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Semtech: $101.4m of the $160.1m net income came from the tax line
Fiscal 2027 second-quarter 10-Q: pre-tax income was $54.664m, while the income tax line is a $101.361m benefit. The company states it released about $112.4m of US deferred tax valuation allowances this quarter
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Published Updated
Semtech Corporation Form 10-Q (fiscal 2027 second quarter, ended 26 July 2026, filed 2026-08-26, accession 0000088941-26-000034): condensed consolidated statements of operations and comprehensive income; condensed consolidated balance sheets; condensed consolidated statements of cash flows; Note 10 Income Taxes. SEC Company Facts does not yet carry this accession, so figures were cross-checked against the inline XBRL in the filing itself.
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Semtech Corporation (SMTC) reported net income of $160.121m for the second quarter of fiscal 2027. Pre-tax income for the same quarter was $54.664m, and the income tax line is recorded not as a charge but as a benefit of $101.361m. Net income is 2.93 times pre-tax income.
In plain terms
Semtech makes the chips that go into communications equipment and data centres. It reported a large profit this quarter, but more than half of it did not come from selling chips: it came back through the tax line. The company decided it will be able to use tax deductions it had previously written off, and put them back on the books.
What happened
Semtech Corporation (SMTC) makes analogue and mixed-signal semiconductors for communications equipment and data centres. Its fiscal 2027 second quarter ended on 26 July 2026, and the 10-Q was filed on 26 August 2026.
The bottom three lines of the income statement:
Item
Fiscal 2027 Q2
Income before taxes
$54.664m
Income taxes
−$101.361m (benefit)
Net income
$160.121m
The tax line is a benefit, not a charge. Net income is 2.93 times pre-tax income.
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FAQ
A large profit is good news, isn't it?
What it means depends on which line produced it. The subscriber section puts pre-tax income, tax and net income side by side.
Why is tax a benefit?
The subscriber section carries the reason and the amount the company disclosed, and the basis it gave for the judgement.
How did the underlying business do?
Revenue, gross profit and each expense line against the prior year are set out in a table in the subscriber section.
How did this show up on the balance sheet?
The subscriber section sets out the lines that moved most this quarter, including deferred tax assets and assets held for sale.
Where can I check this myself?
On SEC EDGAR, open Semtech Corporation's fiscal 2027 second-quarter Form 10-Q (accession 0000088941-26-000034) and read the income statement and Note 10.
Revision history
— Corrected 2026-09-25 — the article gave revenue of $291.0m, operating income of $25.8m and stock compensation of $26.4m as the fiscal 2027 second quarter; those are all figures for the preceding quarter, which ended 26 April 2026. The actual quarter covered by this filing ended 26 July 2026, with re
How aiSwingX™ wrote this
We read the filing on SEC EDGAR in full — statements, notes, MD&A. Press releases and news are not used as sources.
Every figure is reconciled to its location in the filing and to XBRL data. One mismatch means no publication.
An editor reviews before publication; any later change is recorded in the revision history.
Semtech Corporation Form 10-Q (fiscal 2027 second quarter, ended 26 July 2026, filed 2026-08-26, accession 0000088941-26-000034): condensed consolidated statements of operations and comprehensive income; condensed consolidated balance sheets; condensed consolidated statements of cash flows; Note 10 Income Taxes. SEC Company Facts does not yet carry this accession, so figures were cross-checked against the inline XBRL in the filing itself. · SEC EDGAR · This article is not investment advice. Disclaimer
Open the filing cited at the bottom of the article (e.g. the 10-Q note number) on SEC EDGAR via the link at the end of the article.
What is the at-a-glance box?
A four-item summary of the article: the key figure, what it means, the source, and what to watch next quarter. If you are short on time, read just that.
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aiSwingX™ analyzes US filings and reports them as news investors can read.
38 Meta AI: 6 ChatGPT: 3 Claude: 3 Amazon: 3 Perplexity: 2 Google · Gemini: 0 Others: 13
Read by AI & crawlers
Meta AI6
ChatGPT3
Claude3
Amazon3
Perplexity2
Google · Gemini0
Others13
Counted by the name each crawler gives. Google · Gemini includes Googlebot, whose index Google also uses for its AI features; other search engines and bots are in Others.
