Semtech (NASDAQ:SMTC) Issues Earnings Results, Beats Estimates By $0.01 EPS

Semtech (NASDAQ:SMTC) released its quarterly earnings results on Monday. The semiconductor company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.01, FiscalAI reports. Semtech had a net margin of 2.77% and a return on equity of 17.00%. The firm had revenue of $274.40 million during the quarter, compared to the consensus estimate of $273.14 million. During the same quarter last year, the firm earned $0.40 earnings per share. The company’s revenue for the quarter was up 9.3% on a year-over-year basis.

Here are the key takeaways from Semtech’s conference call:

• Semtech delivered record full‑year net sales of $1.05 billion and Q4 net sales of $274.4 million, with full‑year adjusted diluted EPS of $1.71 (up 94% YoY) and strong operating/free cash flow generation.
• The acquisition of HieFo (Indium Phosphide lasers) vertically integrates lasers with Semtech’s TIAs and drivers, targets increasing content to about $80 in a 3.2T module versus high‑single‑digit today, and is expected to be accretive to non‑GAAP EPS within the first year.
• Management expects data center revenue to grow >50% YoY in fiscal 2027, driven by initial CopperEdge ACC shipments this quarter, 1.6T FiberEdge design wins with a significant ramp in H2, and multiple hyperscaler engagements and demos at OFC.
• LoRa remains a multi‑vector growth engine (FY LoRa revenue $156M, +34% YoY) with a targeted long‑term growth rate of ~20%, new LoRa Plus multi‑protocol initiatives, and Amazon/Ring Sidewalk product rollouts that could enable mass‑market adoption.
• Near‑term margin and expense headwinds — Q1 guidance includes HieFo ramp costs that pressure semiconductor gross margin (guidance ~130 bps lower sequentially), higher R&D/OpEx from recent tuck‑ins, and an increased normalized tax rate (~17%) for FY2027.

Semtech Price Performance

Shares of NASDAQ SMTC opened at $89.00 on Tuesday. The stock has a market capitalization of $8.24 billion, a P/E ratio of 287.10 and a beta of 1.99. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.43 and a quick ratio of 1.71. Semtech has a 1 year low of $24.05 and a 1 year high of $96.46. The company’s 50-day moving average is $83.98 and its 200 day moving average is $74.08.

Semtech News Roundup

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Beat on the quarter — Semtech reported $0.44 EPS vs. $0.43 expected and revenue of $274.4M, slightly topping consensus. The narrow beat is driving positive sentiment on execution. Semtech (SMTC) Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Record sales and margin improvement — the company posted record quarterly net sales and better margins, supporting near-term revenue strength and profitability trends. Semtech Posts Record Quarterly Sales Amid Improved Margins
• Positive Sentiment: New product adds growth optionality — Semtech unveiled a 224Gbps IC family targeting linear optics, which could expand addressable markets in high‑speed connectivity. Semtech Launches 224Gbps IC Family for Linear Optics Era
• Neutral Sentiment: Company materials and call available — press release, slide deck and conference call were published for investors to dig into details; these provide context but didn’t change the headline beat materially. Semtech Announces Fourth Quarter and Fiscal Year 2026 Results
• Neutral Sentiment: Third‑party takes mixed — Morgan Stanley raised its price target to $85 but kept an “equal weight” rating, signaling limited upside from their view despite the PT bump. Benzinga
• Negative Sentiment: Some knee‑jerk selling — at least one note observed the stock dipping after the print, suggesting traders who expected a larger beat or clearer guidance rotated out. That short-term volatility pressured shares despite the beat. Semtech Stock Slides On Q4 Earnings
• Negative Sentiment: Valuation and forward uncertainty — Semtech’s trailing P/E is elevated and some sell‑side forecasts remain cautious (the group expects FY EPS headwinds), which can cap multiple expansion despite the quarter. Semtech (SMTC) Reports Q4 Earnings: What Key Metrics Have to Say

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the stock. Benchmark raised their price objective on shares of Semtech from $85.00 to $115.00 and gave the stock a “buy” rating in a research report on Wednesday, March 4th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Semtech in a report on Monday, December 29th. TD Cowen reissued a “buy” rating on shares of Semtech in a research report on Tuesday, February 24th. Susquehanna raised their target price on Semtech from $90.00 to $100.00 and gave the company a “positive” rating in a research note on Monday, March 9th. Finally, Oppenheimer reaffirmed an “outperform” rating and issued a $100.00 target price (up from $81.00) on shares of Semtech in a research report on Tuesday, March 10th. Fourteen equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $85.43.

Insider Activity at Semtech

In other Semtech news, Director Saar Gillai sold 3,600 shares of Semtech stock in a transaction on Wednesday, January 7th. The shares were sold at an average price of $75.26, for a total transaction of $270,936.00. Following the completion of the transaction, the director directly owned 9,523 shares of the company’s stock, valued at $716,700.98. The trade was a 27.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Gregory Michael Fischer sold 1,034 shares of the firm’s stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $75.50, for a total transaction of $78,067.00. Following the transaction, the director directly owned 2,857 shares in the company, valued at approximately $215,703.50. This trade represents a 26.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 40,191 shares of company stock valued at $3,361,412 over the last quarter. 0.48% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of SMTC. Smartleaf Asset Management LLC grew its position in Semtech by 24.1% during the 2nd quarter. Smartleaf Asset Management LLC now owns 1,274 shares of the semiconductor company’s stock worth $57,000 after purchasing an additional 247 shares during the period. NewEdge Advisors LLC grew its holdings in Semtech by 1,215.4% in the third quarter. NewEdge Advisors LLC now owns 855 shares of the semiconductor company’s stock valued at $61,000 after purchasing an additional 790 shares during the period. Strs Ohio acquired a new stake in Semtech in the first quarter valued at approximately $65,000. Daiwa Securities Group Inc. increased its position in shares of Semtech by 100.8% in the fourth quarter. Daiwa Securities Group Inc. now owns 1,195 shares of the semiconductor company’s stock valued at $88,000 after buying an additional 600 shares in the last quarter. Finally, Jones Financial Companies Lllp raised its stake in shares of Semtech by 12,214.3% during the 1st quarter. Jones Financial Companies Lllp now owns 2,586 shares of the semiconductor company’s stock worth $89,000 after buying an additional 2,565 shares during the period.

About Semtech

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.