fiscal second quarter 2026
Filed Aug 4, 2026LATTICE SEMICONDUCTOR REPORTS RECORD 2Q26 REVENUE, UP 62% YOY
Record revenue grew 62.2% year over year, non-GAAP diluted EPS grew from $0.24 to $0.53, and third-quarter FPGA revenue guidance calls for $210 million to $230 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $201,079 | 17.7% | 62.2% |
| Gross MarginGAAP | 70.3% | 150 bps | 190 bps |
| R&D Expense %GAAP | 31.9% | 220 bps | (320) bps |
| SG&A Expense %GAAP | 25.0% | 150 bps | (310) bps |
| Operating ExpensesGAAP | $118,979 | 29.9% | 48.6% |
| Income from OperationsGAAP | $22,353 | (14.3)% | 375.0% |
| Net Income (loss)GAAP | $19,359 | (11.3)% | 564.6% |
| Net Income (loss) per Share - BasicGAAP | $0.14 | $(0.02) | $0.12 |
| Net Income (loss) per Share - DilutedGAAP | $0.14 | $(0.02) | $0.12 |
| Net Income (loss) MarginGAAP | 9.6% | (320) bps | 730 bps |
| Operating Cash FlowGAAP | $88.3 million | – | – |
| Operating Cash Flow MarginGAAP | 43.9% | 1450 bps | 1280 bps |
| Gross Marginnon-GAAP | 71.7% | 170 bps | 240 bps |
| R&D Expense %non-GAAP | 21.3% | (50) bps | (380) bps |
| SG&A Expense %non-GAAP | 12.1% | (180) bps | (470) bps |
| Operating Expensesnon-GAAP | $67,110 | 10.3% | 29.5% |
| Income from Operationsnon-GAAP | $77,102 | 31.3% | 126.2% |
| Net Incomenon-GAAP | $74,410 | 30.6% | 128.3% |
| Net Income per Share - Basicnon-GAAP | $0.54 | $0.12 | $0.30 |
| Net Income per Share - Dilutednon-GAAP | $0.53 | $0.12 | $0.29 |
| Adjusted EBITDAnon-GAAP | $86.4 million | – | – |
| Adjusted EBITDA Marginnon-GAAP | 43.0% | 340 bps | 890 bps |
| Free Cash Flownon-GAAP | $81.3 million | – | – |
| Free Cash Flow Marginnon-GAAP | 40.4% | 1720 bps | 1520 bps |
Third Quarter of 2026 outlook
- RevenueLattice revenue for the third quarter of 2026, including an approximate two-month contribution from AMI, is expected to be between $245 million and $265 million.
- Gross margin69.5% plus or minus 1% on a non-GAAP basis
- Operating expensesbetween $83 million and $90 million on a non-GAAP basis
- Tax ratebetween 4% and 6% on a non-GAAP basis
- NoteFPGA revenue for the third quarter of 2026 is expected to be between $210 million and $230 million.
- NoteNet income for the third quarter of 2026 is expected to be between $0.54 and $0.58 per share on a non-GAAP basis.
- Noteincluding an approximate two-month contribution from AMI
What drove it
- Revenue from new products grew more than 60% year over year and is tracking to exceed 25% of total revenue in 2026, led by AI-related server demand.
- The company cited strong customer demand, accelerating backlog and sustained design win momentum.
- Lattice secured record design wins led by Tier 1 customers across datacenter, communications, industrial, automotive, defense and robotics applications.
- Companion chip momentum included announced partnerships with ASPEED BMC at Computex and Texas Instruments Radar Sensor demonstrated at NVIDIA GTC.
- AMI is expected to contribute an approximate two months of revenue in the third quarter of 2026.
Concerns
- GAAP income from operations was $22,353, down (14.3)% quarter over quarter, while GAAP operating expenses increased 29.9% quarter over quarter.
- GAAP net income was $19,359, down (11.3)% quarter over quarter, and GAAP net income margin was 9.6%, down (320) bps quarter over quarter.
- Third-quarter non-GAAP gross margin guidance of 69.5% plus or minus 1% is below the reported second-quarter non-GAAP gross margin of 71.7%.
- Third-quarter outlook includes an approximate two-month contribution from AMI following the July 27, 2026 acquisition close.
What to watch
- Execution against third-quarter FPGA revenue guidance of $210 million to $230 million.
- The contribution from AMI embedded in third-quarter Lattice revenue guidance of $245 million to $265 million.
- Non-GAAP gross margin performance versus third-quarter guidance of 69.5% plus or minus 1%.
- Non-GAAP operating expenses expected to be between $83 million and $90 million.
- AMI revenue for calendar 2026 is expected to be more than $200 million, with non-GAAP gross margin expected to exceed 75% by the end of 2026 and adjusted EBITDA margins of approximately 40%.
Balance sheet and cash flow
- GAAP net cash flow from operating activities was $88.3 million.
- Non-GAAP free cash flow was $81.3 million.
- On July 27, 2026, Lattice announced the completion of its $1.65 billion acquisition of AMI, comprising approximately $1 billion in cash and $650 million in Lattice common stock.
- The acquisition consideration was adjusted based on the trading price of Lattice’s common stock prior to the completion of the acquisition resulting in the issuance of approximately 5.2 million shares.
Analysis
Lattice reported record second-quarter revenue of $201,079, up 62.2% year over year and 17.7% quarter over quarter. The release attributed momentum to strong customer demand, accelerating backlog, sustained design wins and growth across end markets. New-product revenue grew more than 60% year over year, led by AI-related server demand, and management said it is tracking to exceed 25% of total revenue in 2026.
Profitability expanded substantially from the prior-year period. GAAP gross margin reached 70.3%, up 190 bps year over year, while non-GAAP gross margin reached 71.7%, up 240 bps. Non-GAAP income from operations was $77,102, up 126.2% year over year, and non-GAAP diluted EPS was $0.53, compared with $0.24. Adjusted EBITDA margin was 43.0%, up 890 bps year over year, and free cash flow margin was 40.4%, up 1520 bps.
Sequentially, the picture is more mixed on GAAP earnings. Revenue increased 17.7% quarter over quarter, but GAAP operating expenses increased 29.9%, GAAP income from operations declined (14.3)%, and GAAP net income declined (11.3)%. GAAP net income margin fell to 9.6% from 12.8%. In contrast, non-GAAP operating expenses rose 10.3%, below revenue growth, supporting a 31.3% increase in non-GAAP income from operations and a 30.6% increase in non-GAAP net income.
Cash generation was strong in the reported quarter, with GAAP net cash flow from operating activities of $88.3 million and non-GAAP free cash flow of $81.3 million. Lattice closed its $1.65 billion acquisition of AMI on July 27, 2026, funded with approximately $1 billion in cash and $650 million in Lattice common stock, with approximately 5.2 million shares issued. The company expects the transaction to be accretive to gross margin, EBITDA, free cash flow and EPS on a non-GAAP basis.
Third-quarter guidance calls for FPGA revenue of $210 million to $230 million and total Lattice revenue of $245 million to $265 million, including an approximate two-month AMI contribution. The company guided non-GAAP gross margin to 69.5% plus or minus 1%, non-GAAP operating expenses to $83 million to $90 million, non-GAAP tax rate to 4% to 6%, and non-GAAP net income to $0.54 to $0.58 per share. The guide places execution on FPGA growth, AMI integration and the expected gross-margin profile at the center of the next-quarter assessment.
Management, verbatim
We delivered an exceptional second quarter, achieving record revenue of $201 million and non-GAAP EPS of $0.53, up 62% and more than 120% year-over-year, respectively. Both metrics exceeded the high end of our guidance. The combination of strong customer demand, accelerating backlog and sustained design win momentum gives us increased confidence in continued market share gains and profitable growth. This is reflected in our third-quarter outlook of $220 million at the midpoint or 65% year-over-year revenue growth in our FPGA business, and $255 million at the midpoint with two months of AMI revenue included. This gets us to a $1 billion revenue run rate, ahead of expectations. With the acquisition close now behind us, we are pleased to welcome the talented AMI team to Lattice, and look forward to building the most complete secure management and control platform to benefit our customers.
Ford Tamer, Chief Executive Officer
Our second quarter results demonstrate the operating leverage and earnings power of the Lattice business model, as accelerating revenue growth translated into even stronger profitability and cash flow. We continue to invest strategically to advance our leadership in small- and mid-range FPGAs and broaden the reach of our highly differentiated companion chip strategy. We are seeing growth across our end markets, expanding our customer reach, and believe Lattice is well positioned to drive sustained growth, continued margin strength, and generate increasing free cash flow, and shareholder value.
Lorenzo Flores, Chief Financial Officer
The addition of AMI’s capabilities expands the solutions we can provide for compute and communications, and broadens our relationships with hyperscalers, OEMs, ODMs and neocloud providers, while doubling our addressable market. AMI will continue to operate on an open, silicon-agnostic basis, preserving the neutrality and customer choice that are central to its value.
Ford Tamer, Chief Executive Officer
Not in the filing
stated, not guessed- Current-quarter revenue by operating segment or end market
- Prior-year and prior-quarter operating cash flow dollars
- Prior-year and prior-quarter free cash flow dollars
- Prior-year and prior-quarter adjusted EBITDA dollars
- Cash balance
- Debt balance
- Share repurchases
- Dividends
- Previous-period outlook for comparison
- GAAP guidance reconciliation for third-quarter non-GAAP gross margin, operating expenses, tax rate, net income and EPS
AlphaAI 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.