Premarket price
$133.00
August 26, 2026, 06:30 EDT
Semtech shares gain 4.3% before market open as $410 million revenue forecast beats expectations by 14%
Semtech Corporation gained 4.3% ahead of the market open after projecting a stronger uptick in growth. Shares were priced at $133.00 at 06:30 EDT, compared to Tuesday's closing figure of $127.52.
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Company · Stock move · Earnings
Semtech's guide resets the growth curve
A record quarter matters. The larger signal is a $410 million revenue guide that sits 14% above consensus, supported by 91% data-center growth and expanding margins.
NASDAQ: SMTCUpdated August 26, 2026, 06:32 EDTPremarket move
+4.30%
+$5.48 vs August 25 close
Two-session move
+10.00%
$120.91 to $133.00; August 24–26
Implied equity value
$12.39B
Calculated at $133.00; 06:30 EDT
Price reaction
$134$127$120$120.91$127.52$133.00 Aug. 24 closeAug. 25 closeAug. 26, 06:30 EDTThe premarket rise added about $510 million after a $616 million regular-session gain. August 25 regular volume was at least 6.67 million shares, about twice the three-month average.
Q2 FY2027 scorecard
| Metric | Reported | Comparison |
|---|---|---|
| Revenue | $341.9M | +33% YoY; 4.0% beat |
| Adjusted EPS | $0.71 | +73% YoY; 16.4% beat |
| Adjusted gross margin | 54.5% | +130 bps QoQ |
| Adjusted operating margin | 24.4% | +560 bps YoY |
| Free cash flow | $61.4M | +48% YoY |
Quarter ended July 26, 2026; reported August 25.
Revenue engines
| Engine | YoY growth |
|---|---|
| Data center | +91% |
| Infrastructure | +69% |
| LoRa-enabled | +58% |
| IoT Systems and Connectivity | +11% |
Q2 FY2027 revenue; categories overlap and should not be summed.
Margin bridge
| Measure | Q2 FY2026 | Q1 FY2027 | Q2 FY2027 | Q3 guide |
|---|---|---|---|---|
| Adjusted gross margin | 53.2% | 53.0% | 54.5% | 58.3% ±100 bps |
| Adjusted operating margin | 18.8% | 20.4% | 24.4% | ≈31.0% midpoint calculation |
| Adjusted gross margin excluding held-for-sale unit | — | — | — | 63.9% ±100 bps |
The held-for-sale cellular-module business generated $48.1 million of Q2 revenue and $10.9 million of adjusted gross profit. Its implied 22.7% margin diluted the consolidated profile.
Company results and calculations published August 25, 2026.
Analyst expectations
ConsensusStrong Buy
Strong Buy / Buy / Hold12 / 1 / 2
Average target$202.92
Target range$155–$230
Upside from $13352.6%
15 analyst ratings available August 26, 2026; upside calculated at 06:30 EDT.
What changes the thesis
Upside triggerBacklog converts near $410M
Upside triggerData-center growth stays above 70%
Downside triggerBookings slip before shipment
Downside triggerGross margin misses 57.3%
Execution riskDivestiture or supply delays
Scenario markers, not company forecasts.
Why the stock is up
Semtech beat the completed quarter, but the forward numbers moved the valuation. The $410 million revenue midpoint stands 14% above consensus. The $1.05 adjusted-EPS midpoint is 44% higher. Data-center revenue growth and the planned removal of a low-margin unit make the margin expansion measurable.
Risk lens
Premarket liquidity remains thin. The forecast depends on bookings becoming shipments on schedule. Hyperscaler demand, customer concentration and limited supplier capacity can move timing between quarters. A high-growth valuation also leaves less room for execution errors.
Semtech Shares Gain 3.3% After Q2 Revenue Forecast Beats Projections by $50 Million
CAMARILLO, California, August 25, 2026, 17:00 EDT — Semtech stock climbed 3.3% after the chipmaker projected $410 million in sales for the current period, surpassing analyst estimates by $50 million.
Semtech Corporation · NASDAQ:SMTC
Guidance resets the growth curve
Market and company data through August 25, 2026, 17:00 EDT
Fiscal Q2 FY2027
After-hours price
$131.70
+3.28% after close
Full-session move
+8.92%
versus Monday close
Q2 revenue
$341.9M
+33% year over year
Q3 guide
$410M
$50.1M above Street
Revenue and operating leverage
Quarterly revenue, $ millions; adjusted operating margin shown on the line.
Equity-value response
+$1.01B
Estimated increase from Monday’s close, using 93.15 million shares.
| Regular close | $127.52 |
| After-hours | $131.70 |
| AH range | $120.65–$134.00 |
| Quoted equity value | ≈$12.27B |
Q2 scorecard
| Metric | Actual | Signal |
|---|---|---|
| Revenue | $341.9M | +33% YoY |
| Adjusted EPS | $0.71 | $0.10 beat |
| Adjusted gross margin | 54.5% | +70 bps QoQ |
| Free cash flow | $61.4M | +119% QoQ |
| Regular volume | 8.58M | 2.52× average |
Q3 guide versus consensus
| Metric | Guide midpoint | Street / change |
|---|---|---|
| Revenue | $410M | 13.9% above Street |
| Adjusted EPS | $1.05 | $0.32 above Street |
| Adjusted operating income | $127M | +51.9% QoQ |
| Adjusted operating margin | 31.0% | +660 bps QoQ |
| Adjusted EBITDA | $134.3M | 32.8% margin |
What changes the thesis
Demand visibilityAccelerating bookings and record backlog support growth into the next fiscal year.
Portfolio focusThe $62 million cellular-module sale shifts attention toward data-center connectivity and LoRa.
Margin mixQ3 adjusted gross margin excluding the held-for-sale business is guided to 63.9%.
Execution testThe company must deliver almost 20% sequential revenue growth while lifting operating margin 660 basis points.
Balance sheet
| Cash | $204.1M |
| Total debt | $492.8M |
| Net debt | ≈$288.7M |
| Q2 free cash flow | $61.4M |
Company figures as of July 26, 2026, reported August 25.
Analyst expectations before results
| Firm / set | View | Target |
|---|---|---|
| 15-analyst consensus | Strong Buy | $201.38 avg. |
| BMO Capital | Outperform | $155 |
| Susquehanna | Positive | $200 |
| Benchmark | Buy | $230 |
Valuation and risk
≈7.5×
Quoted equity value divided by annualized Q3 revenue guidance.
Watch: after-hours reversals, customer concentration, uneven AI orders, product-transition timing and delivery against the sharp margin ramp.
Sources: Semtech fiscal Q2 FY2027 release; Public market data; FactSet estimates reported by Investor’s Business Daily; StockAnalysis analyst compilation. Derived figures may differ from vendor calculations because of rounding.
Semtech stock jumps 9% today as SMTC hits fresh high — what’s moving the shares now
Shares of Semtech Corp jumped 9.4% to $87.21 by midday Monday, reaching an intraday high of $88.59, marking a fresh 52-week peak. The stock kicked off the session at $78.74 and saw volume slightly above its 30-day average.
Semtech (SMTC) stock holds near highs after insider sale filing — what to watch this week
Semtech Corp shares ended Friday up 0.5% at $80.52, closing in on the stock’s 52-week high of $83.80. Throughout the day, the price fluctuated between $78.61 and $81.76. In after-hours trading, the stock rose 1.3% to $81.57, with roughly 1.4 million shares changing hands. A recent regulatory filing revealed director Paul V. Walsh Jr sold 500 shares at $78.25 on Jan. 21 under a Rule 10b5-1 plan set up July 9, 2025, and he still holds 25,279 shares.
Global IoT Market 2025 Forecast: Inside the $1 Trillion Tech Revolution
The Internet of Things market is surging toward record growth in 2025, on track to approach the $1 trillion milestone in annual global spending rcrwireless.com gsmaintelligence.com. IoT’s expansion is being fueled by explosive device adoption – forecasts range from 27 billion to 75+ billion connected devices by 2025 iot-analytics.com researchgate.net – and broad-based investments across industries. Manufacturing, healthcare, and smart cities are leading adoption, while emerging verticals like automotive, agriculture, and consumer smart homes are rapidly gaining ground. Analysts project robust double-digit growth through the decade, with IoT spending set to double from ~$1 trillion in 2024 to $2 trillion by 2030 gsmaintelligence.com. Key drivers include the rollout of 5G connectivity, cheaper sensors, cloud and edge computing, and the integration of AI and analytics into IoT solutions. However, security challenges, data fragmentation, and skills gaps remain hurdles. This report provides a comprehensive 2025 market overview with segmentation by industry, regional insights, investment highlights, and expert commentary on the IoT outlook through 2030.
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