Semtech Corp Reports Record Q3 Sales

By Philip Seaworth • Tuesday, November 25 10:27 • Permanent Link

Semtech Corporation has reported its financial results for the third quarter of fiscal year 2026, ending October 26, 2025. The company has achieved record net sales of $267.0 million, representing a 13% year-over-year growth.

In terms of gross margin, the GAAP gross margin increased to 51.9% from 51.1% a year ago, while the non-GAAP adjusted gross margin also saw a rise to 53.0% from 52.4% a year ago.

Furthermore, Semtech reported a significant improvement in both GAAP and non-GAAP adjusted operating margins. The GAAP operating margin increased to 11.6% from 7.5% a year ago, and the non-GAAP adjusted operating margin increased to 20.6% from 18.3% a year ago.

In terms of earnings per share, the company reported a diluted loss per share of $0.03 compared to a diluted loss per share of $0.10 a year ago on a GAAP basis. On a non-GAAP adjusted basis, the diluted earnings per share increased to $0.48 from $0.26 a year ago.

Looking at the quarterly performance, the net sales for the third quarter of fiscal year 2026 were $267.0 million, up from $236.8 million in the same period a year ago.

The company also provided an outlook for the fourth quarter of fiscal year 2026, with a projected net sales of $273.0 million, and various non-GAAP financial measures such as adjusted gross margin, total semiconductor products gross margin, adjusted operating income, adjusted diluted earnings per share, and adjusted EBITDA margin.

Semtech Corporation's strong financial performance is attributed to disciplined R&D investments and expanding partnerships with customers, which have translated into improved operating and adjusted EBITDA margins, demonstrating leverage in the company's financial model.

Today the company's shares have moved 9.65% to a price of $70.01. If you want to know more, read the company's complete 8-K report here.

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