Lattice Revenue Hits Record $291.035 Million, Up 118.3% Year Over Year
Key Facts
Lattice Semiconductor said on November 2 that revenue for its fiscal third quarter, which ended October 3, 2026, was $291.035 million, up 118.3% year over year and 44.7% from the second quarter. The company said FPGA revenue grew about 90% year over year, driven by accelerating demand for artificial intelligence in data centers and momentum in industrial and embedded applications. Revenue rose from $133.349 million in the third quarter of the prior year and exceeded analysts’ average estimate of about $256 million. The quarter-on-quarter comparison shows a sharp acceleration in revenue between the second and third quarters. The results included a contribution from AMI, which Lattice acquired during the quarter.
GAAP net income was $11.206 million, compared with $2.794 million a year earlier, an increase of 301.1% year over year. But it fell 42.1% from $19.359 million in the second quarter, making the quarterly earnings picture weaker than revenue growth. Meanwhile, GAAP gross margin was 67.4%, down 0.5 percentage points from a year earlier. Adjusted gross margin was 70.9%, up 1.4 percentage points year over year. The differing margin trends reflect a divergence between annual and quarterly comparisons in profitability metrics.
AMI contributed revenue of $39.1 million in the quarter, after its acquisition closed on July 27, 2026. This means the period’s results combined growth in Lattice’s business with revenue from the acquired company from the date the deal closed. By segment, Computing and Communications revenue was $171.9 million, compared with $74.0 million in the third quarter of the prior year. Industrial and Embedded revenue was $80.0 million, versus $59.3 million a year earlier. The performance of the two segments highlights the breadth of growth across the company’s businesses, alongside the role of AI-related demand cited by management.
The company said revenue from new products rose more than 70% year over year and was on track to account for 25% of FPGA revenue during 2026. It attributed growth in these products to demand for AI servers and an accelerating recovery in industrial and embedded applications. Adjusted earnings before interest, taxes, depreciation and amortization were $131 million, with a 45% margin. Net cash from operating activities was $95 million, and adjusted free cash flow was $77.6 million. These figures, along with growth in new products, show other aspects of the quarter’s performance beyond revenue and net income.
Asia accounted for 76% of third-quarter revenue, compared with 16% for the Americas and 8% for Europe and Africa. This puts Asia at the top of the company’s markets by revenue share for the period. In premarket trading on November 3, Lattice shares rose 11.1% after the results were announced. Investing.com reported that revenue exceeded analysts’ average estimate of about $256 million. The stock had closed at $95.44 in the November 2 session, the last session before the reaction recorded in premarket trading.
Lattice expects fourth-quarter 2026 revenue of $325 million to $345 million and adjusted net income of $0.82 to $0.86 per share. The midpoint of the revenue range is about $335 million, and management said customer bookings, backlog and design wins support the forecast. The company added that the AMI deal expands its opportunities in security, control and management solutions. Management also linked its outlook to confidence in continued growth in 2027 and beyond. The new guidance sets a benchmark for the period after the record quarter, with performance continuing to depend on demand and the design wins cited by the company.