LSCC · Lattice Semiconductor Corporation

Lattice Semiconductor delivered strong Q1 2026 results with $170.9 million in revenue — a 42% year-over-year increase and 17% sequential growth — fueled by record performance in Compute & Communications, particularly AI-related server demand, alongside >20% quarter-over-quarter growth in Industrial and Embedded. Gross margin expanded 80 bps YoY to 68.8% GAAP (70.0% non-GAAP), while operating leverage drove GAAP net income to $21.8 million ($0.16 diluted EPS) and non-GAAP net income to $57.0 million ($0.41 diluted EPS), representing 334% and 85% YoY growth respectively. Management attributed this to disciplined cost management, scaling R&D and SG&A as a percentage of revenue, and robust design win momentum across its FPGA portfolio. The company also announced a transformative acquisition of AMI, a leader in platform firmware and infrastructure manageability for cloud and AI, for $1.65 billion — $1.0 billion in cash and ~$650 million in stock — positioning Lattice to deliver an end-to-end secure management and control platform. The deal is expected to close in Q3 2026, be immediately accretive to gross margin, free cash flow, and non-GAAP EPS, and accelerate Lattice’s path to a $1 billion+ annual revenue run rate by Q4 2026. To finance the cash portion, Lattice secured $950 million in committed senior secured term loan financing and $200 million in revolving credit. With strong backlog, multi-year expansion visibility, and strategic M&A execution, Lattice signaled confidence in sustained above-market growth through 2026 and beyond.