Silicon Laboratories Inc. (SLAB) AI Stock Analysis
SLAB AI stock analysis summary
AI ResearchSilicon Laboratories Inc. is a fabless semiconductor company providing mixed-signal and wireless microcontrollers for Internet of Things applications. The company generated $855.9M in trailing twelve-month revenue, with FY2025 revenue rebounding 34.3% to $784.8M. However, trailing twelve-month operating margin remained negative at -4.7%, and the stock trades at a forward P/E of 51.0x.
- Market cap
- $7.37B
- Revenue (TTM)
- $855.9M
- P/E
- — fwd 51.0x
- 1Y return
- 60.4% S&P 500 16.8%
- Avg. target
- $222.86 0.8% vs last close
Bull case
- Revenue rebounded 34.3% in FY2025 to $784.8M, supported by positive free cash flow of $65.8M.
- Quarterly revenue for the period ending June 30, 2026, expanded 18.3% year-over-year.
- Consensus estimates project current fiscal year EPS to grow 212.7% to $2.88.
Bear case
- Silicon Laboratories generated a negative net margin of -4.6% and diluted EPS of -$1.17 over the trailing twelve months.
- Quarterly earnings fell 46.7% year-over-year in the latest quarter ending June 30, 2026.
- The stock trades at a forward P/E of 51.0x, well above the median of its US-listed Technology peers of 18.8x.
What Silicon Laboratories does
Silicon Laboratories Inc. is a fabless semiconductor company that specializes in analog-intensive mixed-signal solutions across global markets, including the United States, China, and Taiwan. Its product portfolio encompasses wireless microcontrollers and sensor products designed for Internet of Things (IoT) applications. These solutions support connected home and security systems, industrial automation and control, smart metering, smart lighting, commercial building automation, consumer electronics, asset tracking, and medical instrumentation. Founded in 1996 and based in Austin, Texas, the company operates via a direct sales force alongside independent sales representatives and distributors.
Growth and profitability
Silicon Laboratories experienced revenue fluctuations over recent fiscal years, rising to $1.02B in FY2022 before dropping 23.6% in FY2023 to $782.3M and 25.3% in FY2024 to $584.4M. In FY2025, revenue recovered 34.3% to $784.8M, reflecting a 5-year revenue CAGR of 9.0% from FY2020. Gross margin in FY2025 reached 58.2%, though operating margin remained negative at -9.0% with net income of -$64.9M. For the trailing twelve months ended June 30, 2026, revenue stood at $855.9M, accompanied by an operating margin of -4.7% and EPS of -$1.17. In the latest quarter, revenue grew 18.3% year-over-year, while quarterly earnings declined 46.7%.
Balance sheet and cash flow
As of June 30, 2026, Silicon Laboratories held $397.2M in cash and short-term investments, with total assets of $1.25B and shareholders' equity of $1.09B. Liquidity remained solid, reflected in a current ratio of 5.41. FY2025 operating cash flow turned positive to $95.7M from -$13.9M in FY2024, resulting in free cash flow of $65.8M after capital expenditures of $29.9M. In FY2025, share issuance was $14.6M, while the 5-year share count change was -19.1%.
Valuation and performance
At a share price of $221.00 on October 16, 2026, Silicon Laboratories carried a market cap of $7.37B and an enterprise value of $6.96B. The company trades at a forward P/E of 51.0x and an EV to revenue multiple of 8.1x, compared to the median of its US-listed Technology peers of 18.8x forward P/E and a price to sales ratio of 2.8x. Over the past year, the stock returned 60.4%, surpassing the S&P 500 return of 16.8%. Over a 5-year period, its 50.7% return trailed the S&P 500 return of 83.0%.
What analysts expect
Wall Street analyst coverage includes 8 Hold ratings, with 0 Buy and 0 Sell ratings. The mean price target is $222.86, representing a 0.8% premium over the last close of $221.00. For the fiscal year ending December 31, 2026, consensus estimates expect EPS of $2.88 on revenue of $927.2M. Silicon Laboratories has beaten EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 3, 2026.
Key risks and what to watch
- Short interest stands at 12.7% of the float, reflecting significant bearish sentiment.
- A beta of 1.33 exposes investors to higher price volatility than the broader equity market.
- The business has faced substantial top-line cyclicality, including revenue drops of 23.6% in FY2023 and 25.3% in FY2024.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SLAB AI stock analysis
This page is an AI-written research summary of Silicon Laboratories Inc. (SLAB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SLAB income statement, SLAB balance sheet, SLAB key metrics, SLAB analyst forecast, SLAB chart. See the SLAB stock overview for the latest quote and news.
SLAB AI stock analysis FAQ
What does Silicon Laboratories Inc. do?
Silicon Laboratories Inc. is a fabless semiconductor company providing analog-intensive mixed-signal solutions, wireless microcontrollers, and sensors for Internet of Things applications.
Does Silicon Laboratories pay a dividend?
Silicon Laboratories does not pay a dividend.
What are analysts forecasting for Silicon Laboratories' earnings?
Analysts estimate EPS of $2.88 on revenue of $927.2M for FY2026, and EPS of $4.36 on revenue of $1.08B for FY2027.
What is Silicon Laboratories' cash position?
As of June 30, 2026, Silicon Laboratories held $397.2M in cash and short-term investments, with a current ratio of 5.41.
When is Silicon Laboratories' next earnings release?
The company's next earnings report is scheduled for November 3, 2026.