Semtech

Q2 FY2027 EarningsQ2 FY27 results demonstrated a top-line beat with revenue of $341.9M vs. $328.7M expected, fueled by a 64% YoY surge in the Signal Integrity segment due to AI data center demand. While GAAP gross margin slightly missed the consensus mean (53.8% vs. 54.0pct), GAAP diluted EPS of $1.59 significantly exceeded the $0.35 consensus, primarily due to a one-time $112.4M tax valuation allowance release. The strategic divestiture of the lower-margin cellular module business for $62.0M further signals a pivot toward high-growth semiconductor applications.