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SMTC Nasdaq Russell 1000 Earnings call

Semtech (SMTC) · Q1 2026 results and valuation

Share price: $125.22 · 2026-11-11

Results Q1 2026 vs Q4 2025 · previous quarter · fiscal Q1 2027 · published 26 May 2026 and 16 Mar 2026

Net income turned to a profit from a loss last quarter, guidance raised. Management sounded very upbeat, in its script and in answers to analysts.

Only a basic analysis is available for this company at the moment.

1 · Numbers

Turned profit

Net income vs Q4 2025

Guidance raised

Net income 26.6M vs -29.8M

Revenue +6.1%

2 · How management spoke

Very upbeat

More upbeat than 90% of company calls

Answers to analysts: upbeat, in line with the script.

Last call it was different: the answers were more upbeat than the script.

3 · What stood out

Semtech reported Q4 free cash flow of $59,100,000, which was up 32% from the prior quarter and 91% from a year ago.

Valuation

Is Semtech undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2026-01-25), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 11.5% growth a year (3-year revenue growth), the model's fair value is $45.26 a share — the stock trades 177% above it. Today's price assumes 24.9% growth a year.

Current price

$125.22

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

+24.9% for 10 yrs

Fair value / share

$45.26

Buy below

$33.95

Price vs fair value

Overvalued 177%

Price vs buy-below price

Overvalued >200%

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Guidance ↑

    SMTC raised its revenue guidance to include increased R&D spending for data center projects while SG&A costs are expected to decline as a percentage of revenue.

    Source quote
    “Included in this outlook is increased R&D spend to accelerate time to market on key data center projects, along with SG&A that declines as a percentage of revenue.”
  2. Guidance

    SMTC expects sequential LPO revenue growth in China to accelerate over time.

    Source quote
    “and in China, which contributed to sequential LPO revenue growth, a trend we expect to accelerate over time.”
  3. Figure

    Adjusted diluted earnings per share rose 34% year-over-year to $0.51.

    Source quote
    “Adjusted diluted earnings per share were $0.51, up 34% year-over-year.”
  4. Fading

    Q4 free cash flow rose 32% from the prior quarter and 91% from a year ago.

    Source quote
    “Operating cash flow and free cash flow for the standalone fourth quarter each exceeded the amounts reported for all of fiscal... Free cash flow for Q4 was $59,100,000, sequentially up 32% from $44,600,000 and up 91% from $30,900,000 a year ago.”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q1 2026. Ring: Q4 2025.

Prepared remarks Very upbeat (was cautious)
Answers to analysts Upbeat (was very upbeat)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone
“Together, these growth vectors give rise to an accelerated growth in our LoRa business as we target LoRa revenue at an all-time high with greater than 15% sequential quarterly revenue...”
“Finally, given the strength and the depth of our backlog, expanding design win momentum and the 1.6T FiberEdge and CopperEdge inflection building into the second half, we are targeting 35%...”
“For the high-end consumer end market, we expect sequential revenue growth driven by improving seasonality layered on top of the share and content gains that are becoming a defining characteristic...”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-04-26)

Metric Q1 2026period end 2026-04-26 Q4 2025period end 2026-01-25 Change Q1 2025 YoY
Revenue 291.0M 274.4M +6.1% 251.1M +15.9%
Gross profit 151.5M 138.3M +9.5% 131.3M +15.4%
Operating income 25.8M -18.3M Turned profit 36.0M −28.3%
Net income 26.6M -29.8M Turned profit 19.3M +37.3%
EPS 0.27 -0.34 Turned profit 0.22 +22.7%
P/E 12-mo loss 12-mo loss — 12-mo loss —

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Latest announcements

Official filings, newest first.

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