Lattice Semiconductor’s first quarter results stood out for robust growth across both core and emerging end markets, driven by rising demand in AI servers, data center networking, and industrial automation. Management cited momentum in compute and communications, with CEO Ford Tamer noting, “Our first quarter performance exceeded expectations, and our second quarter outlook reflects our expected continued momentum across the business.” The company’s improved operating leverage was supported by higher attach rates for its low-power FPGAs, while inventory levels were brought down substantially, supporting healthier channel dynamics.
Is now the time to buy LSCC? Find out in our full research report (it’s free for active Edge members).
Lattice Semiconductor (LSCC) Q1 CY2026 Highlights:
- Revenue: $170.9 million vs analyst estimates of $164.9 million (42.2% year-on-year growth, 3.6% beat)
- Adjusted EPS: $0.41 vs analyst estimates of $0.37 (10.9% beat)
- Adjusted EBITDA: $67.75 million vs analyst estimates of $59.16 million (39.6% margin, 14.5% beat)
- Revenue Guidance for Q2 CY2026 is $185 million at the midpoint, above analyst estimates of $170.2 million
- Adjusted EPS guidance for Q2 CY2026 is $0.44 at the midpoint, above analyst estimates of $0.38
- Operating Margin: 15.3%, up from 5.8% in the same quarter last year
- Inventory Days Outstanding: 151, down from 177 in the previous quarter
- Market Capitalization: $17.43 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Lattice Semiconductor’s Q1 Earnings Call
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Ruben Roy (Stifel): Asked how much of the expanded addressable market from the AMI acquisition is incremental versus overlapping, and about expected revenue mix from servers and AI. CEO Ford Tamer explained the market could double to $12 billion, with server and AI contributions rising to 38% and 25% of revenue, respectively.
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Christopher Rolland (Susquehanna International Group): Inquired about cross synergies between Lattice’s FPGAs and AMI’s software, and requested growth rate details for AMI. Tamer described the acquisition as highly complementary, with AMI expected to grow in the high teens and to accelerate Lattice’s overall growth.
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Melissa Weathers (Deutsche Bank): Sought an update on FPGA attach rates per server in data centers, and implications for content growth. Tamer noted attach rates are rising and that new rack-level architectures in data centers create additional FPGA opportunities.
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Tristan Gerra (Robert W. Baird): Asked about potential for higher gross margins given supply constraints and whether the Avant FPGA platform could have data center applications. CFO Lorenzo A. Flores said gross margins could remain around 69.5%-70%, and that Avant is primarily focused on industrial embedded markets for now.
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Quinn Bolton (Needham & Company): Probed whether there is any competitive overlap between Lattice and AMI, and asked about end-market growth rates. Tamer confirmed the businesses are fully complementary, while Flores projected sustained growth, especially in compute and communications.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will monitor (1) the closing and subsequent integration of the AMI acquisition, (2) continued demand trends and attach rates for FPGAs in AI server and industrial markets, and (3) the company’s ability to sustain high operating leverage and manage supply chain constraints. Progress on expanding system-level solutions and customer wins in new applications will also be critical signposts.
Lattice Semiconductor currently trades at $125.90, in line with $125.57 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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