Silicon Labs Revenue Beats Estimates, Analysts Highlight Inventory Recovery

Silicon Laboratories, Inc. SLAB shares are trading relatively flat on Wednesday.

On Tuesday, the company reported first-quarter results, with revenues of $178 million, beating the Street View. Industrial & Commercial revenue for the quarter was $96 million, up 47% year-over-year, while Home & Life revenue for the quarter was $82 million, up 99%.

Here are the key analysts’ takeaways from the earnings:

• Benchmark analyst Cody Acree reiterated the Buy rating on the stock, with a price forecast of $160.
• Needham analyst N. Quinn Bolton reiterated the Buy rating on Silicon Laboratories, with a price forecast of $150.

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Benchmark: Acree notes that Silicon Labs (SLAB) experienced a quarter-over-quarter improvement in customer bookings and distribution point-of-sale trends during the first quarter, with this positive momentum continuing into the second quarter.

This suggests that both customer and channel inventory levels have returned to more typical levels. The company’s end markets are also gradually recovering from their cyclical downturn.

Silicon Labs reaffirmed its confidence in the full-year outlook shared at its March 11 analyst day. The company remains on track to meet the FY25 Street revenue estimate of $785 million.

Acree anticipates modest upward revisions to consensus following the latest positive results and guidance. T

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To reach his updated FY25 forecast of $789.2 million, Acree projects the firm to deliver mid-single-digit quarter-over-quarter growth in the third and fourth quarters, translating to $203 million and $216 million in sales, respectively—figures that closely align with current market expectations.

Needham: Bolton notes that management has reaffirmed its expectation of more than 20% year-over-year revenue growth for FY25, while he projects a higher 33% increase, citing minimal impact from tariffs.

Gross margins are performing better than anticipated, driven by a favorable product mix and stable pricing. As a result, the company revised margin forecasts slightly upward.

Bolton projects second-half growth to be supported by the ramp-up of design wins in areas such as smart metering, continuous glucose monitors (CGMs), and electronic shelf labels (ESLs).

The analyst also observes that inventory levels are being well managed, with only moderate sequential increases expected through the first quarter of FY26.

Price Action: Silicon Laboratories shares are trading lower by 0.93% to $132.46 at last check Wednesday.

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