Q1 26 EPS
$0.38
Q1 26 Revenue
$251.1M
vs S&P Since Q1 26
+162.1%
BEATING MARKET
SMTC +184.8% vs S&P +22.6%
Market Reaction
Did SMTC Beat Earnings? Q1 2026 Results
Semtech kicked off fiscal 2026 on a strong note, reporting first-quarter revenue of $251.10 million and non-GAAP adjusted EPS of $0.38, as the semiconductor and IoT connectivity company delivered 22% year-over-year top-line growth while dramatically … Read more Semtech kicked off fiscal 2026 on a strong note, reporting first-quarter revenue of $251.10 million and non-GAAP adjusted EPS of $0.38, as the semiconductor and IoT connectivity company delivered 22% year-over-year top-line growth while dramatically improving its profitability profile. The key driver behind the earnings momentum was gross margin expansion to 52.3% from 48.3% a year ago, paired with disciplined cost management that pushed GAAP operating income to $36.00 million from just $3.10 million in the prior-year period. Deleveraging also played a meaningful role in the story, with net interest expense falling sharply to $6.20 million from $22.70 million a year earlier as the company executed principal prepayments on its term loan. Free cash flow turned solidly positive at $26.20 million, reversing a negative $1.40 million result from Q1 FY25. Looking ahead, management guided Q2 revenue to $256.00 million and non-GAAP adjusted EPS of $0.40, signaling continued sequential growth as Semtech balances investment in innovation with ongoing debt reduction priorities.
Key Takeaways
- • 22% year-over-year net sales growth
- • GAAP gross margin expanded to 52.3% from 48.3% year-over-year
- • Non-GAAP adjusted gross margin expanded to 53.5% from 49.8% year-over-year
- • Adjusted EBITDA margin improved to 22.1% from 16.1% year-over-year
- • GAAP net interest expense declined significantly to $6.2 million from $22.7 million year-over-year
- • Free cash flow improved to $26.2 million from negative $1.4 million year-over-year
SMTC YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
SMTC Revenue by Segment
With YoY comparisons, source: SEC Filings
“I am pleased with our solid first quarter results, that reflected improving demand trends, strong business fundamentals and disciplined execution in a dynamic environment. At the same time, we continue investing strategically in innovation, go-to-market capabilities, and operational scale—laying a strong foundation for sustained growth and long-term value creation.”
— Hong Hou, Q1 2026 Earnings Press Release
SMTC Earnings Trends
SMTC vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SMTC EPS Trend
Earnings per share: estimate vs actual
SMTC Revenue Trend
Quarterly revenue: estimate vs actual
SMTC Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 26 FY | — | $0.44 | — | $274.4M | — |
| FY Full Year | — | $1.71 | — | $1.05B | — |
| Q3 26 BEAT | $0.45 | $0.48 | +7.87% | $267.0M | +0.22% |
| Q2 26 BEAT | $0.40 | $0.41 | +2.17% | $257.6M | +0.60% |
| Q1 26 | — | $0.38 | — | $251.1M | — |
| Q4 25 FY | — | $0.40 | — | $251.0M | — |
| FY Full Year | — | $0.88 | — | $909.3M | — |