Pre-market surges more than 11%! SiTime (SITM.US) Q4 revenue surges 66% year-on-year, aiming to achieve $1 billion by acquiring the timing business of Ricera.

On Thursday, before the US stock market opened, the leading precision timing solutions company, SiTime (SITM.US), saw its stock price soar by over 11%. This significant increase was driven by the company's release of its fourth quarter 2025 financial report, which far exceeded market expectations, as well as a major acquisition announcement aimed at reshaping the industry landscape. Performance Exceeds Expectations The financial report revealed that SiTime achieved an adjusted earnings per share of $1.53 in the fourth quarter, significantly higher than the market's general expectation of $1.21 per share. Quarterly revenue reached $1.133 billion, surpassing the expected value of $1.0191 billion, and marking a substantial 66% year-over-year and 36% quarter-on-quarter growth. Gross profit margin rose to 61.2%, also surpassing the company's previous guidance. For the full fiscal year of 2025, SiTime's revenue reached $3.267 billion, a 61% increase from the $2.027 billion in the 2024 fiscal year. Non-GAAP net profit was $82.6 million, with diluted earnings per share of $3.20. The company's Communication, Enterprise, and Data Center (CED) business segment was the standout, achieving over 100% year-over-year growth for the seventh consecutive quarter, with a 160% year-over-year increase in the fourth quarter alone, contributing $64.6 million in revenue, accounting for 57% of the total revenue. CEO Rajesh Vashist stated, "The company's growth in the fourth quarter and for the full year of 2025 is comprehensive, covering all end customer areas and regions. Looking ahead to 2026, we expect the overall growth momentum driven by the communication, enterprise, and data center business to continue." CFO Beth Howe added that this quarter was a milestone quarter, as the company achieved over $1 billion in revenue for the first time in a single quarter and generated a 30% operating profit margin. The company has sufficient liquidity at the end of the period, with $808 million in cash and short-term investments. Accelerating Towards the $1 Billion Goal Simultaneously with the financial report, SiTime announced the acquisition of Renesas Electronics timing business assets for $1.5 billion in cash and approximately 4.13 million shares of common stock. The business is expected to contribute approximately $300 million in revenue with a gross profit margin of 70% within 12 months of the transaction's completion. Management noted that this acquisition will significantly accelerate the company's progress towards achieving a $1 billion revenue target and is expected to enhance non-GAAP earnings per share in the first full year after completion. The transaction is expected to be completed by the end of 2026, pending regulatory approval. During the financial report conference call, Vashist described the transaction as "achieving our vision of changing the timing market, addressing the most challenging timing issues for customers, and accelerating towards the $1 billion revenue goal." Performance Outlook For the first quarter of 2026, the company provided positive performance guidance: revenue is expected to be between $101 million and $104 million, with a year-over-year growth of approximately 70% (at the median); gross profit margin is expected to be around 62%, and non-GAAP earnings per share are projected to be between $1.10 and $1.17. Vashist revealed that the end-of-quarter order shipments ratio exceeded 1.5, giving them confidence in the visibility for the entire year. Howe also emphasized that the first quarter's seasonal impact would be lower than historical average levels, and the CED business is expected to continue to achieve quarter-over-quarter growth. Vashist emphasized that the company's long-term annual revenue growth target of 25% to 30% remains stable. With the continued strong demand for AI data centers and the cross-selling, customer expansion, and synergies from acquiring Renesas timing business, the company is confident in future growth. Analysts in the financial report conference call also showed positive sentiment, focusing on the core business growth drivers and synergies from the acquisition. The management team demonstrated strong confidence, outlining in detail the integration strategies after the acquisition and the cross-market sales opportunities. Compared to the previous quarter, analysts and management shifted their focus from optimism about organic growth pipelines to enthusiasm and forward-looking outlook stemming from the acquisition of Renesas timing business.