NASDAQ$SMTC

Semtech Corp. · Q3 2026 earnings

Q3 2026 earnings · · After market close · Investor relations

Briefing

Semtech reported a strong third quarter of fiscal year 2026 with significant year-over-year growth in net sales and improved operating margins.

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.

Headline financials

Total Revenue

$267M

Previous: $237M+12.7%
EPS

-$0.03

Previous: -$0.10+70.0%
GAAP Gross Margin

51.9%

Previous: 51.1%+1.6%
Non-GAAP Gross Margin

53.0%

Previous: 52.4%+1.1%
GAAP Operating Margin

11.6%

Previous: 7.5%+54.7%
Non-GAAP Operating Margin

20.6%

Previous: 18.3%+12.6%
Adjusted EBITDA Margin

23.5%

Previous: 21.6%+8.8%
Capital Expenditures

-$7.35M

Previous: -$5.23M-40.6%
Free Cash Flow

-$10.2M

Previous: -$12.8M+20.3%
Net Income

-$2.86M

Previous: -$7.59M+62.3%
Operating Income

$31.1M

Previous: $17.8M+74.6%
Gross Profit

$138M

Previous: $121M+14.5%
Cash & Equivalents

$165M

Previous: $137M+20.6%
Total Assets

$1.41B

Previous: $1.38B+1.9%

Revenue & EPS history

Semtech · Revenue · Quarterly

$267M

Q3 2026+12.7%vs Q3 2025
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Semtech · $291M total across 3 segments · Q1 2027

  • Signal Integrity
    $102M
  • Analog Mixed Signal and Wireless
    $101M
  • IoT Systems and Connectivity
    $88.3M

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.

Tailwinds

  • 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%.

Headwinds

  • 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.
  • Adjusted diluted earnings per share are projected at $0.43, slightly lower than the current quarter.
  • The forward guidance includes a normalized tax rate of 15%, which could impact net income.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2026

Historical avgQ3 2026

+1.9%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+4.0%

Avg return

30 days after

63%

43 / 68 earnings

Positive

+24.0%

Q3 2025

Best reaction

-28.2%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026+1.7%-17.3%+15.1%
Q3 2026+2.3%+5.9%+7.9%
Q2 2026+15.2%+13.9%+20.8%
Q1 2026-4.3%-3.3%+15.8%
Q4 2025+21.1%+27.2%-18.7%
Q3 2025+24.0%+25.8%+26.7%
Q2 2025+14.6%+18.3%+28.0%
Q1 2025+1.6%-14.5%-11.7%
Q4 2024+5.4%+1.2%+28.4%
Q3 2024+16.4%+23.6%+22.7%
Q2 2024+10.8%+6.9%-3.5%
Q1 2024+6.5%+3.3%+18.2%
Q4 2023-18.8%-27.3%-37.4%
Q3 2023+1.7%+0.6%-2.1%
Q2 2023-28.2%-26.7%-37.2%
Q1 2023+0.4%-3.0%-18.9%
Q4 2022+9.8%+11.9%-2.2%
Q3 2022+4.1%-0.4%+3.8%
Q2 2022+12.6%+11.8%+12.6%
Q1 2022+3.4%+5.9%+7.5%
Q4 2021-4.7%+0.5%-2.5%
Q3 2021+2.1%+4.5%+6.1%
Q2 2021-4.9%-6.4%-18.2%
Q1 2021+4.9%+7.2%+2.5%
Q4 2020-12.4%-26.5%+17.9%
Q3 2020+0.5%+1.6%+15.9%
Q2 2020-2.9%-2.7%+13.6%
Q1 2020-5.6%-7.9%+10.7%
Q4 2019-4.8%-0.4%-2.8%
Q3 2019+12.9%+13.6%-1.5%
Q2 2019+13.9%+19.7%+11.4%
Q1 2019+8.0%+10.5%+5.0%
Q4 2018+10.7%+13.6%+23.7%
Q3 2018-12.1%-12.8%-11.7%
Q2 2018-0.1%-1.6%-0.3%
Q1 2018-1.3%-3.5%-3.8%
Q4 2017+1.6%+2.4%-0.1%
Q3 2017+2.8%+9.2%+11.5%
Q2 2017+4.7%+6.9%+5.6%
Q1 2017+2.5%+2.6%+0.6%
Q4 2016+5.1%
Q3 2016+0.4%
Q2 2016-2.2%
Q1 2016-8.1%
Q4 2015-12.0%
Q3 2015-1.6%
Q2 2015+7.7%
Q1 2015+8.6%
Q4 2014+3.0%
Q3 2014-4.7%
Q2 2014+0.8%
Q1 2014-3.1%
Q4 2013+8.3%
Q3 2013+11.8%
Q2 2013-1.4%
Q1 2013-0.1%
Q4 2012+0.0%
Q3 2012+0.7%
Q2 2012-6.8%
Q1 2011-4.6%
Q1 2012-1.2%
Q4 2009-1.4%
Q4 2011-1.4%
Q3 2011+1.9%
Q3 2010+1.9%
Q4 2010+4.7%
Q2 2010+4.7%
Q2 2011+4.7%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro