What is Semtech's net margin?

Semtech (SMTC) reported net margin of -3% in Q1 2026.

What does net margin mean?

The share of every sales dollar that becomes bottom-line profit.

How do you interpret net margin?

Higher is better, but net margin mixes operating performance with financing and tax effects and one-off items — read it alongside operating margin to separate the operating story from the rest.

How does net margin compare across companies?

Comparable across peers but sensitive to leverage and tax structure; two operationally identical firms can show different net margins purely from financing.

Semtech SMTC Net margin

Net margin at other companies

Analog DevicesADI

26%+7.4pp

Texas InstrumentsTXN

29.1%-1.3pp

Monolithic Power SystemsMPWR

23%-45.5pp

TE ConnectivityTEL

15.5%+6.9pp

Broadcom Inc.AVGO

38.8%+16.2pp

Teradyne, Inc.TER

22.6%+2.7pp

Other financials

Income statement

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Revenue$291.0M+15.9%

Gross profit$151.5M+15.4%

Operating income$25.8M-28.3%

Net income$26.6M+37.3%

EPS (diluted)$0.27+22.7%

Balance sheet

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Cash & equivalents$163.3M+4.4%

Total debt$517.6M-9.0%

Total equity$573.3M+0.8%

Total assets$1.4B+0.5%

Cash flow

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Operating cash flow$36.2M+30.0%

CapEx$8.2M+395%

Free cash flow$28.0M+7.0%

Valuation

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Market cap$13.99B+285%

Enterprise value$14.35B+243%

P/S12.8×+9.0×

Profitability

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Gross margin51.6%+0.4pp

Operating margin7%+3.7pp

Returns & leverage

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Return on equity-5.8%—

Debt / equity0.9×-0.1×

Current ratio2.4×-0.2×

Where this comes from

Calculated from Semtech’s reported figures.

net income/total revenue=-3%

Based on trailing twelve months.

The official record: Semtech’s 10-Q, filed May 27, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Semtech's net margin?: Semtech (SMTC) reported net margin of -3% in Q1 2026.
What does net margin mean?: The share of every sales dollar that becomes bottom-line profit.
How do you interpret net margin?: Higher is better, but net margin mixes operating performance with financing and tax effects and one-off items — read it alongside operating margin to separate the operating story from the rest.
How does net margin compare across companies?: Comparable across peers but sensitive to leverage and tax structure; two operationally identical firms can show different net margins purely from financing.