prior-year quarter. Management said a large consumer customer contributed about $22.8 million of that group's quarterly revenue. These figures show growth across different applications alongside a substantial contribution from one customer's purchasing program. That distinction matters to investors because demand spread across markets may support sales durability, while part of consumer revenue depends on decisions by a single customer.

GAAP operating expenses were about $90.93 million, including $8.51 million of acquisition-related costs. Even after those charges, SiTime recorded GAAP operating income of $8.22 million, reversing an operating loss a year earlier. Yet the $18.16 million net profit did not come entirely from operations: the company also recorded $12.55 million of interest income. Management said interest on convertible-note proceeds held before the acquisition closed lifted income for the quarter. Assessing earnings quality therefore requires separate attention to operating profit and interest, because management does not expect the temporary financing benefit to recur at the same level.

SiTime completed its purchase of Renesas' timing business on July 1, after the reported quarter ended. The deal added more than 550 clocking products to its portfolio. SiTime had expected the acquired operation to generate at least $300 million in revenue over the 12 months after closing. That is a forward-looking estimate for the new assets, not revenue earned in the second quarter. The deal's realized effect on sales and margins will depend on integrating customers, operating arrangements and supply chains, so combined-company forecasts must remain distinct from the existing business's historical results.

The second-quarter profit was not SiTime's first under GAAP: it reported GAAP net income in the second quarter of 2021. It also earned $9.2 million under GAAP in the fourth quarter of 2025, although full-year 2025 remained loss-making on that basis. The nearer comparison is a net loss of about $5.22 million in the first quarter of 2026. The current development is a swing from a recent quarterly loss to a profit, alongside improved operating income, rather than profitability achieved for the first time. Its durability will become clearer when results include both acquired revenue and integration costs in the same period.

SITM closed at $608.91 on September 23, 2026, within a $593.68 to $627.96 session range. One trading session cannot establish that an August earnings release or an earlier acquisition caused the stock's movement. SiTime issued $1.35 billion of convertible notes as part of the acquisition financing. It also issued 3,558,691 shares for part of the acquired business's purchase price. An investor tracking earnings per share should therefore watch income growth after integration alongside share count and financing effects; total company profit can rise at a different rate from profit per share.

The next operating test is the third quarter ending September 30, the first full quarter after the Renesas transaction closed. Management forecast combined revenue of $285 million to $295 million. The outlook includes $200 million to $210 million from the existing business and about $85 million from the acquired operation. Management also projected adjusted gross margin near 68%, plus or minus one percentage point, and adjusted earnings of $3.50 to $3.65 per share. Actual results will show whether the acquired revenue arrives as expected while growth in the existing business persists; until the next disclosure, these figures remain forecasts.