The strong beat and raised dividend signal accelerating enterprise/AI controller adoption. Watch Q4 revenue against the $588M-$616M guidance range and monitor operating cash flow improvement as inventory builds normalize.
Price Chart
Executive Summary
Silicon Motion reported Q3 2026 revenue of $560.2M (+131% YoY, +24% Q/Q), well above the $529.1M consensus, and non-GAAP EPS of $4.35, beating the $3.33 consensus by 30.6%. GAAP EPS fell to $1.91 from $3.99 in Q2 due to a $78.0M unrealized investment loss. The company guided Q4 revenue of $588M-$616M (+111%-121% YoY), implying continued strong growth, and raised its annual dividend by 15% to $2.30 per ADS.
Key Financial Metrics
Key Facts
- Q3 2026 revenue $560.2M, +131% YoY, +24% Q/Q, above $529.1M consensus
- Non-GAAP EPS $4.35, above $3.33 consensus (beat by 30.6%)
- GAAP EPS $1.91, down from $3.99 in Q2 due to $78.0M unrealized investment loss
- Q4 2026 revenue guidance $588M-$616M (+111%-121% YoY), above consensus
- Non-GAAP gross margin expanded to 53.7% from 48.7% a year ago
- Annual dividend increased 15% to $2.30 per ADS
- Completed $1.15B convertible notes offering in August 2026, cash balance rose to $953.6M
- Ferri & Boot Drive solutions sales surged 2,580%-2,585% YoY
- Operating cash flow was negative $256.1M in Q3 due to working capital build
Financial Impact
Revenue beat consensus by $31.1M (5.9%); non-GAAP EPS beat by $1.02 (30.6%); Q4 guidance midpoint $602M above consensus
Segment Breakdown
| Segment |
|---|
| SSD controllers |
| eMMC+UFS controllers |
| Ferri & Boot Drive solutions |
Risk Factors
- GAAP EPS depressed by $78.0M unrealized investment loss, creating divergence from non-GAAP results
- Negative operating cash flow of $256.1M in Q3 driven by working capital build (inventory +$198M, receivables +$120M)
- eMMC+UFS controller sales declined 10%-15% Q/Q, indicating consumer segment weakness
- Convertible notes add $1.1B in long-term debt, potential dilution if converted above principal
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001193125-26-436478 |
| Document: d135156d6k.htm | 0001193125-26-436478 |
| Document: 0001193125-26-436478-index-headers.html | 0001193125-26-436478 |
| Document: 0001193125-26-436478-index.html | 0001193125-26-436478 |
| Document: 0001193125-26-436478.txt | 0001193125-26-436478 |
| Earnings Context (Synthetic; results releases only) | 0001193125-26-436478 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 3d ago | 6-K | No price | awaiting T+5 | awaiting T+5 | No price |
Oct 28, 2026 3d ago | Press Release | $227.75 | awaiting T+5 | awaiting T+5 | $208.65 (−8.39%) |
Oct 16, 2026 16d ago | 6-K | $217.24 $189.18 | ▼ −12.92% | ▼ −12.77% | $208.65 (−3.95%) |
Oct 8, 2026 24d ago | 6-K | $263.90 $211.30 | ▼ −19.93% | ▼ −17.96% | $208.65 (−20.94%) |
Aug 11, 2026 11w ago | 6-K | $224.00 $251.72 | ▲ +12.38% | ▲ +12.78% | $208.65 (−6.85%) |
Aug 10, 2026 11w ago | 6-K | $230.61 $272.70 | ▲ +18.25% | ▲ +18.30% | $208.65 (−9.52%) |
Jul 29, 2026 13w ago | Press Release | $255.10 $267.43 | ▲ +4.83% | ▲ +1.21% | $208.65 (−18.21%) |
Jul 24, 2026 14w ago | 6-K | $244.45 $253.60 | ▲ +3.74% | ▲ +2.67% | $208.65 (−14.65%) |
Jul 8, 2026 16w ago | 6-K | $324.26 $272.45 | ▼ −15.98% | ▼ −15.85% | $208.65 (−35.65%) |
May 1, 2026 26w ago | 144 | $234.04 $242.71 | ▲ +3.70% | ▲ +1.36% | $208.65 (−10.85%) |
US Market Status
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