Pre-market surge of over 11%! SiTime(SITM.US)Q4 revenue skyrocketed 66% year-over-year, acquiring Renesas timing business to push towards a $1 billion target

On Thursday before the U.S. stock market opened, precision timing solutions leader SiTime (SITM.US) surged over 11%. The sharp rise was driven by the company releasing a Q4 2025 earnings report that far exceeded market expectations, along with a major acquisition announcement aimed at reshaping the industry landscape.

Strong Earnings Surpass Expectations

The earnings report showed that SiTime’s adjusted Q4 earnings per share reached $1.53, significantly higher than the consensus estimate of $1.21; quarterly revenue was $113.3 million, surpassing the expected $101.91 million, with year-over-year growth of 66% and quarter-over-quarter growth of 36%; gross margin increased to 61.2%, also exceeding previous guidance.

For the full fiscal year 2025, SiTime’s revenue totaled $326.7 million, up 61% from $202.7 million in 2024; non-GAAP net profit was $82.6 million, with diluted EPS of $3.20.

The company’s communications, enterprise, and data center (CED) business became the biggest highlight, achieving over 100% YoY growth for the seventh consecutive quarter, with a 160% YoY increase in Q4, contributing $64.6 million in revenue, accounting for 57% of total revenue.

CEO Rajesh Vashist stated, “Our growth in Q4 2025 and for the full year is comprehensive, covering all end markets and regions. Looking ahead to 2026, we expect sustained growth driven by our communication, enterprise, and data center segments.”

CFO Beth Howe added that this quarter was a milestone, as the company achieved its first $100 million quarterly revenue and a 30% operating profit margin. The company ended the quarter with ample liquidity, holding $808 million in cash and short-term investments.

Accelerating Toward the $1 Billion Goal

Alongside the earnings release, SiTime announced it would acquire Renesas Electronics’ timing business assets for $1.5 billion in cash and approximately 4.13 million shares of common stock. This business is expected to contribute about $300 million in revenue within 12 months of closing, with a gross margin of up to 70%.

Management noted that this acquisition will significantly accelerate the company’s path to reaching $1 billion in revenue and is expected to boost non-GAAP EPS in the first full year after closing. The deal is expected to close by the end of 2026, pending regulatory approval.

During the earnings call, Vashist described the transaction as “a milestone in realizing our vision to transform the timing market, solve our customers’ most challenging timing problems, and accelerate toward $1 billion in revenue.”

Outlook

For Q1 2026, the company provided an optimistic outlook: revenue is expected between $101 million and $104 million, representing approximately 70% year-over-year growth (midpoint); gross margin is projected around 62%; non-GAAP EPS is expected between $1.10 and $1.17.

Vashist revealed that order shipments at the end of Q4 exceeded 1.5 times, giving confidence in the full-year outlook. Howe also emphasized that seasonal effects in Q1 will be lower than historical averages, and the CED business is expected to continue sequential growth.

Vashist reaffirmed the company’s long-term annual revenue growth target of 25% to 30%. With strong demand from AI data centers and cross-selling, customer expansion, and synergies from the Renesas timing acquisition, the company remains confident in future growth.

During the earnings call, analysts generally expressed positive sentiment, focusing on the core business growth drivers and synergies from the acquisition. Management demonstrated strong confidence, elaborating on integration strategies and cross-market sales opportunities post-acquisition.

Compared to the previous quarter, analyst and management focus shifted from optimism about organic growth and product pipeline to enthusiasm and forward-looking prospects stemming from the Renesas timing business acquisition.