Key Highlights

  • Shares rose 9.49% pre-market to $104.50 from a $95.44 close.
  • Record Q3 Revenue of $291 million rose 118% against a $255.9 million estimate.
  • Q4 revenue guidance of $325 million to $345 million sits above a $293 million consensus.

Lattice Semiconductor (NASDAQ:LSCC) shares rose 9.49% in pre-market trading on Tuesday to $104.50, from a Monday close of $95.44. The report arrived after a chip selloff that left the stock down 9.7% on Friday.

Record Revenue Driven by FPGAs and AMI

Revenue was a record $291 million, up 45% sequentially and 118% year over year, against an estimate of $255.9 million. Non-GAAP EPS was $0.72, above $0.56 expected. FPGA revenue was $252 million, up 90%, and the AMI Acquisition contributed $39 million for two months.

Non-GAAP gross Margin was 70.9%, Operating Margin was 41.1% and free Cash Flow was $77.6 million. Compute and communications revenue grew 132% and industrial and embedded grew 35%.

Q4 Outlook Far Above Consensus

Fourth quarter revenue guidance is $325 million to $345 million, against a consensus near $293 million, with non-GAAP gross margin of 72%, plus or minus 1%, and non-GAAP EPS of $0.82 to $0.86. Full-year 2026 revenue is expected near $1 billion.

For 2027, management expects revenue growth of at least 60%, with FPGA revenue well above $1 billion, and described its approach as deliberately conservative.

Supply, Leverage and Valuation After a Chip Selloff

Supply is secured under multi-year agreements, and management sees no signs of double ordering. Net leverage is expected to be under 2x EBITDA by the end of 2026 after a $50 million Debt paydown in the quarter.

At $104.50, the shares sit about 33% below the 52-week high of $157.01 and about 73% above the 52-week low of $60.50. Market Capitalization is about $13.56 billion, with a forward price-to-earnings ratio of 30.14.

AMI Integration and 2027 Targets to Follow

AMI is roughly a $200 million annual Business with margins expected to reach the high 70s next year. Investors will follow integration progress, AI server Demand and delivery against the 2027 growth target.