SiTime SITM is scheduled to report its second-quarter 2026 earnings results on Aug. 5.
For the second quarter of 2026, SiTime expects revenues between $140 million and $150 million, representing year-over-year growth of more than 100% at the midpoint. SITM expects non-GAAP earnings in the $1.85-$2 per share range.
The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.93 per share, unchanged over the past 30 days. The company reported earnings of 47 cents per share in the year-ago quarter.
The consensus mark for second-quarter 2026 revenues is pegged at $145.09 million, indicating a 108.79% year-over-year increase.
SiTime Corporation Price and EPS Surprise
SiTime Corporation price-eps-surprise | SiTime Corporation Quote
SiTime beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, with the average surprise being 34.61%.
Let us see how things have shaped up for the upcoming announcement.
Factors Likely to Have Influenced SiTime's Q2 2026 Performance
SiTime’s second-quarter 2026 results are expected to benefit from continued strength in its Communications, Enterprise and Data Center business. Demand is likely to have remained robust across artificial intelligence (AI) infrastructure in the to-be-reported quarter, including AI accelerator platforms, optical modules, Ethernet switches and SmartNICs. The strong growth momentum witnessed in the first quarter of 2026 is expected to have continued in the second quarter, supported by a strong order book and improving customer demand visibility.
The to-be-reported quarter is expected to have benefited from expanding AI inference deployments. Newer inference infrastructure requires two to four times more timing content than AI training systems because of higher synchronization requirements for improving GPU utilization, reducing latency and increasing throughput. Higher unit shipments, increasing timing content per system and rising average selling prices (ASP) are expected to have supported revenue growth, while continued adoption of premium timing solutions is likely to have contributed to a richer product mix and margin expansion.
The transition toward higher-speed AI networking is expected to have supported second-quarter performance. Demand for SiTime’s advanced timing solutions is likely to have benefited from increasing adoption of 1.6-terabit optical modules, while shipments of 400G and 800G optical modules are likely to have remained strong. Higher networking bandwidth requirements are expected to have driven adoption of SITM’s premium Elite 2 Super TCXO family, which carries higher ASP than previous-generation products.
Strength across aerospace, defense, industrial and automotive markets is expected to have contributed to top-line growth in the second quarter. Growing adoption of precision timing solutions in autonomous systems, satellite communications, defense modernization and industrial automation, together with higher government defense spending, is expected to have supported steady growth across these end markets.
However, weakness and seasonal softness in Mobile, IoT and Consumer businesses are expected to have hurt top-line growth. Despite strong AI demand, SITM expects gross margin (guided to 65%) to suffer from unfavorable product mix. Moreover, higher operating expenses ($46-$47 million range) are expected to have kept operating margin under pressure in the to-be-reported quarter.
What Our Model Says About SITM
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.
SiTime currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.
NVIDIA NVDA has an Earnings ESP of +0.52% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA shares have gained 7.6% in the year-to-date period. NVDA is set to report second-quarter fiscal 2027 results on Aug. 26.
Analog Devices ADI has an Earnings ESP of +2.37% and a Zacks Rank #2 at present.
Analog Devices shares have gained 35.5% in the year-to-date period. ADI is scheduled to report its third-quarter fiscal 2026 results on Aug. 19.
Applied Materials AMAT has an Earnings ESP of +1.52% and a Zacks Rank #2.
Applied Materials stock has gained 97.5% in the year-to-date period. AMAT is set to report its third-quarter fiscal 2026 results on Aug. 13.
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This article originally published on Zacks Investment Research (zacks.com).