Semtech Raises Q3 FY27 Guidance and Unveils Aggressive FY30 Targets

Event Overview

On October 15, 2026, Semtech Corporation furnished an Item 7.01 Form 8-K in connection with its Data Center Analyst Day and live webcast. The company provided an upward revision to its Q3 FY27 outlook and introduced an ambitious long-term financial framework for FY30 driven primarily by surging Data Center demand.

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Updated Q3 FY27 Outlook

Metric	Previous Q3'27 Outlook	Updated Q3'27 Outlook
Net Sales	$410.0M ± $5.0M	$417.5M ± $2.5M
Adjusted Gross Margin	58.3% ± 100 bps	59.0% ± 40 bps
Adjusted Operating Margin	31.0% ± 60 bps	33.0% ± 10 bps
Adjusted Diluted EPS	$1.05 ± $0.03	$1.14 ± $0.02

Adjusted gross margin excluding the business held for sale was also increased to 64.0% (±40 bps) from 63.9% (±100 bps).

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FY30 Long-Term Financial Framework

Semtech outlined substantial growth targets through FY30, underpinned by data center and artificial intelligence infrastructure demand:

• Consolidated Net Sales: $3.2 billion (~38% FY26–FY30 CAGR, baseline excluding $166M cellular module revenue)
• Data Center Revenue: $2.1 billion (~75% CAGR)
• LoRa Net Sales: ~30% CAGR
• Non-GAAP Gross Margin: ~70%
• Non-GAAP Operating Margin: 48% to 50%
• Free Cash Flow: 35% of net sales
• Non-GAAP Diluted EPS: $12.40 to $13.00 (~64% to 66% CAGR)
• Projected Diluted Share Count: 104 million shares

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Market & Trading Implications

• Near-Term Catalyst: Raising Q3 FY27 top- and bottom-line guidance signals strong execution and robust immediate demand in current product lines.
• Long-Term Narrative: Positioning the business toward $2.1B in data center revenue at 48%–50% operating margins reflects confidence in secular AI and high-speed data interconnect trends.
• Significance: High, due to direct upward adjustments to current quarter consensus figures combined with high-conviction multi-year growth targets.