Silicon Motion Sees Q1 Revenue Guidance of $292–306M, Margins at 16%–18%
Silicon Motion's Q4 revenue and profits exceeded consensus, spurring B. Riley and Wedbush to lift price targets to $167 and $150 while maintaining buy ratings. The company forecasted Q1 revenues of $292–$306 million (versus $230.4 million expected) and operating margins of 16%–18%, projecting momentum into 2026.
1. Q4 Results Exceed Estimates
Silicon Motion’s Q4 revenue and earnings surpassed consensus estimates, driven by strong NAND flash controller shipments and higher average selling prices. Outperformance reflected expanding footprint in SSD and mobile embedded storage markets, signaling durable demand.
2. Q1 Guidance and Margins
Management guided Q1 revenues of $292 million to $306 million, well above the $230.4 million consensus, and projected operating margins of 16%–18% based on improved cost efficiencies and product mix.
3. Analyst Price Target Increases
On February 5, B. Riley lifted its price target to $167 and Wedbush raised its target to $150 while maintaining buy and outperform ratings, citing the upbeat Q4 results and strong Q1 outlook.
4. Growth Drivers and 2026 Outlook
The company forecasts sequential quarterly revenue growth through 2026 toward a $1.2 billion target, backed by customer portfolio expansion, new market entries, and gains in SSD and industrial storage segments.