Semtech Lifts Q3 Guidance Above Street, Sets 38% Growth Target Through 2030
SMTC has more than doubled off its 52-week low of $60.28 on elevated volume (3.1× avg).
Summary
Semtech raised Q3 FY27 guidance at its investor day: adjusted EPS of $1.12-$1.16 versus the $1.06 consensus and prior $1.02-$1.08, on revenue of $415M-$420M versus $410.69M expected and a prior $405M-$415M range. Gross margin guidance moved up to 58.6%-59.4% from 57.3%-59.3%. The bigger item is the FY30 framework: 38% compound annual sales growth from fiscal 2026 to fiscal 2030, with data center sales compounding at 75% and adjusted EPS at 64%-66%. Northland upgraded to Outperform from Market Perform with a $186 target, citing a more favorable risk profile after Thursday's 10% sell-off. Shares rose 4.5% in premarket Friday. This follows the August 25 8-K, when Q3 revenue guidance of $410M was already 14% above consensus — the company is raising that bar again six weeks later.
At the time of this announcement, SMTC was trading at $149.95 on NASDAQ in the Technology sector, with a market capitalization of approximately $13.5B. The 52-week trading range was $60.28 to $201.99. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.