Semtech Corporation (NASDAQ: SMTC) has announced its first-quarter financial results for fiscal year 2026, ending on April 27, 2025. The company reported net sales of $251.1 million, reflecting a substantial 22% year-over-year growth from the same period last year when net sales were $206.1 million.
The GAAP gross margin for the first quarter of fiscal year 2026 was reported at 52.3%, a notable increase from 48.3% in the first quarter of the previous fiscal year. Similarly, the non-GAAP adjusted gross margin rose to 53.5% from 49.8% year-over-year.
Semtech's GAAP operating margin for the first quarter of fiscal year 2026 was 14.3%, showing significant growth from 1.5% in the first quarter of fiscal year 2025. The non-GAAP adjusted operating margin also demonstrated a substantial increase to 19.0% from 12.2% year-over-year.
Adjusted EBITDA margin for the first quarter of fiscal year 2026 was reported at 22.1%, up from 16.1% in the first quarter of the previous fiscal year, indicating an improvement in the company's earnings and profitability.
In terms of earnings per share, the company reported GAAP diluted earnings per share of $0.22, a significant improvement from a loss of $0.36 in the first quarter of fiscal year 2025. The non-GAAP adjusted diluted earnings per share also showed impressive growth, reaching $0.38 compared to $0.06 in the same period last year.
Additionally, the company provided an outlook for the second quarter of fiscal year 2026, forecasting net sales of approximately $256.0 million with a non-GAAP adjusted gross margin of around 53.0% and adjusted operating margin of 18.8%.
Semtech's strategic investments in innovation, go-to-market capabilities, and operational scale have contributed to its strong financial performance, as noted by Hong Hou, President and Chief Executive Officer. The company's efforts have resulted in improved demand trends and solid business fundamentals, driving sustained growth and long-term value creation.
Mark Lin, Executive Vice President and Chief Financial Officer, highlighted the company's focus on debt reduction, with a $10 million term loan principal prepayment in the first quarter and an additional $15 million prepayment in the second quarter, resulting in a meaningful improvement to the net leverage ratio.
Semtech's financial results demonstrate its commitment to enhancing shareholder value and optimizing its financial position through strategic management of operational metrics and profitability. Following these announcements, the company's shares moved 2.09%, and are now trading at a price of $38.06. For more information, read the company's full 8-K submission here.
