SiTime (NASDAQ:SITM) Releases Quarterly Earnings Results, Beats Expectations By $0.39 EPS

SiTime (NASDAQ:SITM) issued its quarterly earnings data on Wednesday. The company reported $4.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.62 by $0.39, FiscalAI reports. SiTime had a net margin of 3.87% and a return on equity of 13.92%. The firm had revenue of $298.67 million during the quarter, compared to analysts’ expectations of $292.65 million. During the same period last year, the company earned $0.87 earnings per share. The business’s revenue was up 257.4% on a year-over-year basis.

Here are the key takeaways from SiTime’s conference call:

• Record growth and strong outlook: Q3 revenue was $298.7 million, up 257% year over year, with 70.7% gross margin, 43% operating margin and non-GAAP EPS of $4.01. SiTime forecast Q4 revenue of $331 million–$341 million and EPS of about $4.76 at the midpoint.
• AI data-center demand is expanding opportunities: Core communications, enterprise and data-center revenue grew 202%, while optical architectures—including XPO, coherent optics, NPO and CPO—are creating opportunities for higher timing content and higher-value products. Management said the total design-win funnel reached $10 billion, and the semiconductor-company funnel grew eightfold to more than $4 billion, though much of the latter is expected to ramp in 2028–2029.
• Renesas timing acquisition is showing early cross-selling benefits: The acquired TPD business generated $86.3 million in Q3 revenue, up 67% year over year, and management reported that combined offerings are already creating opportunities in both companies’ customer bases. SiTime said its 2027 revenue forecast at its largest accounts has increased two to five times, largely reflecting design-win potential.
• Supply constraints and investment needs remain: Wafer supply constraints, particularly for TPD, are expected to persist through 2027, although management expects the most severe issues to ease around early 2027. The company also expects operating expenses to rise sequentially through 2027 as it builds out infrastructure and supports growth.

SiTime Trading Up 16.3%

SITM traded up $57.94 on Friday, hitting $412.94. 654,885 shares of the company were exchanged, compared to its average volume of 497,775. SiTime has a 12 month low of $243.68 and a 12 month high of $901.81. The firm has a fifty day simple moving average of $565.87 and a two-hundred day simple moving average of $546.00. The stock has a market capitalization of $12.42 billion, a PE ratio of 439.30 and a beta of 2.88. The company has a debt-to-equity ratio of 1.29, a quick ratio of 18.50 and a current ratio of 19.44.

Key Headlines Impacting SiTime

Here are the key news stories impacting SiTime this week:

• Positive Sentiment: SiTime beat Q3 estimates, reporting adjusted EPS of $4.01 versus $3.62 expected and revenue of $298.67 million versus $292.65 million. Revenue rose 257% year over year, with AI infrastructure demand and the Renesas timing acquisition contributing to growth. SiTime Q3 Earnings Surpass Estimates
• Positive Sentiment: Management highlighted expanding AI and optical-networking opportunities, while Seaport Global upgraded SITM from Neutral to Buy. These growth prospects provide support, though Seaport’s $425 target is close to the recent share price. Q3 call highlights Seaport Global upgrade
• Negative Sentiment: Wafer supply constraints are expected to persist through 2027, potentially limiting the company’s ability to meet demand. UBS cut its target from $750 to $650 and Needham lowered its target from $900 to $600; both retained Buy ratings, but the sizable reductions may signal more cautious expectations and pressure the stock. Supply constraints UBS analyst ratings Needham analyst ratings

Insider Activity at SiTime

In other SiTime news, insider Fariborz Assaderaghi sold 1,374 shares of the business’s stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $701.05, for a total transaction of $963,242.70. Following the completion of the sale, the insider directly owned 66,861 shares in the company, valued at approximately $46,872,904.05. The trade was a 2.01% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Rajesh Vashist sold 12,000 shares of the firm’s stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $603.47, for a total transaction of $7,241,640.00. Following the completion of the sale, the chief executive officer directly owned 345,544 shares of the company’s stock, valued at approximately $208,525,437.68. The trade was a 3.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 14,874 shares of company stock worth $9,298,908. Company insiders own 1.40% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts have issued reports on SITM shares. Rosenblatt Securities boosted their target price on shares of SiTime from $750.00 to $900.00 and gave the company a “buy” rating in a report on Tuesday. Weiss Ratings lowered SiTime from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, October 23rd. Morgan Stanley began coverage on SiTime in a report on Thursday, September 17th. They set an “overweight” rating and a $370.00 price objective on the stock. UBS Group dropped their price objective on SiTime from $750.00 to $650.00 and set a “buy” rating on the stock in a report on Thursday. Finally, Seaport Research Partners upgraded SiTime from a “neutral” rating to a “buy” rating and set a $425.00 target price for the company in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $687.00.

About SiTime

SiTime Corporation (NASDAQ: SITM) develops and supplies precision timing solutions for electronic systems. Its products are designed to generate, distribute and maintain accurate timing signals, which help connected devices and infrastructure operate reliably and efficiently.

The company’s portfolio includes silicon MEMS-based resonators and oscillators, clock generators, clock synchronizers, jitter attenuators and other timing components. These products are used in applications such as data centers, telecommunications and networking equipment, automotive systems, industrial machinery, aerospace and defense electronics, and consumer devices.

SiTime’s technology is intended to address demanding requirements for frequency stability, signal integrity, power efficiency and resilience in challenging operating environments.