Semtech(US:SMTC)2025-05-27 20:26Q1'26 Financial Performance - Net sales were $251.1 million[14], a slight increase from $251.0 million in Q4'25[29] - Gross margin was 52.3%[29], and adjusted gross margin was 53.5%[29] - Operating income was $36.0 million[29], resulting in an operating margin of 14.3%[29] - Adjusted operating income was $47.6 million[29], with an adjusted operating margin of 19.0%[29] - Adjusted EBITDA was $55.4 million, representing an adjusted EBITDA margin of 22.1%[29] - Net income was $19.3 million, or $0.22 per diluted share[29], while adjusted net income was $33.9 million, or $0.38 per diluted share[29] End Market Performance in Q1'26 - Infrastructure end market net sales reached $72.8 million, up 5% Q/Q and 30% Y/Y[18], with data center sales at a record $51.6 million, up 3% Q/Q and 143% Y/Y[19] - High-End Consumer end market net sales were $35.4 million, flat Q/Q and up 3% Y/Y[21], with Consumer TVS net sales of $24.5 million, up 2% Q/Q[21] - Industrial end market net sales were $142.8 million, down 3% Q/Q but up 24% Y/Y[24], with LoRa-enabled solutions net sales of $38.9 million, up 5% Q/Q and 81% Y/Y[25], and IoT Systems net sales of $63.5 million, down 8% Q/Q but up 31% Y/Y[25] Q2'26 Outlook - Net sales are expected to be $256.0 million, with a potential variance of +/- $5.0 million[32] - Adjusted gross margin is projected at 53.0%, with a potential variance of +/- 50 bps[32] - Adjusted operating income is expected to be $48.2 million, with a potential variance of +/- $3.0 million[32], resulting in an adjusted operating margin of 18.8%, with a potential variance of +/- 80 bps[32] - Adjusted diluted earnings per share are projected at $0.40, with a potential variance of +/- $0.03[32] - Adjusted EBITDA is expected to be $56.0 million, with a potential variance of +/- $3.0 million[32], resulting in an adjusted EBITDA margin of 21.9%, with a potential variance of +/- 80 bps[32]