The company's GAAP gross margin for Q4 was reported at 50.4%, while the non-GAAP adjusted gross margin was slightly higher at 51.6%. However, the GAAP operating margin was negative at (6.7)%, with a non-GAAP adjusted operating margin of 18.2%. The diluted loss per share for the fourth quarter was $0.32, contrasting with a non-GAAP adjusted diluted earnings per share of $0.44.
Operating cash flow for the quarter was robust at $61.5 million, with free cash flow reaching $59.1 million. Semtech's CEO, Hong Hou, emphasized the company's strong revenue and earnings growth, attributing it to the power of their portfolio and disciplined execution. He expressed confidence in the company's position as data center build-out expands, highlighting their investment in research and development to remain at the forefront of next-generation technologies.
Looking ahead, Semtech provided an optimistic outlook for the first quarter of fiscal year 2027, projecting net sales of approximately $283 million, with an expected increase of $5 million. The company anticipates continued growth driven by its strategic investments and innovative product offerings. The financial results and outlook reflect Semtech's commitment to delivering high-quality technology solutions that enable a smarter, more connected, and sustainable planet.
