Semtech reported record net sales of $257.6 million in fiscal Q2 2026, up 20% year over year, with 53.2% adjusted gross margin and an 18.8% adjusted operating margin. Infrastructure net sales were $73.4 million, up 39% year over year, driven by data center revenue reaching $52.2 million. High-end consumer net sales were $41.2 million, up 11% year over year. Industrial net sales were $143 million, up 14% year over year, with LoRa-enabled solutions at $36.9 million. Adjusted EBITDA was $56.5 million, up 39% year over year.

Semtech expects net sales of $266 million in fiscal Q3 2026, up 12% year over year. Adjusted gross margin is expected at 53%, with an adjusted operating margin of 19.6% and adjusted EBITDA at $60 million. The company sees continued growth in the data center market, with new customer bookings accelerating, especially in North America. They also secured design wins for 800 gig LPO solutions with hyperscalers in the US and China, expecting revenue to ramp up in Q4 2026.

President Hong Hou emphasized a shift in Semtech’s leverage ratio from 8.8 times in fiscal Q2 2025 to 1.6 times in fiscal Q2 2026, driven by $879 million in debt reduction. The company highlighted strong growth opportunities in infrastructure, industrial, and high-end consumer markets, with a focus on portfolio optimization and core asset delineation. Semtech is positioned for incremental revenue growth in infrastructure, with new deployments expected in Q4 2025 and accelerating in 2026.

Read more at Nasdaq: Semtech (SMTC) Q2 2026 Earnings Call Transcript