Semtech (NASDAQ:SMTC) Updates Q3 2027 Earnings Guidance

Semtech (NASDAQ:SMTC) issued an update on its third quarter 2027 earnings guidance on Tuesday. The company provided EPS guidance of 1.020-1.080 for the period, compared to the consensus EPS estimate of 0.690. The company issued revenue guidance of $405.0 million-$415.0 million, compared to the consensus revenue estimate of $359.3 million.

Semtech Trading Up 5.5%

Shares of SMTC traded up $6.61 during trading on Tuesday, reaching $127.52. 8,078,905 shares of the company traded hands, compared to its average volume of 2,684,369. Semtech has a twelve month low of $53.62 and a twelve month high of $177.35. The stock has a market cap of $11.88 billion, a PE ratio of -326.97 and a beta of 2.35. The stock has a 50-day simple moving average of $136.80 and a 200-day simple moving average of $117.89. The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86.

Semtech (NASDAQ:SMTC) last posted its quarterly earnings data on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share for the quarter, topping analysts’ consensus estimates of $0.45 by $0.06. The firm had revenue of $291.02 million during the quarter, compared to analysts’ expectations of $283.53 million. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. The firm’s quarterly revenue was up 15.9% on a year-over-year basis. During the same quarter last year, the company posted $0.38 EPS. On average, analysts anticipate that Semtech will post 1.81 earnings per share for the current year.

Analyst Upgrades and Downgrades

SMTC has been the subject of a number of research analyst reports. Citigroup cut Semtech from a “buy” rating to a “market perform” rating in a report on Tuesday, May 26th. Roth Capital increased their price target on shares of Semtech from $102.00 to $190.00 and gave the stock a “buy” rating in a research report on Monday. Mizuho set a $225.00 price objective on shares of Semtech in a report on Wednesday, May 27th. Zacks Research downgraded shares of Semtech from a “strong-buy” rating to a “hold” rating in a research note on Friday. Finally, Needham & Company LLC reiterated a “buy” rating and set a $200.00 target price on shares of Semtech in a report on Friday, August 14th. Fourteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $189.47.

Insider Activity

In related news, CFO Mark Lin sold 970 shares of the firm’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total value of $145,897.70. Following the sale, the chief financial officer owned 34,896 shares of the company’s stock, valued at $5,248,707.36. This trade represents a 2.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,264 shares of Semtech stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $129.90, for a total transaction of $294,093.60. Following the completion of the transaction, the executive vice president owned 8,611 shares of the company’s stock, valued at $1,118,568.90. This represents a 20.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 21,734 shares of company stock valued at $3,133,986. 0.44% of the stock is owned by corporate insiders.

Key Stories Impacting Semtech

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Raised outlook well above consensus: Semtech forecast fiscal Q3 revenue of $405 million-$415 million, versus the $359.3 million analyst consensus, and adjusted EPS of $1.02-$1.08, compared with expectations of $0.69. The company’s midpoint revenue forecast is approximately 14% above consensus, while the EPS midpoint is more than 50% higher. Semtech earnings press release
• Positive Sentiment: Quarterly results beat estimates: Semtech reported adjusted EPS of $0.71, topping the $0.61 consensus estimate. Fiscal Q2 net sales reached a record $341.9 million, up 17% sequentially and 33% year over year. GAAP operating income more than doubled from the prior quarter to $55.8 million, while free cash flow was $61.4 million. Semtech posts record fiscal second-quarter sales
• Positive Sentiment: Growth catalysts remain in focus: Ahead of the report, investor attention centered on AI data-center networking, a reported 1.6T product ramp, LoRa IoT growth and GaN demand reportedly outpacing supply. Strong guidance indicates management expects these trends to support near-term acceleration. Semtech earnings preview
• Neutral Sentiment: Semtech will host a LoRa ecosystem forum at the IOTE 2026 exhibition in Shenzhen, highlighting its connected-device ecosystem. The event may provide additional updates, but it is not yet a material financial catalyst. Semtech LoRa ecosystem forum announcement
• Negative Sentiment: Insider-trading data showed 28 open-market sales and no purchases during the past six months. Large institutional investors, including BlackRock and Ameriprise, also reduced holdings in recent filings, which could temper sentiment despite the strong operating results.
• Negative Sentiment: A law firm solicitation urged shareholders to investigate potential fiduciary-duty issues involving insiders. The notice does not establish wrongdoing, but it adds a limited headline risk.

Institutional Trading of Semtech

Institutional investors have recently bought and sold shares of the business. Corient Private Wealth LLC purchased a new stake in Semtech during the fourth quarter worth approximately $221,000. Pacer Advisors Inc. lifted its position in shares of Semtech by 38.8% during the 4th quarter. Pacer Advisors Inc. now owns 16,129 shares of the semiconductor company’s stock worth $1,189,000 after buying an additional 4,509 shares during the last quarter. T. Rowe Price Investment Management Inc. boosted its holdings in shares of Semtech by 23.2% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,987,888 shares of the semiconductor company’s stock valued at $146,488,000 after buying an additional 374,548 shares in the last quarter. Invesco Ltd. boosted its holdings in shares of Semtech by 20.3% in the 4th quarter. Invesco Ltd. now owns 1,251,104 shares of the semiconductor company’s stock valued at $92,194,000 after buying an additional 211,149 shares in the last quarter. Finally, EP Wealth Advisors LLC purchased a new position in shares of Semtech in the 4th quarter valued at $514,000.

About Semtech

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company’s products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech’s portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.