Lattice Posts Record Revenue of $291.035 Million, Beating Third-Quarter Estimates
Key Facts
Lattice Semiconductor reported record results on November 2 for the fiscal third quarter ended October 3, 2026, with revenue of $291.035 million, up 118.3% year over year and 44.7% from the previous quarter. Non-GAAP earnings per share were $0.72, above analysts’ estimate of $0.55, while revenue also topped the consensus estimate of $255.2 million. The company said the quarter included a contribution from AMI after completing its acquisition on July 27, 2026. The year-over-year comparison therefore includes a contribution absent from the comparison periods, alongside growth in the company’s existing businesses. Shares closed at $95.44 in the November 2 session, then rose 2.8% in extended trading, according to Investing.com coverage.
Growth in FPGA chips was a key performance driver; the chief executive said revenue rose about 90% year over year, driven by accelerating AI-related demand in data centers. Revenue from the company’s new products grew more than 70% annually, and Lattice said it was on track for those products to account for 25% of FPGA revenue in 2026. The chief executive also cited continued momentum in industrial and embedded applications. These indicators offer a picture of demand for new products and data-center activity, while the acquisition’s impact remains part of the reported total revenue growth. The company did not break out how much of the reported revenue growth came from the acquisition versus existing businesses.
By business segment, computing and communications revenue rose 132% year over year to $171.9 million in the third quarter. Industrial and embedded applications revenue increased 35% to $80.0 million. The figures show growth in both businesses over the same period, with a faster annual pace in computing and communications. The strength in both segments is consistent with the company’s comments on data-center demand and continued industrial and embedded momentum. Segment figures remain part of the total revenue the company reported for the quarter, including AMI’s contribution since the acquisition was completed.
Record revenue growth came alongside a decline in GAAP gross margin to 67.4%, down 50 basis points from the third quarter of 2025 and 290 basis points from the second quarter of 2026. By contrast, non-GAAP gross margin was 70.9%, up 140 basis points year over year. GAAP net income was $11.206 million, and diluted earnings per share were $0.08, compared with net income of $19.359 million and diluted earnings per share of $0.14 in the previous quarter. The company reported operating cash flow of $95.0 million and non-GAAP free cash flow of $77.6 million. Adjusted EBITDA was also $131 million, with an adjusted margin of 45.0%, up 940 basis points year over year.
Lattice expects fourth-quarter 2026 revenue of between $325 million and $345 million, non-GAAP gross margin of 72%, plus or minus one percentage point, and earnings per share of between $0.82 and $0.86. Chief Executive Ford Tamer said bookings, backlog and design wins support an expected quarterly revenue figure of about $335 million. The company added that it expects fourth-quarter revenue to grow about 130% year over year, with growth in industrial and embedded applications accelerating to 70%. Further out, the company said it sees a path to revenue growth of at least 60% in 2027, based on an expected revenue base of about $1 billion in 2026. Management linked that path to bookings, backlog and design wins, and said they strengthened its confidence in growth in 2027 and beyond.