Silicon Motion: Fiscal 1Q26 Financial Results

Summary:

• First quarter of 2026 sales increased 23% Q/Q and increased 105% YoY
• SSD controller sales: 1Q of 2026 decreased 5% to 10% Q/Q and increased 40% to 45% YoY
• eMMC+UFS controller sales: 1Q of 2026 increased 30% to 35% Q/Q and increased 140% to 145% YoY
• Ferri & Boot Drive solutions sales: 1Q of 2026 increased 205% to 210% Q/Q and increased 755% to 760% YoY

Silicon Motion Technology Corp. announced its financial results for the quarter ended March 31, 2026.For the first quarter of 2026, net sales (GAAP) increased sequentially to $342.1 million from $278.5 million in the fourth quarter of 2025. Net income (GAAP) also increased sequentially to $66.8 million, or $1.97 per diluted American depositary share (“ADS”) (GAAP), from net income (GAAP) of $47.7 million, or $1.41 per diluted ADS (GAAP), in the fourth quarter of 2025.

For the first quarter of 2026, net income (non-GAAP) increased sequentially to $53.8 million, or $1.58 per diluted ADS (non-GAAP), from net income (non-GAAP) of $42.7 million, or $1.26 per diluted ADS (non-GAAP), in the fourth quarter of 2025.

All financial numbers are in U.S. dollars unless otherwise noted.

First Quarter of 2026 Review”
Our first quarter results exceeded our revenue, gross margin and operating margin expectations, driven primarily by strong growth in our embedded eMMC & UFS controllers and our Ferri and boot drive solutions,” stated Wallace Kou, president and CEO, Silicon Motion. “Our embedded eMMC & UFS controller business was up over 30% sequentially and over 140% year-over-year, driven primarily by recent market share gains despite weakening smartphone sales resulting from higher memory and storage component costs. Our Ferri and boot drive solutions business saw significant sequential and yearover-year growth as new Ferri for automotive products ramped and our enterprise boot drive solutions began to scale with our AI infrastructure/GPU customer. Our SSD controller business declined sequentially, in line with typical seasonality, but increased approximately 45% year-over-year as we began to reap the benefits of our new PCIe 5 controllers that carry much higher ASPs when compared to previous generations. MonTitan will enter volume commercial production in the current quarter, earlier than planned, and our customers expect to ramp five tier-one CSPs, three in Asia and two in the US, in the second half of this year. Overall, this was a great start to 2026. Our investments in share gains across all our markets and expansion into new enterprise/AI opportunities are taking hold and are already creating strong tailwinds for growth this year and beyond.”

Business Outlook”
“The first quarter of 2026 delivered an exceptional start to what we expect will be a defining year for Silicon Motion as we expand our market share, broaden our customer and product portfolio, and penetrate new large and high growth edge AI and cloud AI device and infrastructure end markets. We have multiple new products across nearly all our business lines expected to ramp throughout 2026 including our new 4-channel PCIe5 edge SSD controller, multiple new embedded eMMC and UFS controllers for mobile, IoT and automotive, new programs for Ferri automotive solutions and our emerging enterprise-class products including MonTitan controllers and boot drive storage solutions. Based on our existing backlog, we expect our strong start to 2026 to continue in the second quarter and drive sequential growth throughout this year as these new programs scale further and our share gains accelerate. 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,” stated Mr. Kou.

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