Silicon Motion Technology Corporation's stock experienced a significant pre-market surge of 10.70%, driven by the company's release of its fourth-quarter financial results.
The dramatic rise was fueled by the company reporting better-than-expected Q4 2025 earnings. Revenue reached $278.5 million, marking a substantial 46% increase year-over-year and surpassing analyst estimates. A key highlight was the explosive growth in SSD solutions sales, which jumped between 125% to 130% compared to the previous quarter.
Further bolstering investor confidence were strong margins, with an adjusted operating margin of 19.3%, and a positive forward outlook for Q1 2026. The company also announced an annual cash dividend of $2.00 per American Depositary Share (ADS), contributing to the bullish sentiment surrounding the stock.