Lattice Semiconductor Expects Revenue Growth of at Least 60% in 2027
Key Facts
Lattice Semiconductor forecast annual revenue growth of at least 60% in 2027, and said revenue could continue growing at a compound annual rate exceeding 30% over the following five years. The Nasdaq-listed company, ticker LSCC, gave the outlook on its earnings call after reporting results for the fiscal third quarter on November 2, 2026. The preliminary 2027 forecast is based on an expected 2026 revenue base of nearly $1 billion, according to the chief financial officer, while the 2027 annual operating plan had not yet been completed. Management tied the guidance to demand indicators and its current business visibility, rather than a finalized annual plan. The forecast places the next phase of growth in the context of strong quarterly results and higher fourth-quarter guidance.
The company posted revenue of $291.035 million for the quarter ended October 3, compared with $133.349 million in the same quarter of 2025 and $201.079 million in the second quarter of 2026. Revenue rose 118.3% year on year and 44.7% sequentially, according to the official results table. Revenue also exceeded analysts’ estimate of $255.2 million, while adjusted earnings per share came to $0.72, versus an estimate of $0.55. The company said revenue from new products grew by more than 70% year on year and that they were on track to account for 25% of FPGA chip revenue in 2026. It attributed the growth to demand linked to AI servers and a faster recovery in the industrial and embedded systems sectors.
Revenue strength extended to margins: adjusted gross margin, as defined by the company, was 70.9% in the third quarter, up 140 basis points year on year, while adjusted EBITDA margin reached 45.0%. But GAAP net income was $11.206 million, down 42.1% from $19.359 million in the previous quarter, despite rising 301.1% from $2.794 million a year earlier. The comparison shows that revenue growth and annual profit growth coincided with a sequential decline in net income. Lattice completed its acquisition of AMI on July 27, 2026. Third-quarter results include AMI’s contribution from the acquisition’s closing date, while the prior periods shown do not, adding the acquired company’s contribution to the current quarter-on-quarter comparison.
Management cited several drivers behind its forecasts, including order visibility extending into 2028, sustained AI-related demand, an industrial-sector recovery and a full year of contribution from AMI. The chief executive said the company had “backlog visibility extending into 2028,” adding that it had secured what it believes is “the right level of supply for several years.” The extended visibility gives management a basis for expecting activity to continue beyond 2026, while the outlook combines demand for AI applications with improving industrial business and the full-year impact of the acquisition. Growth in new products and their expected share of FPGA revenue provide another operating indicator among the factors the company cited. The call did not present a final 2027 annual plan, which remains under preparation.
In its nearer-term guidance, Lattice forecast fourth-quarter 2026 revenue of $325 million to $345 million and adjusted gross margin of 72%, plus or minus one percentage point. The revenue range is above third-quarter revenue of $291.035 million, while the projected margin exceeds the 70.9% recorded in the third quarter on the same adjusted basis. After the results were released on Monday, November 2, the stock rose 2.8% in after-hours trading. LSCC shares had closed at $103 on October 29, then at $92.97 on October 30, before closing at $95.44 on November 2. The company’s next operating milestone is the fourth quarter of 2026, while its 2027 outlook is based on an annual plan that is not yet complete.