Semtech Corporation (SMTC) Q3 2026 Financial Results Summary
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Semtech Corporation (SMTC) Q3 2026 Financial Results Summary
Release Date: November 24, 2025
Semtech Corporation (NASDAQ: SMTC) has reported its unaudited financial results for the third quarter of fiscal year 2026, which ended on October 26, 2025. The results indicate a strong performance with significant improvements across various metrics compared to the same quarter last year.
Key Financial Highlights:
- Net Sales: $267.0 million
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Increased by 13% year-over-year from $236.8 million in Q3 2025.
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Gross Margin:
- GAAP Gross Margin: 51.9%, up from 51.1% in Q3 2025.
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Non-GAAP Adjusted Gross Margin: 53.0%, up from 52.4% in Q3 2025.
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Operating Margin:
- GAAP Operating Margin: 11.6%, compared to 7.5% in Q3 2025.
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Non-GAAP Adjusted Operating Margin: 20.6%, an increase from 18.3% in Q3 2025.
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Net Loss: $-2.9 million
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Reduced from a loss of $-7.6 million in Q3 2025.
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Diluted Loss Per Share:
- GAAP: $-0.03, improved from $-0.10 in Q3 2025.
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Non-GAAP Adjusted Diluted Earnings Per Share: $0.48, up from $0.26 a year ago.
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Operating Expenses:
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Total operating expenses of $107.4 million, an increase from $103.2 million in Q3 2025.
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Interest Expense (Net): $26.2 million, increased compared to $20.3 million in Q3 2025.
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Cash Flow:
- Cash Provided by Operating Activities: $47.5 million, up from $29.6 million year-over-year.
- Free Cash Flow: $44.6 million, compared to $29.1 million in Q3 2025.
Operational Highlights:
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Semtech’s president and CEO, Hong Hou, emphasized the company’s commitment to R&D investments and partnerships, stating the results reflect a return on disciplined investments and an expanding customer base.
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Mark Lin, EVP and CFO, noted marked improvements in operating margins and cash flows as a co-benefit of structural optimization reducing cash interest costs supporting R&D activities.
Future Guidance:
For the fourth quarter of fiscal year 2026, Semtech anticipates:
- Net Sales: Estimated at $273.0 million, with a variability of +/- $5.0 million.
- Non-GAAP Adjusted Gross Margin: Projected around 51.2%, +/- 50 basis points.
- Adjusted EBITDA Margin: Expected to be 20.5%, +/- 80 basis points.
- Adjusted Diluted Earnings Per Share: Expected to be $0.43, with a variability of +/- $0.03.
Shareholder Returns:
- Semtech did not declare a quarterly dividend in the report.
- There were no mentions of share repurchase programs included in the provided text.
Conclusion:
Semtech’s Q3 2026 results showcase strong revenue growth and considerable improvements in margins and earnings per share compared to the previous year. The management’s focus on R&D and cost efficiency appears to be yielding positive results, framing a strong outlook for the upcoming quarter while providing insights into the operational strengths that support the financial performance.
Here are the extracted tables from the press release:
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
| Q3’26 | Q2’26 | Q3’25 | |
|---|---|---|---|
| Net sales | $267.0 | $257.6 | $236.8 |
| Cost of sales | $126.3 | $121.3 | $113.6 |
| Amortization of acquired technology | $2.2 | $2.2 | $2.3 |
| Total cost of sales | $128.5 | $123.5 | $115.9 |
| Gross profit | $138.5 | $134.1 | $121.0 |
| Operating expenses, net: | |||
| Product development and engineering | $49.4 | $48.2 | $42.6 |
| Selling, general and administrative | $57.1 | $58.5 | $59.8 |
| Intangible amortization | $0.1 | $0.1 | $0.1 |
| Restructuring | $0.8 | $1.5 | $0.7 |
| Goodwill impairment | $— | $42.0 | $— |
| Total operating expenses, net | $107.4 | $150.3 | $103.2 |
| Operating income (loss) | $31.1 | $-16.2 | $17.8 |
| Interest expense | $-27.0 | $-5.2 | $-20.8 |
| Interest income | $0.8 | $0.5 | $0.5 |
| Non-operating expense | $-0.4 | $-1.3 | $-1.1 |
| Income (loss) before taxes and equity method loss | $4.4 | $-22.2 | $-3.6 |
| Provision for income taxes | $7.3 | $4.8 | $4.0 |
| Net loss before equity method loss | $-2.9 | $-27.0 | $-7.6 |
| Equity method loss | $— | $-0.1 | $— |
| Net loss | $-2.9 | $-27.1 | $-7.6 |
| Loss per share: | |||
| Basic | $-0.03 | $-0.31 | $-0.10 |
| Diluted | $-0.03 | $-0.31 | $-0.10 |
| Weighted average number of shares used in computing loss per share: | |||
| Basic | $87.7 | $86.7 | $75.3 |
| Diluted | $87.7 | $86.7 | $75.3 |
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
| October 26, 2025 | January 26, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $164.7 | $151.7 |
| Accounts receivable, net | $164.8 | $162.5 |
| Inventories | $185.7 | $163.6 |
| Prepaid taxes | $11.8 | $13.5 |
| Other current assets | $93.9 | $94.1 |
| Total current assets | $620.9 | $585.5 |
| Non-current assets: | ||
| Property, plant and equipment, net | $111.0 | $126.2 |
| Deferred tax assets | $33.8 | $41.1 |
| Goodwill | $492.1 | $533.1 |
| Other intangible assets, net | $33.2 | $33.1 |
| Other assets | $115.0 | $100.3 |
| Total assets | $1,405.9 | $1,419.3 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $75.2 | $59.2 |
| Accrued liabilities | $179.9 | $178.2 |
| Current portion of long-term debt | $— | $45.6 |
| Total current liabilities | $255.1 | $283.0 |
| Non-current liabilities: | ||
| Deferred tax liabilities | $0.5 | $0.8 |
| Long-term debt | $490.5 | $505.9 |
| Other long-term liabilities | $94.0 | $87.1 |
| Stockholders’ equity | $565.7 | $542.4 |
| Total liabilities & equity | $1,405.9 | $1,419.3 |