Semtech Corporation, a leading provider of high-performance semiconductor, Internet of Things (IoT) systems, and cloud connectivity services, achieved a record net sales of $267.0 million in the third quarter of fiscal year 2026.
The company demonstrated significant year-over-year growth with GAAP gross margin reaching 51.9% and Non-GAAP adjusted gross margin at 53.0%.
Semtech's financial performance showcased improved operating and adjusted EBITDA margins, reflecting the company's strategic investments and strong customer relationships.
Record Net Sales
Semtech achieved a record net sales of $267.0 million in the third quarter, marking a 13% year-over-year growth.
Margin Improvement
The GAAP gross margin increased to 51.9%, while the Non-GAAP adjusted gross margin reached 53.0% compared to the previous year.
Earnings Per Share
Semtech reported a GAAP diluted loss per share of $0.03, with Non-GAAP adjusted diluted earnings per share of $0.48, showing substantial growth compared to the previous year.
Operating Margin Growth
The GAAP operating margin improved to 11.6%, and the Non-GAAP adjusted operating margin reached 20.6% compared to the same period last year.
- Semtech's financial results demonstrate the company's ability to leverage its financial model for improved operating and free cash flows.
- The optimization of Semtech's capital structure significantly reduced cash interest costs, allowing for increased investments in research and development to drive growth and enhance earnings per share.
In conclusion, Semtech Corporation's third quarter results for fiscal year 2026 reflect strong growth, margin improvements, and strategic financial management. The company's focus on innovative solutions and customer partnerships positions it for continued success in the semiconductor and IoT markets.