Semtech Reports Q2 Earnings Exceeding Expectations, Year-over-Year Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 26 2025
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Source: NASDAQ.COM
Strong Financial Performance: Semtech Corporation reported better-than-expected second-quarter fiscal 2026 results, with non-GAAP earnings of 41 cents per share, exceeding estimates and showing significant growth from the previous year.
Revenue Growth: The company's revenues reached $257.6 million, beating estimates by 0.6% and reflecting a 20% year-over-year increase, driven by strong demand in data centers and various end markets.
Future Outlook: For the third quarter, Semtech anticipates net sales of approximately $266 million, with expected growth in infrastructure and industrial markets, while maintaining a non-GAAP gross margin of around 53%.
Market Position: Despite a year-to-date decline of 17.5% in share price, Semtech holds a Zacks Rank #3 (Hold), while other companies like Amphenol, F5, and Analog Devices are rated higher, indicating potential investment alternatives.
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Analyst Views on SMTC
Wall Street analysts forecast SMTC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SMTC is 82.87 USD with a low forecast of 67.00 USD and a high forecast of 95.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
15 Buy
1 Hold
0 Sell
Strong Buy
Current: 81.570
Low
67.00
Averages
82.87
High
95.00
Current: 81.570
Low
67.00
Averages
82.87
High
95.00
About SMTC
Semtech Corporation is a provider of high-performance semiconductor, Internet of Things (IoT) systems and cloud connectivity service solutions. The Company’s segments include Signal Integrity, Analog Mixed Signal and Wireless, and IoT Systems and Connectivity. The Signal Integrity segment designs, develops, manufactures and markets a portfolio of optical and copper data communications and video transport products used in a wide variety of infrastructure and industrial applications. The Analog Mixed Signal and Wireless segment designs, develops, manufactures and markets high-performance protection devices, which are often referred to as transient voltage suppressors (TVS) and specialized sensing products. The IoT Systems and Connectivity segment designs, develops, operates and markets a comprehensive product portfolio of IoT solutions that enable businesses to connect and manage their devices, collect and analyze data, and improve decision-making.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investigation into Semtech Corporation's Governance Breaches
- Shareholder Rights Investigation: Halper Sadeh LLC is investigating whether certain officers of Semtech Corporation breached their fiduciary duties, which could impact corporate governance and shareholder rights.
- Legal Relief Options: Long-term Semtech shareholders may seek governance reforms, fund recovery, or court-approved financial awards, aimed at enhancing transparency and accountability within the company.
- Importance of Participation: Shareholder involvement can improve company policies and oversight mechanisms, thereby increasing shareholder value and ensuring more effective management and operations.
- Legal Fee Arrangement: Halper Sadeh LLC will handle the case on a contingent fee basis, meaning shareholders will not incur out-of-pocket legal expenses, thus reducing the financial burden of participation in the rights enforcement process.
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Johnson Fistel Investigates Potential Legal Claims for Semtech Shareholders
- Legal Investigation Launched: Johnson Fistel, PLLP is investigating potential legal claims against Semtech Corporation's officers and directors for actions that may have harmed the company and its investors, aiming to protect shareholders who have held Semtech shares since before October 10, 2024.
- Shareholder Class Action: A previous class action complaint against Semtech alleges that the company made materially false and misleading statements throughout the class period, failing to disclose significant adverse facts about its business, operations, and prospects, potentially leading to investor losses.
- Product Issues Revealed: The lawsuit highlights that Semtech's CopperEdge products did not meet the needs of server rack customers, resulting in lower-than-expected sales for fiscal 2026, which could negatively impact the company's overall performance and investor confidence.
- Investor Rights Protection: Johnson Fistel encourages affected Semtech shareholders to contact them to learn about their legal rights, indicating the law firm's commitment to supporting and protecting investors' interests and ensuring their rights are upheld.
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