Semtech

Semtech reported Q2 FY2027. EPS came in at $0.71 against a $0.61 consensus, beat by 15.6%. Revenue was $341.9M versus $328.7M expected, beat by 4.0%. Gross margin was 53.8%, up 190 bps from last quarter.

Semtech reported a strong Q1 FY2027, beating both revenue and EPS estimates, driven by outperformance in data centers and LoRa. The company's guidance for Q2 FY2027 indicates continued momentum, with a focus on expanding capacity and accelerating growth in key segments.

Semtech's Q4 FY2026 earnings report shows a steady, albeit modest, beat on both revenue and EPS, driven by strong performance in the data center segment. The company's outlook for Q1 FY2027 is positive, with revenue guidance indicating continued growth.

Semtech did not deliver a revenue surprise large enough to reset models by itself, with Q3 FY2026 revenue only +0.2% above Street, but the print argues for a higher-quality earnings stream than the headline implies. The market may be underpricing the combination of record data-center revenue, LoRa growth, semiconductor gross margin resilience, and a refinancing that cut adjusted net interest expense by 86% year-over-year.

The market had revenue acceleration priced in and did not get it, but the actionable surprise is that Semtech converted a $257.6 million revenue base into $0.41 EPS while deleveraging faster than the top line grew. The variant view is that this print should be underwritten less as a failed revenue beat and more as proof that the equity story has shifted from survival deleveraging to operating leverage, with the next debate centered on whether data center and consumer TVS can offset LoRa lumpiness.