Semtech Posts Record Q2 Sales of $341.9M, Guides Q3 to $410M
SMTC has more than doubled off its 52-week low of $50.42 on elevated volume (2.2× avg).
Summary
Semtech reported record Q2 FY27 revenue of $341.9M, up 33% year-over-year, with non-GAAP EPS of $0.71 and Q3 guidance of $410M in sales and $1.05 adjusted EPS.
Key Events · Earnings and Guidance · SMTC
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Record Q2 Revenue and Margin Expansion
Net sales of $341.9M rose 17% sequentially and 33% year-over-year; non-GAAP adjusted operating margin expanded to 24.4% from 20.4% in Q1 and 18.8% a year ago.
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EPS Growth Driven by Tax Benefit
GAAP diluted EPS of $1.59 includes a $101.4M income tax benefit; non-GAAP adjusted diluted EPS was $0.71, up from $0.51 in Q1 and $0.41 a year ago.
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Strong Q3 Guidance
Q3 FY27 outlook calls for net sales of $410M ± $5M, adjusted operating margin of 31.0%, and adjusted diluted EPS of $1.05 ± $0.03 — implying roughly 20% sequential revenue growth.
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Portfolio Optimization Progress
Results follow the August 13 agreement to sell the cellular module business to Compal Electronics for $62M; the business is classified as held for sale with $48.1M of Q2 net sales excluded from adjusted gross margin.
Analysis · SMTC · Manufacturing
Record quarterly revenue, accelerating growth, and sharply higher margins underscore Semtech's momentum, while Q3 guidance points well above Q2 levels. The GAAP EPS of $1.59 is inflated by a one-time $101.4M tax benefit, so the non-GAAP $0.71 is the cleaner read on operating performance. The Q3 outlook implies roughly 20% sequential revenue growth and adjusted EPS of $1.05, suggesting the AI data center networking and IoT momentum is continuing. This comes just two weeks after the company agreed to sell its cellular module business to Compal for $62M, part of the portfolio optimization management highlighted.
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In the 30 days to Aug 25, 2026, 29.6% of the 2856 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.04%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, SMTC was trading at $128.39 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $11.9B. The 52-week trading range was $50.42 to $177.35. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.