Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 7 of last 7 quarters
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SiTime's results reinforce the critical role of precision timing in AI infrastructure, with CED revenue crossing $100 million in a quarter and triple-digit growth continuing. The acquisition of Renesas' timing business expands SiTime's portfolio into clocks and buffers, strengthening its position as the pure-play timing supplier for AI data centers, optical modules, and synchronization. The company's visibility extending 12-18 months out and the step-up in Q3 guidance signal sustained AI infrastructure buildout momentum into 2027.
SiTime delivered exceptional Q2 results with revenue of $157 million, up 127% year-over-year, and non-GAAP EPS of $2.34, up 400%. CED revenue grew 181% to $101 million, marking the ninth consecutive quarter of triple-digit growth, while AID grew 51% and MIC grew 85% (with the large consumer customer contributing $22.8 million). The company closed the Renesas timing acquisition on July 1, ahead of schedule, and issued $1.35 billion in convertible notes to fund it. Operating leverage was strong, with operating margin expanding to 34% from 10% a year ago, and cash flow from operations more than doubled to $40 million.
Management raised the full-year growth trajectory, with Q3 guidance implying a step change in growth: core SiTime revenue (excluding TPD) is expected to increase ~30% sequentially, and the combined company is on track to exceed the $300 million annualized TPD run-rate target set at acquisition. CED remains the primary growth engine, with triple-digit growth expected again in Q3 and continued strength into 2027, driven by 1.6T optical module adoption, hyperscaler synchronization, and expansion beyond traditional hyperscalers. Gross margins are expected to remain in the 67-68% range, supported by manufacturing leverage and product mix, more than offsetting the higher mix of consumer revenue in the back half. The integration of TPD is progressing, with priorities on customer experience, supply expansion, and moving the business onto SiTime's operating platform.
“The second quarter was truly exceptional. Revenue was $157 million up 127% year over year Gross margins were 67.1%, up 8.9% points. Operating margin was 34%, up from 10% a year ago. And net income was 65.7 million or $2.34 per diluted share up 400%.”
on Q2 results
“And now that many customers are placing orders 12 to 18 months in advance, our visibility into 2027 keeps improving.”
on Demand visibility
“And we are moving timing from a discrete component to something that is integrated into the heart of the system through chiplets, advanced substrates, and modules that enable higher performance and compute density.”
on Innovation roadmap
With TPD tracking above the $300 million annualized run-rate, what has changed over the last 6 months to make the acquisition even stronger from a revenue contribution perspective?
Beth Howe noted that TPD's revenue is ~75% CED and has continued to see strong performance through Q2 and into Q3, exceeding expectations. She said it is early days and they are still working through integration, but they are well on their way to exceeding the $300 million target.
How should we think about growth by segment into Q3, and when should we see material revenue from the move to integrated timing solutions (chiplets, modules)?
Beth Howe said core SiTime CED should see triple-digit growth again in Q3, with strong growth across all segments and a significant pickup in consumer in the back half. Rajesh Vashist said the move to integrated timing is coming and SiTime is pioneering it, with ASPs and density of use increasing, adding billions by 2030.
How much of the data center growth is market share gain versus growth of precision timing within the AI server TAM?
Rajesh Vashist said there is definitely market share gain in optical modules as they transition from 800G to 1.6T, with higher ASPs. In racks, synchronization is driving higher precision TCXO content, adding several hundred dollars per rack. He also noted broadening of the data center market beyond hyperscalers, including enterprise, captive, neo-cloud, and sovereign data centers.