Semtech Corp. ( (SMTC) ) has released its Q2 earnings. Here is a breakdown of the information Semtech Corp. presented to its investors.
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Semtech Corporation is a leading provider of high-performance semiconductor, Internet of Things (IoT) systems, and cloud connectivity service solutions, dedicated to delivering technology solutions that enable a smarter, more connected, and sustainable planet.
In its second quarter of fiscal year 2026, Semtech Corporation reported record net sales of $257.6 million, marking a 20% increase compared to the previous year. The company achieved a GAAP gross margin of 52.1% and a non-GAAP adjusted gross margin of 53.2%, reflecting an improvement from the previous year. Despite a GAAP operating margin of -6.3%, the non-GAAP adjusted operating margin improved to 18.8%.
Key highlights from the earnings report include a significant reduction in the GAAP diluted loss per share to $0.31 from $2.61 a year ago, while the non-GAAP adjusted diluted earnings per share rose to $0.41 from $0.11. The company also reported strong growth in operating and free cash flows, alongside accelerated debt reduction efforts, which contributed to a decrease in its net leverage ratio.
Looking ahead, Semtech Corporation anticipates continued growth with projected net sales of approximately $266 million in the third quarter of fiscal year 2026. The company remains focused on capturing high-growth opportunities through targeted investments in its core businesses, supported by a robust operational framework and a culture of excellence.