Semtech Q2 sales, adjusted EPS beat estimates on strong bookings

Semtech

25/08/2026 21:15

Overview
US semiconductor maker's fiscal Q2 net sales rose 33% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q2 beat analyst expectations
Company cites margin expansion and strong execution as drivers of results

Outlook
Semtech expects Q3 net sales of $410.0 mln +/- $5.0 mln
Company sees Q3 adjusted diluted EPS of $1.05 +/- $0.03
Semtech projects Q3 adjusted gross margin of 58.3% +/- 100 bps

Result Drivers
RECORD SALES - Co attributed record net sales to strong execution across key focus areas
MARGIN EXPANSION - Co cited expanding gross and operating margins as a driver of earnings growth
ACCELERATING BOOKINGS - Management said accelerating bookings and record backlog point to sustained growth

Company press release: ID:nBw8TrKtja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$341.90 mln
$328.64 mln (13 Analysts)
Q2 Adjusted EPS
Beat
$0.71
$0.61 (14 Analysts)
Q2 EPS
 
$1.59
 
Q2 Adjusted Gross Margin
 
54.50%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Semtech Corporation is $202.25, about 67.3% above its August 24 closing price of $120.91
The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 44 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)