Key Highlights

  • SiTime shares are up 24.83% in pre-market trading.
  • Q2 2026 revenue reached $157.4 million, up 127% year over year, beating consensus.
  • Non-GAAP EPS of $2.34 beat estimates by more than 21%.
  • The company guided Q3 2026 revenue to $205 million to $210 million.
  • SiTime's Renesas Timing Products acquisition is expected to add approximately $85 million in Q3 revenue.

Shares Surge on Broad-Based Growth

SiTime (NASDAQ:SITM) is trading sharply higher today after delivering second-quarter results that topped Wall Street expectations across every business unit and region. Shares rose as much as 24.83% to $678.00 in pre-market trading, adding to Tuesday's after-hours gains as the market digested the scale of the beat.

SiTime, a fabless semiconductor company and market leader in silicon MEMS-based precision timing solutions headquartered in Santa Clara, California, reported second-quarter revenue of $157.4 million, up 127% year over year and 39% sequentially, with gross margin of 67.1%, up 8.9 points year over year. The company's growth was led by its Communications, Enterprise and Data Center segment, which hit $101.2 million in revenue, up 181% year over year, with every business unit and region growing more than 50% year over year.

Acquisition Closes, Guidance Raised for Q3

SiTime closed its acquisition of Renesas' Timing Products Division on July 1, ahead of schedule, with the acquired business expected to contribute approximately $85 million in Q3 revenue. Combined with organic growth, the deal is expected to accelerate the company's growth trajectory beyond 2026, with prior guidance already pointing to a $300 million annualized revenue run rate from the acquired business.

For third-quarter 2026, the company guided combined revenue of $285 million to $295 million, sequentially at midpoint, with gross margin of approximately 68% including the acquired business, and non-GAAP EPS guided to $1.90 to $2.10 on a share count of roughly 32.8 million shares.

Long-Term Growth Drivers

Management highlighted long-term growth drivers including AI data center expansion, automotive/defense precision timing, with an addressable market opportunity now expected to expand by $2.5 billion to $2030, and multiyear core growth rate targeted at approximately 30% or higher.

SiTime's silicon MEMS-based timing technology replaces traditional quartz-based components with smaller, more reliable, and higher-performance alternatives, serving over 10,000 customers across communications, data center, AI infrastructure, mobile, IoT, aerospace, and defense electronics. The company's differentiated technology positions it to capture an increasing share of the precision timing market as AI infrastructure buildouts require increasingly stringent timing and synchronization performance, a trend management expects to continue accelerating demand for its products well beyond the current quarter's results.

Conclusion

SiTime's dramatic pre-market gain reflects a genuinely strong quarter across every business line, compounded by the accelerated close of its Renesas acquisition. With AI data center demand and expanding total addressable market opportunities in automotive and defense applications, the company appears well positioned for continued growth into 2027.

This article is for informational purposes only and does not constitute financial, investment, or trading advice. Readers should conduct their own research or consult a licensed financial advisor before making any investment decisions.