Lattice Semiconductor (NASDAQ:LSCC) Posts Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Lattice Semiconductor (NASDAQ:LSCC) announced its quarterly earnings data on Tuesday. The semiconductor company reported $0.53 earnings per share for the quarter, beating analysts’ consensus estimates of $0.44 by $0.09, FiscalAI reports. Lattice Semiconductor had a net margin of 5.58% and a return on equity of 11.17%. The firm had revenue of $201.08 million for the quarter, compared to analyst estimates of $185.50 million. During the same period in the previous year, the company earned $0.24 earnings per share. The business’s quarterly revenue was up 62.2% compared to the same quarter last year. Lattice Semiconductor updated its Q3 2026 guidance to 0.540-0.580 EPS.

Here are the key takeaways from Lattice Semiconductor’s conference call:

• Record Q2 performance: Revenue reached $201 million, up 62% year over year, while non-GAAP EPS rose more than 120% to $0.53. Gross margin expanded to 71.7%, supported by favorable product and customer mix.
• Demand remains strong across AI data centers, traditional server infrastructure, industrial automation, robotics, aerospace and defense, and other emerging applications. Bookings have accelerated, backlog extends into 2027, and management expects new products to exceed 25% of 2026 revenue.
• The AMI acquisition has closed and is expected to roughly double Lattice’s addressable market by combining FPGA solutions with firmware and infrastructure manageability. AMI is expected to generate more than $200 million in annualized revenue exiting 2026, with gross margins above 75%, EBITDA margins above 40%, and meaningful EPS accretion beginning in Q4.
• Q3 revenue guidance is $245 million to $265 million, including approximately two months of AMI revenue, with midpoint EPS of $0.56. Management also raised its longer-term ambition to reach $3 billion in revenue by 2030 and expects to reduce leverage below 2x EBITDA by the end of 2027.
• Assembly capacity remains constrained across the semiconductor industry, while supply-chain costs and expedite fees are increasing. Lattice expects to absorb some costs and pass some to customers, and forecasts lower Q3 corporate gross margin of approximately 69.5% due partly to AMI’s non-core, low-margin hardware pass-through business.

Lattice Semiconductor Price Performance

Shares of LSCC opened at $128.82 on Thursday. Lattice Semiconductor has a 1-year low of $58.53 and a 1-year high of $157.01. The stock has a market cap of $17.65 billion, a PE ratio of 495.44, a price-to-earnings-growth ratio of 3.41 and a beta of 1.81. The firm has a fifty day moving average price of $138.12 and a 200 day moving average price of $115.27.

Analysts Set New Price Targets

LSCC has been the subject of a number of research reports. Jefferies Financial Group lifted their price target on Lattice Semiconductor from $145.00 to $175.00 and gave the stock a “buy” rating in a research report on Wednesday. Robert W. Baird increased their price objective on Lattice Semiconductor from $120.00 to $135.00 and gave the company an “outperform” rating in a report on Tuesday, May 5th. Wall Street Zen downgraded Lattice Semiconductor from a “strong-buy” rating to a “buy” rating in a report on Monday, July 20th. Zacks Research lowered Lattice Semiconductor from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. Finally, TD Cowen lifted their price objective on shares of Lattice Semiconductor from $145.00 to $165.00 and gave the company a “buy” rating in a research note on Monday, July 13th. Twelve equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $144.38.

Insiders Place Their Bets

In related news, Director James P. Lederer sold 6,101 shares of the company’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $153.94, for a total value of $939,187.94. Following the completion of the sale, the director owned 41,201 shares in the company, valued at $6,342,481.94. This represents a 12.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Pravin Desale sold 2,039 shares of the stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $142.89, for a total transaction of $291,352.71. Following the sale, the senior vice president owned 73,519 shares of the company’s stock, valued at $10,505,129.91. This trade represents a 2.70% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 10,880 shares of company stock valued at $1,646,582. 0.62% of the stock is currently owned by insiders.

Institutional Trading of Lattice Semiconductor

Several institutional investors and hedge funds have recently added to or reduced their stakes in LSCC. Royal Bank of Canada increased its stake in Lattice Semiconductor by 213.3% during the first quarter. Royal Bank of Canada now owns 176,938 shares of the semiconductor company’s stock valued at $9,280,000 after acquiring an additional 120,464 shares during the period. AQR Capital Management LLC grew its holdings in shares of Lattice Semiconductor by 59.5% during the 1st quarter. AQR Capital Management LLC now owns 8,799 shares of the semiconductor company’s stock worth $460,000 after purchasing an additional 3,283 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Lattice Semiconductor by 37.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 963,493 shares of the semiconductor company’s stock worth $50,535,000 after purchasing an additional 264,329 shares in the last quarter. Cetera Investment Advisers increased its position in shares of Lattice Semiconductor by 28.8% during the second quarter. Cetera Investment Advisers now owns 6,432 shares of the semiconductor company’s stock valued at $315,000 after purchasing an additional 1,440 shares during the period. Finally, Guggenheim Capital LLC increased its position in shares of Lattice Semiconductor by 9.5% during the second quarter. Guggenheim Capital LLC now owns 19,746 shares of the semiconductor company’s stock valued at $967,000 after purchasing an additional 1,717 shares during the period. 98.08% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Lattice Semiconductor

Here are the key news stories impacting Lattice Semiconductor this week:

• Positive Sentiment: Q2 results beat expectations: Lattice reported record revenue of $201.1 million, up 62.2% year over year, and non-GAAP EPS of $0.53 versus the $0.44 consensus estimate. Gross margin was 70.3%, while operating cash flow reached $88.3 million. Lattice’s Q2 Earnings Top Estimates on AI Demand and Record Revenue
• Positive Sentiment: Upbeat outlook: Management forecast third-quarter EPS of $0.54 to $0.58 and FPGA revenue of $210 million to $230 million. Including approximately two months of AMI revenue, total Q3 revenue is expected at $245 million to $265 million, above analyst expectations. The company cited AI infrastructure demand, industrial recovery and a backlog extending through 2027. Lattice Q2 Earnings Call Highlights AI Growth and AMI Expansion
• Positive Sentiment: Analyst support increased: Needham raised its price target from $140 to $160 and maintained a Buy rating, while Rosenblatt reaffirmed its Buy rating. The median target among 11 analysts is reportedly $145. Lattice Semiconductor Analysts Raise Their Forecasts Following Strong Q2 Earnings
• Neutral Sentiment: AMI acquisition expands the opportunity: Lattice closed its $1.65 billion acquisition of AMI, adding secure management, control and platform-firmware capabilities. The deal should broaden its exposure to AI data centers, but only partial-quarter contributions are reflected in Q3 guidance.
• Negative Sentiment: Deal-related overhang is pressuring sentiment: The AMI transaction involved approximately $1.0 billion in cash and $650 million in Lattice stock, creating additional debt, dilution and integration risks. Lattice also added substantial credit facilities to fund the purchase.
• Negative Sentiment: High expectations and valuation: With shares around $128.31, below the 50-day moving average of $138.12, and a reported P/E near 493.5, investors may be taking profits even after the earnings beat. Reports also note 57 insider sales and no insider purchases over the past six months, adding a cautious signal. Why Lattice Semiconductor Stock Is Down Today

Lattice Semiconductor Company Profile

Lattice Semiconductor Corporation is a U.S.-based semiconductor company specializing in low-power, small-footprint programmable logic devices. The company’s product portfolio centers on field-programmable gate arrays (FPGAs), programmable logic devices (PLDs) and related intellectual property cores that enable customers to implement custom digital functions in applications where energy efficiency and compact size are critical. Lattice’s solutions are widely used to accelerate edge computing, support video and sensor interfaces, and provide flexible I/O connectivity across a variety of end markets.

The company offers a range of FPGA families, including the iCE40 series for ultra-low power mobile and consumer applications, the MachXO series for embedded control and security, and the ECP5 series for midrange performance in communications, industrial automation and automotive domains.