EU and US could reach trade deal this weekend - Reuters
Investing.com -- Semtech Corporation (NASDAQ:SMTC) reported first quarter fiscal 2026 results that were slightly above analyst estimates, but shares fell 3.4% following the announcement.
The semiconductor and IoT systems provider posted adjusted earnings per share of $0.38, slightly above the $0.37 consensus estimate. Revenue came in at $251.1 million, just above expectations of $250.09 million and up 22% YoY.
For the second quarter, Semtech expects revenue of $256 million, plus or minus $5 million, in line with analyst projections of $256 million.
"I am pleased with our solid first quarter results, that reflected improving demand trends, strong business fundamentals and disciplined execution in a dynamic environment," said Hong Hou, president and CEO.
The company reported a GAAP gross margin of 52.3%, up from 48.3% a year ago. Adjusted gross margin improved to 53.5% from 49.8% in the prior year period.
Adjusted EBITDA margin expanded to 22.1% compared to 16.1% in Q1 fiscal 2025.
CFO Mark Lin noted the company continues to prioritize debt reduction, making a $10 million term loan principal prepayment in Q1 and an additional $15 million so far in Q2.
Despite the in-line results and guidance, Semtech shares declined 3.4% in after-hours trading, suggesting investors may have been hoping for a stronger outlook amid improving industry trends.