Lattice Posts Record Sales as AMI Joins the Mix

The Tip Desk · November 2, 2026 · 3 min read

Third-quarter revenue was $291.0 million, up 118% from a year earlier, and the company expects about 130% year-over-year growth in the fourth quarter.

Lattice Semiconductor Corporation (LSCC), the low power programmable and platform firmware leader, reported record third-quarter revenue of $291.0 million for the fiscal quarter ended October 3, 2026, up 118.3% from a year earlier. Year-over-year growth accelerated from 62% in the second quarter and 42% two quarters earlier.

The sequential increase of 44.7% from $201.1 million in the second quarter already included two months of AMI after the July 27, 2026 close. AMI became a separate end market at $39.1 million, or 13% of revenue. Prior quarters showed no AMI revenue.

Non-GAAP diluted earnings were $0.72 a share, up about 160% from a year earlier, after more than 120% year-over-year EPS growth in the second quarter and 86% in the first. GAAP diluted EPS was $0.08, down from $0.14 in the second quarter, as GAAP net income fell 42.1% to $11.2 million from $19.4 million and GAAP net income margin compressed to 3.9% from 9.6%.

GAAP gross margin was 67.4%, including $6.99 million of acquired-intangible amortization that was zero in the prior quarter. Non-GAAP gross margin was 70.9%. Adjusted EBITDA was $131.0 million, a 45.0% margin. Non-GAAP free cash flow was $77.6 million, a 26.7% margin.

Chief Executive Officer Ford Tamer said FPGA revenue grew approximately 90% year over year, fueled by accelerating data center AI demand and continued momentum across Industrial and Embedded applications. Compute and Communications revenue was $171.9 million, or 59% of the mix. Industrial and Embedded revenue was $80.0 million, or 28%. Direct sales rose to 19% of revenue from 5% in the second quarter, with distribution falling to 81% from 95%. Asia was 76% of revenue.

New-product revenue grew more than 70% year over year and is tracking to reach 25% of FPGA revenue in 2026, the company said, led by AI-related server demand and Industrial and Embedded recovery. Acquisition-related charges were $25.9 million in the third quarter versus $4.4 million in the second. Long-term debt stood at $869.1 million at October 3, 2026 versus none at January 3, 2026.

Tamer said strong bookings, backlog and design wins support a fourth-quarter revenue outlook of approximately $335 million. Lattice revenue for the fourth quarter of 2026 is expected to be between $325 million and $345 million. The company expects about 130% year-over-year revenue growth in the fourth quarter, with Industrial and Embedded revenue growth accelerating to 70% year over year.

Fourth-quarter non-GAAP gross margin is expected at 72.0% plus or minus 1%. Non-GAAP operating expenses are expected at $95 million to $101 million. Non-GAAP net income is expected at $0.82 to $0.86 a share.

The company said the addition of AMI expands its opportunity in security, control and management solutions, with early commercial momentum across security retrofit, rack boot, plug and play, and power and cooling. Chief Financial Officer Lorenzo Flores said operating leverage was evident as accelerating demand translated into faster year-over-year earnings growth, and that the focus remains on driving profitable growth, expanding free cash flow, reducing debt, and delivering long-term shareholder value.