Record $1.05B revenue for Semtech (NASDAQ: SMTC) as margins rise
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Semtech Corporation reported record results for fiscal 2026, with net sales of $1.05 billion, up 15% year-over-year, driven by demand across data center, IoT and cellular infrastructure markets. Fourth quarter net sales reached $274.4 million, up 3% sequentially and 9% from the prior year quarter.
For fiscal 2026, GAAP gross margin improved to 51.6% and GAAP operating margin was 3.1%, while non-GAAP adjusted operating margin rose to 19.1%. GAAP diluted loss per share was $0.46, a substantial improvement from a $2.26 loss in fiscal 2025, and non-GAAP adjusted diluted earnings per share increased to $1.71.
Cash generation strengthened, with fiscal 2026 operating cash flow of $181.2 million and free cash flow of $171.4 million. For the first quarter of fiscal 2027, Semtech targets net sales of about $283 million, non-GAAP adjusted diluted earnings per share around $0.45, and an adjusted EBITDA margin near 21.0%.
Positive
- Record fiscal 2026 revenue and stronger profitability: Net sales reached $1.05 billion, up 15% year-over-year, while non-GAAP adjusted operating margin improved to 19.1% and adjusted diluted EPS nearly doubled to $1.71, indicating healthier core earnings power.
- Significant improvement in cash generation: Fiscal 2026 operating cash flow rose to $181.2 million and free cash flow to $171.4 million, more than tripling the prior year’s free cash flow of $50.1 million, enhancing financial flexibility for investment and debt service.
Negative
- Ongoing GAAP losses and impairment charges: Despite better fundamentals, Semtech recorded a fiscal 2026 GAAP net loss of $40.4 million, including $84.8 million of goodwill impairment over the year, highlighting remaining balance-sheet and earnings volatility on a GAAP basis.
Insights
Record revenue, rising margins and strong cash flow mark a clear fundamental improvement.
Semtech delivered record fiscal 2026 net sales of $1.05 billion, up 15% year-over-year, with Q4 revenue of $274.4 million growing 9% versus Q4 2025. Non-GAAP adjusted operating margin expanded to 19.1%, showing better cost control and scale.
GAAP results still show a fiscal 2026 net loss of $40.4 million, but this is much narrower than the prior year’s $161.9 million loss, helped by lower interest expense and fewer debt-related charges. Non-GAAP adjusted net income more than doubled to $156.6 million, reflecting core profitability.
Cash generation is a standout: operating cash flow reached $181.2 million and free cash flow $171.4 million, versus $58.0 million and $50.1 million in fiscal 2025. Guidance for Q1 fiscal 2027 points to continued growth, with targeted net sales of about $283.0 million and non-GAAP adjusted diluted EPS around $0.45, assuming an adjusted gross margin near 52.8%.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 16, 2026
(Exact name of registrant as specified in its charter)
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(Registrant’s telephone number, including area code)
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On March 16, 2026, the Registrant issued a press release announcing its financial results for the fourth quarter and fiscal year 2026, which ended January 25, 2026. A copy of the press release is attached hereto as Exhibit 99.1.
Item 7.01 Regulation FD Disclosure.
On March 16, 2026, the Registrant issued a press release containing forward-looking statements, including with respect to its future performance and financial results. A copy of the press release is attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |||||||
Exhibit 99.1 Press Release of the Registrant dated March 16, 2026. (This Exhibit 99.1 is being furnished and shall not be deemed "filed")
Exhibit 104 The Cover Page from this Current Report on Form 8-K formatted in Inline XBRL (included as Exhibit 101)
The information contained in Item 2.02, Item 7.01 and Exhibit 99.1 of this Current Report on Form 8-K hereto is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in Item 2.02, Item 7.01 and Exhibit 99.1 hereto shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference to Item 2.02, Item 7.01 and Exhibit 99.1, as applicable in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SEMTECH CORPORATION | ||||||||||||||
| Date: | March 16, 2026 | /s/ Mark Lin | ||||||||||||
| Name: | Mark Lin | |||||||||||||
| Title: | Chief Financial Officer | |||||||||||||
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
Mitch Haws
Semtech Corporation
webir@semtech.com
Semtech Announces Fourth Quarter and Fiscal Year 2026 Results
Fourth Quarter of Fiscal Year 2026
•Record net sales of $274.4 million, up 3% sequentially and up 9% year-over-year
•GAAP gross margin of 50.4% and Non-GAAP adjusted gross margin of 51.6%
•GAAP operating margin of (6.7)% and Non-GAAP adjusted operating margin of 18.2%
•GAAP diluted loss per share of $0.32 and Non-GAAP adjusted diluted earnings per share of $0.44
•Operating cash flow of $61.5 million and free cash flow of $59.1 million
Fiscal Year 2026
•Record net sales of $1.05 billion, up 15% year-over-year
•GAAP gross margin of 51.6%, up 140 basis points from fiscal year 2025 and Non-GAAP adjusted gross margin of 52.8%, up 130 basis points from fiscal year 2025
•GAAP operating margin of 3.1% and Non-GAAP adjusted operating margin of 19.1%
•GAAP diluted loss per share of $0.46 and Non-GAAP adjusted diluted earnings per share of $1.71
CAMARILLO, Calif., March 16, 2026—Semtech Corporation (Nasdaq: SMTC), a leading provider of high-performance semiconductors powering data center networking, Internet of Things ("IoT") connectivity, and cellular infrastructure solutions, announced today unaudited financial results for its fourth quarter and fiscal year 2026, which ended January 25, 2026.
"Fiscal year 2026 was a landmark year for Semtech, marked by strong revenue and earnings growth that reflect both the power of our portfolio and disciplined execution," said Hong Hou, president and chief executive officer. "We believe we are uniquely positioned as data center build out expands, with a broad set of solutions purpose-built for the 800G, 1.6T, and 3.2T era, and our continued investment in research and development positions us to remain at the forefront of next-generation optical and copper interconnect technologies. With a significantly stronger financial foundation, we have the flexibility to strategically pursue the investments that we believe accelerate the next chapter of Semtech's growth."
- more -
2 | Semtech Announces Fourth Quarter and Fiscal Year 2026 Results | ||||
"Semtech’s results continue to demonstrate leverage in our financial model, with fourth quarter operating cash flow of $61.5 million and free cash flow of $59.1 million, both exceeding the amounts reported for all of fiscal year 2025," said Mark Lin, executive vice president and chief financial officer. "We continue to prudently balance capital deployment focused on research and development, capacity expansion and acquisitions, which we believe will yield a strong return for our shareholders."
Fourth Quarter and Fiscal Year 2026 Results
| (in millions, except per share data) | Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | ||||||||||||||||||||||||
| GAAP Financial Results | |||||||||||||||||||||||||||||
| Net sales | $ | 274.4 | $ | 267.0 | $ | 251.0 | $ | 1,050.0 | $ | 909.3 | |||||||||||||||||||
| Gross margin | 50.4 | % | 51.9 | % | 52.0 | % | 51.6 | % | 50.2 | % | |||||||||||||||||||
| Operating expenses, net | $ | 156.5 | $ | 107.4 | $ | 109.3 | $ | 509.6 | $ | 406.6 | |||||||||||||||||||
| Operating (loss) income | $ | (18.3) | $ | 31.1 | $ | 21.2 | $ | 32.6 | $ | 49.9 | |||||||||||||||||||
| Operating margin | (6.7) | % | 11.6 | % | 8.5 | % | 3.1 | % | 5.5 | % | |||||||||||||||||||
| Interest expense, net | $ | 1.0 | $ | 26.2 | $ | 16.7 | $ | 38.1 | $ | 87.8 | |||||||||||||||||||
| Goodwill and intangible impairments | $ | 44.6 | $ | — | $ | 7.5 | $ | 86.6 | $ | 7.5 | |||||||||||||||||||
| Net (loss) income | $ | (29.8) | $ | (2.9) | $ | 39.1 | $ | (40.4) | $ | (161.9) | |||||||||||||||||||
| Diluted (loss) earnings per share | $ | (0.32) | $ | (0.03) | $ | 0.43 | $ | (0.46) | $ | (2.26) | |||||||||||||||||||
| (in millions, except per share data) | Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | ||||||||||||||||||||||||
| Net sales | $ | 274.4 | $ | 267.0 | $ | 251.0 | $ | 1,050.0 | $ | 909.3 | |||||||||||||||||||
| Non-GAAP Financial Results | |||||||||||||||||||||||||||||
| Adjusted gross margin* | 51.6 | % | 53.0 | % | 53.2 | % | 52.8 | % | 51.5 | % | |||||||||||||||||||
| Adjusted operating expenses, net* | $ | 91.5 | $ | 86.5 | $ | 83.7 | $ | 353.0 | $ | 319.6 | |||||||||||||||||||
| Adjusted operating income* | $ | 50.0 | $ | 54.9 | $ | 49.8 | $ | 201.1 | $ | 149.0 | |||||||||||||||||||
| Adjusted operating margin* | 18.2 | % | 20.6 | % | 19.9 | % | 19.1 | % | 16.4 | % | |||||||||||||||||||
| Adjusted interest (income) expense, net* | $ | (0.1) | $ | 2.5 | $ | 11.2 | $ | 11.5 | $ | 70.6 | |||||||||||||||||||
| Adjusted net income* | $ | 42.0 | $ | 44.1 | $ | 34.5 | $ | 156.6 | $ | 67.0 | |||||||||||||||||||
| Adjusted diluted earnings per share* | $ | 0.44 | $ | 0.48 | $ | 0.40 | $ | 1.71 | $ | 0.88 | |||||||||||||||||||
| Adjusted EBITDA* | $ | 57.4 | $ | 62.7 | $ | 57.8 | $ | 232.0 | $ | 182.5 | |||||||||||||||||||
| Adjusted EBITDA margin* | 20.9 | % | 23.5 | % | 23.0 | % | 22.1 | % | 20.1 | % | |||||||||||||||||||
*See "Non-GAAP Financial Measures" below for additional information about our non-GAAP financial results.
3 | Semtech Announces Fourth Quarter and Fiscal Year 2026 Results | ||||
First Quarter of Fiscal Year 2027 Outlook
| (in millions, except per share data) | |||||||||||||||||
| Net sales | $ | 283.0 | +/- | $5.0 | |||||||||||||
| Non-GAAP Financial Measures | |||||||||||||||||
| Adjusted gross margin* | 52.8% | +/- | 50 bps | ||||||||||||||
| Total semiconductor products gross margin* | 60.4% | +/- | 50 bps | ||||||||||||||
| Adjusted operating expenses, net* | $ | 96.9 | +/- | $1.0 | |||||||||||||
| Adjusted operating income* | $ | 52.5 | +/- | $3.0 | |||||||||||||
| Adjusted operating margin* | 18.6% | +/- | 70 bps | ||||||||||||||
| Adjusted interest and other expense, net* | $ | 0.5 | |||||||||||||||
| Adjusted normalized tax rate* | 17% | ||||||||||||||||
| Adjusted diluted earnings per share* | $0.45 | +/- | $0.03 | ||||||||||||||
| Adjusted EBITDA* | $ | 59.5 | +/- | $3.0 | |||||||||||||
| Adjusted EBITDA margin* | 21.0% | +/- | 70 bps | ||||||||||||||
| Non-GAAP diluted share count* | 96.6 | ||||||||||||||||
*See "Non-GAAP Financial Measures" below for additional information about our non-GAAP financial results.
The Company is unable to include a reconciliation of forward-looking non-GAAP results to the corresponding GAAP measures as they are not available without unreasonable efforts due to the high variability and low visibility with respect to the impact of transaction, integration and restructuring expenses, share-based awards, amortization of acquisition-related intangible assets and other items that are excluded from these non-GAAP measures. The Company expects the variability of the above charges to have a potentially significant impact on its GAAP financial results.
Webcast and Conference Call
Semtech will be hosting a conference call today to discuss its fourth quarter and fiscal year 2026 results at 1:30 p.m. Pacific time. The dial-in number for the call is (877) 407-0312. Please use conference ID 13758258. An audio webcast and supplemental earnings materials for the quarter will be available on the Investor Relations section of Semtech's website at investors.semtech.com under "News & Events." A replay of the call will be available through April 13, 2026 at the same website or by calling (877) 660-6853 and entering conference ID 13758258.
Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements prepared in accordance with GAAP, this release includes a presentation of select non-GAAP financial measures. The Company's non-GAAP measures of adjusted gross margin, total semiconductor products gross margin, adjusted product
4 | Semtech Announces Fourth Quarter and Fiscal Year 2026 Results | ||||
development and engineering expense, adjusted SG&A expense, adjusted operating expenses, net, adjusted operating income, adjusted operating margin, adjusted interest (income) expense, net, adjusted net income, adjusted diluted earnings per share, adjusted normalized tax rate, adjusted EBITDA and adjusted EBITDA margin exclude the following items, if any and as applicable, as set forth in the reconciliations in the tables below under "Supplemental Information: Reconciliation of GAAP to Non-GAAP Results."
•Share-based compensation
•Intangible amortization
•Transaction and integration related costs or recoveries (including costs associated with the integration of Sierra Wireless, Inc.)
•Restructuring and other reserves, including cumulative other reserves associated with historical activity including environmental, pension, deferred compensation and right-of-use asset impairments
•Litigation costs or dispute settlement charges or recoveries
•Equity method income or loss
•Investment gains, losses, reserves and impairments, including interest income from debt investments
•Write-off and amortization of deferred financing costs
•Interest rate swap termination
•Induced conversion expense
•Loss on extinguishment of debt
•Debt commitment fee
•Goodwill and intangible impairment
•Amortization of inventory step-up
In this release, the Company is providing a total semiconductor products gross margin metric, defined as the combined segment gross margin for the Signal Integrity and Analog Mixed Signal and Wireless reportable segments. For further information, please see the Segment Information footnote of the Company's Form 10-K for the fiscal year ended January 25, 2026. The Company also presents adjusted EBITDA, adjusted EBITDA margin and free cash flow. Adjusted EBITDA is defined as net (loss) income plus interest expense, interest income, (benefit) provision for income taxes, depreciation and amortization, and share-based compensation, and adjusted to exclude certain expenses, gains and losses that the Company believes are not indicative of its core results over time. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of net sales. The Company considers free cash flow, which may be positive or negative, a non-GAAP financial measure defined as cash flows provided by operating activities
5 | Semtech Announces Fourth Quarter and Fiscal Year 2026 Results | ||||
less net capital expenditures. Management believes that the presentation of these non-GAAP measures provides useful information to investors regarding the Company's financial condition and results of operations. These non-GAAP financial measures are adjusted to exclude the items identified above because such items are either operating expenses that would not otherwise have been incurred by the Company in the normal course of the Company's business operations, or are not reflective of the Company's core results over time. These excluded items may include recurring as well as non-recurring items, and no inference should be made that all of these adjustments, charges, costs or expenses are unusual, infrequent or non-recurring. For example: certain restructuring and integration-related expenses (which consist of employee termination costs, facility closure or lease termination costs, and contract termination costs) may be considered recurring given the Company's ongoing efforts to be more cost effective and efficient; certain acquisition and disposition-related adjustments or expenses may be deemed recurring given the Company's regular evaluation of potential transactions and investments; and certain litigation expenses or dispute settlement charges or gains (which may include estimated losses for which the Company may have established a reserve, as well as any actual settlements, judgments, or other resolutions against, or in favor of, the Company related to litigation, arbitration, disputes or similar matters, and insurance recoveries received by the Company related to such matters) may be viewed as recurring given that the Company may from time to time be involved in, and may resolve, litigation, arbitration, disputes, and similar matters.
Notwithstanding that certain adjustments, charges, costs or expenses may be considered recurring, in order to provide meaningful comparisons, the Company believes that it is appropriate to exclude such items because they are not reflective of the Company's core results and tend to vary based on timing, frequency and magnitude.
These non-GAAP financial measures are provided to enhance the user's overall understanding of the Company's comparable financial performance between periods. In addition, the Company's management generally excludes the items noted above when managing and evaluating the performance of the business. Certain non-GAAP financial measures are also used in the Company's compensation programs. The financial statements provided with this release include reconciliations of these non-GAAP financial measures to their most comparable GAAP measures for the fourth quarter of fiscal year 2025, the third and fourth quarters of fiscal year 2026, and the full-year fiscal 2026 and fiscal 2025 periods.
The Company adopted a full-year, normalized tax rate for the computation of the non-GAAP income tax provision in order to provide better comparability across the interim reporting periods by reducing the quarterly variability in non-GAAP tax rates that can occur throughout the year. In estimating the full-year non-GAAP normalized tax rate, the Company utilized a full-year financial projection that considers multiple
6 | Semtech Announces Fourth Quarter and Fiscal Year 2026 Results | ||||
factors such as changes to the Company's current operating structure, existing positions in various tax jurisdictions, the effect of key tax law changes, and other significant tax matters to the extent they are applicable to the full fiscal year financial projection. In addition to the adjustments described above, this normalized tax rate excludes the impact of share-based awards and the amortization of acquisition-related intangible assets. For fiscal year 2026, the Company's projected non-GAAP normalized tax rate was 15% and was applied to each quarter of fiscal year 2026. For fiscal year 2027, the Company's projected non-GAAP normalized tax rate is 17% and will be applied to each quarter of fiscal year 2027. The Company's non-GAAP normalized tax rate on non-GAAP net income may be adjusted during the year to account for events or trends that the Company believes materially impact the original annual non-GAAP normalized tax rate including, but not limited to, significant changes resulting from tax legislation, acquisitions, entity structures or operational changes and other significant events. These additional non-GAAP financial measures should not be considered substitutes for any measures derived in accordance with GAAP and may be inconsistent with similar measures presented by other companies.
To provide additional insight into the Company's first quarter outlook, this release also includes a presentation of forward-looking non-GAAP financial measures. See "First Quarter of Fiscal Year 2027 Outlook" above for further information.
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on the Company's current expectations, estimates and projections about its operations, industry, financial condition, performance, results of operations, and liquidity. Forward-looking statements are statements other than historical information or statements of current condition and relate to matters such as future financial performance including the first quarter of fiscal year 2027 outlook; future operational performance; the anticipated impact of specific items on future earnings; the Company's expectations regarding near term growth trends and market position; and the Company's plans, objectives and expectations. Statements containing words such as "may," "believes," "see," "anticipates," "expects," "intends," "positions," "plans," "projects," "objectives," "estimates," "develops," "should," "could," "will," "designed to," "projections," or "outlook," or other similar expressions constitute forward-looking statements.
Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and events to differ materially from those projected. Potential factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the volatility of our financial results or impact of the cyclical nature of our industry, including during industry downturns or due to periodic economic uncertainty; the historical rapid decrease of the average selling
7 | Semtech Announces Fourth Quarter and Fiscal Year 2026 Results | ||||
prices of certain products; disruptions in U.S. or foreign government operations, funding or incentives; changes in export restrictions and laws affecting the Company's trade and investments, including tariffs or retaliatory tariffs; interruption or loss of supplies or services from the limited number of suppliers and subcontractors we rely upon; our suppliers' manufacturing capacity constraints or other supply chain disruptions; failure to successfully develop and sell new products, meet new industry standards or requirements or anticipate changes in projected or end market users; failure to adequately protect our intellectual property rights; failure to make the substantial investments in research and development that are required to remain competitive in our business or to properly anticipate competitive changes in the marketplace; the likelihood of our products being found defective or risk of liability claims asserted against us; business interruptions, such as natural disasters, acts of violence and the outbreak of contagious diseases; adverse changes to general economic conditions in China; the loss of any one of our small number of customers or failure to collect a receivable from them; competition from new or established IoT, cloud services and wireless service companies or from those with greater resources; the difficulties associated with integrating ours and Sierra Wireless, Inc.'s businesses and operations successfully as well as difficulties executing other acquisitions or divestitures; discovery of additional material weaknesses in our internal control over financial reporting in the future or otherwise failing to achieve and maintain effective disclosure controls, procedures and internal control over financial reporting; changes in our effective tax rates, the adoption of new U.S. or foreign tax legislation or exposure to additional tax liabilities, or material differences between our forecasted annual effective tax rates and actual tax rates; the Company's ability to comply with, or pursue business strategies due to, our level of indebtedness or the covenants under the agreements governing our indebtedness; and adverse developments affecting the financial services industry. Additionally, forward-looking statements should be considered in conjunction with the cautionary statements contained in the risk factors disclosed in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 10-K for the fiscal year ended January 25, 2026, which the Company expects to file with the SEC on or before March 26, 2026, as such risk factors may be amended, supplemented or superseded from time to time by other reports the Company files with the SEC. In light of the significant risks and uncertainties inherent in the forward-looking information included herein that may cause actual performance and results to differ materially from those predicted, any such forward-looking information should not be regarded as representations or guarantees by the Company of future performance or results, or that its objectives or plans will be achieved or that any of its operating expectations or financial forecasts will be realized. Reported results should not be considered an indication of future performance. Investors are cautioned not to place undue reliance on any forward-looking information contained herein, which reflect management's analysis only as of the date hereof. These forward-looking statements speak only as of the date hereof. Except as required by law, the Company assumes no obligation to publicly
8 | Semtech Announces Fourth Quarter and Fiscal Year 2026 Results | ||||
release the results of any update or revision to any forward-looking statement that may be made to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated or future events, or otherwise.
Amounts reported in this press release are preliminary and subject to the finalization of the filing of our Annual Report on Form 10-K for the year ended January 25, 2026. In the reported results, Q4'26 refers to the quarter ended January 25, 2026, Q3'26 refers to the quarter ended October 26, 2025, Q4'25 refers to the quarter ended January 26, 2025, FY'26 refers to the fiscal year ended January 25, 2026, and FY'25 refers to the fiscal year ended January 26, 2025. Reported amounts may not foot precisely due to rounding.
About Semtech
Semtech Corporation (Nasdaq: SMTC) is a leading provider of high-performance semiconductors powering data center networking, IoT connectivity and cellular infrastructure solutions dedicated to delivering high-quality technology solutions that enable a smarter, more connected and sustainable planet. Our global teams are committed to empowering solution architects and application developers to develop breakthrough products for the infrastructure, industrial and consumer markets. To learn more about Semtech technology, visit us at Semtech.com.
Semtech and the Semtech logo are registered trademarks or service marks of Semtech Corporation or its subsidiaries.
SMTC-F
SEMTECH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
| Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | |||||||||||||||||||||||||
| Net sales | $ | 274.4 | $ | 267.0 | $ | 251.0 | $ | 1,050.0 | $ | 909.3 | |||||||||||||||||||
| Cost of sales | 133.5 | 126.3 | 118.2 | 498.6 | 443.7 | ||||||||||||||||||||||||
| Amortization of acquired technology | 2.6 | 2.2 | 2.3 | 9.2 | 9.1 | ||||||||||||||||||||||||
| Total cost of sales | 136.1 | 128.5 | 120.5 | 507.8 | 452.8 | ||||||||||||||||||||||||
| Gross profit | 138.3 | 138.5 | 130.5 | 542.1 | 456.5 | ||||||||||||||||||||||||
| Operating expenses, net: | |||||||||||||||||||||||||||||
| Product development and engineering | 51.2 | 49.4 | 46.7 | 196.3 | 170.9 | ||||||||||||||||||||||||
| Selling, general and administrative | 59.8 | 57.1 | 54.5 | 221.9 | 222.4 | ||||||||||||||||||||||||
| Intangible amortization | 0.2 | 0.1 | 0.1 | 0.6 | 0.9 | ||||||||||||||||||||||||
| Restructuring | 0.7 | 0.8 | 0.4 | 4.2 | 4.9 | ||||||||||||||||||||||||
| Intangible impairments | 1.8 | — | — | 1.8 | — | ||||||||||||||||||||||||
| Goodwill impairment | 42.8 | — | 7.5 | 84.8 | 7.5 | ||||||||||||||||||||||||
| Total operating expenses, net | 156.5 | 107.4 | 109.3 | 509.6 | 406.6 | ||||||||||||||||||||||||
| Operating (loss) income | (18.3) | 31.1 | 21.2 | 32.6 | 49.9 | ||||||||||||||||||||||||
| Interest expense | (1.8) | (27.0) | (17.5) | (40.6) | (90.1) | ||||||||||||||||||||||||
| Interest income | 0.8 | 0.8 | 0.8 | 2.5 | 2.3 | ||||||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | — | (144.7) | ||||||||||||||||||||||||
| Non-operating (expense) income, net | (0.7) | (0.4) | 2.0 | (5.3) | 0.3 | ||||||||||||||||||||||||
| Investment impairments and credit loss reserves, net | (10.4) | — | — | (10.4) | (1.1) | ||||||||||||||||||||||||
| (Loss) income before taxes and equity method (loss) income | (30.4) | 4.4 | 6.5 | (21.2) | (183.4) | ||||||||||||||||||||||||
| (Benefit) provision for income taxes | (0.9) | 7.3 | (33.2) | 19.8 | (22.0) | ||||||||||||||||||||||||
| Net (loss) income before equity method (loss) income | (29.4) | (2.9) | 39.7 | (41.0) | (161.3) | ||||||||||||||||||||||||
| Equity method (loss) income | (0.4) | — | (0.6) | 0.6 | (0.5) | ||||||||||||||||||||||||
| Net (loss) income | $ | (29.8) | $ | (2.9) | $ | 39.1 | $ | (40.4) | $ | (161.9) | |||||||||||||||||||
| (Loss) earnings per share: | |||||||||||||||||||||||||||||
| Basic | $ | (0.32) | $ | (0.03) | $ | 0.48 | $ | (0.46) | $ | (2.26) | |||||||||||||||||||
| Diluted | $ | (0.32) | $ | (0.03) | $ | 0.43 | $ | (0.46) | $ | (2.26) | |||||||||||||||||||
| Weighted average number of shares used in computing (loss) earnings per share: | |||||||||||||||||||||||||||||
| Basic | 92.6 | 87.7 | 81.3 | 88.4 | 71.6 | ||||||||||||||||||||||||
| Diluted | 92.6 | 87.7 | 90.3 | 88.4 | 71.6 | ||||||||||||||||||||||||
SEMTECH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
| January 25, 2026 | January 26, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 195.2 | $ | 151.7 | |||||||
| Accounts receivable, net | 160.6 | 162.5 | |||||||||
| Inventories | 195.7 | 163.6 | |||||||||
| Prepaid taxes | 15.4 | 13.5 | |||||||||
| Other current assets | 88.2 | 94.1 | |||||||||
| Total current assets | 655.1 | 585.5 | |||||||||
| Non-current assets: | |||||||||||
| Property, plant and equipment, net | 109.3 | 126.2 | |||||||||
| Deferred tax assets | 34.2 | 41.1 | |||||||||
| Goodwill | 457.9 | 533.1 | |||||||||
| Other intangible assets, net | 40.0 | 33.1 | |||||||||
| Other assets | 113.7 | 100.3 | |||||||||
| Total assets | $ | 1,410.3 | $ | 1,419.3 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 84.1 | $ | 59.2 | |||||||
| Accrued liabilities | 191.8 | 178.2 | |||||||||
| Current portion of long-term debt | — | 45.6 | |||||||||
| Total current liabilities | 275.9 | 283.0 | |||||||||
| Non-current liabilities: | |||||||||||
| Deferred tax liabilities | 0.1 | 0.8 | |||||||||
| Long-term debt | 491.2 | 505.9 | |||||||||
| Other long-term liabilities | 93.3 | 87.1 | |||||||||
| Stockholders' equity | 549.7 | 542.4 | |||||||||
| Total liabilities & equity | $ | 1,410.3 | $ | 1,419.3 | |||||||
SEMTECH CORPORATION
SUPPLEMENTAL CASH FLOW INFORMATION
(in millions)
(unaudited)
| Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | |||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 61.5 | $ | 47.5 | $ | 33.5 | $ | 181.2 | $ | 58.0 | |||||||||||||||||||
| Net capital expenditures | (2.4) | (2.8) | (2.6) | (9.8) | (7.9) | ||||||||||||||||||||||||
| Free cash flow | $ | 59.1 | $ | 44.6 | $ | 30.9 | $ | 171.4 | $ | 50.1 | |||||||||||||||||||
SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(in millions)
(unaudited)
| Q4'26 | |||||||||||||||||||||||||||||||||||
| (in millions) | Signal Integrity | Analog Mixed Signal and Wireless | Total Semiconductor Products | IoT Systems and Connectivity | Unallocated1 | Total | |||||||||||||||||||||||||||||
| Net sales | $ | 90.7 | $ | 93.7 | $ | 184.5 | $ | 89.9 | $ | — | $ | 274.4 | |||||||||||||||||||||||
| Segment cost of sales | 29.5 | 41.0 | 70.6 | 61.5 | 4.0 | 136.1 | |||||||||||||||||||||||||||||
| Segment gross profit | $ | 61.2 | $ | 52.7 | $ | 113.9 | $ | 28.4 | $ | (4.0) | $ | 138.3 | |||||||||||||||||||||||
| Segment gross margin | 67.4 | % | 56.2 | % | 61.7 | % | 31.6 | % | NM2 | ||||||||||||||||||||||||||
| Gross margin (GAAP) | 50.4 | % | |||||||||||||||||||||||||||||||||
| Share-based compensation | 0.2 | % | |||||||||||||||||||||||||||||||||
| Amortization of acquired technology | 1.0 | % | |||||||||||||||||||||||||||||||||
| Adjusted gross margin (Non-GAAP) | 51.6 | % | |||||||||||||||||||||||||||||||||
| Q3'26 | |||||||||||||||||||||||||||||||||||
| (in millions) | Signal Integrity | Analog Mixed Signal and Wireless | Total Semiconductor Products | IoT Systems and Connectivity | Unallocated1 | Total | |||||||||||||||||||||||||||||
| Net sales | $ | 81.6 | $ | 97.0 | $ | 178.7 | $ | 88.3 | $ | — | $ | 267.0 | |||||||||||||||||||||||
| Segment cost of sales | 28.5 | 40.8 | 69.2 | 56.0 | 3.3 | 128.5 | |||||||||||||||||||||||||||||
| Segment gross profit | $ | 53.2 | $ | 56.3 | $ | 109.4 | $ | 32.4 | $ | (3.3) | $ | 138.5 | |||||||||||||||||||||||
| Segment gross margin | 65.1 | % | 58.0 | % | 61.3 | % | 36.6 | % | NM2 | ||||||||||||||||||||||||||
| Gross margin (GAAP) | 51.9 | % | |||||||||||||||||||||||||||||||||
| Share-based compensation | 0.2 | % | |||||||||||||||||||||||||||||||||
| Amortization of acquired technology | 0.9 | % | |||||||||||||||||||||||||||||||||
| Adjusted gross margin (Non-GAAP) | 53.0 | % | |||||||||||||||||||||||||||||||||
| Q4'25 | |||||||||||||||||||||||||||||||||||
| (in millions) | Signal Integrity | Analog Mixed Signal and Wireless | Total Semiconductor Products | IoT Systems and Connectivity | Unallocated1 | Total | |||||||||||||||||||||||||||||
| Net sales | $ | 72.5 | $ | 85.4 | $ | 157.9 | $ | 93.1 | $ | — | $ | 251.0 | |||||||||||||||||||||||
| Segment cost of sales | 26.5 | 39.5 | 66.0 | 53.6 | 0.9 | 120.5 | |||||||||||||||||||||||||||||
| Segment gross profit | $ | 46.0 | $ | 45.9 | $ | 91.9 | $ | 39.5 | $ | (0.9) | $ | 130.5 | |||||||||||||||||||||||
| Segment gross margin | 63.4 | % | 53.8 | % | 58.2 | % | 42.5 | % | NM2 | ||||||||||||||||||||||||||
| Gross margin (GAAP) | 52.0 | % | |||||||||||||||||||||||||||||||||
| Share-based compensation | 0.3 | % | |||||||||||||||||||||||||||||||||
| Amortization of acquired technology | 0.9 | % | |||||||||||||||||||||||||||||||||
| Adjusted gross margin (Non-GAAP) | 53.2 | % | |||||||||||||||||||||||||||||||||
1 Unallocated includes share-based compensation and amortization of acquired technology
2 Not meaningful
SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)
(in millions)
(unaudited)
| FY'26 | |||||||||||||||||||||||||||||||||||
| (in millions) | Signal Integrity | Analog Mixed Signal and Wireless | Total Semiconductor Products | IoT Systems and Connectivity | Unallocated1 | Total | |||||||||||||||||||||||||||||
| Net sales | $ | 322.6 | $ | 373.4 | $ | 696.1 | $ | 353.9 | $ | — | $ | 1,050.0 | |||||||||||||||||||||||
| Segment cost of sales | 112.3 | 153.5 | 265.7 | 228.2 | 13.9 | 507.8 | |||||||||||||||||||||||||||||
| Segment gross profit | $ | 210.3 | $ | 220.0 | $ | 430.3 | $ | 125.7 | $ | (13.9) | $ | 542.1 | |||||||||||||||||||||||
| Segment gross margin | 65.2 | % | 58.9 | % | 61.8 | % | 35.5 | % | NM2 | ||||||||||||||||||||||||||
| Gross margin (GAAP) | 51.6 | % | |||||||||||||||||||||||||||||||||
| Share-based compensation | 0.3 | % | |||||||||||||||||||||||||||||||||
| Amortization of acquired technology | 0.9 | % | |||||||||||||||||||||||||||||||||
| Adjusted gross margin (Non-GAAP) | 52.8 | % | |||||||||||||||||||||||||||||||||
| FY'25 | |||||||||||||||||||||||||||||||||||
| (in millions) | Signal Integrity | Analog Mixed Signal and Wireless | Total Semiconductor Products | IoT Systems and Connectivity | Unallocated1 | Total | |||||||||||||||||||||||||||||
| Net sales | $ | 261.7 | $ | 322.9 | $ | 584.6 | $ | 324.6 | $ | — | $ | 909.3 | |||||||||||||||||||||||
| Segment cost of sales | 99.1 | 143.5 | 242.6 | 197.1 | 13.1 | 452.8 | |||||||||||||||||||||||||||||
| Segment gross profit | $ | 162.7 | $ | 179.4 | $ | 342.0 | $ | 127.6 | $ | (13.1) | $ | 456.5 | |||||||||||||||||||||||
| Segment gross margin | 62.1 | % | 55.6 | % | 58.5 | % | 39.3 | % | NM2 | ||||||||||||||||||||||||||
| Gross margin (GAAP) | 50.2 | % | |||||||||||||||||||||||||||||||||
| Share-based compensation | 0.3 | % | |||||||||||||||||||||||||||||||||
| Amortization of acquired technology | 1.0 | % | |||||||||||||||||||||||||||||||||
| Adjusted gross margin (Non-GAAP) | 51.5 | % | |||||||||||||||||||||||||||||||||
1 Unallocated includes share-based compensation and amortization of acquired technology
2 Not meaningful
SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)
(in millions)
(unaudited)
| Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | |||||||||||||||||||||||||
| Product development and engineering (GAAP) | $ | 51.2 | $ | 49.4 | $ | 46.7 | $ | 196.3 | $ | 170.9 | |||||||||||||||||||
| Share-based compensation | (4.0) | (3.9) | (3.5) | (15.1) | (14.0) | ||||||||||||||||||||||||
| Adjusted product development and engineering (Non-GAAP) | $ | 47.2 | $ | 45.5 | $ | 43.1 | $ | 181.3 | $ | 156.9 | |||||||||||||||||||
| Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | |||||||||||||||||||||||||
| Selling, general and administrative (GAAP) | $ | 59.8 | $ | 57.1 | $ | 54.5 | $ | 221.9 | $ | 222.4 | |||||||||||||||||||
| Share-based compensation | (11.8) | (12.5) | (13.0) | (39.9) | (51.1) | ||||||||||||||||||||||||
| Transaction and integration related costs, net | (2.6) | (1.1) | (0.9) | (6.0) | (7.4) | ||||||||||||||||||||||||
| Environmental reserve | — | (1.2) | — | (1.2) | — | ||||||||||||||||||||||||
| Litigation costs, net | (1.1) | (1.3) | (0.1) | (3.0) | (1.2) | ||||||||||||||||||||||||
| Adjusted selling, general and administrative (Non-GAAP) | $ | 44.3 | $ | 41.1 | $ | 40.5 | $ | 171.7 | $ | 162.6 | |||||||||||||||||||
| Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | |||||||||||||||||||||||||
| Operating expenses, net (GAAP) | $ | 156.5 | $ | 107.4 | $ | 109.3 | $ | 509.6 | $ | 406.6 | |||||||||||||||||||
| Share-based compensation | (15.8) | (16.4) | (16.5) | (55.0) | (65.1) | ||||||||||||||||||||||||
| Intangible amortization | (0.2) | (0.1) | (0.1) | (0.6) | (0.9) | ||||||||||||||||||||||||
| Transaction and integration related costs, net | (2.6) | (1.1) | (0.9) | (6.0) | (7.4) | ||||||||||||||||||||||||
| Restructuring and other reserves, net | (0.7) | (2.0) | (0.4) | (5.4) | (4.9) | ||||||||||||||||||||||||
| Litigation costs, net | (1.1) | (1.3) | (0.1) | (3.0) | (1.2) | ||||||||||||||||||||||||
| Intangible impairments | (1.8) | — | — | (1.8) | — | ||||||||||||||||||||||||
| Goodwill impairment | (42.8) | — | (7.5) | (84.8) | (7.5) | ||||||||||||||||||||||||
| Adjusted operating expenses, net (Non-GAAP) | $ | 91.5 | $ | 86.5 | $ | 83.7 | $ | 353.0 | $ | 319.6 | |||||||||||||||||||
| Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | |||||||||||||||||||||||||
| Operating (loss) income (GAAP) | $ | (18.3) | $ | 31.1 | $ | 21.2 | $ | 32.6 | $ | 49.9 | |||||||||||||||||||
| Share-based compensation | 16.5 | 17.1 | 17.3 | 57.7 | 68.0 | ||||||||||||||||||||||||
| Intangible amortization | 2.7 | 2.4 | 2.4 | 9.8 | 10.0 | ||||||||||||||||||||||||
| Transaction and integration related costs, net | 2.6 | 1.1 | 0.9 | 6.0 | 7.4 | ||||||||||||||||||||||||
| Restructuring and other reserves, net | 0.7 | 2.0 | 0.4 | 5.4 | 4.9 | ||||||||||||||||||||||||
| Litigation costs, net | 1.1 | 1.3 | 0.1 | 3.0 | 1.2 | ||||||||||||||||||||||||
| Intangible impairments | 1.8 | — | — | 1.8 | — | ||||||||||||||||||||||||
| Goodwill impairment | 42.8 | — | 7.5 | 84.8 | 7.5 | ||||||||||||||||||||||||
| Adjusted operating income (Non-GAAP) | $ | 50.0 | $ | 54.9 | $ | 49.8 | $ | 201.1 | $ | 149.0 | |||||||||||||||||||
SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)
(in millions)
(unaudited)
| Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | |||||||||||||||||||||||||
| Operating margin (GAAP) | (6.7) | % | 11.6 | % | 8.5 | % | 3.1 | % | 5.5 | % | |||||||||||||||||||
| Share-based compensation | 6.0 | % | 6.5 | % | 6.9 | % | 5.5 | % | 7.5 | % | |||||||||||||||||||
| Intangible amortization | 1.0 | % | 0.9 | % | 0.9 | % | 0.8 | % | 1.1 | % | |||||||||||||||||||
| Transaction and integration related costs, net | 1.0 | % | 0.4 | % | 0.3 | % | 0.6 | % | 0.8 | % | |||||||||||||||||||
| Restructuring and other reserves, net | 0.3 | % | 0.7 | % | 0.2 | % | 0.5 | % | 0.6 | % | |||||||||||||||||||
| Litigation costs, net | 0.4 | % | 0.5 | % | 0.1 | % | 0.3 | % | 0.1 | % | |||||||||||||||||||
| Intangible impairments | 0.6 | % | — | % | — | % | 0.2 | % | — | % | |||||||||||||||||||
| Goodwill impairment | 15.6 | % | — | % | 3.0 | % | 8.1 | % | 0.8 | % | |||||||||||||||||||
| Adjusted operating margin (Non-GAAP) | 18.2 | % | 20.6 | % | 19.9 | % | 19.1 | % | 16.4 | % | |||||||||||||||||||
| Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | |||||||||||||||||||||||||
| Interest expense, net (GAAP) | $ | 1.0 | $ | 26.2 | $ | 16.7 | $ | 38.1 | $ | 87.8 | |||||||||||||||||||
| Amortization of deferred financing costs | (1.1) | (1.6) | (1.5) | (4.8) | (8.3) | ||||||||||||||||||||||||
| Write-off of deferred financing costs | — | (1.4) | (7.7) | (2.4) | (13.2) | ||||||||||||||||||||||||
| Interest rate swap termination | — | 0.6 | 3.6 | 1.8 | 3.6 | ||||||||||||||||||||||||
| Induced conversion expense | — | (21.2) | — | (21.2) | — | ||||||||||||||||||||||||
| Investment income | — | — | 0.2 | — | 0.8 | ||||||||||||||||||||||||
| Adjusted interest expense, net (Non-GAAP) | $ | (0.1) | $ | 2.5 | $ | 11.2 | $ | 11.5 | $ | 70.6 | |||||||||||||||||||
| Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | |||||||||||||||||||||||||
| Loss on extinguishment of debt (GAAP) | $ | — | $ | — | $ | — | $ | — | $ | 144.7 | |||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | — | (144.7) | ||||||||||||||||||||||||
| Adjusted loss on extinguishment of debt (Non-GAAP) | — | — | — | — | — | ||||||||||||||||||||||||
SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)
(in millions, except per share data)
(unaudited)
| Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | |||||||||||||||||||||||||
| Net (loss) income (GAAP) | $ | (29.8) | $ | (2.9) | $ | 39.1 | $ | (40.4) | $ | (161.9) | |||||||||||||||||||
| Adjustments to GAAP net (loss) income: | |||||||||||||||||||||||||||||
| Share-based compensation | 16.5 | 17.1 | 17.3 | 57.7 | 68.0 | ||||||||||||||||||||||||
| Intangible amortization | 2.7 | 2.4 | 2.4 | 9.8 | 10.0 | ||||||||||||||||||||||||
| Transaction and integration related costs, net | 2.6 | 1.1 | 0.9 | 6.0 | 7.9 | ||||||||||||||||||||||||
| Restructuring and other reserves, net | 0.7 | 2.0 | 0.4 | 5.4 | 4.9 | ||||||||||||||||||||||||
| Litigation costs, net | 1.1 | 1.3 | 0.1 | 3.0 | 1.2 | ||||||||||||||||||||||||
| Investment losses (gains), net | 10.4 | — | (0.2) | 10.4 | — | ||||||||||||||||||||||||
| Amortization of deferred financing costs | 1.1 | 1.6 | 1.5 | 4.8 | 8.3 | ||||||||||||||||||||||||
| Write-off of deferred financing costs | — | 1.4 | 7.7 | 2.4 | 13.2 | ||||||||||||||||||||||||
| Interest rate swap termination | — | (0.6) | (3.6) | (1.8) | (3.6) | ||||||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | — | 144.7 | ||||||||||||||||||||||||
| Intangible impairments | 1.8 | — | — | 1.8 | — | ||||||||||||||||||||||||
| Induced conversion expense | — | 21.2 | — | 21.2 | — | ||||||||||||||||||||||||
| Goodwill impairment | 42.8 | — | 7.5 | 84.8 | 7.5 | ||||||||||||||||||||||||
| Total Non-GAAP adjustments before taxes | 79.8 | 47.5 | 34.0 | 205.4 | 262.2 | ||||||||||||||||||||||||
| Associated tax effect | (8.3) | (0.5) | (39.3) | (7.8) | (33.9) | ||||||||||||||||||||||||
| Equity method loss (income) | 0.4 | — | 0.6 | (0.6) | 0.5 | ||||||||||||||||||||||||
| Total of supplemental information, net of taxes | 71.8 | 47.0 | (4.7) | 197.0 | 228.9 | ||||||||||||||||||||||||
| Adjusted net income (Non-GAAP) | $ | 42.0 | $ | 44.1 | $ | 34.5 | $ | 156.6 | $ | 67.0 | |||||||||||||||||||
| Diluted (loss) earnings per share (GAAP) | $ | (0.32) | $ | (0.03) | $ | 0.43 | $ | (0.46) | $ | (2.26) | |||||||||||||||||||
| Adjustments per above | 0.76 | 0.51 | (0.03) | 2.17 | 3.14 | ||||||||||||||||||||||||
| Adjusted diluted earnings per share (Non-GAAP) | $ | 0.44 | $ | 0.48 | $ | 0.40 | $ | 1.71 | $ | 0.88 | |||||||||||||||||||
| Weighted-average number of shares used in computing diluted (loss) earnings per share: | |||||||||||||||||||||||||||||
| GAAP | 92.6 | 87.7 | 90.3 | 88.4 | 71.6 | ||||||||||||||||||||||||
| Non-GAAP | 95.7 | 92.8 | 87.1 | 91.6 | 76.2 | ||||||||||||||||||||||||
SEMTECH CORPORATION
SUPPLEMENTAL INFORMATION: RECONCILIATION OF GAAP TO NON-GAAP RESULTS (CONTINUED)
(in millions)
(unaudited)
| Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | |||||||||||||||||||||||||
| Net (loss) income (GAAP) | $ | (29.8) | $ | (2.9) | $ | 39.1 | $ | (40.4) | $ | (161.9) | |||||||||||||||||||
| Interest expense | 1.8 | 27.0 | 17.5 | 40.6 | 90.1 | ||||||||||||||||||||||||
| Interest income | (0.8) | (0.8) | (0.8) | (2.5) | (2.3) | ||||||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | — | 144.7 | ||||||||||||||||||||||||
| Non-operating expense (income), net | 0.7 | 0.4 | (2.0) | 5.3 | (0.3) | ||||||||||||||||||||||||
| Investment impairments and credit loss reserves, net | 10.4 | — | — | 10.4 | 1.1 | ||||||||||||||||||||||||
| (Benefit) provision for income taxes | (0.9) | 7.3 | (33.2) | 19.8 | (22.0) | ||||||||||||||||||||||||
| Equity method loss (income) | 0.4 | — | 0.6 | (0.6) | 0.5 | ||||||||||||||||||||||||
| Share-based compensation | 16.5 | 17.1 | 17.3 | 57.7 | 68.0 | ||||||||||||||||||||||||
| Depreciation and amortization | 10.2 | 10.1 | 10.4 | 40.8 | 43.5 | ||||||||||||||||||||||||
| Transaction and integration related costs, net | 2.6 | 1.1 | 0.9 | 6.0 | 7.4 | ||||||||||||||||||||||||
| Restructuring and other reserves, net | 0.7 | 2.0 | 0.4 | 5.4 | 4.9 | ||||||||||||||||||||||||
| Litigation costs, net | 1.1 | 1.3 | 0.1 | 3.0 | 1.2 | ||||||||||||||||||||||||
| Intangible impairments | 1.8 | — | — | 1.8 | — | ||||||||||||||||||||||||
| Goodwill impairment | 42.8 | — | 7.5 | 84.8 | 7.5 | ||||||||||||||||||||||||
| Adjusted EBITDA (Non-GAAP) | $ | 57.4 | $ | 62.7 | $ | 57.8 | $ | 232.0 | $ | 182.5 | |||||||||||||||||||
| Q4'26 | Q3'26 | Q4'25 | FY'26 | FY'25 | |||||||||||||||||||||||||
| Operating margin (GAAP) | (6.7) | % | 11.6 | % | 8.5 | % | 3.1 | % | 5.5 | % | |||||||||||||||||||
| Share-based compensation | 6.0 | % | 6.5 | % | 6.9 | % | 5.5 | % | 7.5 | % | |||||||||||||||||||
| Depreciation and amortization | 3.7 | % | 3.8 | % | 4.0 | % | 3.8 | % | 4.8 | % | |||||||||||||||||||
| Transaction and integration related costs, net | 1.0 | % | 0.4 | % | 0.3 | % | 0.6 | % | 0.8 | % | |||||||||||||||||||
| Restructuring and other reserves, net | 0.3 | % | 0.7 | % | 0.2 | % | 0.5 | % | 0.6 | % | |||||||||||||||||||
| Litigation costs, net | 0.4 | % | 0.5 | % | 0.1 | % | 0.3 | % | 0.1 | % | |||||||||||||||||||
| Intangible impairments | 0.6 | % | — | % | — | % | 0.2 | % | — | % | |||||||||||||||||||
| Goodwill impairment | 15.6 | % | — | % | 3.0 | % | 8.1 | % | 0.8 | % | |||||||||||||||||||
| Adjusted EBITDA margin (Non-GAAP) | 20.9 | % | 23.5 | % | 23.0 | % | 22.1 | % | 20.1 | % | |||||||||||||||||||
CONTACT:
Mitch Haws
Semtech Corporation
webir@semtech.com
FAQ
How did Semtech (SMTC) perform financially in fiscal year 2026?
Semtech delivered record fiscal 2026 net sales of $1.05 billion, up 15% year-over-year. GAAP operating margin was 3.1%, while non-GAAP adjusted operating margin reached 19.1%. Non-GAAP adjusted diluted earnings per share increased sharply to $1.71, showing stronger core profitability.
What were Semtech’s (SMTC) fourth quarter 2026 results?
In Q4 2026, Semtech generated net sales of $274.4 million, up 3% sequentially and 9% year-over-year. GAAP diluted loss per share was $0.32, while non-GAAP adjusted diluted earnings per share were $0.44, supported by an adjusted operating margin of 18.2%.
How strong was Semtech’s (SMTC) cash flow in fiscal 2026?
Semtech’s cash flow strengthened significantly in fiscal 2026, with operating cash flow of $181.2 million and free cash flow of $171.4 million. This compares to operating cash flow of $58.0 million and free cash flow of $50.1 million in fiscal 2025, indicating much better cash generation.
What is Semtech’s (SMTC) outlook for the first quarter of fiscal 2027?
For Q1 fiscal 2027, Semtech targets net sales of about $283.0 million plus or minus $5.0 million. The company expects non-GAAP adjusted diluted earnings per share around $0.45 plus or minus $0.03, with an adjusted gross margin near 52.8% and adjusted operating margin about 18.6%.
How do Semtech’s (SMTC) GAAP and non-GAAP results differ for 2026?
In fiscal 2026, Semtech reported a GAAP net loss of $40.4 million and diluted loss per share of $0.46, reflecting items like goodwill impairment. On a non-GAAP basis, adjusted net income was $156.6 million and adjusted diluted EPS was $1.71, excluding specified charges.
Did Semtech (SMTC) improve its margins in fiscal year 2026?
Yes. GAAP gross margin rose to 51.6%, up from 50.2% in fiscal 2025. Non-GAAP adjusted gross margin increased to 52.8%. Non-GAAP adjusted operating margin also improved to 19.1%, reflecting better cost structure and operating leverage on higher revenue.
Filing Exhibits & Attachments
4 documents
Semtech
NASDAQ:SMTC
SMTC Rankings
SMTC Latest News
SMTC Latest SEC Filings
Mar 23, 2026
[10-K] SEMTECH CORP Files Annual Report
Mar 20, 2026
[Form 4] SEMTECH CORP Insider Trading Activity
Mar 12, 2026
[Form 4] SEMTECH CORP Insider Trading Activity
Mar 12, 2026
[Form 4] SEMTECH CORP Insider Trading Activity
Mar 12, 2026
[Form 4] SEMTECH CORP Insider Trading Activity