Semtech Raises Q3 FY27 Guidance and Sets FY30 Framework Targeting $3.2B Sales
SMTC has more than doubled off its 52-week low of $60.28 on elevated volume (3.1× avg).
Summary
Semtech raised its Q3 FY27 guidance and introduced a FY30 framework targeting $3.2B in net sales and $12.40-$13.00 adjusted EPS, with data center growth as the primary driver.
Key Events · Earnings and Guidance · SMTC
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Q3 FY27 Guidance Raised
Net sales guidance increased to $417.5M +/- $2.5M from $410.0M +/- $5.0M, and adjusted diluted EPS to $1.14 +/- $0.02 from $1.05 +/- $0.03.
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Margin Outlook Improved
Adjusted operating margin guidance raised to 33.0% +/- 10 bps from 31.0% +/- 60 bps, and adjusted gross margin to 59.0% +/- 40 bps from 58.3% +/- 100 bps.
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FY30 Framework Targets $3.2B Sales
New framework targets $3.2B net sales (38% FY26-FY30 CAGR), $2.1B data center net sales (75% CAGR), 70% adjusted gross margin, 48-50% adjusted operating margin, and $12.40-$13.00 adjusted diluted EPS.
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Framework Is Targets, Not Guidance
Semtech states the FY30 framework consists of targets and goals, not guidance or forecasts, and is subject to significant risks and uncertainties, particularly data center market growth.
Analysis · SMTC · Manufacturing
At its Data Center Analyst Day, Semtech raised Q3 FY27 guidance across the board and laid out a FY30 framework that implies a dramatic multi-year growth path. Q3 net sales guidance moved to $417.5M +/- $2.5M from $410.0M +/- $5.0M, adjusted EPS to $1.14 +/- $0.02 from $1.05 +/- $0.03, and adjusted operating margin to 33.0% +/- 10 bps from 31.0% +/- 60 bps. The FY30 framework targets $3.2B in net sales (38% FY26-FY30 CAGR), $2.1B in data center net sales (75% CAGR), 70% adjusted gross margin, 48-50% adjusted operating margin, 35% free cash flow as a percentage of net sales, and $12.40-$13.00 adjusted diluted EPS (64-66% CAGR) on a 104M non-GAAP diluted share count. The company explicitly labels the FY30 figures as targets and goals, not guidance or forecasts, so they carry more risk than the raised Q3 numbers. The raised Q3 outlook is the near-term actionable item; the FY30 framework is a long-dated ambition that depends heavily on data center demand materializing as assumed.
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In the 30 days to Oct 22, 2026, 36.8% of the 1026 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.78%. 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 $148.50 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $13.5B. The 52-week trading range was $60.28 to $201.99. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.