Semtech Beats Q2 Estimates on Sales and Earnings, Shares Surge on Strong Q3 Outlook

Semtech reported fiscal second-quarter 2027 revenue of $341.9 million, topping analyst estimates of $328.6 million. Adjusted earnings per share came in at $0.71, a dime above the $0.61 consensus estimate, while GAAP EPS reached $1.59. Adjusted gross margin for the quarter was 54.5%, and the company noted improving inventory levels, a metric investors had been watching closely.

Shares of SMTC surged following the results, driven not only by the earnings beat but also by forward guidance for the third quarter that exceeded expectations. The combination of a top- and bottom-line beat alongside an upbeat outlook signaled strengthening demand conditions for the chipmaker.