Silicon Motion: Fiscal 2Q26 Financial Results

Summary:

SSD controller sales: 2Q of 2026 increased 5% to 10% QoQ and increased 50% to 55% YoY
eMMC+UFS controller sales: 2Q of 2026 increased 15% to 20% QoQ and increased 95% to 100% YoY
Ferri & Boot Drive solutions sales: 2Q of 2026 increased 110% to 115% QoQ and increased 1,690% to 1,695% YoY

Silicon Motion Technology Corp. announced its financial results for the quarter ended June 30, 2026.For the second quarter of 2026, net sales (GAAP) increased sequentially to $451.0 million from $342.1 million in the first quarter of 2026. Net income (GAAP) also increased sequentially to $136.1 million, or $3.99 per diluted American depositary share (“ADS”) (GAAP), from net income (GAAP) of $66.8 million, or $1.97 per diluted ADS (GAAP), in the first quarter of 2026

For the second quarter of 2026, net income (non-GAAP) increased sequentially to $83.1 million, or $2.43 per diluted ADS (non-GAAP), from net income (non-GAAP) of $53.8 million, or $1.58 per diluted ADS (non-GAAP), in the first quarter of 2026.

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

Second Quarter of 2026 Review
“Our shift from a consumer-focused NAND flash controller maker to a diversified leader in controllers and storage solutions — from AI infrastructure to the edge — is accelerating rapidly,” stated Wallace Kou, president & CEO, Silicon Motion. “The second quarter delivered exceptional growth in revenue, gross margin, and operating margin — powered by our Embedded eMMC & UFS business, our Enterprise and Edge SSD controller business, and our rapidly growing storage solutions business focusing on Ferri for Automotive & Enterprise Boot Drives. The first two quarters delivered a record-breaking start to the year, and we expect that momentum to continue into the second half. With our ongoing product and market expansion, we are building a resilient platform for sustainable, high-quality revenue and profitability growth for years to come.”

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Business Outlook
“SIMO is drawing on its leading NAND controller technology and unmatched industry relationships to broaden its product portfolio and addressable markets from AI infrastructure to the edge. We’ve built this foundation over the past several years through investments in leading embedded eMMC and UFS products, our high-performance 6nm PCIe5 edge SSD controller portfolio, our new MonTitan enterprise/AI SSD PCIe5 and in-development PCIe6 controllers, and our rapidly expanding lineup of Ferri and Enterprise Boot Drive storage solutions. Today we are exceptionally well positioned across every AI market, including AI data center, AI server, edge AI, and physical AI.”

“Based on our current backlog and customer forecasts, we expect continued strong top-line growth through the rest of the year. Although many of our consumer businesses face real headwinds from current NAND pricing and supply, we have never been better positioned as a company. We are on track to deliver the highest annual revenue in our company’s history, growing more than 100% year-over-year, and we’re still in the early stages of bringing our new enterprise/AI infrastructure products into the mix,” stated Mr. Kou.