Semtech Corporation has announced its financial results for the second quarter of fiscal year 2026, showing significant year-over-year growth in various key metrics.
The company reported record net sales of $257.6 million for the second quarter, representing a substantial 20% increase compared to the same period last year when net sales were $215.4 million.
The GAAP gross margin for the quarter was reported at 52.1%, up from 49.0% a year ago, while the non-GAAP adjusted gross margin saw an increase to 53.2%, up from 50.4% in the previous year.
However, the GAAP operating margin for the quarter was (6.3)%, a decrease from 3.6% a year ago. In contrast, the non-GAAP adjusted operating margin showed a significant increase to 18.8% from 14.2% in the prior year.
Semtech's GAAP diluted loss per share for the quarter was $0.31, an improvement from a diluted loss per share of $2.61 a year ago. The non-GAAP adjusted diluted earnings per share also demonstrated notable growth, reaching $0.41 compared to $0.11 in the same period last year.
Looking ahead, the company provided an outlook for the third quarter of fiscal year 2026, with anticipated net sales of $266.0 million, plus or minus $5.0 million. Additionally, the non-GAAP adjusted gross margin is expected to be around 53.0%, plus or minus 50 basis points, and the adjusted diluted earnings per share is projected to be approximately $0.44, plus or minus $0.03.
Semtech's executive leadership expressed confidence in the company's strong financial performance, citing deep customer engagement and operational discipline as key drivers of the positive results. The press release emphasized the company's strategic investments in core businesses as support for capturing high-growth opportunities ahead. Today the company's shares have moved 0.92% to a price of $51.56. If you want to know more, read the company's complete 8-K report here.
