Semiconductor company Semtech (NASDAQ: SMTC) met Wall Street’s revenue expectations in Q4 CY2025, with sales up 9.3% year on year to $274.4 million. The company expects next quarter’s revenue to be around $283 million, coming in 3.4% above analysts’ estimates. Its non-GAAP profit of $0.44 per share was in line with analysts’ consensus estimates.
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Semtech (SMTC) Q4 CY2025 Highlights:
- Revenue: $274.4 million vs analyst estimates of $273.2 million (9.3% year-on-year growth, in line)
- Adjusted EPS: $0.44 vs analyst estimates of $0.43 (in line)
- Adjusted EBITDA: $57.4 million vs analyst estimates of $56.34 million (20.9% margin, 1.9% beat)
- Revenue Guidance for Q1 CY2026 is $283 million at the midpoint, above analyst estimates of $273.6 million
- Adjusted EPS guidance for Q1 CY2026 is $0.45 at the midpoint, above analyst estimates of $0.43
- EBITDA guidance for Q1 CY2026 is $59.5 million at the midpoint, above analyst estimates of $52.99 million
- Operating Margin: 57%, up from 8.4% in the same quarter last year
- Free Cash Flow Margin: 21.5%, up from 12.3% in the same quarter last year
- Inventory Days Outstanding: 133, in line with the previous quarter
- Market Capitalization: $7.85 billion
Company Overview
A public company since the late 1960s, Semtech (NASDAQ: SMTC) is a provider of analog and mixed-signal semiconductors used for Internet of Things systems and cloud connectivity.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, Semtech’s sales grew at a solid 12% compounded annual growth rate over the last five years. Its growth beat the average semiconductor company and shows its offerings resonate with customers. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.
We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Semtech’s annualized revenue growth of 9.9% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
This quarter, Semtech grew its revenue by 9.3% year on year, and its $274.4 million of revenue was in line with Wall Street’s estimates. Although the company met estimates, this was its third consecutive quarter of decelerating growth, indicating a potential cyclical downturn. Company management is currently guiding for a 12.7% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 13.4% over the next 12 months. While this projection indicates its newer products and services will spur better top-line performance, it is still below average for the sector.
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Product Demand & Outstanding Inventory
Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’ capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.
This quarter, Semtech’s DIO came in at 133, which is 19 days below its five-year average. At the moment, these numbers show no indication of an excessive inventory buildup.
Key Takeaways from Semtech’s Q4 Results
It was encouraging to see Semtech’s revenue guidance for next quarter beat analysts’ expectations. We were also happy its adjusted operating income outperformed Wall Street’s estimates. Overall, this print had some key positives. Investors were likely hoping for more, and shares traded down 3.4% to $86.12 immediately after reporting.
So do we think Semtech is an attractive buy at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
