Business Segments · Segment gross margin
IoT Systems and Connectivity — Segment gross margin
Semtech IoT Systems and Connectivity — Segment gross margin decreased by 2.2% to 35.8% in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 4.1%, from 34.4% to 35.8%. This decline may warrant attention — for this metric, higher values are generally preferred.
Analysis
StatementSegment
CategoryProfitability
SignalHigher is better
VolatilityStable
First reportedQ1 2024
Last reportedQ1 2027May 27, 2026
Rolls up toSegment gross margin
How to read this metric
An increasing margin suggests improved product mix, higher pricing, or reduced manufacturing costs, while a declining margin may indicate pricing pressure or rising input costs.
Detailed definition
The ratio of gross profit to net sales for the IoT Systems and Connectivity segment, expressed as a percentage. This met...
Peer comparison
Commonly used across the semiconductor and hardware industry to benchmark the relative profitability of different product lines.
Metric ID:
smtc_segment_iot_systems_and_connectivity_segment_gross_marginHistorical Data
12 periods
| Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q1 '27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | 10.5% | 10.5% | 10.5% | 10.5% | 37.4% | 35.4% | 41% | 1.3% | 34.4% | 39.5% | 36.6% | 35.8% |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | +255.3% | -5.3% | +15.8% | -96.8% | >999% | +14.8% | -7.3% | -2.2% |
| YoY Change | — | — | — | — | +255.3% | +236.3% | +289.5% | -87.6% | -8.0% | +11.6% | -10.7% | +4.1% |
Range1.3% – 41%
CAGR+56.1%
Avg YoY Growth+86.3%
Median YoY Growth+7.8%
Current Streak2 quarters decline
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Frequently Asked Questions
- What is Semtech's iot systems and connectivity — segment gross margin?
- Semtech (SMTC) reported iot systems and connectivity — segment gross margin of 35.8% in Q1 2026.
- How has Semtech's iot systems and connectivity — segment gross margin changed year-over-year?
- Semtech's iot systems and connectivity — segment gross margin increased by 4.1% year-over-year, from 34.4% to 35.8%.
- What does iot systems and connectivity — segment gross margin mean?
- The percentage of revenue retained as profit after accounting for the direct costs of producing IoT systems and connectivity products.