Semtech raises third-quarter outlook and sets $3.2 billion fiscal 2030 sales target at data center investor day

Semtech lifted its forecast for the current quarter on Thursday and laid out a long-range plan that leans heavily on data center demand.

Semtech now expects fiscal third-quarter 2027 net sales of $417.5 million, plus or minus $2.5 million, up from a prior outlook of $410 million, plus or minus $5 million, according to an 8-K filed after its Data Center Analyst Day. It raised its adjusted earnings-per-share outlook to $1.14, plus or minus 2 cents, from $1.05, plus or minus 3 cents.

The company also nudged up its margin targets for the quarter. It now sees an adjusted operating margin of 33.0%, plus or minus 10 basis points, versus 31.0% before, and an adjusted gross margin of 59.0%, up from 58.3%.

Looking further out, Semtech set a fiscal 2030 financial framework of $3.2 billion in net sales, including $2.1 billion from data center products. That implies a 75% compound annual growth rate in data center sales from fiscal 2026, and 38% for consolidated sales, which the company measured excluding $166 million of fiscal 2026 Cellular Module revenue.

For fiscal 2030, Semtech is targeting a 70% adjusted gross margin, a 48% to 50% adjusted operating margin, free cash flow of 35% of net sales and adjusted EPS of $12.40 to $13.00. The company said the framework consists of "targets and goals, not guidance or forecasts."

By the numbers

• Q3 FY27 net sales outlook: $417.5 million plus or minus $2.5 million (was $410 million plus or minus $5 million)
• Q3 FY27 adjusted EPS outlook: $1.14 plus or minus $0.02 (was $1.05 plus or minus $0.03)
• FY30 net sales target: $3.2 billion, $2.1 billion from data center
• FY30 adjusted EPS target: $12.40 to $13.00
• FY30 adjusted operating margin target: 48% to 50%

Sources

1. Semtech Corporation, Form 8-K (Item 7.01), filed Oct. 15, 2026, accession 0000088941-26-000041

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