Semtech Corporation Reports Strong Q3 2025 Growth

Semtech Corp. ( (SMTC) ) has released its Q3 earnings. Here is a breakdown of the information Semtech Corp. presented to its investors.

Semtech Corporation is a leading provider of high-performance semiconductor, IoT systems, and cloud connectivity services, dedicated to delivering advanced technology solutions for infrastructure, industrial, and consumer markets.

Semtech Corporation has reported its third quarter results for fiscal year 2025, showcasing robust growth across its end markets, particularly in the data center sector. The company achieved net sales of $236.8 million, reflecting a 10% sequential increase, and set a record in data center net sales with $43.1 million, marking a 58% sequential rise.

Key financial highlights include a GAAP gross margin of 51.1% and a non-GAAP gross margin of 52.4%, both showing significant improvement. The company posted a GAAP operating margin of 7.5%, while the non-GAAP operating margin stood at 18.3%. Despite a GAAP diluted loss per share of $0.10, the non-GAAP diluted earnings per share reached $0.26. Semtech also reported an adjusted EBITDA margin of 21.6%, indicating a strong sequential increase.

The company remains optimistic about its future, driven by AI-driven product demand in data centers. Semtech’s management has expressed satisfaction with the company’s performance and highlights their strategic initiatives aimed at expanding market share and addressing customer needs. The company continues to focus on leveraging its operating model for sustained growth.

Looking ahead, Semtech projects continued growth in the fourth quarter of fiscal year 2025, forecasting net sales around $250 million with a non-GAAP gross margin of approximately 52.8%. The company is committed to maintaining its strategic focus on prudent spending and capital allocation to support its long-term objectives.