| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 266.97 | 3.6% | 12.7% |
| Total Income | 266.97 | 3.6% | 12.7% |
| Expenditure | 235.91 | 13.8% | 7.7% |
| PBT | 4.45 | 120.0% | 224.7% |
| Net Profit | -2.86 | 89.4% | 62.3% |
| OPM | 11.63% | 17.92pp | 4.12pp |
| NPM | -1.07% | 9.43pp | 2.13pp |
| EPS | -0.03 | 90.3% | 70.0% |
Semtech Reports Q3 FY26 Net Sales of $267.0 Million, Up 13% Y-o-Y
04 May 2026 · 4 May, 7:02 am
Summary
Semtech Corporation announced its Q3 FY26 results, featuring record net sales of $267.0 million, a 13% increase year-over-year. The company's GAAP gross margin improved to 51.9%, and the GAAP operating margin rose to 11.6%. Management noted that the strong results reflect returns on disciplined R&D investments and expanding customer partnerships. For the fourth quarter of fiscal year 2026, Semtech expects net sales of $273.0 million, plus or minus $5.0 million.
Key Highlights
- 1
Semtech reported record net sales of $267.0 million, representing 13% year-over-year growth for Q3 FY26.
- 2
GAAP gross margin increased to 51.9%, up from 51.1% in the prior year.
- 3
Non-GAAP adjusted gross margin improved to 53.0%, compared to 52.4% a year ago.
- 4
GAAP operating margin was 11.6%, up from 7.5% in the prior year.
- 5
Non-GAAP adjusted operating margin increased to 20.6%, compared to 18.3% a year ago.
- 6
Non-GAAP adjusted diluted earnings per share reached $0.48, compared to $0.26 a year ago.
- 7
The company anticipates net sales of $273.0 million, plus or minus $5.0 million, for the fourth quarter of fiscal year 2026.
Management Comments
Hong Hou
"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." "As power constraints intensify for our customers, we believe we are positioned to lead with ultra-power-efficient solutions spanning high-bandwidth data center networking, LoRa connectivity for rapidly expanding IoT use cases, and sensing technologies that enhance the functionality of next-generation AI interfaces."
Mark Lin
"We reported marked sequential and year-over-year improvement in operating and adjusted EBITDA margins, demonstrating leverage in our financial model that translated to growth in operating and free cash flows." "Continued optimization of our capital structure substantially reduced cash interest costs, which we plan to allocate to R&D to further accelerate growth in our core portfolio and benefit earnings per share."
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