Semtech (NASDAQ: SMTC) delivered a beat in Q4 FY2026, reporting non-GAAP EPS of $0.44 vs. analyst estimates of $0.43, and revenue of $274.4 million vs. consensus of $273.1 million. Full-year revenue crossed the $1 billion mark for the first time, rising 15% YoY. Shares slipped roughly 1.3% in after-hours trading despite the beat.
About Semtech Corporation
Semtech Corporation (Nasdaq: SMTC) is a high-performance semiconductor company headquartered in Camarillo, California. Founded in 1960, Semtech designs and supplies analog and mixed-signal semiconductor products targeting data center networking, Internet of Things (IoT) connectivity, and cellular infrastructure applications. The company is globally recognized as the creator of LoRa technology, a proprietary low-power wide-area network (LPWAN) protocol now adopted in over 125 million IoT deployments worldwide with a 25% compound annual growth rate.
As of March 2026, Semtech carries a market capitalization of approximately $7.51 to $7.86 billion and employs approximately 1,838 people. The company’s P/E ratio stands at roughly 278 to 293x on a trailing twelve-month basis, reflecting investor expectations for continued high growth driven by its data center and LoRa product lines. Semtech operates through three key business segments: Signal Integrity (optical and copper interconnect for AI data centers), Analog Mixed Signal and Wireless (including LoRa-based IoT), and Protection products. No dividend is paid to shareholders.
Top Financial Highlights
- Net sales of $274.4 million in Q4 FY2026, up 9% year-over-year and up 3% sequentially from Q3 FY2026
- Full fiscal year 2026 (FY2026) net sales reached a record $1.05 billion, marking 15% year-over-year growth -margin of 50.4% in Q4; full-year GAAP gross margin of 51.6%, up 140 basis points from FY2025
- Non-GAAP adjusted gross margin of 51.6% in Q4; full-year non-GAAP adjusted gross margin of 52.8%, up 130 basis points from FY2025
- GAAP operating loss of $(18.3) million in Q4 (operating margin of -6.7%), driven by elevated operating expenses of $156.5 million; non-GAAP adjusted operating margin of 18.2%
- GAAP diluted net loss per share of $(0.32) in Q4; non-GAAP adjusted diluted EPS of $0.44, beating analyst consensus of $0.43
- Operating cash flow of $61.5 million and free cash flow of $59.1 million in Q4 – both exceeding the total for all of FY2025
- Cash and cash equivalents of $195.2 million at the end of Q4 FY2026
- LoRa-enabled net sales reached $39.6 million in Q4, up 7% year-over-year, with management reaffirming long-term growth targets
- Signal Integrity segment gross margin reported at a robust 65%, underscoring the high-margin data center opportunity
- FY2026 non-GAAP adjusted diluted EPS of $1.71, compared to $0.88 in FY2025 – a 94% improvement
- Q1 FY2027 guidance: net sales of approximately $283.0 million (+/- $5.0 million), adjusted gross margin of 52.8%, adjusted operating income of $52.5 million, and non-GAAP EPS of $0.45 at midpoint
Beat or Miss?
| Metric | Reported | Estimated | Difference / Analysis |
| Q4 Revenue | $274.4M | $273.1M | +$1.3M beat (+0.5%) |
| Non-GAAP EPS | $0.44 | $0.43 | +$0.01 beat (+2.3%) |
| GAAP EPS | $(0.32) | N/A | GAAP loss vs. prior year $0.43 gain due to one-time elevated OpEx |
| FY2026 Revenue | $1.05B | N/A | First-ever $1B+ annual revenue milestone |
| FY2026 Non-GAAP EPS | $1.71 | N/A | 94% improvement vs. FY2025’s $0.88 |
| Q1 FY2027 Revenue Guide | $283.0M midpoint | ~$273M prior consensus | +$10M above prior consensus |
| Operating Cash Flow (Q4) | $61.5M | N/A | Exceeds entire FY2025 operating cash flow total |
What Leadership Is Saying?
“Fiscal year 2026 represented a pivotal moment for Semtech, characterized by robust revenue and profit growth, indicative of our strong portfolio and disciplined execution. We are strategically positioned to benefit from the expansion of data center infrastructure with our diverse solutions tailored for the 800G, 1.6T, and 3.2T era. Our ongoing investment in research and development ensures we stay at the forefront of advanced optical and copper interconnect technologies. With a much stronger financial base, we can strategically pursue investments that we believe will propel Semtech’s growth.” – Hong Hou, President and Chief Executive Officer
“Semtech’s performance showcases the strength of our financial model, with fourth-quarter operating cash flow reaching $61.5 million and free cash flow at $59.1 million, both surpassing the totals from the entirety of fiscal year 2025. We remain committed to judiciously balancing capital allocation focused on research and development, capacity expansion, and acquisitions, which we anticipate will deliver substantial returns for our shareholders.” – Mark Lin, Executive Vice President and Chief Financial Officer
Historical Performance
The table below compares Semtech’s Q4 FY2026 results against the same quarter one year ago (Q4 FY2025), as well as full-year FY2026 vs. FY2025 figures.
| Category | Q4 FY2026 | Q4 FY2025 | Change (%) |
| Net Revenue | $274.4M | $251.0M | 9.30% |
| GAAP Net Income (Loss) | $(29.8M) | $39.1M | N/M (swing to loss) |
| GAAP Diluted EPS | $(0.32) | $0.43 | N/M |
| Non-GAAP EPS | $0.44 public | $0.40 | 10.00% |
| GAAP Gross Margin | 50.4% | 52.0% | -160 bps |
| Operating Cash Flow | $61.5M | $33.5M | 83.60% |
| Free Cash Flow | $59.1M | $30.9M | 91.30% |
| Operating Expenses | $156.5M | $109.3M | 43.20% |
| Category | FY2026 | FY2025 | Change (%) |
| Net Revenue | $1,050.0M finance.yahoo | $909.3M finance.yahoo | 15.50% |
| GAAP Net Income (Loss) | $(40.4M) finance.yahoo | $(161.9M) finance.yahoo | +75.0% (loss improvement) |
| Non-GAAP EPS | $1.71 finance.yahoo | $0.88 semtech | 94.30% |
| GAAP Gross Margin | 51.6% finance.yahoo | 50.2% semtech | +140 bps |
| GAAP Operating Income | $32.6M finance.yahoo | $49.9M finance.yahoo | -34.70% |
Competitor Performance Comparison
Semtech operates alongside peers in the semiconductor space, particularly competing with MACOM Technology Solutions (MTSI) in optical interconnects and Silicon Labs (SLAB) in IoT wireless. The table below compares the most recently available comparable quarters.
| Category | Semtech Q4 FY2026 | MACOM Q4 CY2025 | Silicon Labs Q4 FY2025 |
| Revenue | $274.4M | $271.6M | $208.2M |
| YoY Revenue Growth | +9.3% | +24.5% | +25.0% |
| Non-GAAP Gross Margin | 51.6% | 57.1% | 63.6% |
| Non-GAAP Operating Margin | 18.2% | 25.6% | 9.9% |
| Non-GAAP EPS | $0.44 | $1.02 | $0.56 |
| Market Cap | ~$7.5B | ~$16.1B | Being acquired by TI |
| Next Qtr Revenue Guide | $283M | $285M | N/A (acquisition pending) |
MACOM reported its eighth consecutive quarter of revenue growth and guided for a 20.8% YoY increase in the following quarter, presenting stronger top-line momentum than Semtech in the near term.
However, Semtech’s data center Signal Integrity segment – targeting the LPO and advanced copper interconnect markets – gives it differentiated exposure to the 800G and 1.6T AI data center buildout cycles. Silicon Labs, the closest peer in IoT wireless, is in the process of being acquired by Texas Instruments in an all-cash deal at $231 per share, removing it as a standalone competitor.
How the Market Reacted?
Despite beating both EPS and revenue estimates, Semtech shares slipped approximately 1.31% in after-hours trading on March 16, 2026, with shares trading around $87.83 following the report. The pullback likely reflected profit-taking after a significant run-up, as SMTC stock had appreciated roughly 170% over the prior 12 months heading into the print.
Heading into earnings, the average analyst price target stood at approximately $92.62, well above the pre-earnings price of $84.70, and multiple firms raised targets post-results – including Stifel to $98, Needham to $105, Baird to $110, and Craig-Hallum to $105. The Q1 FY2027 guidance midpoint of $283 million exceeded prior consensus estimates by roughly $10 million, which analysts viewed as a constructive signal for continued data center and LoRa demand into the next fiscal year.
