Key Highlights Q2 revenue climbed 32.7% year-over-year to $341.9 million, surpassing the $328.67 million consensus Adjusted earnings per share of $0.71 exceeded the $0.61 forecast, marking si
Semtech (SMTC) shares surged in trading sessions following the company’s impressive fiscal second-quarter performance and forward-looking guidance that significantly exceeded analyst projections. The semiconductor company’s stock climbed more than 10% during premarket hours, adding to its remarkable 73% year-to-date rally.
The company reported quarterly revenue of $341.9 million, representing a 32.7% increase compared to the prior year and exceeding the Street’s $328.67 million projection. This performance extended Semtech’s revenue growth streak to ten consecutive quarters.
On the profitability front, adjusted earnings per share reached $0.71, substantially beating the analyst consensus of $0.61 and representing a significant improvement from the $0.41 posted in the comparable period last year.
SEMTECH $SMTC Q2’27 EARNINGS HIGHLIGHTS
Revenue: $341.9M (Est. $328.6M)
; +33% YoY
Q3 Guide:
— Wall St Engine (@wallstengine) August 25, 2026
However, the forward guidance stole the spotlight. Semtech projected third-quarter revenue between $405 million and $415 million, substantially above Wall Street’s previous expectation of approximately $359.9 million. The company’s adjusted EPS forecast of $1.02 to $1.08 similarly exceeded the $0.73 consensus by a wide margin.
The company’s data-center operations are fueling much of this growth trajectory. Strong order momentum and an all-time high backlog suggest sustained expansion in this critical business unit.
Timothy Arcuri from UBS increased his price objective to $230 from $225 while reaffirming his Buy recommendation. He highlighted the impressive 160%+ year-over-year expansion in data-center revenue alongside sustained strength in the LoRa product portfolio. Arcuri projects data-center revenue could surpass $200 million quarterly by the first quarter of fiscal 2028.
Scott Searle at Roth MKM elevated his target to $220 from $190, maintaining his Buy stance. He anticipates the data-center and LoRa divisions to expand 120% year-over-year during Q3 and represent close to 60% of overall revenue.
Benchmark preserved its Buy recommendation with a $230 price objective. Needham retained its Buy rating at $200, emphasizing Data Center and LoRa expansion as primary catalysts supporting the enhanced guidance. Stifel maintained its Buy position with a $188 target.
Some analysts remain measured in their enthusiasm. Morgan Stanley analyst Joseph Moore increased his price objective to $195 from $175 while maintaining a Hold recommendation.
Moore recognized robust demand for Semtech’s optical solutions and accelerating data-center revenue performance. He anticipates the subsequent growth wave will emerge from active copper cable (ACC) products ramping during Q4 and expanded data-center opportunities extending through fiscal year 2028.
UBS additionally noted that data-center expansion should easily compensate for any revenue decline from Semtech’s cellular module divestiture, while simultaneously supporting improved profit margins.
According to TipRanks, SMTC holds a Strong Buy consensus rating supported by 11 Buy recommendations and one Hold.
The consensus price objective of $204 indicates approximately 60% additional upside potential from present trading levels. Accelerated FiberEdge qualification timelines are identified as a primary catalyst for near-term expansion, with CopperEdge products presenting another significant opportunity approaching fiscal year 2028.
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