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Jul 27, 2025
Semtech Q2 2026 Earnings Report
Semtech posted record revenue and improved non-GAAP earnings in Q2 FY2026 despite a GAAP net loss driven by goodwill impairment.
Key Takeaways
Semtech reported strong Q2 FY2026 results with record net sales of $257.6 million and improved profitability on a non-GAAP basis. The company recorded a GAAP net loss due to a goodwill impairment but showed strong operational improvements including adjusted EPS of $0.41 and free cash flow of $41.5 million.
Achieved record revenue of $257.6 million.
Adjusted EPS rose to $0.41 compared to $0.11 last year.
GAAP net loss of $27.1 million due to $42 million goodwill impairment.
Free cash flow reached $41.5 million, reflecting improved operations.
Revenue by Segment
Forward Guidance
Semtech expects Q3 FY2026 revenue of $266 million and continued strength in non-GAAP profitability metrics.
Positive Outlook
- Revenue guidance midpoint of $266 million reflects growth momentum.
- Non-GAAP EPS expected to reach $0.44.
- Adjusted operating income projected at $52.2 million.
- Gross margin expected to remain strong at 53%.
- Adjusted EBITDA projected to rise to $60 million.
Challenges Ahead
- Guidance includes potential variability due to restructuring and integration expenses.
- GAAP results may continue to be affected by non-operational charges.
- Interest and other expense remains elevated at $5 million.
- Margins slightly below prior quarter on EBITDA and operating basis.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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