Semtech Corp. (SMTC)
NASDAQ:SMTC
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Earnings Data
Report Date
Sep 02, 2026After Close (Confirmed)
Period Ending
2027 (Q2)Consensus EPS Forecast
0.62Last Year’s EPS
0.41Same Quarter Last Year
Strong Buy
Based on 13 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a strongly positive operational and financial story: record revenue, sizable year-over-year and sequential growth, strong adjusted EPS beat, improving margins and confident guidance for Q2 and FY27 driven by broad-based demand across data center (800G and 1.6T), robust LoRa momentum, strategic M&A (HIFU) and design wins. Notable near-term negatives include sequential declines in operating and free cash flow due to bonuses and acquisition outflows, a temporary margin compression in the signal integrity segment as a facility ramps, and supply/capacity constraints (notably GaN) that management is actively addressing. Overall, the highlights substantially outweigh the lowlights given strong backlog, guidance, and product traction.Company Guidance
Record Quarterly Revenue and Continued Growth
Reported record quarterly revenue of $291.0M in Q1 FY27, up 6% sequentially and up 16% year-over-year; marks the ninth consecutive quarter of net sales growth.
Strong Profitability and EPS Outperformance
Adjusted diluted EPS of $0.51 in Q1, up 34% year-over-year and above the high end of guidance; adjusted operating income of $59.3M and adjusted operating margin of 20.4%.
Robust Data Center Performance and Backlog
Infrastructure net sales of $98.8M (up 14% sequentially, up 36% YoY) with data center net sales at a record $71.6M (up 14% sequentially, up 39% YoY); very strong bookings and backlog with design wins across 800G and 1.6T (FiberEdge, LPO, LRO) supporting expected continued ramps.
Aggressive Q2 and FY27 Guidance
Company guided Q2 net sales of $328M ± $5M (midpoint up 13% sequentially and up 27% YoY). Data center Q2 guidance targets 35% sequential growth (company noted this would represent ~85% YoY growth for data center over the comparable period last year). Adjusted EPS guidance for Q2 is $0.61 (midpoint), up 20% sequentially and up 49% YoY.
Healthy Margins and Margin Outlook
Adjusted gross margin was 53% in Q1 (20 bps above midpoint); total semiconductor products gross margin 60.7% (30 bps above midpoint). Q2 gross margin outlook centered at 54% (±50 bps) and semiconductor products margin at 62.1% (±50 bps) — both reflect improving mix (data center and LoRa).
LoRa and Industrial Strength
LoRa-enabled net sales of $44.5M in Q1, up 12% sequentially and up 14% YoY. Industrial end market net sales of $153.9M in Q1 (up 2% sequentially, up 8% YoY). Company expects LoRa revenue to reach an all-time high with >15% sequential growth projected for Q2.
Strategic Product and M&A Progress
Completed HIFU acquisition (indium phosphide photonics reported in data center segment and signal integrity) which broadens optical product portfolio for 1.6T/3.2T and coherent applications; divestiture of cellular module business is in final stages of transition/integration discussions.
GaN and Laser Technology Traction
GaN chips (for tunable lasers/coherent modules) and narrow-linewidth CW lasers have strong customer interest; company states GaN design wins and laser samples are in qualification with major module manufacturers.
Product Momentum Across Multiple Interconnect Technologies
Broad-based demand across FiberEdge (800G), CopperEdge (including ACC and onboard linear equalizers), LPO/LRO, and early shipments of CopperEdge 1.6 ICs to cable partners; multiple hyperscaler engagements and design wins reported.
Operational Discipline and Investment Focus
Adjusted net operating expenses were $95.1M (slightly favorable to low end of guidance) while R&D investment increased to support data center and LoRa initiatives (R&D was 17.6% of sales in Q1, up 17% YoY) and SG&A continues to decline as a percentage of sales (15.1% of sales in Q1, down 200 bps YoY).
Cash Position and Capital Allocation
Ending cash and cash equivalents of $163.3M and principal debt of $503M unchanged; management remains focused on R&D as primary use of capital while executing portfolio optimization.
Market Reception of IoT Systems
New AirLink RX-400 and EX-400 routers received strong industry feedback, positioning the higher-margin IoT systems business for scale through channel partnerships and upgraded management software.
SMTC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
SMTC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 26, 2026 | $164.46 | $157.20 | -4.41% |
Mar 16, 2026 | $89.00 | $79.21 | -11.00% |
Nov 24, 2025 | $70.01 | $71.78 | +2.53% |
Aug 25, 2025 | $51.00 | $58.72 | +15.14% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Semtech Corp. (SMTC) report earnings?
Semtech Corp. (SMTC) is schdueled to report earning on Sep 02, 2026, After Close (Confirmed).
What is Semtech Corp. (SMTC) earnings time?
Semtech Corp. (SMTC) earnings time is at Sep 02, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is SMTC EPS forecast?
SMTC EPS forecast for the fiscal quarter 2027 (Q2) is 0.62.
