Lattice reports record quarter as FPGA revenue climbs about 90 per cent
Third-quarter revenue reached 291.0 million US dollars, up 118 per cent year on year, with data centre AI demand driving the Compute and Communications segment. The total includes two months of the AMI acquisition.
Lattice Semiconductor reported third-quarter 2026 revenue of 291.0 million US dollars on 2 November, up 118 per cent on the same quarter a year earlier and about 45 per cent on the previous quarter. The headline number includes 39.1 million dollars from AMI, the firmware and management-controller company Lattice acquired on 27 July 2026, which contributed 13 per cent of revenue. Excluding that, FPGA revenue was about 252 million dollars, up roughly 90 per cent year on year according to the earnings call.
By end market, Compute and Communications brought in 171.9 million dollars, up 132 per cent, which chief executive Ford Tamer attributed to rapid adoption in data centre AI systems. Industrial and Embedded grew 35 per cent to 80.0 million dollars. Non-GAAP gross margin was 70.9 per cent, GAAP net income was 11.2 million dollars and non-GAAP diluted earnings were 0.72 dollars per share. The company paid down 50 million dollars of debt during the quarter and ended it with 869.1 million dollars of long-term borrowing.
On the call, management said it expects the Nexus and Avant families to become a much larger share of revenue in 2028, reported customer sampling of the new Mach-N2 secure control FPGA, and said that Lattice Prompt, an AI-assisted development tool, launched during the quarter. Guidance for the fourth quarter is revenue of 325 to 345 million dollars, which would be roughly 130 per cent growth year on year. Management said the backlog now stretches into 2028.
Why it matters
Lattice has long been the small, low-power FPGA company. A quarter in which Compute and Communications is more than half of revenue shows where the growth is now: control, management and security functions on AI servers, where a small FPGA sits next to every accelerator. For engineers that means more vendor attention on Nexus and Avant, and possibly tighter supply on popular parts given a backlog into 2028. Note that the 118 per cent figure flatters the comparison because last year’s quarter had no AMI revenue. The organic FPGA growth of about 90 per cent is the number to remember.