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Oct 26, 2025
Semtech Q3 2026 Earnings Report
Semtech reported a strong third quarter of fiscal year 2026 with significant year-over-year growth in net sales and improved operating margins.
Key Takeaways
Semtech announced strong third quarter fiscal year 2026 results, with net sales reaching $267.0 million, marking a 13% year-over-year growth. The company demonstrated improved profitability with GAAP gross margin at 51.9% and Non-GAAP adjusted gross margin at 53.0%. Operating margins also saw substantial improvement, reflecting effective management and strategic partnerships.
Net sales increased by 13% year-over-year to $267.0 million.
GAAP gross margin improved to 51.9% from 51.1% a year ago.
GAAP operating margin rose to 11.6% compared to 7.5% in the prior year.
Adjusted diluted earnings per share increased to $0.48 from $0.26 a year ago.
Revenue by Segment
Forward Guidance
For the fourth quarter of fiscal year 2026, Semtech anticipates net sales of $273.0 million, with a range of +/- $5.0 million. The company expects continued strong performance in adjusted gross margin and adjusted EBITDA margin.
Positive Outlook
- Projected net sales of $273.0 million, indicating continued growth.
- Anticipated adjusted gross margin of 51.2%, maintaining strong profitability.
- Expected total semiconductor products gross margin of 60.5%.
- Forecasted adjusted operating margin of 17.8%.
- Projected adjusted EBITDA margin of 20.5%.
Challenges Ahead
- The company did not explicitly state any negative forward guidance points, but the ranges provided for net sales and margins indicate potential variability.
- Adjusted operating expenses are projected to increase to $91.2 million.
- Adjusted operating income is expected to be $48.6 million, which is lower than the current quarter's adjusted operating income.
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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