AI Earnings Predictions for Semtech Corporation (SMTC)

EX-99.1

2 smtc-07262026x8k991.htm

EX-99.1

Document

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:

Mitch Haws

Semtech Corporation

webir@semtech.com

Semtech Announces Second Quarter of Fiscal Year 2027 Results

•Record net sales of $341.9 million, up 17% sequentially and up 33% year-over-year

•GAAP gross margin of 53.8% and Non-GAAP adjusted gross margin of 54.5%

•GAAP operating margin of 16.3% and Non-GAAP adjusted operating margin of 24.4%

•GAAP diluted earnings per share of $1.59 and Non-GAAP adjusted diluted earnings per share of $0.71

CAMARILLO, Calif., August 25, 2026—Semtech Corporation (Nasdaq: SMTC), a leading provider of high-performance semiconductors powering AI data center networking and intelligent, connected Internet of Things ("IoT") devices worldwide, announced today unaudited financial results for its second quarter of fiscal year 2027, which ended July 26, 2026.

"The Semtech team executed exceptionally well, delivering record revenue across our key focus areas, earnings leverage that continued to outpace revenue growth and significant progress on portfolio optimization," said Hong Hou, president and CEO. "Accelerating bookings and record backlog point to a strong inflection in growth with new revenue drivers and visibility expected to extend well into next fiscal year. Growing our focus areas and expanding margins all serve the same goal: building a predictable, high-margin and high-return business."

"This was another quarter of disciplined execution, converting record revenue, margin expansion and diluted earnings per share growth into strong operating and free cash flow," said Mark Lin, executive vice president and chief financial officer. "We enter the third quarter with conviction, expecting broad-based bookings strength to translate into sustained revenue, margin and earnings growth."

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Semtech Announces Second Quarter of Fiscal Year 2027 Results

Second Quarter of Fiscal Year 2027 Results

(in millions, except per share data)Q2'27Q1'27Q2'26

GAAP Financial Results

Net sales$341.9 $291.0 $257.6

Gross margin53.8 %52.0 %52.1 %

Operating expenses, net$128.0 $125.7 $150.3

Operating income (loss) $55.8 $25.8 $(16.2)

Operating margin16.3 %8.9 %(6.3)%

Interest expense, net$1.0 $1.0 $4.7

Goodwill impairment$— $— $42.0

Net income (loss)$160.1 $26.6 $(27.1)

Diluted earnings (loss) per share$1.59 $0.27 $(0.31)

(in millions, except per share data)Q2'27Q1'27Q2'26

Net sales$341.9 $291.0 $257.6

Non-GAAP Financial Results

Adjusted gross margin*54.5 %53.0 %53.2 %

Adjusted operating expenses, net*$102.8 $95.1 $88.4

Adjusted operating income*$83.6 $59.3 $48.6

Adjusted operating margin*24.4 %20.4 %18.8 %

Adjusted interest (income) expense, net*$(0.2)$(0.1)$4.1

Adjusted net income*$69.5 $49.4 $36.7

Adjusted diluted earnings per share*$0.71 $0.51 $0.41

Adjusted EBITDA*$91.1 $66.4 $56.5

Adjusted EBITDA margin*26.6 %22.8 %21.9 %

*See "Non-GAAP Financial Measures" below for additional information about our non-GAAP financial results.

Third Quarter of Fiscal Year 2027 Outlook

(in millions, except per share data)

Net sales$410.0 +/-$5.0

Non-GAAP Financial Measures

Adjusted gross margin*58.3%+/-100 bps

Adjusted gross margin, excluding business held for sale*63.9%+/-100 bps

Adjusted operating expenses, net*$112.0 +/-$3.0

Adjusted operating income*$127.0 +/-$4.0

Adjusted operating margin*31.0%+/-60 bps

Adjusted interest and other expense, net*$0.5

Adjusted normalized tax rate*18%

Adjusted diluted earnings per share*$1.05 +/-$0.03

Adjusted EBITDA*$134.3 +/-$4.0

Adjusted EBITDA margin*32.8%+/-60 bps

Non-GAAP diluted share count*99.0

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Semtech Announces Second Quarter of Fiscal Year 2027 Results

*See "Non-GAAP Financial Measures" below for additional information about our non-GAAP financial results.

The Company is unable to include a reconciliation of forward-looking non-GAAP results to the corresponding GAAP measures as they are not available without unreasonable efforts due to the high variability and low visibility with respect to the impact of transaction, integration and restructuring expenses, share-based awards, amortization of acquisition-related intangible assets and other items that are excluded from these non-GAAP measures. The Company expects the variability of the above charges to have a potentially significant impact on its GAAP financial results.

Webcast and Conference Call

Semtech will be hosting a conference call today to discuss its second fiscal quarter 2027 results at 1:30 p.m. Pacific time. The dial-in number for the call is (877) 407-0312. Please use conference ID 13761388. An audio webcast and supplemental earnings materials for the quarter will be available on the Investor Relations section of Semtech's website at investors.semtech.com under "News & Events." A replay of the call will be available through September 22, 2026 at the same website or by calling (877) 660-6853 and entering conference ID 13761388.

Non-GAAP Financial Measures

To

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