Semtech (SMTC) Q3 2026 Earnings
How Did SMTC Stock React to Q3 2026 Earnings?
S&P 500 over the same 30 days: +1.90%.
Did SMTC Beat Earnings? Q3 2026 Results
Yes. Semtech reported Q3 2026 earnings of $0.48 a share on Nov 24, 2025, beating the $0.45 consensus estimate by 7.9%. Revenue was $267.0M against a $266.4M estimate.
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.
- 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
What Was Semtech's Outlook in Q3 2026?
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
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $267.0M | $236.8M | +12.7% |
| Gross Profit | $138.5M | $121.0M | +14.5% |
| Operating Income | $31.1M | $17.8M | +74.9% |
| Net Income | −$2.9M | −$1.8M | +61.8% |
SMTC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.