Silicon Labs (SLAB) Is Up 8.7% After Broad Upward Earnings Revisions Reshape Its IoT Narrative

• Recently, analysts have revised their earnings estimates for Silicon Laboratories upward for both the next quarter and the full year, reflecting greater confidence in the company’s profit outlook.
• This broad-based upgrade in expectations, paired with a strong Zacks Rank #2, points to potentially meaningful changes in how the company’s growth and earnings power are being assessed by the market.
• We’ll now examine how this recent wave of upward earnings revisions could reshape Silicon Laboratories’ existing IoT-focused investment narrative.

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Silicon Laboratories Investment Narrative Recap

To own Silicon Laboratories, you need to believe in a long runway for low power wireless IoT chips and the company’s ability to monetize its Series 2 and Series 3 platforms. The recent wave of upward earnings revisions strengthens the near term earnings recovery catalyst, but does not remove the key risk that rising competition and potential chip commoditization could pressure pricing and margins if IoT growth or standards shift.

The Q3 2025 update is the most directly relevant backdrop for these estimate changes, with revenue rising to US$206.0 million and losses narrowing to US$9.9 million. Management’s Q4 guidance for US$200 million to US$215 million of sales and GAAP EPS between a loss of US$0.22 and a profit of US$0.08 gives investors fresher context for how quickly Silicon Labs might translate its IoT design wins and new wireless platforms into improved profitability.

But while earnings expectations are improving, investors should still be aware of how intensifying wireless IoT competition could...

Read the full narrative on Silicon Laboratories (it's free!)

Silicon Laboratories' narrative projects $1.2 billion revenue and $13.9 million earnings by 2028. This requires 19.2% yearly revenue growth and about a $118.5 million earnings increase from -$104.6 million today.

Uncover how Silicon Laboratories' forecasts yield a $150.44 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community fair value estimates for Silicon Labs span about US$64 to US$150 across 2 different models, underlining how far apart individual views can be. Against this backdrop, the recent analyst earnings upgrades linked to improving IoT platform traction give you one more lens on how the company’s focused wireless strategy might influence future performance, so it is worth weighing several perspectives before forming a view.

Explore 2 other fair value estimates on Silicon Laboratories - why the stock might be worth less than half the current price!

Build Your Own Silicon Laboratories Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Silicon Laboratories research is our analysis highlighting 1 key reward that could impact your investment decision.
• Our free Silicon Laboratories research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Silicon Laboratories' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.