Semtech (SMTC) Q2 2027 Earnings
How Did SMTC Stock React to Q2 2027 Earnings?
S&P 500 over the same 30 days: −0.06%.
Did SMTC Beat Earnings? Q2 2027 Results
Yes. Semtech reported Q2 2027 earnings of $0.71 a share on Aug 25, 2026, beating the $0.61 consensus estimate by 15.6%. Revenue was $341.9M against a $328.7M estimate.
Semtech delivered a blowout fiscal second quarter for 2027, posting adjusted diluted EPS of $0.71 against a consensus estimate of $0.61, a beat of 15.64% that extended the company's streak of topping analyst EPS expectations to six consecutive quarters. Revenue of $341.90 million exceeded the $328.67 million consensus by 4.03% and grew 32.7% year-over-year, with the Signal Integrity segment serving as the primary engine, generating $126.20 million in revenue at a 65.3% gross margin as surging demand for AI data center networking products drove the outperformance. Non-GAAP adjusted operating margin expanded sharply to 24.4% from 18.8% a year ago, while free cash flow more than doubled sequentially to $61.40 million. <a href="https://247wallst.com/investing/2026/08/25/live-will-semtechs-q2-earnings-tonight-send-its-stock-higher/">Heading into the print</a>, analysts had flagged record backlog and bookings strength as potential catalysts, and management validated that optimism by guiding Q3 net sales to approximately $410.00 million with adjusted diluted EPS of roughly $1.05, implying continued margin expansion toward an adjusted operating margin of approximately 31.0%.
- Record revenue across key focus areas with earnings leverage outpacing revenue growth
- Signal Integrity segment revenue grew 64% year-over-year, driven by AI data center networking demand
- Accelerating bookings and record backlog providing extended visibility
- Non-GAAP adjusted operating margin expanded to 24.4% from 18.8% year-over-year
- Adjusted gross margin excluding business held for sale reached 59.7%
- Strong free cash flow of $61.4 million, up from $28.0 million in Q1
“The Semtech team executed exceptionally well, delivering record revenue across our key focus areas, earnings leverage that continued to outpace revenue growth and significant progress on portfolio optimization.”
Semtech CEO, on the earnings call
What Is Semtech's Outlook?
For Q3 FY2027, Semtech guided net sales of approximately $410.0 million (+/- $5.0 million), non-GAAP adjusted gross margin of approximately 58.3% (+/- 100 bps), adjusted gross margin excluding business held for sale of approximately 63.9% (+/- 100 bps), adjusted operating expenses of approximately $112.0 million (+/- $3.0 million), adjusted operating income of approximately $127.0 million (+/- $4.0 million), adjusted operating margin of approximately 31.0% (+/- 60 bps), adjusted diluted EPS of approximately $1.05 (+/- $0.03), adjusted EBITDA of approximately $134.3 million (+/- $4.0 million), and adjusted EBITDA margin of approximately 32.8% (+/- 60 bps). Non-GAAP diluted share count expected at 99.0 million. Management expects broad-based bookings strength to translate into sustained revenue, margin and earnings growth.
SMTC YoY Financials
| Metric | Q2 2027 | Q2 2026 | Year over year |
|---|---|---|---|
| Revenue | $341.9M | $257.6M | +32.7% |
| Gross Profit | $183.8M | $134.1M | +37.1% |
| Operating Income | $55.8M | $10.2M | +444.6% |
| Net Income | $160.1M | $20.2M | +691.6% |
SMTC Revenue by Segment
When Does Semtech Report Next?
Figures from SEC filings and company reports. Not investment advice.