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Silicon Labs’ Q4 Guide: Can 25% Growth And 62%-64% Margins Hold?

Silicon Laboratories reported third quarter fiscal 2025 results that aligned with its guidance, demonstrating continued growth in both revenue and profitability. The company posted $206 million in revenue, reflecting a 7% sequential increase and 24% year-over-year growth, which outpaced its peer group by approximately twofold. The industrial and commercial segment contributed $118 million, representing 57% of consolidated revenue and growing 7% sequentially and 22% annually. Growth drivers included building automation, commercial lighting, access points, and a rising demand for smart meters due to global infrastructure upgrades emphasizing grid resilience. The Home & Life segment contributed $88 million or 43% of revenue, up 6% sequentially and 26% year-over-year, driven notably by smart home applications and continuous blood glucose monitoring—a medical application that experienced nearly 60% annual growth. Gross margins improved substantially with GAAP gross margin at 57.