The NAND flash controller supplier reported $451.0 million in second-quarter net sales and said third-quarter revenue could reach $519 million to $541 million as embedded, enterprise and storage products expand.
Silicon Motion Technology Corporation reported sharp acceleration in its second quarter of 2026, with GAAP net sales rising 32% quarter on quarter and 127% year on year to $451.0 million for the period ended June 30, 2026. GAAP net income climbed to $136.1 million, or $3.99 per diluted ADS, from $66.8 million, or $1.97 per diluted ADS, in the first quarter, while non-GAAP net income rose to $83.1 million, or $2.43 per diluted ADS, from $53.8 million, or $1.58 per diluted ADS. The company said growth was driven by Embedded eMMC and UFS, Enterprise and Edge SSD controllers, and Ferri and Boot Drive storage solutions. Gross margin reached 50.2% on both a GAAP and non-GAAP basis, while operating margin was 22.4% GAAP and 23.1% non-GAAP. Wallace Kou, President & CEO of Silicon Motion, said the company’s shift from a consumer-focused NAND flash controller maker toward a broader storage and controller platform serving AI infrastructure and edge markets is accelerating. For the third quarter of 2026, management expects revenue of $519 million to $541 million, equivalent to growth of 15% to 20% quarter on quarter and 114% to 124% year on year, with GAAP gross margin of 49.9% to 50.9% and GAAP operating margin of 24.4% to 25.7%. The company also said it remains on track to deliver the highest annual revenue in its history, growing more than 100% year over year.