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The latest update is out from Semtech ( (SMTC) ).
On March 16, 2026, Semtech reported record fourth-quarter net sales of $274.4 million, up 3% sequentially and 9% year-on-year, with GAAP gross margin at 50.4% and non-GAAP gross margin at 51.6%. The quarter produced a GAAP operating loss with a margin of -6.7% driven in part by goodwill and intangible impairments, but non-GAAP operating margin reached 18.2%, and cash generation was strong with operating cash flow of $61.5 million and free cash flow of $59.1 million.
For the fiscal year ended January 25, 2026, Semtech posted record revenue of $1.05 billion, up 15% from fiscal 2025, with GAAP gross margin improving to 51.6% and non-GAAP gross margin to 52.8%. Despite a GAAP net loss and diluted loss per share of $0.46 for the year, non-GAAP diluted earnings rose to $1.71 per share, and management highlighted a strengthened financial foundation and disciplined capital deployment aimed at R&D, capacity expansion and acquisitions to support long-term growth and shareholder returns.
The most recent analyst rating on (SMTC) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Semtech stock, see the SMTC Stock Forecast page.
Spark’s Take on SMTC Stock
According to Spark, TipRanks’ AI Analyst, SMTC is a Neutral.
Semtech’s overall stock score reflects strong technical indicators and positive earnings call highlights, which are offset by high valuation concerns and mixed financial performance. The company’s strategic advancements and growth in key segments are promising, but profitability and valuation remain areas of concern.
To see Spark’s full report on SMTC stock, click here.
More about Semtech
Semtech Corporation, based in Camarillo, Calif., is a leading provider of high-performance semiconductors used in data center networking, Internet of Things connectivity and cellular infrastructure solutions. The company focuses on optical and copper interconnect technologies designed for next-generation data rates such as 800G, 1.6T and 3.2T, and continues to invest heavily in research and development to strengthen its position in these growth markets.
Average Trading Volume: 1,393,844
Technical Sentiment Signal: Buy
Current Market Cap: $7.85B
For an in-depth examination of SMTC stock, go to TipRanks’ Overview page.