Semtech Corporation (NASDAQ: SMTC) delivered a solid performance in the fourth quarter of fiscal year 2026, with revenue exceeding expectations and showing year-over-year growth. The company’s earnings per share also surpassed forecasts, reflecting improved financial results. However, the stock experienced a decline in after-hours trading.
Adjusted earnings per share for the fourth quarter were $0.44, surpassing the analyst forecast of $0.43 per share. This represents a 10% increase from the $0.40 per share reported in the same quarter last year. For the full fiscal year 2026, adjusted diluted earnings per share reached $1.71.
Semtech’s revenue for the fourth quarter was $274.4 million, exceeding the analysts’ estimate of $273.21 million. This marks a 9.32% increase from the $251 million reported a year ago. For fiscal year 2026, the company achieved record net sales of $1.05 billion, reflecting a 15% year-over-year growth.
The company reported a GAAP gross margin of 50.4% and a non-GAAP adjusted gross margin of 51.6% for the fourth quarter. The GAAP operating margin was (6.7)%, while the non-GAAP adjusted operating margin stood at 18.2%.
Semtech anticipates first-quarter 2027 earnings to range between $0.42 and $0.48 per share, potentially exceeding the analyst estimate of $0.43. The company also projects first-quarter revenue to be between $278.00 million and $288.00 million, above the $272.56 million forecast by analysts.
“Fiscal year 2026 was a landmark year for Semtech, marked by strong revenue and earnings growth that reflect both the power of our portfolio and disciplined execution,” stated Hong Hou, president and chief executive officer.
Shares of Semtech Corporation (NASDAQ: SMTC) fell 3% in after-hours trading to a price of $86.33. This represents a decline of $2.67 from the closing price of $89.00. The stock has traded between $24.05 and $96.46 over the past 52 weeks.
