Semtech (NASDAQ:SMTC) Releases Q3 2027 Earnings Guidance

Semtech (NASDAQ:SMTC) updated its third quarter 2027 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 1.020-1.080 for the period, compared to the consensus 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.

Analyst Ratings Changes

Several brokerages have commented on SMTC. Robert W. Baird raised their price target on shares of Semtech from $110.00 to $225.00 and gave the company an “outperform” rating in a research note on Wednesday, May 27th. Craig Hallum boosted their price objective on Semtech from $105.00 to $205.00 and gave the stock a “buy” rating in a research report on Wednesday, May 27th. Oppenheimer set a $200.00 price objective on Semtech in a report on Wednesday, May 27th. UBS Group raised their target price on Semtech from $165.00 to $225.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. Finally, BMO Capital Markets started coverage on Semtech in a research note on Thursday. They set an “outperform” rating and a $155.00 target price on the stock. Fourteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Semtech has a consensus rating of “Moderate Buy” and a consensus target price of $189.47.

Semtech Price Performance

Semtech stock traded up $6.61 during trading hours on Tuesday, hitting $127.52. 7,553,502 shares of the company traded hands, compared to its average volume of 2,684,369. Semtech has a 1-year low of $53.62 and a 1-year high of $177.35. The firm has a market cap of $11.88 billion, a P/E ratio of -326.97 and a beta of 2.35. The firm’s 50-day simple moving average is $136.80 and its two-hundred day simple moving average is $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 issued its quarterly earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, topping analysts’ consensus estimates of $0.61 by $0.10. Semtech had a negative net margin of 3.05% and a positive return on equity of 18.31%. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. As a group, analysts forecast that Semtech will post 1.81 earnings per share for the current fiscal year.

Insider Activity

In other Semtech news, CEO Hong Q. Hou sold 2,000 shares of the company’s stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $133.00, for a total value of $266,000.00. Following the completion of the sale, the chief executive officer directly owned 64,799 shares in the company, valued at $8,618,267. This represents a 2.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark Lin sold 970 shares of the stock in a transaction 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 transaction, the chief financial officer directly owned 34,896 shares of the company’s stock, valued at approximately $5,248,707.36. The trade was a 2.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 21,734 shares of company stock valued at $3,133,986 over the last 90 days. Corporate insiders own 0.44% of the company’s stock.

Key Semtech News

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.

Hedge Funds Weigh In On Semtech

Hedge funds have recently made changes to their positions in the business. Ameriprise Financial Inc. lifted its stake in Semtech by 10.3% during the second quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company’s stock valued at $321,040,000 after purchasing an additional 666,456 shares during the last quarter. State Street Corp boosted its holdings in Semtech by 1.5% during the second quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company’s stock worth $182,235,000 after buying an additional 60,788 shares in the last quarter. Whale Rock Capital Management LLC grew its position in Semtech by 11.3% in the fourth quarter. Whale Rock Capital Management LLC now owns 3,901,469 shares of the semiconductor company’s stock worth $287,499,000 after buying an additional 396,504 shares during the last quarter. Alliancebernstein L.P. grew its position in Semtech by 9.8% in the second quarter. Alliancebernstein L.P. now owns 3,318,384 shares of the semiconductor company’s stock worth $149,792,000 after buying an additional 294,990 shares during the last quarter. Finally, Disciplined Growth Investors Inc. MN increased its holdings in shares of Semtech by 4.2% in the second quarter. Disciplined Growth Investors Inc. MN now owns 2,894,536 shares of the semiconductor company’s stock valued at $130,659,000 after buying an additional 115,921 shares in the last quarter.

Semtech Company Profile

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.