Semtech Corporation reported strong first-quarter fiscal 2026 earnings, with revenue reaching $251.1 million, marking a 22% increase year-over-year. The company posted adjusted earnings per share of $0.38, up from $0.06 in the prior year, and GAAP diluted earnings per share of $0.22 compared to a loss of $0.36 a year ago. Adjusted gross margin stood at 53.5%, while adjusted operating margin was 19.0%. Adjusted EBITDA was $55.4 million, representing a 22.1% margin. Free cash flow totaled $26.2 million, and the company reduced its debt by $25 million during the first half of the fiscal year. Morgan Stanley raised Semtech's price target to $40 from $30, maintaining an Equal Weight rating and citing attractive data center opportunities despite uncertainty in the second half of the year. Semtech's first-quarter earnings per share slightly beat expectations by $0.01, with revenue in line with projections around $250 million. The company provided guidance for second-quarter earnings per share and revenue in line with market expectations.