Lattice Semiconductor beats estimates on strong FPGA demand

Investing.com -- Lattice Semiconductor Corporation (NASDAQ: LSCC) reported third quarter results that exceeded analyst expectations, driven by strong demand for its FPGA products in data center and communications applications.

The company posted adjusted earnings per share of $0.72, beating the analyst estimate of $0.55 by $0.17. Revenue reached $291.0 million, surpassing the consensus estimate of $255.2 million and representing 118% growth YoY from $133.3 million in the third quarter of 2025. The results included contributions from the company's acquisition of AMI, which closed on July 27, 2026.

Shares rose 2.8% in after-hours trading Monday.

FPGA revenue grew approximately 90% YoY, fueled by data center AI demand and momentum across industrial and embedded applications. "We delivered record third quarter revenue of $291 million and adjusted EPS of $0.72, up 118% and approximately 160% YoY, respectively," said Ford Tamer, Chief Executive Officer. "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."

For the fourth quarter of 2026, Lattice expects revenue between $325 million and $345 million, with a midpoint of $335 million representing approximately 130% growth YoY. The company projects adjusted EPS between $0.82 and $0.86, with adjusted gross margin of 72.0% plus or minus 1%.

Third quarter adjusted gross margin was 70.9%, up 140 basis points YoY. Adjusted EBITDA reached $131.0 million, representing a 45.0% margin. Operating cash flow was $95.0 million, or 32.7% of revenue, with free cash flow of $77.6 million.

Lorenzo Flores, Chief Financial Officer, said the company's operating leverage was evident as it translated accelerating demand into faster YoY earnings growth, while focusing on driving profitable growth, expanding free cash flow and reducing debt.

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