Lattice Revenue More Than Doubles to a Record as an Acquisition Joins the Quarter

Lattice Semiconductor reported third-quarter revenue of $291.0 million on Monday, up 118.3 percent from a year earlier.

Lattice makes low-power programmable chips and platform firmware for data centers, communications and industrial equipment. It reported results for the fiscal quarter ended October 3, 2026, after the market close on Monday, November 2.

One label applies to every comparison in this story. Lattice completed its acquisition of AMI, a platform-firmware maker, on July 27, 2026. The quarter includes AMI from that date, and the earlier periods shown do not.

A beat on both lines, by a wide margin

Analysts expected revenue of $256 million, according to S&P estimates reported by StockStory. Lattice reported $291.0 million, up 44.7 percent from the second quarter. The year-earlier quarter, without AMI, had revenue of $133.3 million.

Earnings cleared the same bar. Analysts expected adjusted earnings of $0.55 per share on the same S&P frame. Lattice reported non-GAAP earnings per share (EPS) of $0.72, and GAAP diluted EPS was $0.08.

Non-GAAP is the company's own adjusted basis, which strips out the charges detailed below. GAAP, generally accepted accounting principles, is the standard basis. The distance between the two bases is the second story in this release.

“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,” chief executive Ford Tamer said in the release.

“FPGA revenue grew approximately 90%, fueled by accelerating data center AI demand and continued momentum across Industrial & Embedded applications.” FPGA is short for field-programmable gate array, a chip configured after manufacture.

The acquisition is in the quarter; the growth is not only the acquisition

AMI contributed $39.1 million of revenue, 13 percent of the total, presented as its own end market. Compute and Communications brought in $171.9 million, and Industrial and Embedded brought in $80.0 million. Those two lines are the chip business Lattice had before the deal.

Adding them gives FPGA revenue of about $252 million, an article calculation from the release's end-market table. That is roughly 90 percent above the year-earlier quarter, matching the company's own growth figure. AMI accounts for about a quarter of the $157.7 million year-over-year revenue increase, also an article calculation.

The two profit lines tell different stories

GAAP net income was $11.2 million, a 3.9 percent margin. Non-GAAP net income was $103.7 million. The $92.5 million gap between them, an article calculation, is itemized in the release's reconciliation.

The largest single item is stock-based compensation of $50.7 million. Acquisition-related charges added $25.9 million, and amortization of acquired intangible assets added $12.9 million. A further $6.0 million is incentive compensation the company plans to settle in shares.

The same split runs through operations. GAAP operating income was $24.0 million, on GAAP operating expenses of $172.2 million. Non-GAAP operating income was $119.6 million, on non-GAAP operating expenses of $86.7 million.

Margins split the same way. GAAP gross margin was 67.4 percent, on gross profit of $196.1 million. Non-GAAP gross margin was 70.9 percent, on non-GAAP gross profit of $206.2 million.

Debt from the deal also reached the income statement. Interest was a $9.6 million expense in the quarter, against $600,000 of interest income a year earlier. Long-term debt stood at $869.1 million at quarter end, against none at the start of the year.

Cash generation held up better than GAAP profit

Cash from operations was $95.0 million in the quarter. Free cash flow, a company-defined measure, was $77.6 million, a 26.7 percent margin. Adjusted EBITDA, another company-defined measure, was $131.0 million, a 45.0 percent margin.

Guidance for the fourth quarter clears expectations

For the fourth quarter, Lattice guided revenue to $325 million to $345 million. The $335 million midpoint is about 130 percent above the year-earlier quarter, the company's own comparison. It sits 14.3 percent above the $293.1 million analyst consensus on the S&P frame, an article calculation.

The rest of the guide is on the non-GAAP basis. Gross margin is guided to 72.0 percent, plus or minus one percentage point. Operating expenses are guided to $95 million to $101 million, with a tax rate of 4 percent to 6 percent.

Non-GAAP EPS is guided to $0.82 to $0.86 for the quarter. The $0.84 midpoint compares with a $0.65 analyst consensus on the same S&P frame. Guidance is the company's expectation for a quarter not yet reported, not a result.

Shares rose about 9 percent in after-hours trading on Monday evening, Zacks reported. That is a snapshot from after the close, not a closing price. The regular session had already ended when the results were released.

What remains unknown

What remains unknown starts with the split the release does not give. It does not state how fast AMI was growing before the acquisition, or a combined growth rate as if the deal had closed earlier. Year-over-year comparisons will carry the AMI label until the third quarter of 2027.

The release also does not say how quickly the acquisition charges fade. Amortization of acquired intangibles will recur, and the pace of debt repayment is described as a focus, not a schedule. Whether data-center demand sustains the FPGA growth rate is likewise unstated.

What to watch next

What to watch next is delivery against the fourth-quarter guide. Revenue near the $335 million midpoint would confirm the demand the company describes. The company also expects Industrial and Embedded revenue growth to accelerate to about 70 percent in the quarter.

Watch whether GAAP earnings move closer to the non-GAAP line. A narrowing gap would show the acquisition charges fading over time. Watch also the year-end debt balance against this quarter's $869.1 million.