AI-extracted from the 10-Q filed 2026-08-26 — Q2 FY2027 (quarter ended July 26, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Q2 revenue of $341.9M surged 33% YoY on strong data center demand; company released $112M tax valuation allowance, yielding net income of $160M versus loss year-ago.
Biggest Revenue Drivers
Signal Integrity$126.2M+64% YoY
Data center sales increased ~$47.4M driven by stronger demand for optical and copper data communications products
Analog Mixed Signal and Wireless$117.4M+27% YoY
Increase driven by ~$21.8M in LoRa-enabled product sales and ~$6.3M in TVS product sales, offset by ~$4.0M decrease in proximity sensing
Biggest Revenue Drivers
Total revenue: $341.9M+33% YoY
Signal Integrity$126.2M+64% YoY
Data center sales increased ~$47.4M driven by stronger demand for optical and copper data communications products
Analog Mixed Signal and Wireless$117.4M+27% YoY
Increase driven by ~$21.8M in LoRa-enabled product sales and ~$6.3M in TVS product sales, offset by ~$4.0M decrease in proximity sensing
IoT Systems and Connectivity$98.3M+11% YoY
Increase driven by ~$11.7M in IoT Hardware sales, partially offset by ~$2.1M decrease in managed connectivity sales
Largest Expense Items
Cost of sales$158.1M+28% YoY
Increased due to higher sales volume across all segments
Product development and engineering$60.6M+26% YoY
$8.2M net increase in staffing costs from higher headcount and supplemental compensation; $3.0M increase in new product introduction expenses
Selling, general and administrative$67.3M+15% YoY
$5.4M increase in share-based compensation from cash-settled award revaluation; $3.7M net increase in staffing-related costs
Margins: Gross margin expanded to 53.8% from 52.1% YoY, primarily driven by favorable product mix in Signal Integrity and Analog Mixed Signal segments, improved overhead absorption, and higher-margin data center sales, partially offset by unfavorable mix in IoT Systems and Connectivity.
Watch Items from the Filing
Customer A represents 12% of Q2 revenue and 20% of receivables; Customer B represents 15% of Q2 revenue. Concentration risk in two customers.
Company divesting cellular module business (sold to Compal for ~$62M, pending regulatory approval). Represents substantial portion of IoT segment; risks include key employee attrition, customer deferral, and separation/transition complexity.
Released $112.4M U.S. deferred tax valuation allowance in Q2 based on sustained profitability and three-year cumulative pre-tax income. Valuation allowance release creates significant one-time tax benefit but subject to future adjustment risk.
2027 Notes ($100.5M principal) and 2030 Notes ($402.5M principal) both have conversion features triggered as of July 26, 2026. Company plans to draw on $356.6M undrawn 2026 Revolving Credit Facility if conversions occur.
Asia-Pacific region represents 70% of Q2 revenue (primarily China, 55%). Significant tariff exposure and geopolitical risk to sales and margins if trade barriers increase.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
8 transactions in SMTC reported by 2 members of Congress under the STOCK Act, most recent trade Sep 29, 2026. Reported transactions, not recommendations.
About SEMTECH CORP (SMTC): stock profile, AI score and financials
SEMTECH CORP (SMTC) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores SMTC at 66.4/100 on a composite quality score built from its SEC filings, placing it at rank #412 of 2,925 stocks — the top 25% of the AI-ranked universe. SMTC scores in the top quartile across balance sheet strength (84.8), revenue growth (80.6), profitability (76.0). Areas of concern include institutional flow (37.6), which score below median versus the broader universe. Shareholder dilution risk is elevated at 22.8/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2027), SEMTECH CORP reports quarterly revenue of $341.9M, net income of $160.1M, an operating margin of 16.3%. Top institutional holders of SMTC by reported 13-F value include BlackRock, VANGUARD PORTFOLIO MANAGEMENT, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. SMTC trades on the Nasdaq exchange and files with the SEC under CIK 88941. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate SMTC daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for SEMTECH CORP directly from SEC EDGAR.