Semtech

SMTC Q3 2026 Earnings

Reported Nov 24, 2025 at 4:06 PM ET · SEC Source

Q3 26 EPS

$0.48

BEAT +7.87%

Est. $0.45

Q3 26 Revenue

$267.0M

BEAT +0.22%

Est. $266.4M

vs S&P Since Q3 26

+57.8%

BEATING MARKET

SMTC +64.6% vs S&P +6.8%

Market Reaction

Did SMTC Beat Earnings? Q3 2026 Results

Semtech posted a clean beat on both top and bottom lines in fiscal Q3 2026, delivering record quarterly net sales of $267.00 million, up 12.7% year over year and just ahead of the $266.42 million consensus, while non-GAAP adjusted diluted EPS of $0.4… Read more Semtech posted a clean beat on both top and bottom lines in fiscal Q3 2026, delivering record quarterly net sales of $267.00 million, up 12.7% year over year and just ahead of the $266.42 million consensus, while non-GAAP adjusted diluted EPS of $0.48 cleared the $0.45 estimate by 7.87%, nearly doubling the $0.26 reported in the year-ago quarter. The quarter's strength was broad-based, with the semiconductor products portfolio climbing to $178.70 million from $154.30 million a year ago as demand for signal integrity and analog mixed-signal solutions accelerated, particularly in data center networking where the company reported record sales. Profitability improved in step with revenue, as adjusted EBITDA reached $62.70 million at a 23.5% margin and free cash flow strengthened to $44.60 million from $29.10 million a year prior. Despite the solid results, shares slipped in after-hours trading, a reaction some attributed to mixed sentiment around valuation. Looking ahead, Semtech guided Q4 net sales to approximately $273.00 million and adjusted diluted EPS of $0.43, reflecting planned increases in R&D investment as CEO Hong Hou cited intensifying customer demand for power-efficient AI and IoT connectivity solutions.

Key Takeaways

  • 13% year-over-year revenue growth to record quarterly net sales
  • Signal Integrity segment revenue grew from $71.5M to $81.6M year-over-year
  • Analog Mixed Signal and Wireless segment revenue grew from $82.8M to $97.0M year-over-year
  • IoT Systems and Connectivity revenue grew from $82.5M to $88.3M year-over-year
  • Non-GAAP adjusted operating margin expansion to 20.6% from 18.3% a year ago
  • Substantial reduction in adjusted interest expense from $18.4M to $2.5M year-over-year through capital structure optimization
  • Disciplined R&D investments and expanding customer partnerships
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SMTC YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

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SMTC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 26 Q4 26

“Our strong results this quarter reflect returns on our disciplined R&D investments and the deep and expanding partnerships we have established with our customers.”

— Hong Hou, Q3 2026 Earnings Press Release