SEMTECH (SMTC) Company Report

Semtech reported sequential revenue growth in Q3, with data center revenue increasing 8% sequentially and projected to grow 10% in Q4. A significant ramp for Active Copper Cable (ACC) with a hyperscaler customer is expected to begin in the April quarter, with ACC identified as a much larger opportunity than Low Power Optics (LPO).
The LoRa business achieved over $40 million in Q3 revenue and is projected to grow at about a 15%-20% CAGR from a $30-$40 million quarterly base.
Semtech is in the process of divesting its cellular module business, a non-core, low-margin asset, which is expected to lead to consolidated gross margins approaching 60% and be earnings accretive.
The company acquired ForceSense assets from Qorvo, anticipating this acquisition to generate $40 million to $50 million by 2027 through synergies with existing capacitive sensing capabilities.

1 day ago

Transcript

Semtech Reports Strong Data Center Growth, Strategic Acquisitions, and Divestitures

SMTC

Revenue Acceleration/Inflection

New Projects/Investments

M&A

Semtech reported 8% sequential revenue growth in its data center segment for Q3 and projects 10% sequential growth for Q4, with a rapid ramp for ACC solutions expected to begin in the April quarter and LPO TIAs reaching mid-single-digit revenue in Q4.
The LoRa business achieved over $40 million in revenue for Q3 and is projected to grow at a 15%-20% CAGR from a base of $30-$40 million per quarter.
The company acquired the ForceSense asset, which is projected to contribute $40 million to $50 million by 2027, and is divesting its non-core cellular module business to achieve consolidated gross margins approaching 60%, a move expected to be earnings accretive.

1 day ago

Transcript

Semtech Reports Strong Q3 2026 Financial Results and Strategic Progress

SMTC

Earnings

Guidance Update

M&A

For Q3 2026, Semtech reported net sales of $267 million, up 13% year-over-year, and adjusted diluted earnings per share of $0.48, up 85% year-over-year. Adjusted operating margins grew 230 basis points year-over-year to 20.6%, and adjusted EBITDA was $62.7 million, up 23% year-over-year.
The company saw strong growth in its core assets, with data center net sales reaching a record $56.2 million, up 30% year-over-year, and infrastructure net sales up 18% year-over-year. High-end consumer net sales were $41.9 million, up 5% year-over-year.
Semtech optimized its capital structure by issuing a $402.5 million convertible note with a 0% coupon and using proceeds to retire higher-interest debt, significantly reducing annualized interest expense to under $3 million.
The company completed the acquisition of the Force Sensing business at the beginning of Q4 and is making solid progress on the divestiture of non-core assets, with multiple indications of interest.
For Q4 2026, Semtech expects net sales of $273 million (plus or minus $5 million) at the midpoint, representing a 9% year-over-year increase, with projected sequential data center growth of approximately 10%.

Nov 24, 2025, 9:30 PM

Transcript

Semtech Reports Strong Q3 2026 Results, Completes Convertible Note Offering, and Provides Q4 Outlook

SMTC

Earnings

Guidance Update

Debt Issuance

Semtech Corporation reported strong Q3 2026 financial results, with net sales of $267 million, up 13% year-over-year, and adjusted diluted earnings per share of $0.48, an 85% year-over-year increase.
The company significantly strengthened its financial profile by completing a $402.5 million convertible note offering at the beginning of Q4 2026, which reduced annualized interest expense to under $3 million from $75 million in the prior year's Q3.
The data center business achieved record net sales of $56.2 million in Q3 2026, up 30% year-over-year, and is projected to grow approximately 10% sequentially in Q4 2026.
Semtech completed the acquisition of the Force Sensing business at the start of Q4 2026 and is actively progressing with the divestiture of non-core assets, which is expected to have a nominal to immaterial impact on EPS.
For Q4 2026, the company anticipates net sales of $273 million (midpoint) and adjusted diluted earnings per share of $0.43 (midpoint).

Nov 24, 2025, 9:30 PM

Transcript

Semtech Reports Strong Q3 2026 Results and Provides Q4 Outlook

SMTC

Earnings

Guidance Update

M&A

Semtech reported Q3 2026 net sales of $267 million, an increase of 13% year-over-year, and adjusted diluted earnings per share of $0.48, up 85% year-over-year.
The company's data center net sales reached a record $56.2 million, growing 30% year-over-year, and LoRa-enabled solutions net sales were $40 million, up 40% year-over-year, driving overall revenue growth.
For Q4 2026, Semtech anticipates net sales of $273 million \u00b1$5 million and adjusted diluted earnings per share of $0.43 \u00b1$0.03, with projected sequential data center growth of approximately 10%.
Semtech optimized its capital structure through a $402.5 million convertible offering, significantly reducing annualized interest expense to under $3 million from $75 million a year ago, and completed the acquisition of the Force Sensing business at the beginning of Q4.

Nov 24, 2025, 9:30 PM

Transcript

Semtech Prices Private Offering of Convertible Senior Notes

SMTC

Debt Issuance

Convertible Preferred Issuance

Semtech Corporation announced the pricing of a private offering of $350 million in aggregate principal amount of 0% convertible senior notes due 2030.
The offering is expected to generate approximately $340.2 million in net proceeds and is anticipated to close on or about October 10, 2025.
Semtech plans to use the net proceeds to exchange approximately $219.0 million of its 1.625% convertible senior notes due 2027 and $61.95 million of its 4.00% convertible senior notes due 2028, as well as to repay $56.3 million principal amount of term loans.
The new notes have an initial conversion price of approximately $101.05 per share, which represents a 42.50% premium over Semtech's common stock last reported sale price on October 7, 2025.
Following the exchanges, $100.5 million in aggregate principal amount of the 2027 Notes will remain outstanding, and none of the 2028 Notes will remain outstanding.

Oct 10, 2025, 9:05 PM

8-K

Semtech Announces Proposed Private Offering of Convertible Senior Notes

SMTC

Debt Issuance

On October 6, 2025, Semtech Corporation announced its intent to offer $350 million in aggregate principal amount of 0% convertible senior notes due 2030 in a private placement to qualified institutional buyers.
Semtech also plans to grant the initial purchasers an option to acquire up to an additional $52.5 million aggregate principal amount of these Notes.
The net proceeds from the offering, along with shares of common stock, are intended to be used for exchanges of existing 1.625% convertible senior notes due 2027 and 4.00% convertible senior notes due 2028, and to repay a portion of term loans under Semtech’s senior credit facilities.
Semtech expects to enter into capped call transactions to generally reduce potential dilution to its common stock upon any conversion of the Notes.

Oct 6, 2025, 8:43 PM

8-K

Semtech Corp Reports Record Q2 2026 Net Sales and Strengthened Financial Position

SMTC

Earnings

Guidance Update

Revenue Acceleration/Inflection

Semtech Corp reported record net sales of $257.6 million for Q2 2026, marking a 20% year-over-year increase and the sixth consecutive quarter of growth, with adjusted diluted earnings per share reaching $0.41, a substantial improvement from the prior year.
The company significantly strengthened its balance sheet, reducing debt by $879 million since the CEO's tenure began, which resulted in an 80% year-over-year reduction in quarterly interest expense and improved the net leverage ratio to 1.6x at the close of Q2 2026, down from 8.8x a year ago.
Growth was observed across all end markets, with infrastructure net sales increasing 39% year over year driven by record data center revenues of $52.2 million, and high-end consumer net sales rising 11% year over year.
For Q3 2026, Semtech expects net sales of $266 million (plus or minus $5 million), anticipating continued sequential growth in the data center and high-end consumer markets, and slight growth in the industrial end market.
The company is progressing with its data center solutions, expecting Linear Pluggable Optics (LPO) revenues to begin ramping in Q4 2025 and Active Copper Cable (ACC) products to launch with US hyperscaler customers during calendar year 2026.

Aug 26, 2025, 1:05 AM

Semtech Reports Record Q2 2026 Net Sales and Strong Financial Improvement

SMTC

Earnings

Guidance Update

Revenue Acceleration/Inflection

Semtech reported record net sales of $257.6 million for Q2 2026, representing a 20% year-over-year increase and the sixth consecutive quarter of growth.
The company significantly strengthened its balance sheet, reducing debt by $879 million since the CEO's tenure began and improving the net leverage ratio to 1.6x at the close of Q2 2026 from 8.8x a year prior.
Adjusted diluted earnings per share for Q2 2026 was $0.41, a substantial improvement from $0.11 recorded a year ago.
Data Center net sales reached a record $52.2 million, growing 92% year-over-year, while LoRa-enabled solutions net sales increased 29% year-over-year to $36.9 million.
For Q3 2026, Semtech expects net sales of $266 million ± $5 million and adjusted diluted earnings per share of $0.44 ± $0.03.

Aug 25, 2025, 8:30 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for SEMTECH.

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