GET DAILY SIGNALSLattice Semiconductor (LSCC) Reports Record Q3 Revenue Driven by AI Demand
Key Takeaways
- Lattice Semiconductor (LSCC) posted record fiscal third-quarter 2026 revenue of $291.0 million, up 118% year over year and roughly 45% sequentially.
- Non-GAAP earnings per share (EPS) came in at $0.72, up about 160% year over year and well above the consensus estimate of $0.55.
- FPGA (field-programmable gate array) revenue reached $252 million, up approximately 90% year over year, driven by data center AI demand and an industrial rebound.
- The newly acquired AMI business contributed $39 million in its first two months, above management's expectations.
- Fourth-quarter 2026 guidance calls for revenue of $325 million to $345 million and non-GAAP EPS of $0.82 to $0.86, both above Wall Street estimates.
- For more context, explore Major News, Today's Price Move, Price Targets, and Forecast on dedicated pages for LSCC.
- Interested in automated trading ideas? Check out Tickeron's Trending AI Robots.
Why These Results Matter in Context
Lattice Semiconductor, a leader in low-power programmable chips and platform firmware, has emerged as a direct beneficiary of the data center buildout tied to artificial intelligence. Its fiscal third quarter of 2026, which ended October 3, 2026, marks the first full reporting period to include results from AMI, a firmware and management-software company Lattice acquired on July 27, 2026. That acquisition significantly expands Lattice's reach into secure control and management solutions for AI infrastructure. Coming after several quarters of accelerating growth, this report offered investors a critical read on whether AI-driven demand is sustainable, how quickly the industrial market is recovering, and whether the AMI integration is generating the expected financial leverage. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Reported Numbers
Lattice reported record third-quarter 2026 revenue of $291.0 million, up 118% from $133.3 million a year earlier and roughly 45% sequentially. The result beat consensus estimates of approximately $256 million. FPGA revenue of $252 million grew about 90% year over year, with Compute & Communications up 132% year over year on data center AI strength. Industrial & Embedded revenue rose 35% year over year, signaling a continued recovery from an inventory correction.
Non-GAAP EPS of $0.72 topped the consensus of $0.55 by $0.17 and rose about 160% year over year. Non-GAAP gross margin was 70.9%, up 140 basis points year over year, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $131.0 million, a 45.0% margin. Under U.S. generally accepted accounting principles (GAAP), diluted EPS was $0.08, reflecting acquisition-related costs and amortization. Operating cash flow was $95.0 million and free cash flow was $77.6 million.
For the fourth quarter of 2026, Lattice guided to revenue of $325 million to $345 million and non-GAAP EPS of $0.82 to $0.86, with non-GAAP gross margin of 72.0% plus or minus 1%. The revenue midpoint of $335 million implies roughly 130% year-over-year growth and sits about 14% above consensus.
Market Reaction and Investor Sentiment
Shares of Lattice Semiconductor (LSCC) rose about 2.8% in after-hours trading following the release, reflecting a top-and-bottom-line beat alongside stronger-than-expected fourth-quarter guidance. Investor sentiment around the stock has been shaped by the rapid acceleration in AI-related server demand, the early success of the AMI acquisition, and evidence that the industrial and embedded segment is now shipping to natural demand after working through excess channel inventory. Key risk factors heading into and beyond the print include concentration in a limited number of data center customers, supply-chain constraints that management flagged while balancing customer needs, and integration costs tied to AMI.
Forward Outlook and Factors to Watch
Lattice's guidance suggests momentum should carry into year-end. Management's fourth-quarter outlook implies full-year 2026 revenue of roughly $1 billion, with FPGA revenue expected to surpass $900 million and full-year non-GAAP EPS of about $2.50. Longer term, the company pointed to revenue growth of at least 60% year over year in 2027 and a greater-than-30% compound annual growth rate over the next five years.
Investors will want to watch several items closely. First is the pace of the industrial and embedded recovery, which returned to year-over-year growth this quarter and remains a meaningful earnings driver. Second is new product revenue, which grew more than 70% year over year and is tracking toward 25% of FPGA revenue in 2026.
Third is the AMI integration, including early commercial traction across the four joint Lattice–AMI solutions in security retrofit, rack boot, plug-and-play deployment, and power and cooling management. Finally, balance-sheet and cash-flow progress matters, since Lattice is prioritizing rapid debt reduction after financing the AMI deal. Management expects net leverage below 2x EBITDA by the end of 2026 and plans aggressive debt paydown in 2027. These factors, rather than any single-quarter headline, will shape how the market evaluates Lattice's ability to convert AI-driven demand into durable, profitable growth.
Using AI Tools for Deeper Analysis
I find Tickeron’s AI Screener particularly helpful when evaluating semiconductor names like this one. It lets me quickly filter for stocks showing similar technical patterns, fundamental strength, and AI-related momentum, which saves time compared with manual reviews. In this case, it highlighted how LSCC stands out within its peer group on recent performance metrics. If you want to build a more focused watchlist and spot opportunities like the AI-driven semiconductor momentum behind LSCC, explore the AI Screener to see how it can streamline your research process.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
LSCC in downward trend: 10-day moving average broke below 50-day moving average on October 19, 2026
The 10-day moving average for LSCC crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 15 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on LSCC as a result. In 72 of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 80%.
The Moving Average Convergence Divergence Histogram (MACD) for LSCC turned negative on October 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In 41 of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at 87%.
LSCC moved below its 50-day moving average on October 13, 2026 date and that indicates a change from an upward trend to a downward trend.
The 50-day moving average for LSCC moved below the 200-day moving average on October 30, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LSCC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 78%.
The Aroon Indicator for LSCC entered a downward trend on October 30, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for LSCC's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 51 of 64 cases where LSCC's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 80%.
Following a +5.90% 3-day Advance, the price is estimated to grow further. Considering data from situations where LSCC advanced for three days, in 227 of 297 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
LSCC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 28 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating fairly steady price growth. LSCC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 68 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LSCC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron SMR rating for this company is 83 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 96 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: LSCC's P/B Ratio (16.767) is slightly higher than the industry average of (6.106). LSCC has a moderately high P/E Ratio (357.577) as compared to the industry average of (17.186). Projected Growth (PEG Ratio) (2.390) is also within normal values, averaging (3.803). Dividend Yield (0.000) settles around the average of (0.012) among similar stocks. P/S Ratio (22.779) is also within normal values, averaging (46.468).
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a developer of high-speed programmable logic devices
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