Lattice Revenue Surges 118% to a Record $291M and Q4 Guide Points to $325M-$345M on AI and AMI

Lattice Semiconductor (LSCC) reported record third-quarter 2026 revenue of $291 million, up 118% from a year earlier and 45% from the second quarter. Adjusted earnings rose 157% to $0.72 per share. Growth came from AI data center demand, a recovery in industrial sales and the first results from AMI, which Lattice acquired on July 27. The company guided fourth-quarter revenue to $325 million to $345 million.

Above the company's own guide

In August, Lattice guided Q3 revenue to $245 million to $265 million, including about two months of AMI, and adjusted EPS to $0.54 to $0.58. By our calculation, actual revenue was about 10% above the top of that range and adjusted EPS about 24% above the top of its range.

Q3 results

GAAP gross margin was 67.4%, down 50 basis points from a year ago, while adjusted gross margin was 70.9%, up 140 basis points. Adjusted operating margin expanded to 41.1% from 29%. By our calculation, the gap between GAAP net income of $11.2 million and adjusted net income of $103.7 million, about $92 million, reflects acquisition-related and share-based costs, which is why the two measures look so different.

What drove growth

• FPGA. Revenue rose about 90% year over year, supported by AI infrastructure demand and a recovery in Industrial and Embedded markets.
• AMI. Q3 includes AMI results following the July 27 close of the roughly $1.65 billion acquisition, paid with about $1 billion in cash and $650 million in stock. AMI makes rack-scale management platforms.
• New products. New product revenue rose 70% and is tracking toward 25% of FPGA revenue in 2026.
• Industrial and Embedded. Growth is projected to accelerate to about 70% year over year in Q4.

Management cited strong bookings, backlog and design wins as support for growth into 2027. Lattice also expanded collaborations with Arm, AMD and Microsoft, introduced Lattice Prompt for AI-assisted FPGA design, which it says delivers more than 10 times productivity gains on common tasks, and launched post-quantum security solutions.

Fourth-quarter guidance

By our calculation, the $335 million revenue midpoint is about 15% above Q3 and implies about $146 million of Q4 2025 revenue at 130% growth. The adjusted EPS midpoint of $0.84 is about 17% above Q3's $0.72.

What to watch

• AMI integration. Q4 is the first full quarter with AMI, whose 2026 revenue was expected to exceed $200 million.
• Margins. Whether adjusted gross margin reaches the 71% to 73% guide as the mix shifts.
• AI demand. Bookings and design wins that support the 2027 outlook.
• Debt and dilution. The cash and stock used for the AMI purchase, and their effect on GAAP profit.
• Optical and AI supply chain. See our reports on Fabrinet, Marvell and Lumentum and Palantir.

Sources: Lattice's investor relations site and its third-quarter 2026 results release, with prior guidance and acquisition details from its second-quarter release. Items labeled by our calculation are our own arithmetic. This article is informational only and is not investment advice.