Semtech (MEX:SMTC) Operating Income: MXN2,045 Mil (TTM As of Apr. 2026)

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MEX:SMTC Semtech Corp MEX:SMTC
55 GF Score
Price MXN2,230.00
GF Value MXN670.83
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Semtech Operating Income?

Semtech MEX:SMTC 55 Operating Income is MXN2,045 Mil as of Apr. 2026. GuruFocus rates MEX:SMTC with a GF Score™ of 55/100 and a GF Value™ of MXN670.83 (Significantly Overvalued). The stock has 5 warning signs investors should review.

Semtech's Operating Income for the three months ended in Apr. 2026 was MXN472 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was MXN2,045 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Semtech's Operating Income for the three months ended in Apr. 2026 was MXN472 Mil. Semtech's Revenue for the three months ended in Apr. 2026 was MXN5,098 Mil. Therefore, Semtech's Operating Margin % for the quarter that ended in Apr. 2026 was 9.27%.

Semtech's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Semtech's annualized ROC % for the quarter that ended in Apr. 2026 was 10.68%. Semtech's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 37.14%.


Semtech  (MEX:SMTC) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Semtech's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

ROC % (Q: Apr. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2026 ) + Invested Capital (Q: Apr. 2026 ))/ count )
=1889.496 * ( 1 - 0.45% )/( (17666.949 + 17549.661)/ 2 )
=1880.993268/17608.305
=10.68 %

where

Invested Capital(Q: Jan. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=24468.36 - 3415.192 - ( 3386.219 - max(0, 4787.296 - 11365.873+3386.219))
=17666.949

Invested Capital(Q: Apr. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=25204.669 - 4794.454 - ( 2860.554 - max(0, 4794.454 - 11362.712+2860.554))
=17549.661

Note: The Operating Income data used here is four times the quarterly (Apr. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Semtech's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2026  Q: Apr. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1885.432/( ( (1897.059 + max(2679.444, 0)) + (1869.301 + max(3707.704, 0)) )/ 2 )
=1885.432/( ( 4576.503 + 5577.005 )/ 2 )
=1885.432/5076.754
=37.14 %

where Working Capital is:

Working Capital(Q: Jan. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2785.465 + 3395.9 + 1180.186) - (3415.192 + 307.534 + 959.381)
=2679.444

Working Capital(Q: Apr. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3061.622 + 3585.808 + 1854.728) - (4794.454 + 0 + 0)
=3707.704

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Semtech's Operating Margin % for the quarter that ended in Apr. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Apr. 2026 )/Revenue (Q: Apr. 2026 )
=472.374/5097.5
=9.27 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Semtech Operating Income Related Terms


Semtech Operating Income Historical Data

* Premium members only.

The historical data trend for Semtech's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Semtech Operating Income Chart

Semtech Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2,992.45 1,616.20 -2,152.75 1,286.59 2,139.39

Semtech Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 728.13 512.97 590.02 469.19 472.37
MEX:SMTC
55GF Score
Semtech Corp MEX:SMTC
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Semtech Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was MXN2,045 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of MXN2,045 Mil mean?
Semtech (MEX:SMTC) has a Operating Income of MXN2,045 Mil as of Apr. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Semtech and its competitors.
Is Semtech's Operating Income too high?
Semtech's current Operating Income is MXN2,045 Mil. Overall, Semtech has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Semtech's Operating Income compare to RMBS and ALGM?
Semtech's Operating Income of MXN2,045 Mil can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Semiconductors company?
A good Operating Income depends on the Semiconductors industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Semtech and its competitors. Semtech's current Operating Income is MXN2,045 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Semtech stock overvalued right now?
Based on GuruFocus' analysis, Semtech (MEX:SMTC) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN670.83, compared to a current price of MXN2,230.00 — trading 232.4% above its estimated fair value. The current Operating Income is MXN2,045 Mil. Semtech's overall GF Score™ is 55/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Semtech (MEX:SMTC), the current Operating Income is MXN2,045 Mil as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Semtech (MEX:SMTC) Overvalued in 2026?

Based on GuruFocus' analysis, Semtech stock appears to be overvalued. The current stock price of MXN2,230.00 is trading 232.4% above its estimated GF Value™ of MXN670.83. GuruFocus considers Semtech to be Significantly Overvalued.

Key valuation signals for MEX:SMTC:

  • Operating Income: MXN2,045 Mil
  • GF Value™: MXN670.83 vs. price of MXN2,230.00 (232.4% above fair value)
  • GF Score™: 55/100 with 5 warning signs

No single metric tells the full story. See the MEX:SMTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Semtech Business Description

Address 200 Flynn Road, Camarillo, CA, USA, 93012-8790
Semtech Corp is a provider of high-performance semiconductors powering data center networking, Internet of Things ("IoT") connectivity, and cellular infrastructure solutions. The company designs, develops, manufactures, and markets a diverse portfolio of products for commercial applications, addressing the infrastructure, high-end consumer, and industrial end markets. The company operates in four reportable segments: Signal Integrity, Analog Mixed Signal and Wireless, IoT Systems, and Connected Services. The majority of the company's revenue is earned through the Analog Mixed Signal and Wireless segment. Geographically, the majority of the company's revenue is earned from the Asia Pacific region; the company also operates in North America and Europe.
55GF Score

Get the complete analysis for MEX:SMTC

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN2,230.00
Price
MXN670.83
GF Value