Israel's Silicom Q2 revenue rises, loss narrows on core business expansion

Overview

• Israel networking solutions provider's Q2 revenue rose 59% yr/yr on core business expansion

• Non-GAAP net loss for Q2 narrowed from prior year

• Company raised full-year revenue guidance, citing strong core business and AI-Inference orders

Outlook

• Silicom expects Q3 revenue of $25-$26 mln, up 66% year-over-year at upper end

• Company raises 2026 full-year revenue guidance to $93-$95 mln, over 50% growth year-over-year

• Silicom projects return to quarterly non-GAAP profitability in second half of 2026

Result Drivers

• CORE BUSINESS EXPANSION - Co said 59% Q2 revenue growth was driven by continued expansion of its core business

• AI-INFERENCE LAUNCH - Co said it achieved a strategic milestone with its first production order for an AI-Inference-specific solution, marking the commercial launch of its AI-Inference product family

• DESIGN WINS - Co secured seven new Design Wins so far this year, reaching the lower end of its full-year target and supporting future growth

Company press release: ID:nPn1vJPjra

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the communications networking peer group is "buy"

• Wall Street's median 12-month price target for Silicom Ltd is $60.00, about 57.8% above its July 28 closing price of $38.02

Reuters Recommended Reads

• July 29 - Israel's Radware Q2 adjusted EPS beats estimates on cloud revenue growth

• July 27 - F5 Q3 revenue beats on product sales growth; FY outlook raised

• July 29 - US to award GlobalFoundries $300 million to develop faster AI chip links

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.)