Semtech Q1 revenue up 16% on data center demand; margins slip, 2027 Notes now convertible

Filed May 27, 2026 · Period ending April 26, 2026 · Compared to 10-Q May 29, 2025 · ~1 min read

Key Changes

• high

  2027 Notes ($100.5M outstanding) became convertible after stock price exceeded 130% of conversion price; company plans to draw on credit line to settle conversions if holders elect, creating near-term liquidity demand.

  MD&A: Debt and Liquidity verify on EDGAR →
• high

  Gross margin compressed 30 bps to 52.0% as both segments saw margin declines from unfavorable product mix, higher overhead, and inventory allowances—reversing prior year's margin expansion trend.

  MD&A: Gross Margin verify on EDGAR →
• high

  Data center sales growth decelerated to $20M increase (vs. $30M prior year), while telecom reversed $14M decline to post $5M gain, suggesting normalization in infrastructure demand patterns.

  MD&A: Revenue by End Market verify on EDGAR →