Semtech lifts near-term guidance but long-term targets disappoint investors
Shares fell nearly 17% after the company's Data Center Analyst Day paired a higher quarterly outlook with a 2030 framework seen as too conservative
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Semtech raised its outlook for the third quarter of fiscal 2027. The company now guides to net sales of $417.5 million, plus or minus $2.5 million, up from a prior view of $410.0 million, plus or minus $5.0 million. Adjusted diluted earnings per share are now guided to $1.14, plus or minus $0.02, up from $1.05, plus or minus $0.03.
The update came at Semtech's Data Center Analyst Day on October 15, 2026. At the same event, the company laid out a financial framework for fiscal 2030, targeting $3.2 billion in net sales, including $2.1 billion from its data center business, and adjusted diluted earnings per share of $12.40 to $13.00.
Shares fell nearly 17% on the day. The reaction spread to Macom Technology Solutions, which fell more than 10% on its own exposure to the data center market.
The near-term raise was solid, but it was overshadowed by the longer-term numbers. Investors had priced in more than the $3.2 billion in revenue and the $12.40 to $13.00 earnings range Semtech laid out for 2030, and the figures raised concern that the multi-year data center ramp, meant to supply $2.1 billion of that total, is being guided more conservatively than the market had hoped.