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Silicom
(NASDAQ:SILC)
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Rating:62Neutral
Price Target:
$51.00
▲(77.70% Upside)
Action:Reiterated
Date:05/02/26
The score reflects solid balance-sheet resilience and a constructive near-term outlook from the latest call (raised guidance and design-win traction), partially offset by weak profitability/cash-flow consistency and a negative P/E. Technically, momentum is strong but appears overbought, adding near-term pullback risk.
Positive Factors
Strong liquidity & low leverage
A large cash/marketable securities position and no debt provide durable financial flexibility to fund inventory, R&D, and customer-specific builds without refinancing. This balance-sheet strength supports pursuit of design wins and buffers execution risk during cyclical demand or supply disruptions.
Negative Factors
Persistent unprofitability
Despite revenue gains, the company has produced multi-year losses and still reported a material operating and net loss in the latest quarter. Continued losses erode equity, constrain reinvestment capacity, and mean profitability must improve sustainably before the business can self-fund growth without relying on cash reserves.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity & low leverage
A large cash/marketable securities position and no debt provide durable financial flexibility to fund inventory, R&D, and customer-specific builds without refinancing. This balance-sheet strength supports pursuit of design wins and buffers execution risk during cyclical demand or supply disruptions.
Read all positive factors
Silicom (SILC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$243.02M
Dividend YieldN/A
Average Volume (3M)20.95K
Price to Earnings (P/E)―
Beta (1Y)0.90
Revenue Growth14.63%
EPS Growth0.37%
CountryUS
Employees260
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-2.01
Shares Outstanding5,706,142
10 Day Avg. Volume18,089
30 Day Avg. Volume20,945
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)0.71
Price to Sales (P/S)1.35
P/FCF Ratio-25.05
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue3.72
Enterprise Value/Gross Profit12.19
Enterprise Value/Ebitda-25.57
Forecast
1Y Price Target
$60.00Price Target Upside109.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.88
Revenue Forecast (FY)$82.58M
Silicom Business Overview & Revenue Model
Company Description
Silicom Ltd., including its various subsidiaries, specializes in providing comprehensive networking and data infrastructure solutions. The company is involved in the entire lifecycle of these solutions, from their design and manufacturing to marke...
How the Company Makes Money
Silicom primarily makes money by selling specialized networking hardware and platform products to other businesses (B2B), including OEMs/ODMs, network appliance vendors, and service providers. Revenue is generated mainly from product sales of: (1)...
Silicom Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call communicated accelerating core revenue growth (Q1 revenue +33% YoY), strengthening design-win momentum with several material customer wins, improving operating and net loss metrics, and a strong balance sheet that supports inventory builds and investments. Key risks noted include ongoing inventory build-up to mitigate memory lead-time constraints, still-negative quarterly profitability (albeit improved), modest gross margin pressure, customer/geographic concentration, and timing uncertainty for AI inference revenue (expected more meaningfully in 2027). On balance, the positive operational momentum, upgraded guidance and tangible design wins significantly outweigh the highlighted risks.Positive Updates
Strong Revenue Growth
Total revenue of $19.1 million in Q1 2026, up 33% year-over-year (from $14.4M in Q1 2025). Management highlighted an acceleration in YoY growth from 17% in the prior quarter to 33% this quarter and noted the quarter was well ahead of guidance.
Negative Updates
Still Operating at a Loss
Despite improvements, the company remained unprofitable in Q1: operating loss of $1.9M and net loss of $1.5M (non-GAAP), with a negative EPS of $0.25.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenue of $19.1 million in Q1 2026, up 33% year-over-year (from $14.4M in Q1 2025). Management highlighted an acceleration in YoY growth from 17% in the prior quarter to 33% this quarter and noted the quarter was well ahead of guidance.
Read all positive updates
Company Guidance
Silicom guided second-quarter revenue of $20.0–$21.0 million (implying up to ~40% year‑over‑year growth at the high end) and full‑year 2026 revenue of $82–$83 million (≈33% YoY), following a strong Q1 print of $19.1 million (33% YoY) that materially exceeded prior midpoint guidance (which assumed ~18% YoY) and represented an acceleration from 17% YoY last quarter; management reaffirmed a 7–9 design‑win target for 2026 and has already secured 4, including a customer whose expected annual spend was more than doubled from ~$4M to $8–10M (with incremental revenue already in Q1), a Tier‑1 cybersecurity win with initial orders >$1M (expected to ramp to ~2x), a streaming customer initial >$1M order with 5‑year purchases forecast at $12M (and potential work that could more than double related networking revenues from the ~$25–30M range), and a European encryption design win of ~$3M per year with an initial ~$1M commitment (Silicom’s third post‑quantum cryptography win); Q1 non‑GAAP gross profit was $5.7M (30% gross margin), operating expenses $7.6M, operating loss $1.9M (improved from $2.4M a year ago), net loss $1.5M and loss per share $0.25 (vs $0.37), while the balance sheet shows working capital and marketable securities of ~$109M (including ~$63M inventory and ~$63M cash/marketable securities) with no debt and a 12‑month geographic mix of North America 76%, Europe & Israel 14%, Far East/ROW 10%.Silicom Financial Statement Overview
Summary
Income Statement
33
Negative
Balance Sheet
74
Positive
Cash Flow
44
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 61.93M | 58.11M | 124.13M | 150.58M | 128.46M |
| Gross Profit | 18.93M | 16.60M | 28.69M | 51.96M | 44.39M |
| EBITDA | -9.02M | -9.10M | -616.00K | 24.88M | 15.39M |
| Net Income | -11.48M | -13.71M | -26.41M | 18.31M | 10.54M |
Balance Sheet | |||||
| Total Assets | 152.52M | 150.41M | 167.73M | 216.20M | 219.60M |
| Cash, Cash Equivalents and Short-Term Investments | 48.11M | 72.14M | 54.93M | 34.75M | 37.55M |
| Total Debt | 10.52M | 6.47M | 5.95M | 7.84M | 9.19M |
| Total Liabilities | 35.03M | 22.57M | 19.47M | 36.90M | 61.14M |
| Stockholders Equity | 117.49M | 127.84M | 148.26M | 179.29M | 158.46M |
Cash Flow | |||||
| Free Cash Flow | -3.35M | 17.36M | 30.80M | -6.18M | -1.51M |
| Operating Cash Flow | -2.16M | 18.29M | 31.93M | -4.09M | 1.08M |
| Investing Cash Flow | -12.42M | -4.28M | -7.52M | 8.27M | 16.77M |
| Financing Cash Flow | -1.66M | -9.88M | -7.97M | -1.05M | -9.78M |
Silicom Technical Analysis
Positive
28.70
Price Trends
42.09
Positive
31.56
Positive
23.83
Positive
Market Momentum
0.41
Positive
49.39
Neutral
49.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SILC, the sentiment is Positive. The current price of 28.7 is below the 20-day moving average (MA) of 43.74, below the 50-day MA of 42.09, and above the 200-day MA of 23.83, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 49.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SILC.
Silicom Risk Analysis
Silicom disclosed 50 risk factors in its most recent earnings report. Silicom reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Silicom Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $243.02M | -22.07 | -9.30% | ― | 14.63% | 0.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $141.23M | 137.10 | 4.67% | ― | 13.61% | ― | |
54 Neutral | $57.83M | -0.87 | -9999.00% | ― | -8.31% | 77.99% | |
53 Neutral | $177.23M | -34.35 | -3.82% | ― | 7.22% | 46.78% | |
52 Neutral | $78.46M | -11.05 | -23.40% | ― | -12.17% | 18.82% |
* Technology Sector Average
SILC
Silicom
42.59
27.39
180.20%
CMTL
Comtech Telecommunications
1.93
-0.67
-25.77%
KVHI
KVH Industries
9.09
3.71
68.96%
OCC
Optical Cable
16.00
12.40
344.44%
AIRG
Airgain
6.19
1.98
47.03%
FKWL
Franklin Wireless
2.54
-1.45
-36.34%
Silicom Corporate Events
Silicom Sets July 29, 2026 Date for Second-Quarter Results and Investor Call
Jul 1, 2026
Silicom Ltd., a provider of high-performance networking and data infrastructure solutions for cloud, data center and edge markets, offers products ranging from high-speed server adapters and AI NICs to FPGA-based smart cards, PQC accelerators, whi...
Silicom Secures First AI Inference Production Order, Targets Multi-Million 2026 Revenue
Jun 30, 2026
On June 30, 2026, Silicom announced it had secured its first production order for a high-performance AI inference solution, marking a shift from evaluation to commercial deployment. The order, scheduled for delivery in 2026, is expected to lift th...
Silicom Overrides Shareholder RSU Rejection with Performance-Linked CEO Grant
Jun 25, 2026
Silicom reported that at its Annual General Meeting on June 3, 2026, shareholders approved the re-election of director Yeshayahu (“Shaike”) Orbach, salary increases for CEO Liron Eizenman and Active Chairman Avi Eizenman effective retr...
Silicom Wins $5 Million Annual White-Label Switch Deal With Tier-1 Cybersecurity Leader
May 26, 2026
On May 26, 2026, Silicom announced that a Tier-1 global cyber security company has chosen a range of Silicom-designed white-label switches as the networking backbone for its security platforms. The switches were engineered to the customer’s ...
Silicom Wins Key AI Inference PoC Deal With Tier-1 Hyperscaler Focus
May 5, 2026
Silicom announced on May 5, 2026 that a pioneering AI inference acceleration provider has chosen its high-performance, inference-specific solution for a proof-of-concept aimed mainly at Tier-1 hyperscalers. To support the PoC, scheduled for the se...
Silicom to Present, Meet Investors at 21st Annual Needham Tech Conference
May 5, 2026
Silicom Ltd., an Israel-based provider of high-performance networking and data infrastructure solutions for cloud, data center and edge environments, supplies server adapters, AI NICs, FPGA-based smart cards, PQC accelerators, white label switches...
Silicom’s Q1 2026 Revenue Jumps 33% as Core Business Hits Growth Inflection Point
Apr 30, 2026
Silicom reported on April 30, 2026 that its core networking and data infrastructure business reached an inflection point in the first quarter, with Q1 2026 revenues climbing 33% year over year to $19.1 million. Despite this growth, the company pos...
Silicom Sets June 3, 2026 AGM to Vote on Executive Pay, RSUs and Auditor Appointment
Apr 28, 2026
Silicom Ltd. has called its Annual General Meeting of Shareholders for June 3, 2026, in Kfar Sava, Israel, with shareholders of record as of April 29, 2026, entitled to vote. The agenda includes the re‑election of director Yeshayahu (“...
Silicom Secures $3M-Per-Year FPGA SmartNIC Design Win With European Secure Communications Leader
Apr 15, 2026
On April 15, 2026, Silicom Ltd. announced a significant design win with a European provider of advanced encryption and secure communication solutions that require top-tier protection for sensitive information. The customer chose Silicom’s FP...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.