Semtech Corporation Q2 2027 Earnings Recap

Semtech shares jumped 16.5% following earnings as the company delivered substantial revenue growth and operating leverage driven by strong demand in its data center segment and progress in its photonics portfolio.

Key Takeaways

• Quarterly revenue reached $342 million, up 33% year-over-year, led by data center growth.
• Data center revenue hit a record $100 million, increasing 91% year-over-year and 39% sequentially, fueled by ramping 800-gig, 1.6T CopperEdge, and initial 1.6T FiberEdge deployment.
• Infrastructure net sales rose 69% year-over-year to $124 million, reflecting broad strength across copper, fiber, and photonics solutions.
• Operating leverage drove EPS of $0.71, a 73% increase year-over-year, more than doubling revenue growth.
• The company executed on photonics expansion with acquisitions, fab equipment procurement, and talent onboarding, positioning for notable contribution from high-power CW lasers in fiscal 2028.