The quarter cleared both the company’s prior bar and published consensus. Adjusted EPS was $0.71 versus roughly $0.62 expected, while revenue reached $341.9 million versus approximately $335.2 million consensus. That is a meaningful earnings beat, not just a headline revenue outperformance.
| Metric | Q2'27 actual | Q1'27 | Q2'26 | Expectation / comparison |
|---|---|---|---|---|
| Net sales | $341.9M (Financial Results) | $291.0M | $257.6M | ~$335.2M consensus |
| Adjusted diluted EPS | $0.71 (Non-GAAP Financial Results) | $0.51 | $0.41 | ~$0.62 consensus |
| Adjusted operating margin | 24.4% (Non-GAAP Financial Results) | 20.4% | 18.8% | — |
| Adjusted EBITDA | $91.1M (Non-GAAP Financial Results) | $66.4M | $56.5M | — |
| Free cash flow | $61.4M (Cash Flow statement) | $28.0M | $41.5M | — |
| Q3 revenue outlook | $410.0M ± $5.0M (Third Quarter Outlook) | — | — | 19.9% sequential increase |
| Q3 adjusted diluted EPS outlook | $1.05 ± $0.03 (Third Quarter Outlook) | — | — | 47.9% above Q2 actual |
The operating improvement was broad and tangible. Revenue rose 17.5% sequentially and 32.7% year over year, while adjusted operating margin expanded to 24.4% from 20.4% in Q1 and 18.8% a year earlier. Semiconductor Products revenue increased to $243.5 million from $202.8 million in Q1, with Signal Integrity and Analog Mixed Signal and Wireless both contributing to the increase (Segment results). Free cash flow also more than doubled sequentially to $61.4 million (Cash Flow statement).
The GAAP profit headline overstates the underlying earnings improvement. GAAP diluted EPS was $1.59, but a $101.4 million tax benefit drove much of the gap between GAAP and adjusted results (Income Statement). The cleaner read is the $0.71 adjusted EPS result, supported by higher gross profit, operating leverage and lower interest expense rather than by the tax item.
Management is signaling that the beat may be the start of a stronger ramp, not a one-quarter spike. Q3 guidance calls for $410 million of revenue, $1.05 adjusted EPS and a 31.0% adjusted operating margin, implying another sizable sequential step-up from Q2 (Third Quarter Outlook). The filing says, "Accelerating bookings and record backlog point to a strong inflection in growth with new revenue drivers and visibility expected to extend well into next fiscal year." 〔0〕
Net read: a clear beat with an unusually constructive forward setup. The AI and data-center growth direction was already part of the standing narrative, so the surprise is mainly the magnitude: Q2 exceeded estimates and the Q3 guide implies accelerating revenue, margin and EPS momentum. The portfolio optimization and held-for-sale business add some comparability noise, but they do not outweigh the stronger-than-expected operating trajectory.
Read the original 8-K on SEC EDGAR ↗