Lattice Q3 Revenue Jumps 118% to Record $291 Million

Lattice Semiconductor Corporation (Nasdaq: LSCC) reported record third-quarter 2026 revenue of $291.0 million, up 118% from a year earlier, as FPGA sales benefited from data-center AI demand and continued momentum in Industrial & Embedded applications. The company projected fourth-quarter revenue of $325 million to $345 million, putting the midpoint at $335 million.

Non-GAAP earnings per share reached $0.72 in the quarter, an increase of approximately 160% year over year. Non-GAAP operating profit rose 209% to $119.6 million, while adjusted EBITDA margin was 45.0%. Non-GAAP gross margin was 70.9%, compared with 71.7% in the second quarter.

FPGA revenue increased approximately 90% year over year. Compute & Communications generated record revenue, rising 132% from the prior-year period and 36% sequentially. Industrial & Embedded revenue grew 35% year over year and 7% from the second quarter.

Management said strong bookings, backlog and design wins supported its fourth-quarter outlook and its confidence in growth into 2027 and beyond. The company also reported record new-product revenue growth during the third quarter.

AMI Expands Data-Center Portfolio

Lattice completed its acquisition of AMI on July 27. The company said the transaction expands its opportunity in security, control and management solutions and could increase its content per platform. Early commercial activity has focused on security retrofit, rack boot, plug-and-play, and power and cooling applications.

During the quarter, Lattice introduced four solutions covering those areas, along with its Prompt AI FPGA design tool and the Mach-N2 secure control FPGA family. It also launched Lattice Sentry solution stack version 5.0 with AMI Tektagon, AMI Rack Manager 1.0 for rack-scale AI infrastructure and AMI Data Center Manager 6.2.

Other announced initiatives included collaboration with Arm on AI data-center solutions for AGI CPU server platforms, firmware support for sixth-generation AMD EPYC processors, and production-ready support for the SK Hynix RAS Library in AMI MegaRAC OneTree. Lattice also introduced a new SCMP Open Compute Project workstream alongside several technology and infrastructure companies.

Fourth-Quarter Outlook

For the fourth quarter of 2026, Lattice expects revenue between $325 million and $345 million. The company forecast a non-GAAP gross margin of 72%, plus or minus one percentage point, and non-GAAP operating expenses of $95 million to $101 million.

The projected non-GAAP tax rate is 4% to 6%, while non-GAAP EPS is expected to range from $0.82 to $0.86. The outlook is forward-looking and reflects management’s current assumptions.

Lattice identified several factors that could cause results to differ from its expectations. These include semiconductor industry cyclicality, changes in customer and distributor purchasing patterns, competition, export controls and tariffs, and dependence on third-party manufacturing providers. The company also cited concentration of demand in AI and data-center infrastructure, including the possibility that anticipated demand may not be sustained.

AMI-related risks include integration challenges, retention of key employees and the possibility that expected synergies and financial benefits may not be realized. Lattice also highlighted risks tied to debt service and variable interest rates, cybersecurity and firmware vulnerabilities, product and segment mix, manufacturing capacity, technological change, intellectual property and litigation.