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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
Revenue by Segment
Signal Integrity Revenue
CapyFin.comAnalog & Wireless Revenue
CapyFin.comIoT & Connectivity Revenue
CapyFin.com 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