Semtech Corporation (NASDAQ:SMTC) reported on Monday second-quarter fiscal 2026 results that exceeded market forecasts, posting a 20% increase in revenue year-on-year and a nearly fourfold rise in adjusted earnings compared to the same period last year.
The semiconductor and IoT systems provider reported adjusted earnings per share of $0.41, slightly above the analyst consensus of $0.40. Revenue reached $257.6 million, topping expectations of $256.06 million and up from $215.4 million in Q2 2025.
“Our second quarter results reflect strong year-over-year financial performance, driven by deep customer engagement, operational discipline, and a culture of excellence,” said Hong Hou, president and chief executive officer. “We believe we are well positioned to capture the high-growth opportunities ahead, supported by targeted investments in our core businesses.”
Semtech’s adjusted gross margin rose to 53.2% from 50.4% a year ago, while adjusted operating margin improved to 18.8% from 14.2% in the prior-year period. The company also reported stronger cash flow, generating $44.4 million from operating activities versus a $5 million outflow in Q2 2025.
For Q3 fiscal 2026, Semtech expects revenue between $261 million and $271 million, with a midpoint of $266 million in line with analyst consensus of $265 million. Adjusted earnings per share are projected between $0.41 and $0.47, with a midpoint of $0.44 matching market expectations.
“Strong net sales growth and improving profitability translated to meaningful sequential and year-over-year increases in our operating and free cash flows,” said Mark Lin, executive vice president and chief financial officer.
Semtech Corporation stock price
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