Lattice Semiconductor (LSCC) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $201.1M, up 62% year-over-year, with non-GAAP EPS of $0.53, up over 120% year-over-year, both exceeding guidance.

• Closed AMI acquisition (valued at $1B–$1.65B in cash and stock), expanding secure management solutions for AI data centers and doubling the addressable market.

• Strong customer demand, accelerating backlog, and design win momentum drive confidence in continued market share gains and profitable growth.

• Backlog and bookings accelerated, with visibility and capacity agreements extending into 2027.

• The AMI acquisition is structured as a two-step merger, with post-closing adjustments and escrow provisions.

Financial highlights

• Q2 2026 non-GAAP gross margin reached 71.7%, up 240 bps year-over-year; GAAP gross margin was 70.3%.

• Q2 non-GAAP operating margin expanded to 38.3%; EBITDA margin was 43.0%.

• Q2 GAAP net cash flow from operations was $88.3M; free cash flow margin rose to 40.4%.

• Operating profit rose to $77.1M in Q2 2026.

• Revenue from new products grew over 60% year-over-year, tracking to exceed 25% of total 2026 revenue.

Outlook and guidance

• Q3 2026 revenue guidance: $245M–$265M (including two months of AMI), with non-GAAP EPS of $0.54–$0.58.

• Q3 FPGA revenue expected at $210M–$230M; AMI partial quarter revenue at $33M–$37M.

• Non-GAAP gross margin for Q3 2026 expected at 69.5% ±1%; non-GAAP operating expenses between $83M–$90M.

• AMI expected to deliver >$200M annual run rate in 2026, with 25% growth targeted for 2027.

• Long-term goal to reach $3B revenue by 2030, with $1.2B run rate expected by year-end 2026.