Lattice Semiconductor’s second quarter results were marked by substantial growth in both revenue and profitability, but the market reacted negatively despite the company exceeding Wall Street expectations. Management attributed the strong quarter to robust demand across the Compute and Communications segment, particularly in AI data center applications, as well as ongoing recovery in the Industrial and Embedded end market. CEO Fouad Tamer noted, “Demand for Lattice solutions continue to be fueled by increasing CapEx, increasing AI content per server, expanding FPGA attach rates, rising security requirements and the shift towards more complex disaggregated architectures.”
Is now the time to buy LSCC? Find out in our full research report (it’s free for active Edge members).
Lattice Semiconductor (LSCC) Q2 CY2026 Highlights:
- Revenue: $201.1 million vs analyst estimates of $185.2 million (62.2% year-on-year growth, 8.6% beat)
- Adjusted EPS: $0.53 vs analyst estimates of $0.44 (19.2% beat)
- Adjusted EBITDA: $86.37 million vs analyst estimates of $71.21 million (43% margin, 21.3% beat)
- Revenue Guidance for Q3 CY2026 is $255 million at the midpoint, above analyst estimates of $193.4 million
- Adjusted EPS guidance for Q3 CY2026 is $0.56 at the midpoint, above analyst estimates of $0.47
- Operating Margin: 11.1%, up from 3.8% in the same quarter last year
- Inventory Days Outstanding: 153, up from 151 in the previous quarter
- Market Capitalization: $18.23 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is 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 Q2 Earnings Call
- Quinn Bolton (Needham & Co.) asked about trends in FPGA attach rates and content per server. CEO Fouad Tamer explained both attach rates and average selling prices are increasing, fueled by new AI and security-related applications.
- Christopher Rolland (Susquehanna International Group) questioned the impact of AMI’s hardware business on margins. CFO Lorenzo Flores clarified that the hardware component is being divested and will not affect long-term margin structure, with normalization expected by Q4.
- Melissa Weathers (Deutsche Bank) pressed on supply-side constraints and the potential for these to limit growth. Tamer acknowledged industry-wide assembly bottlenecks but stated capacity agreements should resolve these by year-end.
- Kevin Garrigan (Jefferies) asked about rising supply chain costs and the ability to pass them on. Tamer responded that Lattice will absorb some increases but expects to pass a portion to customers.
- Srinivas Pajjuri (RBC Capital Markets) sought clarity on new product contribution and market share gains. Tamer confirmed that new products will exceed 25% of revenue this year and that Lattice’s growth outpaces industry peers due to both product innovation and share gains.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be watching (1) the pace and profitability of AMI integration and the anticipated exit from non-core hardware business, (2) visibility and execution on capacity agreements to resolve assembly bottlenecks, and (3) continued expansion of new product adoption and design wins in AI and embedded markets. Monitoring supply chain cost management and the realization of joint Lattice-AMI solutions will also be crucial.
Lattice Semiconductor currently trades at $131.15, down from $138 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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