LATTICE SEMICONDUCTOR REPORTS RECORD 3Q26 REVENUE, UP 118% YOY Record FPGA Revenue, Up Approximately 90% YOY, Led by Compute and Communications Demand
LATTICE SEMICONDUCTOR CORP (LSCC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 NEWS RELEASE CONTACTS MEDIA: INVESTORS: Sophia Hong Rick Muscha Lattice Semiconductor Corporation Lattice Semiconductor Corporation 503-268-8786 408-826-6000 Sophia.Hong@latticesemi.com Rick.Muscha@latticesemi.com LATTICE SEMICONDUCTOR REPORTS RECORD 3Q26 REVENUE, UP
How this was made
The 30-second read
Why it matters
The earnings beat and guidance raise expectations for continued revenue acceleration, especially in AI data‑center and industrial segments.
Market read
The strong quarterly performance and forward guidance could trigger buying interest in LSCC and related low‑power semiconductor stocks.
What to watch
Integration risk of the recent AMI acquisition and potential supply‑chain constraints.
LATTICE SEMICONDUCTOR REPORTS RECORD 3Q26 REVENUE, UP 118% YOY
Record revenue increased 118.3% year over year and 44.7% sequentially, while non-GAAP operating income increased 208.7% year over year. Fourth-quarter revenue guidance of $325 million to $345 million points to further growth, supported by bookings, backlog and design wins.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $291.0M | 44.7% | 118.3% |
| Gross marginGAAP | 67.4% | (290) bps | (50) bps |
| Gross marginnon-GAAP | 70.9% | (80) bps | 140 bps |
| R&D expense percentageGAAP | 27.6% | (430) bps | (960) bps |
| R&D expense percentagenon-GAAP | 19.0% | (230) bps | (520) bps |
| SG&A expense percentageGAAP | 20.6% | (440) bps | (1040) bps |
| SG&A expense percentagenon-GAAP | 10.7% | (140) bps | (550) bps |
| Operating expensesGAAP | $172.2M | 44.7% | 87.0% |
| Operating expensesnon-GAAP | $86.66M | 29.1% | 60.8% |
| Income from operationsGAAP | $23.97M | 7.2% | NM |
| Income from operationsnon-GAAP | $119.6M | 55.1% | 208.7% |
| Net incomeGAAP | $11.21M | (42.1)% | 301.1% |
| Net incomenon-GAAP | $103.7M | 39.3% | 171.7% |
| Net income marginGAAP | 3.9% | (570) bps | 180 bps |
| Net income per share - basicGAAP | $0.08 | $(0.06) | $0.06 |
| Net income per share - dilutedGAAP | $0.08 | $(0.06) | $0.06 |
| Net income per share - basicnon-GAAP | $0.74 | $0.20 | $0.46 |
| Net income per share - dilutednon-GAAP | $0.72 | $0.19 | $0.44 |
| Adjusted EBITDAnon-GAAP | $131.0M | – | – |
| Adjusted EBITDA marginnon-GAAP | 45.0% | 200 bps | 940 bps |
| Net cash provided by operating activitiesGAAP | $95.04M | – | – |
| Operating cash flow marginGAAP | 32.7% | (1120) bps | (260) bps |
| Free cash flownon-GAAP | $77.62M | – | – |
| Free cash flow marginnon-GAAP | 26.7% | (1370) bps | 120 bps |
| Nine months revenueGAAP | $663.0M | – | – |
| Nine months net incomeGAAP | $52.38M | – | – |
| Nine months net cash provided by operating activitiesGAAP | $233.6M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Compute and CommunicationsCompute and Communications revenue was supported by accelerating data center AI demand. | $171.9 | – | – |
| Industrial and EmbeddedIndustrial and Embedded accelerated recovery supported new product revenue growth. | $80.0 | – | – |
| AMIAMI revenue reflects revenue recognized following the acquisition date and is presented as a separate end market beginning in the third quarter of 2026. | $39.1 | – | – |
| FPGA revenueFPGA revenue was led by Compute and Communications demand and continued momentum across Industrial & Embedded applications. | null | – | approximately 90% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth quarter of 2026 outlook
- Revenuebetween $325 million and $345 million
- Gross margin72.0% plus or minus 1% on a non-GAAP basis
- Operating expensesbetween $95 million and $101 million on a non-GAAP basis
- Tax ratebetween 4% and 6% on a non-GAAP basis
- NoteNet income is expected to be between $0.82 and $0.86 per share on a non-GAAP basis.
- NoteExpects approximately 130% YOY Revenue Growth in 4Q26, with Industrial and Embedded Revenue Growth Accelerating to 70% YOY.
Capital returns
- Repurchase of common stock: $(15,000) for the nine months ended October 3, 2026.
- Repurchase of common stock: $(85,855) for the nine months ended September 27, 2025.
What drove it
- Lattice completed the acquisition of AMI on July 27, 2026, and third-quarter results include AMI results from the acquisition date while prior periods do not.
- Revenue from new products grew more than 70% year over year and is tracking to reach 25% of FPGA revenue in 2026.
- The company cited strong bookings, backlog and design wins as support for its fourth-quarter revenue outlook.
- Lattice cited accelerating data center AI demand, continued Industrial & Embedded momentum, and early commercial momentum in security retrofit, rack boot, plug and play, and power and cooling.
- A/R Days Revenue Outstanding was 51, compared with 54 in Q2 2026 and 65 in Q3 2025.
- Inventory Days was 116, compared with 153 in Q2 2026 and 193 in Q3 2025.
Concerns
- GAAP gross margin was 67.4%, down (290) bps sequentially and (50) bps year over year.
- GAAP net income was $11,206, down (42.1)% sequentially, while GAAP net income margin was 3.9%, down (570) bps sequentially.
- Operating cash flow margin was 32.7%, down (1120) bps sequentially and (260) bps year over year; free cash flow margin was 26.7%, down (1370) bps sequentially.
- The acquisition added long-term debt of $869,080 as of October 3, 2026.
- The company stated that actual results may vary with revenue, pricing, product, license and service mix, including the relative contribution of FPGA and AMI segments, wafer, assembly and test costs, manufacturing yields, and supply availability.
What to watch
- Fourth-quarter revenue execution against guidance of between $325 million and $345 million.
- Fourth-quarter non-GAAP gross margin against guidance of 72.0% plus or minus 1%.
- Fourth-quarter non-GAAP operating expenses against guidance of between $95 million and $101 million.
- Fourth-quarter non-GAAP net income per share against guidance of between $0.82 and $0.86 per share.
- Industrial and Embedded revenue growth expected to accelerate to 70% YOY in 4Q26.
- AMI integration, commercial momentum and the expected benefits, synergies, cost savings, and accretive impact on non-GAAP gross margin, adjusted EBITDA, free cash flow, and EPS.
- Progress in reducing debt and expanding free cash flow.
Balance sheet and cash flow
- Cash and cash equivalents: $128,277 as of October 3, 2026; $133,886 as of January 3, 2026.
- Long-term debt: $869,080 as of October 3, 2026; — as of January 3, 2026.
- Total assets: $2,609,565 as of October 3, 2026; $883,120 as of January 3, 2026.
- Goodwill: $1,369,498 as of October 3, 2026; $315,358 as of January 3, 2026.
- Intangible assets, net: $559,718 as of October 3, 2026; $4,143 as of January 3, 2026.
- Cash paid for business acquisition, net of cash acquired: $(971,346) for the nine months ended October 3, 2026.
- Proceeds from long-term debt, net of issuance costs: $912,731 for the nine months ended October 3, 2026.
- Repayment of long-term debt: $(50,000) for the nine months ended October 3, 2026.
- Capital expenditures: $(34,967) for the nine months ended October 3, 2026; $(28,920) for the nine months ended September 27, 2025.
- Ending cash and cash equivalents: $128,277 for the nine months ended October 3, 2026; $117,910 for the nine months ended September 27, 2025.
Analysis
Lattice reported record third-quarter revenue of $291,035, up 118.3% year over year and 44.7% sequentially. The reported period includes AMI results from the July 27, 2026 acquisition date, whereas prior periods do not. Compute and Communications generated $171.9, Industrial and Embedded generated $80.0, and AMI generated $39.1. Management said FPGA revenue grew approximately 90% year over year, driven by accelerating data center AI demand and continued Industrial & Embedded momentum.
The earnings profile showed substantial non-GAAP operating leverage. Non-GAAP income from operations reached $119,576, up 208.7% year over year and 55.1% sequentially, and non-GAAP diluted EPS was $0.72 compared with $0.28 in the prior-year quarter. Adjusted EBITDA was $131,048 and adjusted EBITDA margin was 45.0%, up 940 bps year over year. GAAP profitability was materially lower, with net income of $11,206 and a 3.9% net income margin, reflecting acquisition-related charges, amortization of acquired intangible assets, stock-based compensation and other reconciling items.
Margins were mixed sequentially. GAAP gross margin declined to 67.4% from 70.3%, while non-GAAP gross margin declined to 70.9% from 71.7%. At the same time, non-GAAP R&D expense percentage and SG&A expense percentage declined year over year to 19.0% and 10.7%, respectively. Non-GAAP gross margin improved 140 bps year over year, and non-GAAP operating expenses grew 60.8%, slower than revenue growth.
Cash generation remained positive but moderated from the prior quarter. GAAP net cash provided by operating activities was $95,037 and free cash flow was $77,623, while operating cash flow margin and free cash flow margin declined sequentially. The AMI transaction reshaped the balance sheet: cash and cash equivalents were $128,277, long-term debt was $869,080, goodwill was $1,369,498, and intangible assets, net were $559,718 as of October 3, 2026. For the nine months ended October 3, 2026, the company paid $(971,346) for the business acquisition, received $912,731 in long-term debt proceeds, repaid $(50,000) of long-term debt, and repurchased $(15,000) of common stock.
Fourth-quarter guidance calls for revenue between $325 million and $345 million, non-GAAP gross margin of 72.0% plus or minus 1%, non-GAAP operating expenses between $95 million and $101 million, and non-GAAP net income between $0.82 and $0.86 per share. Management cited strong bookings, backlog and design wins, and expects approximately 130% year-over-year revenue growth, including Industrial and Embedded revenue growth accelerating to 70% year over year. Execution on AMI integration, margin expansion, free-cash-flow expansion and debt reduction remains central to the outlook.
Management, verbatim
We delivered record third quarter revenue of $291 million and non-GAAP EPS of $0.72, up 118% and approximately 160% year-over-year, respectively. FPGA revenue grew approximately 90%, fueled by accelerating data center AI demand and continued momentum across Industrial & Embedded applications. Strong bookings, backlog and design wins support our fourth-quarter revenue outlook of approximately $335 million and reinforce our confidence in growth into 2027 and beyond.
Ford Tamer, Chief Executive Officer
Lattice’s operating leverage was evident in the third quarter as we translated accelerating demand into faster year-over-year earnings growth. We continue to execute against our growth strategy by investing to strengthen our leadership in small and mid-range FPGAs, expanding our combined Lattice and AMI solutions portfolio, and advancing our companion chip opportunity. Our focus remains on driving profitable growth, expanding free cash flow, reducing debt, and delivering long-term shareholder value.
Lorenzo Flores, Chief Financial Officer
Not in the filing
stated, not guessed- Previous-quarter outlook was not provided; therefore, no comparison of actual results with prior guidance is available.
- GAAP free cash flow was not reported.
- Non-GAAP operating cash flow was not reported.
- Quarterly capital-return figures for the third quarter of 2026 were not reported.
- A quarterly dividend was not reported.
- Current debt and total debt were not separately reported.
- Quarterly segment operating income or segment margin was not reported.
- Year-over-year and sequential percentage changes for Compute and Communications, Industrial and Embedded, and AMI revenue were not reported on their respective revenue rows.
- A numerical FPGA revenue amount was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8‑K Item 2.02 presenting Lattice Semiconductor's third‑quarter 2026 results and forward outlook.
Ticker impact
Lattice Semiconductor reported record Q3 2026 revenue of $291M, up 118% YoY, and issued guidance for Q4 revenue of approximately $335M.
potential upside as investors price in accelerated growth and issued Q4 revenue outlook
Record revenue growth, expanding margins, and a clear revenue outlook signal sustainable momentum, likely prompting buying pressure.
Market effects
Highlights strength in low‑power FPGA market and may boost related semiconductor peers.
Positive for US tech stocks and could lift Nasdaq indices.
Shows demand for AI‑related hardware, supporting broader AI‑chip rally.
Counterpoint
If the growth proves unsustainable, the stock could face a pull‑back after the initial rally.
Key entities
- companyLattice Semiconductor Corporation
US‑listed FPGA and programmable logic provider (NASDAQ: LSCC).
- companyAMI
Security and control firmware business acquired by Lattice in July 2026.
