Core Insights - Steady earnings growth is valued by company executives and analysts as a sign of profitability, but earnings acceleration has a stronger impact on stock prices, with leading stocks often experiencing this acceleration before price increases [1][3] - QuantumScape Corporation (QS), Silicon Laboratories Inc. (SLAB), and Affiliated Managers Group, Inc. (AMG) are currently demonstrating strong earnings acceleration [1][8] Earnings Acceleration Definition - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), specifically when the quarter-over-quarter earnings growth rate increases over a specified time frame [2] Importance of Earnings Acceleration - Unlike earnings growth, which may already be reflected in stock prices, earnings acceleration helps identify stocks that have not yet attracted investor attention, leading to potential price rallies [3] - An increasing percentage of earnings growth indicates a fundamentally sound company, while a sideways or decelerating growth percentage may signal consolidation or a downturn [4] Screening Parameters - The screening process involves identifying stocks where the last two quarter-over-quarter EPS growth rates exceed previous periods' growth rates, with projected EPS growth rates for the upcoming quarter expected to surpass prior periods [5][6][7] - Additional criteria include a current price of at least $5 and an average 20-day trading volume of 50,000 or more to ensure adequate liquidity [7] Top Stocks Identified - The screening narrowed down approximately 7,735 stocks to nine, highlighting QS, SLAB, and AMG as top candidates showing strong EPS acceleration [8] - QuantumScape focuses on solid-state lithium-metal batteries for electric vehicles, with an expected earnings growth rate of 21.3% for the current year [9] - Silicon Laboratories specializes in analog-intensive mixed-signal solutions, with an expected earnings growth rate of 152.3% for the current year [10] - Affiliated Managers provides investment management services, with an expected earnings growth rate of 17.7% for the current year [11]

Core Viewpoint - Silicon Laboratories Inc. (SLAB) is facing challenges with its stock performance, particularly as it struggles to find direction in recent weeks, which may be alleviated by the upcoming release of its Q3 FY2025 results [1] Company Summary - Silicon Laboratories Inc. is a solutions provider focused on the Internet of Things (IoT) sector [1]

Core Viewpoint - The article emphasizes the significant growth potential of the AIoT market, driven by the introduction of the Matter standard and advancements in edge AI technology, with projections indicating that the system-on-chip (SoC) market could reach $80 billion to $100 billion by 2030 [2]. Company Overview - Silicon Labs, also known as "芯科科技," is recognized as a leading player in the wireless chip industry, with a comprehensive product portfolio that supports the AIoT market [4]. - Under the leadership of CEO Matt Johnson, the company has established itself as a wireless connectivity giant, with expertise across various wireless technologies including Bluetooth, Zigbee, Matter, Thread, Wi-Fi, Z-Wave, and Wi-SUN [4][5]. Technological Innovations - Silicon Labs has made significant advancements in SoC technology, particularly in multi-core architecture, allowing for efficient handling of IoT applications, security, and wireless connectivity [4][5]. - The company is the first to introduce dynamic multi-protocol (DMP) solutions and has integrated matrix-vector processors (MVP) into its SoCs, enhancing its competitive edge [5]. - The third-generation wireless SoC platform, featuring the SixG301 and SixG302 products, utilizes a 22nm process and offers improved processing power, integration, security, and energy efficiency [12][13]. Market Strategy - Silicon Labs is committed to identifying and developing competitive products for emerging markets, focusing on innovative applications rather than engaging in price competition [11]. - The company has targeted the interconnected health and automotive keyless entry markets as areas of growth, positioning itself ahead of competitors [11]. Security Leadership - The company has achieved PSA Level 4 certification, making it the first IoT chip manufacturer to reach this level, reinforcing its leadership in IoT security [5][12]. Collaboration and Ecosystem - Silicon Labs emphasizes collaboration with ecosystem partners to enhance its product offerings and solutions, focusing on core hardware, protocol stacks, and software development [16]. - The "Works With" developer conference aims to bridge global technology with local needs, highlighting Shenzhen's role as a hub for IoT innovation [16].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - Silicon Laboratories (SLAB) reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.30 per share, and showing a significant improvement from a loss of $0.13 per share a year ago [1][2] Financial Performance - The company achieved revenues of $206 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.47%, and up from $166.4 million in the same quarter last year [2] - Over the last four quarters, Silicon Labs has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance and Outlook - Silicon Labs shares have increased approximately 3% since the beginning of the year, while the S&P 500 has gained 16.5% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $212.23 million, and for the current fiscal year, it is $0.70 on revenues of $787.82 million [7] Industry Context - The Semiconductor - Analog and Mixed industry, to which Silicon Labs belongs, is currently ranked in the top 16% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $206 million, up 7% sequentially and up 24% year-over-year, which is twice the performance of comparable peers [12][4] - GAAP gross margin was 57.8%, while non-GAAP gross margin was 58%, up 170 basis points from the prior quarter and 350 basis points year-over-year [13] - GAAP operating loss was $12 million, while non-GAAP operating income was approximately $11 million [14] - Cash, cash equivalents, and short-term investments at the end of the quarter totaled $439 million [14] Business Line Data and Key Metrics Changes - Industrial and commercial business revenue was $118 million, representing 57% of consolidated revenue, up 7% sequentially and 22% year-over-year [12] - Home and life business revenue was $88 million, or 43% of consolidated revenue, up 6% sequentially and 26% year-over-year [13] - Distribution accounted for approximately 74% of revenue mix, with channel inventory at 61 days [13] Market Data and Key Metrics Changes - Demand for commercial applications such as building safety and lighting saw strong quarter-over-quarter sales growth [4] - Smart meter demand is increasing as utilities deploy near real-time tracking of critical infrastructure [5] - Medical customers in the home and life segment grew nearly 60% year-over-year [5] Company Strategy and Development Direction - The company expects full-year revenue growth of 34% compared to 2024, with continued growth anticipated into 2026 and beyond [4] - A partnership with GlobalFoundries was announced to manufacture Series 2 wireless SoCs, enhancing supply chain resilience [10] - The introduction of new design tools, including Studio 6 and Simplicity AI SDK, aims to streamline development and enhance customer engagement [8][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and ongoing innovation, particularly in the IoT space [10] - The company anticipates continued momentum from share gains, revenue growth, and gross margin expansion [11] - Management noted that customer inventory levels are at their lowest since tracking began, indicating a return to normal market conditions [14] Other Important Information - The company plans to limit operating expense growth while focusing on earnings per share accretion [16] - Non-GAAP earnings per share for Q4 is expected to be in the range of $0.40-$0.70 [17] Q&A Session Summary Question: Clarification on Q4 gross margin guidance - Management confirmed a one-time benefit contributing to gross margin, with expectations of a stabilized gross margin around 61% moving forward [20][22] Question: Financial impact of new design tools - The new SDK is expected to streamline development, allowing for faster time to market and scalability, which should enhance customer acquisition over time [24][25] Question: Expectations for channel and customer inventories - Management indicated that customer inventory effects are effectively gone, and they aim to increase distribution inventory levels gradually [29][30] Question: Outlook for 2026 - While not providing specific guidance, management expressed confidence in outperforming the market and capturing market share, driven by strong product lines [31][32] Question: Inorganic growth opportunities - Management remains open to M&A but emphasizes a tight filter for potential acquisitions, with a preference for returning excess cash flow to shareholders through buybacks [61]

Silicon Labs Investor Presentation NOVEMBER 4, 2025 1 ©Silicon Labs Inc. All rights reserved. Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements based on Silicon Labs' current expectations. The words "believe", "estimate", "expect", "intend", "anticipate", "plan", "project", "will", and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assu ...

Revenue Performance - Revenue for Q3 2025 was $206 million, representing a 24% increase year-over-year from $166.4 million[4] - Industrial & Commercial revenue was $118 million, up 22% year-over-year, while Home & Life revenue was $88 million, up 26% year-over-year[4] - For Q4 2025, the company expects revenue to be between $200 million and $215 million[6] Profitability and Earnings - GAAP gross margin was 57.8%, with non-GAAP gross margin slightly higher at 58.0%[4] - The company reported a GAAP operating loss of $12 million and a non-GAAP operating income of $11 million[4] - GAAP diluted earnings per share are projected to be between $(0.22) and $0.08, while non-GAAP diluted earnings per share are expected to be between $0.40 and $0.70[9] Operating Expenses - GAAP operating expenses for Q4 2025 are estimated to be approximately $134 million to $136 million, while non-GAAP operating expenses are expected to be around $110 million to $112 million[9] - The company reported stock-based compensation expense of $59,645 thousand, up from $45,358 thousand, indicating a rise of 31.5%[25] Strategic Initiatives - The company announced an expansion of its strategic partnership with Global Foundries to enhance U.S.-based semiconductor manufacturing[4] - The launch of the Simplicity Platform aims to accelerate development for embedded IoT systems with AI augmentation[4] - The company hosted the 6th annual Works With developer conference series, focusing on emerging trends in wireless connectivity and AI in IoT[4] Balance Sheet and Cash Flow - Total assets increased to $1,253,067 thousand as of October 4, 2025, up from $1,222,674 thousand on December 28, 2024, representing a growth of 2.5%[23] - Current assets rose to $652,559 thousand, compared to $602,033 thousand, marking an increase of 8.4%[23] - Net cash provided by operating activities was $87,358 thousand, a significant recovery from a cash used of $24,039 thousand in the previous year[25] - Cash and cash equivalents at the end of the period reached $341,403 thousand, up from $303,082 thousand, reflecting an increase of 12.6%[25] Liabilities and Equity - Total liabilities increased to $182,354 thousand from $142,653 thousand, indicating a rise of 27.8%[23] - Stockholders' equity decreased slightly to $1,070,713 thousand from $1,080,021 thousand, a decline of 0.4%[23] Accounts Receivable and Inventory - Accounts receivable increased to $67,308 thousand from $54,479 thousand, representing a growth of 23.5%[23] - Inventories decreased to $82,190 thousand from $105,639 thousand, a reduction of 22.2%[23]

Core Insights - Silicon Labs reported sequential and year-over-year growth in sales and profitability for Q3 2025, driven by strong execution across its business [2][7] - The company is focused on supporting new customer ramps, maintaining operational discipline, and driving continued earnings growth [2] Financial Highlights - Q3 2025 revenue was $206 million, with Industrial & Commercial revenue at $118 million (up 22% year-over-year) and Home & Life revenue at $88 million (up 26% year-over-year) [7] - GAAP gross margin was 57.8%, while non-GAAP gross margin was 58.0% [7] - GAAP operating loss was $12 million, with a GAAP diluted loss per share of $(0.30) [7] - Non-GAAP operating income was $11 million, with a non-GAAP diluted earnings per share of $0.32 [7] Business Outlook - The company expects Q4 2025 revenue to be between $200 million to $215 million [4] - Projected GAAP gross margin for Q4 is between 62% to 64%, with GAAP operating expenses estimated at approximately $134 million to $136 million [7] - Non-GAAP diluted earnings per share for Q4 is expected to be between $0.40 to $0.70 [7] Strategic Developments - Silicon Labs announced an expansion of its strategic partnership with GlobalFoundries to advance next-generation, energy-efficient wireless technologies [7] - The launch of the Simplicity Platform, a suite of software tools with AI augmentation, aims to enhance the development speed for embedded IoT systems [7] - The company hosted the 6th annual Works With developer conference series, focusing on emerging trends in wireless connectivity and AI in IoT [7]

Core Insights - GlobalFoundries (GFS.US) and Silicon Labs (SLAB.US) announced an expansion of their strategic partnership to advance the development of next-generation energy-efficient wireless technologies [1] - The collaboration will utilize Silicon Labs' wireless system-on-chip technology on GlobalFoundries' new 40nm ultra-low power platform [1] - The partnership aims to accelerate the research and production of high-performance wireless solutions at GlobalFoundries' advanced wafer fabrication facility in Malta, New York [1] Company Developments - The research and development work has already commenced, with plans to gradually increase production capacity over the coming years [1] - Silicon Labs' CEO Matt Johnson expressed enthusiasm about deepening the collaboration with GlobalFoundries to foster innovation in wireless connectivity within the U.S. [1] - The partnership reflects a shared commitment to innovation and U.S. manufacturing leadership, addressing the growing demand for Silicon Labs' Series 2 products while enhancing global supply chain resilience [1]