Semtech Corp. posted fiscal second-quarter revenue of $341.9 million, topping the $328.64 million estimate, while adjusted earnings per share reached $0.71, exceeding the $0.61 forecast.
The company’s performance drove upward revisions from analysts, with 13 firms increasing earnings estimates for the upcoming period, according to InvestingPro data. Semtech’s stock has risen 73% year-to-date and 117% over the past 12 months, reflecting strong market confidence.
Stifel maintained its Buy rating on Semtech shares, keeping a price target of $188. The target is based on a 9.6x calendar year 2027 enterprise value-to-sales multiple and a 35.5x forward price-to-earnings ratio for the same period. Needham also reaffirmed its Buy rating with a $200 price target, while the consensus range among analysts spans from $155 to $230.
Semtech’s third-quarter fiscal 2027 guidance midpoints for revenue and adjusted EPS were 13.6% and $0.32 higher than prior estimates, respectively. The company has recorded ten consecutive quarters of revenue growth, supported by strength in its Data Center and LoRa subsegments.
Net leverage improved to 1.1x from 1.4x, signaling a stronger balance sheet. The company’s cellular module business, Sierra Wireless, remains on track for divestment, with the transaction expected to close in the fourth quarter of fiscal 2027.
