Companies /Technology

Semtech Corp

NASDAQ: SMTC Semiconductors
$132.15
▼ $0.81 (−0.61%) today
Markets closed · 4:19pm ET

Q3 2026 Earnings

Reported Nov 24, 2025, 4:06pm ET · SEC source
$0.48
Beat +7.87%
EPS · est. $0.45
$267.0M
Beat +0.22%
Revenue · est. $266.4M
+3.6%
Beating market
SMTC vs S&P since report
7 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+5%+10%+15%Nov 24Nov 25report 4:06pm ETearnings+0.9%+14.3%
0+5%+10%+15%Nov 24Nov 25earnings+0.9%+14.3%
SMTC +14.3%S&P 500 +0.9%
0+5%+10%+15%Nov 24Nov 25report 4:06pm ETearnings+0.5%+14.3%
0+5%+10%+15%Nov 24Nov 25earnings+0.5%+14.3%
SMTC +14.3%NASDAQ +0.5%
−6%0+6%+12%Nov 24Dec 2report 4:06pm ETearnings+1.8%+10.5%
−6%0+6%+12%Nov 24Dec 2earnings+1.8%+10.5%
SMTC +10.5%S&P 500 +1.8%
−6%0+6%+12%Nov 24Dec 2report 4:06pm ETearnings+2.7%+10.5%
−6%0+6%+12%Nov 24Dec 2earnings+2.7%+10.5%
SMTC +10.5%NASDAQ +2.7%
+2.53%
Day of report
+2.33%
Next session
+2.34%
One week
+5.54%
30 days

S&P 500 over the same 30 days: +1.90%.

Did SMTC Beat Earnings? Q3 2026 Results

Semtech posted a clean beat on both top and bottom lines in fiscal Q3 2026, delivering record quarterly net sales of $267.00 million, up 12.7% year over year and just ahead of the $266.42 million consensus, while non-GAAP adjusted diluted EPS of $0.48 cleared the $0.45 estimate by 7.87%, nearly doubling the $0.26 reported in the year-ago quarter. The quarter's strength was broad-based, with the semiconductor products portfolio climbing to $178.70 million from $154.30 million a year ago as demand for signal integrity and analog mixed-signal solutions accelerated, particularly in data center networking where the company reported record sales. Profitability improved in step with revenue, as adjusted EBITDA reached $62.70 million at a 23.5% margin and free cash flow strengthened to $44.60 million from $29.10 million a year prior. Despite the solid results, shares slipped in after-hours trading, a reaction some attributed to mixed sentiment around valuation. Looking ahead, Semtech guided Q4 net sales to approximately $273.00 million and adjusted diluted EPS of $0.43, reflecting planned increases in R&D investment as CEO Hong Hou cited intensifying customer demand for power-efficient AI and IoT connectivity solutions.

Key Takeaways
  • 13% year-over-year revenue growth to record quarterly net sales
  • Signal Integrity segment revenue grew from $71.5M to $81.6M year-over-year
  • Analog Mixed Signal and Wireless segment revenue grew from $82.8M to $97.0M year-over-year
  • IoT Systems and Connectivity revenue grew from $82.5M to $88.3M year-over-year
  • Non-GAAP adjusted operating margin expansion to 20.6% from 18.3% a year ago
  • Substantial reduction in adjusted interest expense from $18.4M to $2.5M year-over-year through capital structure optimization
  • Disciplined R&D investments and expanding customer partnerships

“Our strong results this quarter reflect returns on our disciplined R&D investments and the deep and expanding partnerships we have established with our customers.”

Semtech CEO, on the earnings call

Forward Guidance & Outlook

For Q4 FY2026, Semtech expects net sales of approximately $273.0 million (+/- $5.0 million), non-GAAP adjusted gross margin of 51.2% (+/- 50 bps), total semiconductor products gross margin of 60.5% (+/- 50 bps), adjusted operating expenses of approximately $91.2 million (+/- $1.0 million), adjusted operating income of approximately $48.6 million (+/- $3.0 million), adjusted operating margin of 17.8% (+/- 80 bps), adjusted interest and other expense of approximately $(0.5) million, normalized tax rate of 15%, adjusted diluted EPS of $0.43 (+/- $0.03), adjusted EBITDA of approximately $56.0 million (+/- $3.0 million), and adjusted EBITDA margin of 20.5% (+/- 80 bps), with a non-GAAP diluted share count of 95.7 million.

SMTC YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$80.0M$160.0M$240.0M$236.8M$267.0MRevenue$121.0M$138.5MGross Profit$17.8M$31.1MOperating Income$-1,792,669$-2,900,000Net Income
$0$80.0M$160.0M$240.0MRevenueGross ProfitOperating IncomeNet Income

SMTC Revenue by Segment

Signal Integrity$81.6M
Analog Mixed Signal and Wireless$97.0M
IoT Systems and Connectivity$88.3M

Figures from SEC filings and company reports. Not investment advice.