Semtech Stock Soars as Chipmaker Posts Better-than-Expected Q4 Earnings

Takeaways

• Semtech reported strong earnings, net revenue, and operating cashflow in the fourth quarter. This sent shares higher.
• The chipmaker posted a positive GAAP profit, after registering a deficit a year ago.
• Cash flow from Operating Activities soared 141%.

Shares of Semtech (SMTC) surged 15% Friday, a day after the semiconductor maker had better-than-anticipated profit and net sales, and operating cash flow more than doubled.

Semtech’s fourth-quarter adjusted profit for fiscal 2025 was $0.40 per share, up from a loss of $0.06 a share a year ago. Visible Alpha’s analysts expected earnings per share (EPS), adjusted, to be $0.31. Net sales increased 30% over the past year to $251 millions, also exceeding expectations. 

Cash flow from operating activity was $33.5m, 141% greater than the previous year. In fiscal 2025, the cash flow from operating activities was $58.0m, compared to $93.9m in 2024. CFO Mark Lin said the jump indicated a "positive inflection in our business and is expected to further benefit from lower cash interest requirements stemming from our debt reduction."

CEO Hong Hou noted Semtech “sequentially improved for each reported quarter in net sales and gross margins, operating margins, and earnings-per-share.”

The company expects a current-quarter adjusted earnings per share (EPS) with a midpoint at $0.37 and nett sales of $250,000,000, which is above expectations. 

Semtech’s shares have gained two-thirds in value over the past 12 months.