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Apr 27
Semtech Q1 2026 Earnings Report
Semtech reported solid Q1 FY2026 results with higher revenue, strong margin expansion, and a return to profitability.
Key Takeaways
Semtech delivered a robust Q1 FY2026 with revenue growth and a positive net income, supported by higher gross and operating margins. Strategic debt reduction and disciplined spending contributed to the improved financial performance.
Revenue grew to $251.1 million driven by broad-based demand recovery.
GAAP EPS turned positive at $0.22, with adjusted EPS at $0.38.
Net income reached $19.3 million, compared to a $23.2 million loss in Q1 FY2025.
Operating margin improved significantly to 14.3% on a GAAP basis.
Semtech
Semtech
Semtech Revenue by Segment
Forward Guidance
Semtech expects continued momentum into Q2 FY2026 with slightly higher revenue and steady margin performance, supported by cost control and strategic investments.
Positive Outlook
- Revenue guidance midpoint at $256 million.
- Adjusted EPS expected to rise to $0.40.
- Operating margin to remain strong near 18.8%.
- Continued debt reduction with $15 million already paid in Q2.
- Stable adjusted gross margin around 53%.
Challenges Ahead
- Slight increase in operating expenses to $87.5 million.
- Adjusted EBITDA margin expected to decline slightly to 21.9%.
- Persistent macroeconomic uncertainty.
- Inventory levels increased to $170.2 million.
- Free cash flow may be constrained by capital outlays.
Revenue & Expenses
Visualization of income flow from segment revenue to net income