Silicon Motion (SIMO) stock was on the rise Wednesday after the NAND flash controller company released its Q1 2026 earnings report. The company reported adjusted earnings per share of $1.58, which was well above Wall Street’s estimate of $1.28. It was also a roughly 163% year-over-year increase from 60 cents per share.
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Silicon Motion also reported revenue of $342.1 million, which was another beat compared to analysts’ estimates of $299.53 million. Traders will also note that this represented revenue growth of 105% year-over-year. Wallace Kou, president & CEO of Silicon Motion, attributed the revenue increase to “strong growth in our embedded eMMC & UFS controllers and our Ferri and boot drive solutions.”
Silicon Motion stock was up 26.37% in premarket trading on Wednesday, following a 1.11% rally yesterday. The stock has also increased 61.54% year-to-date and 201.37% over the past 12 months.
Silicon Motion Guidance
Silicon Motion provided investors with new guidance for Q2 2026 in its latest earnings report. The company expects:
- Revenue to range from $393 million to $411 million.
- Gross margin to come in between 48.5% and 49.5%.
- Operating margin in the range of 19.8% to 21.1%.
Kou commented on the company’s outlook, saying, “We are benefiting from the cumulative impact of investments we have made over the past several years and expect our share gains and market expansion into enterprise and data center to drive strong sustainable revenue and profitability growth.”
Is Silicon Motion Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Silicon Motion is Strong Buy, based on seven Buy ratings over the past three months. With that comes an average SIMO stock price target of $157.40, representing a potential 5.51% upside for the shares.
SIMO stock will likely receive updated analyst coverage after today’s earnings report, which could change its consensus rating and average price target. The stock has already received a reiterated Buy rating from five-star William Blair analyst Sebastien Naji and an increased price target from five-star Wedbush analyst Matt Bryson after earnings were reported.
