SiTime Corp. (SITM) Strong quarter driven by datacenter timing and smartphone wins, with Renesas business driving material a...

Equity Research 5 August 2026 | 8:52PM EDT

SiTime Corp. (SITM): Strong quarter driven by datacenter timing and smartphone wins, with Renesas business driving material accretion

Key stock takeaways: We expect the stock to hold its gains (up ~30% after hours) James Schneider, Ph.D. | following a very strong quarter and guidance, driven by upside in the company’s Goldman Sachs & Co. LLC datacenter segment and in light of material accretion from the Renesas timing Khalil Fenina business. We believe investor expectations were constructive heading into the print | following a series of strong results due to the company’s design win traction for Goldman Sachs & Co. LLC

timing devices tied to AI datacenter buildouts. However, we believe the magnitude Anmol Makkar | of upside the company is seeing across its Datacenter and Consumer segments - Goldman Sachs & Co. LLC driven by high-speed networking and new smartphone design wins - cleared even the most bullish investor expectations. We remain Buy rated on SiTime as we expect Luya You | the company’s growth momentum to continue on the back of strong AI datacenter Goldman Sachs & Co. LLC

spending, coupled with solid volume trends at Apple for internal modem devices — and we continue to see upside to Street estimates in 2026 and beyond.

Quarterly results were well above the Street: SiTime reported revenue of $157 mn, well above GS at $150 mn and the Street at $147 mn. Gross margin of 67.1% was well above GS at 65.0% and the Street at 64.9%. Non-GAAP EPS of $2.34 was well above GS at $2.04 and the Street at $1.95. Communications, Enterprise & Datacenter revenue of $101.2 mn was in line with GS at $107 mn and the Street at $102 mn; IoT, Consumer & Mobile revenue of $31.4 mn was far above GS at $18 mn and the Street at $20 mn; and Auto, Industrial & Aerospace revenue of $24.8 mn was in line with GS at $24 mn and the Street at $25 mn.

n Outlook for the Datacenter business: SiTime delivered very strong revenue growth of 181% YoY in its CID (Communications, Enterprise, and Datacenter) business in 2Q. Management continues to see increased demand in its Datacenter business, mainly driven by both increased content requirements for AI inference demand and higher-speed optical networking with 1.6Tbps products ramping as strength in 800G/400G continues. We believe this signals improving visibility and overall quality in the business, and we continue to see this segment as a meaningful driver of the business going forward. n Details on the impact of the Renesas acquisition: SiTime sees strength from the impact of the acquired Renesas timing business, which closed at the beginning of the quarter. The company expects Renesas to contribute $85mn of revenue in 3Q, with roughly 75% contribution from the CID segment and 25% contribution from Automotive/Industrial. The company expects strong growth across the Renesas business to continue, with gross margin contribution above

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Goldman Sachs SiTime Corp. (SITM)

the corporate average. n Strong gross margin traction: SiTime delivered strong gross margins of 67.1% in 1Q, and guided for 68% in 3Q as a result of stronger product mix and accretion from Renesas. Given the company’s shift toward datacenter revenue, we would expect SiTime to continue to deliver gross margins in the high-60% range for the foreseeable future. However, in seasonally higher smartphone quarters, we would expect some modest gross margin degradation given an increased mix of mobile/consumer business.

3Q guidance is far above the Street. SiTime guided 3Q26 revenue and EPS far above the Street. Revenue was guided to $290 mn at the midpoint, which is far above GS at $227 mn and…