Semtech Corp. Reports Mixed Third‑Quarter Results Amid Analyst Revisions
Semtech Corp. (NASDAQ: SMTC), a designer and manufacturer of analog and mixed‑signal semiconductors, announced its fiscal 2026 third‑quarter results on November 25, 2025. The company reported revenue of $267 million, slightly below analyst expectations of $268.83 million, while its adjusted earnings for the period were $4 million.
Earnings and Revenue
- Revenue: $267 million (vs. estimate $268.83 million).
- Adjusted earnings: $4 million for Q3 2026.
The results were described as “mixed” by the company and led to a sharp drop in the stock during pre‑market trading, reflecting investors’ concerns about the company’s ability to meet guidance.
Analyst Activity
Following the earnings release, several prominent brokerage houses and research firms updated their ratings and price targets for Semtech:
| Analyst / Firm | Rating | Price Target | Timing |
|---|---|---|---|
| Morgan Stanley | Buy | $67 | 16:34:53 UTC |
| UBS | Buy | $85 | 15:54:00 UTC |
| Benchmark | Buy | $85 | 14:54:00 UTC |
| Stifel | Buy | – | 13:42:00 UTC |
| Summit Insights | Buy | – | 10:43:00 UTC |
| Piper Sandler | Overweight | – | 15:33:08 UTC |
| Oppenheimer | Buy | $81 | 10:43:00 UTC |
All updates reflected a consensus that Semtech’s focus on high‑growth areas, including AI connectivity, supports a positive outlook despite the recent margin concerns. The price targets range from $67 to $85, indicating a consensus upside potential for the shares.
Market Reaction
- The stock opened near $70.01 on the Nasdaq on the day of the announcement.
- Shares fell sharply in pre‑market trading, reflecting the impact of the earnings miss and margin concerns.
- Despite the decline, analyst upgrades and raised targets have maintained a Buy consensus, suggesting that long‑term fundamentals remain strong.
Company Context
Semtech operates in the semiconductors and semiconductor equipment industry within the broader Information Technology sector. Its products—integrated circuits, discrete circuits, and assembly products—serve applications in computers, communications, industry, military‑aerospace, and automotive markets. The company’s market capitalization is approximately $5.78 billion, and its price‑to‑earnings ratio stands at 224.25.
The latest earnings report, while not meeting revenue expectations, still indicates that Semtech continues to generate earnings in line with industry peers. Coupled with analyst optimism around the company’s strategic positioning in AI networking, the market appears to be cautiously bullish on Semtech’s future growth potential.
