Semtech (NASDAQ:SMTC) Announces Earnings Results

Semtech (NASDAQ:SMTC) issued its earnings results on Tuesday. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.10, FiscalAI reports. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The business’s quarterly revenue was up 32.7% on a year-over-year basis. During the same period last year, the firm earned $0.41 EPS. Semtech updated its Q3 2027 guidance to 1.020-1.080 EPS.

Here are the key takeaways from Semtech’s conference call:

• Record Q2 results included revenue of $342 million, up 33% year over year, and adjusted EPS of $0.71, up 73%, with operating leverage exceeding revenue growth.
• Management expects Q3 revenue of $410 million at the midpoint, up 54% year over year, driven by a projected 45% sequential increase in data-center revenue as 1.6T CopperEdge and FiberEdge ramp.
• Data-center demand and backlog remain exceptionally strong, with 800G continuing to grow and 1.6T products expected to represent more than half of data-center revenue in Q3; management said more than 70% of next fiscal year’s target revenue is already booked.
• LoRa revenue reached a record $58 million in Q2, up 58% year over year, and is expected to rise another 15% sequentially in Q3, supported by LoRaWAN, LoRa Plus, and Amazon Sidewalk expansion.
• Semtech is pursuing additional front-end and back-end manufacturing capacity for fiscal 2028 and beyond, while the planned cellular-module divestiture is expected to improve gross margin by more than 500 basis points and close in Q4.

Semtech Price Performance

Shares of SMTC traded up $6.61 during midday trading on Tuesday, hitting $127.52. 8,752,157 shares of the company traded hands, compared to its average volume of 2,703,854. Semtech has a one year low of $53.62 and a one year high of $177.35. The firm has a market cap of $11.88 billion, a P/E ratio of -326.97 and a beta of 2.35. The company has a debt-to-equity ratio of 0.86, a current ratio of 2.37 and a quick ratio of 1.62. The stock has a 50-day moving average of $136.80 and a 200-day moving average of $117.89.

Trending Headlines about Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech reported fiscal Q2 2027 adjusted earnings of $0.71 per share, ahead of the $0.61–$0.62 consensus estimate and up from $0.41 a year earlier. Revenue reached a record $341.9 million, up 33% year over year and 17% sequentially, also exceeding expectations. Semtech Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Third-quarter guidance substantially topped analyst forecasts. Semtech expects revenue of approximately $405 million to $415 million versus a $359.3 million consensus estimate, and adjusted EPS of $1.02 to $1.08 versus expectations of $0.69. The outlook suggests continued momentum in AI-related networking and semiconductor demand. Semtech Announces Second Quarter Fiscal 2027 Results
• Positive Sentiment: Profitability and cash generation improved, with GAAP operating income rising to $55.8 million from $25.8 million in the prior quarter, while free cash flow totaled $61.4 million. Reports also cited improving inventory levels, a six-quarter earnings streak, and strong AI demand as additional investor positives. Semtech Posts Record Sales in Fiscal Q2
• Neutral Sentiment: Semtech will host a LoRa ecosystem forum at the IOTE 2026 conference from August 26–28. The event may provide additional information on IoT growth and technology demand, but it is not an immediate financial catalyst. Semtech Hosts LoRa Ecosystem Forum
• Negative Sentiment: Several Semtech executives, including the CEO, CFO and COO, have reported stock sales over the past six months without corresponding purchases. Large institutional holders such as BlackRock and Ameriprise also reduced positions in recent filings, creating a potential overhang despite the strong operating results.
• Negative Sentiment: A law firm issued a shareholder solicitation concerning potential fiduciary-duty issues. No wrongdoing has been established, but the announcement adds legal and headline risk.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on SMTC. Needham & Company LLC restated a “buy” rating and issued a $200.00 price objective on shares of Semtech in a research note on Friday, August 14th. Oppenheimer set a $200.00 target price on shares of Semtech in a research note on Wednesday, May 27th. UBS Group boosted their price target on shares of Semtech from $165.00 to $225.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. TD Cowen raised their price objective on shares of Semtech from $210.00 to $215.00 and gave the stock a “buy” rating in a report on Monday, June 22nd. Finally, Stifel Nicolaus lifted their price objective on shares of Semtech from $157.00 to $188.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. Fourteen analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Semtech has a consensus rating of “Moderate Buy” and an average price target of $189.47.

Insider Buying and Selling

In other Semtech news, insider John Michael Wilson sold 5,500 shares of the company’s stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $170.00, for a total value of $935,000.00. Following the transaction, the insider directly owned 80,876 shares in the company, valued at $13,748,920. This represents a 6.37% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Jason Elliot Green sold 2,264 shares of the firm’s stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $129.90, for a total value of $294,093.60. Following the completion of the sale, the executive vice president directly owned 8,611 shares in the company, valued at approximately $1,118,568.90. The trade was a 20.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 21,734 shares of company stock valued at $3,133,986 in the last three months. Insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Corient Private Wealth LLC bought a new position in shares of Semtech in the fourth quarter worth approximately $221,000. Pacer Advisors Inc. increased its holdings in Semtech by 38.8% during the 4th quarter. Pacer Advisors Inc. now owns 16,129 shares of the semiconductor company’s stock valued at $1,189,000 after purchasing an additional 4,509 shares during the period. T. Rowe Price Investment Management Inc. raised its position in Semtech by 23.2% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,987,888 shares of the semiconductor company’s stock valued at $146,488,000 after purchasing an additional 374,548 shares during the last quarter. Invesco Ltd. lifted its holdings in Semtech by 20.3% in the 4th quarter. Invesco Ltd. now owns 1,251,104 shares of the semiconductor company’s stock worth $92,194,000 after buying an additional 211,149 shares during the period. Finally, EP Wealth Advisors LLC bought a new stake in shares of Semtech in the 4th quarter worth approximately $514,000.

About Semtech

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.