Semtech Corp. Returns to Profitability in Q2, Provides Upbeat Q3 Outlook

Semtech Corp. announced a return to profitability for the second quarter of fiscal year 2027, which concluded on July 26, 2026, marking a significant turnaround from the prior-year period. On an adjusted basis, the company reported improved earnings driven by strong performance across its AI data centre networking and IoT device divisions.

Financial results for the quarter showed adjusted net income rising to $69.5 million, or $0.71 per share, from $36.7 million, or $0.41 per share, in the year-ago period. The company also reported a net profit of $160.1 million, or $1.59 per share, compared to a loss of $27.1 million, or $0.31 per share, previously.

A $101.4 million income tax benefit, up from $4.8 million in the prior year, further strengthened the bottom line. Adjusted EBITDA increased to $91.1 million from $56.5 million, while net sales grew to $341.9 million from $257.6 million.

Providing guidance for the third quarter of fiscal year 2027, Semtech expects adjusted earnings per share of $1.05 ± $0.03, compared to $0.48 in the same period last year. Adjusted EBITDA is projected at $134.3 million ± $4 million, up from $62.7 million reported in the year-ago quarter.

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