Silvaco Group (NASDAQ:SVCO) Issues Earnings Results, Meets Estimates

Silvaco Group (NASDAQ:SVCO) released its earnings results on Thursday. The company reported $0.01 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.01, FiscalAI reports. Silvaco Group had a negative return on equity of 15.63% and a negative net margin of 30.43%.The firm had revenue of $17.81 million during the quarter, compared to analysts’ expectations of $17.90 million.

Here are the key takeaways from Silvaco Group’s conference call:

• Revenue grew 48% year over year to $17.8 million, while bookings increased 25% to $16.2 million. Silvaco also returned to non-GAAP operating profitability with $635,000 of operating income, its first such profit since late 2024.
• Silvaco announced strategic collaborations with NVIDIA and Dassault Systèmes and expanded its relationship with Micron, including a $10 million convertible-note investment. The partnerships are intended to accelerate AI-enabled manufacturing, digital twins, and first-time-right semiconductor process development.
• The IP business was a major near-term growth driver: Q2 IP revenue increased 238% year over year, with record bookings and revenue and a pipeline that expanded more than fourfold. Management expects IP revenue to reach approximately $20 million in 2026, roughly doubling year over year.
• Management expects record quarterly revenue in Q4, full-year 2026 revenue above $70 million, and double-digit revenue growth, non-GAAP operating profitability, and positive operating cash flow in 2027. Q3 revenue guidance of $17 million reflects typical TCAD seasonality, while Q4 is expected to benefit from renewals and a strong pipeline.
• The company has completed its targeted $20 million in annualized cost reductions, with non-GAAP operating expenses declining to $14.8 million in Q2. However, cash used in operating activities remained $5.5 million, and Silvaco plans continued investment in GPU infrastructure and AI tools despite its improving profitability.

Silvaco Group Stock Performance

Silvaco Group stock traded down $0.96 during mid-day trading on Friday, reaching $7.65. The company’s stock had a trading volume of 1,023,551 shares, compared to its average volume of 369,220. The company has a market capitalization of $250.00 million, a price-to-earnings ratio of -10.62 and a beta of 0.63. Silvaco Group has a 12 month low of $3.07 and a 12 month high of $14.39. The business’s 50 day simple moving average is $10.52 and its 200 day simple moving average is $7.98.

Insider Buying and Selling

In other Silvaco Group news, Director Katherine S. Ngai-Pesic sold 200,000 shares of the business’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $11.27, for a total transaction of $2,254,000.00. Following the sale, the director directly owned 9,176,403 shares of the company’s stock, valued at $103,418,061.81. The trade was a 2.13% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 47.90% of the stock is owned by company insiders.

Institutional Trading of Silvaco Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. Raymond James Financial Inc. acquired a new position in Silvaco Group during the second quarter valued at approximately $38,000. Wells Fargo & Company MN increased its position in shares of Silvaco Group by 51.2% during the 4th quarter. Wells Fargo & Company MN now owns 9,093 shares of the company’s stock worth $37,000 after purchasing an additional 3,079 shares during the last quarter. HighTower Advisors LLC acquired a new position in shares of Silvaco Group during the 4th quarter worth approximately $41,000. Strs Ohio bought a new stake in shares of Silvaco Group during the 1st quarter worth approximately $50,000. Finally, JPMorgan Chase & Co. raised its stake in shares of Silvaco Group by 27.3% during the 2nd quarter. JPMorgan Chase & Co. now owns 13,483 shares of the company’s stock worth $64,000 after purchasing an additional 2,895 shares in the last quarter.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on SVCO. Rosenblatt Securities reaffirmed a “buy” rating and set a $14.00 price objective on shares of Silvaco Group in a research report on Friday. Needham & Company LLC lifted their target price on Silvaco Group from $10.00 to $18.00 and gave the company a “buy” rating in a research report on Monday, May 11th. Finally, Weiss Ratings upgraded Silvaco Group from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, Silvaco Group presently has a consensus rating of “Moderate Buy” and a consensus price target of $12.67.

About Silvaco Group

Silvaco Group, Inc is a provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) solutions. Founded in 1984 and headquartered in Santa Clara, California, the company offers a suite of tools for process and device simulation, circuit design, verification, and physical implementation. Silvaco’s core product lines include technology computer-aided design (TCAD) for process modeling, SPICE circuit simulators for analog and digital analysis, and layout and parasitic extraction tools for physical verification.

In addition to its EDA software, Silvaco delivers semiconductor IP in areas such as memory compilers, interface IP (including USB, PCI Express and DDR), and embedded analog/mixed-signal cores.