That wraps up our initial coverage of Semtech’s Q2 results. Thank you for stopping by!
Semtech just reported earnings, with shares initially up 2% following the report. Here are the key numbers:
Guidance:
Quick Read:
Semtech delivered record quarterly revenue, growing 33% year over year and exceeding its previous guidance, while adjusted EPS also came in well ahead of its outlook.
Accelerating bookings and record backlog support another major revenue increase in Q3, alongside sharp gross-margin and operating-margin expansion.
Tonight’s Q2 earnings report matters less than the Q3 outlook. Management has been conservative, beating its own guide in every recent quarter: $291 million versus a $283 million Q1 guide, and similar beats in the prior two periods.
Investors want a Q3 revenue guidance meaningfully above $350 million with EPS north of $0.70, adjusted gross margin holding above 54%, and confident commentary on the 1.6T ramp, data center bookings, and capacity expansion.
A bullish guidance would reinforce CEO Hong Hou’s call for accelerating data center growth and could unlock the $201.38 analyst target. An in-line guidance, softer Signal Integrity, or cautious 1.6T timing would validate last week’s 21.6% pullback.
Semtech heads into tonight’s fiscal second-quarter report guiding for $328 million in revenue and adjusted EPS of about $0.61.
FiberEdge 800G deployments and initial 1.6T shipments make this quarter a proving ground for the company’s data-center acceleration story.
Shares fell 8% last week despite remaining up 136.66% over the past year. With an average analyst price target of $201.38 and Polymarket traders pricing a 73.5% probability of an earnings beat, guidance will carry more weight than the headline results.
Confident commentary around second-half 1.6T demand, capacity, and margins could send Semtech stock higher tonight.
Live coverage has ended. The full story is below.
Semtech (NASDAQ:SMTC) is expected to report Q2 FY27 earnings today at 4:05 PM ET. The connectivity chipmaker has become one of the year’s biggest AI-adjacent winners, with the stock up 144% in the past year.
Q1 FY27 posted record revenue of $291.00 million, up 16% year over year, with adjusted diluted EPS of $0.51, up 34%. Signal Integrity revenue surged to $102.00 million from $73.50 million a year earlier, and data-center net sales hit a record $71.6 million, up 39% year over year.
Adjusted operating margin expanded to 20.4% from 19.0%, and free cash flow reached $28.00 million. SMTC trades near $125.83, up 64.08% YTD, though it gave back 21.6% in the past week alone as the AI-connectivity trade cooled.
| Metric | Q2 FY27 Guide (Mid) | Implied YoY | FY27 Prior-Year Anchor |
|---|---|---|---|
| Revenue | $328.0M | +27% | FY26 rev $1.05B |
| Adj. EPS | $0.61 | +49% | FY26 EPS $1.71 |
| Adj. Gross Margin | 54.0% | +100 bps vs Q1 | Semi GM 62.1% |
| Adj. Op. Margin | 21.9% | +150 bps vs Q1 | Q1 20.4% |
Tonight, I’ll be watching four main things:
| Quarter | EPS Surprise | 1-Day Move | 1-Week Move | 30-Day Move |
|---|---|---|---|---|
| Q1 FY27 | +12.48% | -4.41% | +1.32% | -8.94% |
| Q4 FY26 | +2.02% | -11.00% | -14.02% | +15.10% |
| Q3 FY26 | +7.87% | +2.33% | +2.34% | +5.54% |
| Q2 FY26 | +2.17% | -1.00% | -1.35% | +7.24% |
On average, shares moved 2.69% seven days after earnings over the past year.
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Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 500 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
Outside of work, Thomas enjoys weight lifting and soccer.
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