SEMTECH CORPSMTC
SEMTECH CORP Segments Disclosure
Segment Information
The Company’s Chief Executive Officer functions as the chief operating decision maker ("CODM"). The CODM makes operating decisions and assesses performance based on the net sales and gross profit of the Company's major product lines, which represent its operating segments, to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process. As discussed in Note 7, Goodwill and Intangible Assets, the Company currently has three operating segments—SIP, AMW, and ISC—that represent three separate reportable segments. The SIP reportable segment consists of a portfolio of optical and copper data communications and video transport products used in a wide variety of infrastructure and industrial applications. The AMW reportable segment provides infrastructure, industrial and high-end customers with high-performance protection devices and a portfolio of specialized radio frequency products. The ISC reportable segment provides industrial customers with an IoT solutions portfolio that includes a wide range of modules, gateways, routers, and connected services.
The Company’s assets are commingled among the various operating segments and the CODM does not use asset information in making operating decisions or assessing performance. Therefore, the Company has not included asset information by reportable segment in the segment disclosures below.
Net sales and gross profit by reportable segment were as follows:
| Fiscal Year Ended January 25, 2026 | |||||||||||||||||||||||||||||||||||
| (in thousands) | Signal Integrity | Analog Mixed Signal and Wireless | Total Semiconductor Products | IoT Systems and Connectivity | Unallocated(1) | Total | |||||||||||||||||||||||||||||
| Net sales | $ | 322,608 | $ | 373,444 | $ | 696,052 | $ | 353,923 | $ | — | $ | 1,049,975 | |||||||||||||||||||||||
| Segment cost of sales | 112,261 | 153,458 | 265,719 | 228,180 | 13,932 | 507,831 | |||||||||||||||||||||||||||||
| Segment gross profit | $ | 210,347 | $ | 219,986 | $ | 430,333 | $ | 125,743 | $ | (13,932) | $ | 542,144 | |||||||||||||||||||||||
| Segment gross margin | 65.2 | % | 58.9 | % | 61.8 | % | 35.5 | % | NM(2) | ||||||||||||||||||||||||||
| Gross margin | 51.6 | % | |||||||||||||||||||||||||||||||||
(1) Unallocated includes share-based compensation, and amortization of acquired technology
(2) Not meaningful
| Fiscal Year Ended January 26, 2025 | |||||||||||||||||||||||||||||||||||
| (in thousands) | Signal Integrity | Analog Mixed Signal and Wireless | Total Semiconductor Products | IoT Systems and Connectivity | Unallocated(1) | Total | |||||||||||||||||||||||||||||
| Net sales | $ | 261,747 | $ | 322,899 | $ | 584,646 | $ | 324,641 | $ | — | $ | 909,287 | |||||||||||||||||||||||
| Segment cost of sales | 99,091 | 143,527 | 242,618 | 197,080 | 13,061 | 452,759 | |||||||||||||||||||||||||||||
| Segment gross profit | $ | 162,656 | $ | 179,372 | $ | 342,028 | $ | 127,561 | $ | (13,061) | $ | 456,528 | |||||||||||||||||||||||
| Segment gross margin | 62.1 | % | 55.6 | % | 58.5 | % | 39.3 | % | NM(2) | ||||||||||||||||||||||||||
| Gross margin | 50.2 | % | |||||||||||||||||||||||||||||||||
(1) Unallocated includes share-based compensation, and amortization of acquired technology
(2) Not meaningful
| Fiscal Year Ended January 28, 2024 | |||||||||||||||||||||||||||||||||||
| (in thousands) | Signal Integrity | Analog Mixed Signal and Wireless | Total Semiconductor Products | IoT Systems and Connectivity | Unallocated(1) | Total | |||||||||||||||||||||||||||||
| Net sales | $ | 177,033 | $ | 260,264 | $ | 437,297 | $ | 431,461 | $ | — | $ | 868,758 | |||||||||||||||||||||||
| Segment cost of sales | 75,788 | 113,666 | 189,454 | 249,956 | 133,098 | 572,508 | |||||||||||||||||||||||||||||
| Segment gross profit | $ | 101,245 | $ | 146,598 | $ | 247,843 | $ | 181,505 | $ | (133,098) | $ | 296,250 | |||||||||||||||||||||||
| Segment gross margin | 57.2 | % | 56.3 | % | 56.7 | % | 42.1 | % | NM(2) | ||||||||||||||||||||||||||
| Gross margin | 34.1 | % | |||||||||||||||||||||||||||||||||
(1) Unallocated includes share-based compensation, and amortization of acquired technology
(2) Not meaningful
Geographic Information
Net sales activity by geographic region was as follows:
| Fiscal Year Ended | |||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | January 25, 2026 | January 26, 2025 | January 28, 2024 | ||||||||||||||||||||||||||||||||
| Asia-Pacific | $ | 697,597 | 67 | % | $ | 574,710 | 64 | % | $ | 505,603 | 58 | % | |||||||||||||||||||||||
| North America | 231,877 | 22 | % | 204,479 | 22 | % | 237,132 | 27 | % | ||||||||||||||||||||||||||
| Europe | 120,501 | 11 | % | 130,098 | 14 | % | 126,023 | 15 | % | ||||||||||||||||||||||||||
| Total net sales | $ | 1,049,975 | 100 | % | $ | 909,287 | 100 | % | $ | 868,758 | 100 | % | |||||||||||||||||||||||
The Company attributes sales to a geography based on the ship-to address. The table below summarizes sales activity to geographies that represented greater than 10% of total sales for at least one of the periods presented:
| Fiscal Year Ended | |||||||||||||||||
| (percentage of total net sales) | January 25, 2026 | January 26, 2025 | January 28, 2024 | ||||||||||||||
| China (including Hong Kong) | 47 | % | 43 | % | 32 | % | |||||||||||
| United States | 18 | % | 21 | % | 24 | % | |||||||||||
| Total net sales | 65 | % | 64 | % | 56 | % | |||||||||||
Although a large percentage of the Company's products is shipped into the Asia-Pacific region, a significant number of the products produced by these customers and incorporating the Company's semiconductor products are then sold outside this region.
Long-lived Assets
The following table summarizes the Company's long-lived assets, which consist of property, plant and equipment, net of accumulated depreciation, classified by location:
| Balance as of | |||||||||||
| (in thousands) | January 25, 2026 | January 26, 2025 | |||||||||
| United States | $ | 52,217 | $ | 58,395 | |||||||
| Rest of North America | 32,539 | 41,445 | |||||||||
| Europe | 13,915 | 14,604 | |||||||||
| Asia and all others | 10,674 | 11,746 | |||||||||
| Total | $ | 109,345 | $ | 126,190 | |||||||
Some of these assets are at locations owned or operated by the Company’s suppliers. The Company has consigned certain equipment to a foundry based in China to support its specialized processes run at the foundry. The Company has also installed its own equipment at some of its packaging and testing subcontractors in order to ensure a certain level of capacity, assuming the subcontractor has ample employees to operate the equipment.
The net book value of equipment and machinery that were consigned to multiple foundries in China was $2.0 million and $3.6 million as of January 25, 2026 and January 26, 2025, respectively. The net book value of equipment and machinery that were consigned to a foundry in Malaysia was $1.3 million and $1.8 million as of January 25, 2026 and January 26, 2025, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 23, 2026 | Showing above |
| 2025 | Mar 25, 2025 | |
| 2024 | Mar 28, 2024 | |
| 2023 | Mar 30, 2023 | |
| 2022 | Mar 16, 2022 | |
| 2021 | Mar 24, 2021 | |
| 2020 | Mar 20, 2020 | |
| 2019 | Mar 21, 2019 | |
| 2018 | Mar 22, 2018 | |
| 2017 | Mar 23, 2017 | |
| 2016 | Mar 31, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.