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Lattice's Q1 Earnings Beat Estimates on Solid Revenue Growth
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Key Takeaways
LSCC Q1 revenues jumped 42.2% YoY, beating estimates on AI and data center demand.
Lattice's Compute and Communications revenues surged to $106.6M, driving total sales growth.
LSCC guides Q2 revenues to $175M-$195M with EPS expected between 42 and 46 cents.
Lattice Semiconductor Corporation (LSCC - Free Report) reported strong first-quarter 2026 results with both adjusted earnings and revenues beating the Zacks Consensus Estimate.
The Hillsboro-based semiconductor company posted a 42.2% year-over-year increase in revenues, driven by strong demand for its low-power FPGAs in artificial intelligence (AI) and data center applications, along with growth across all end markets.
Net Income
Net income on a GAAP basis was $21.8 million or 16 cents per share compared with $5 million or 4 cents per share in the prior-year quarter. Top-line growth boosted the bottom line during the quarter.
Non-GAAP net income in the reported quarter was $57 million or 41 cents per share compared with $30.7 million or 22 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 5 cents.
Lattice Semiconductor Corporation Price, Consensus and EPS Surprise
Net sales in the quarter rose to $170.9 million from $120.2 million in the year-ago quarter, backed by solid growth in the Compute and Communications end market, which contributed 62.4% of the total revenues. The top line beat the Zacks Consensus Estimate of $163.3 million.
In the first quarter, Compute and Communications revenues increased to $106.6 million from $57.4 million, driven by continued momentum in data center AI applications. Revenues from Industrial and Embedded increased to $64.3 million from $62.8 million in the prior-year quarter.
Region-wise, in the first quarter of 2026, the company generated 78% of revenues from Asia, while the Americas, along with Europe and Africa, contributed 11% each.
Other Details
Non-GAAP gross profit aggregated $119.6 million compared with $82.9 million in the year-ago quarter, with respective margins of 70% and 69%. During the quarter, non-GAAP operating expenses increased to $60.8 million from the prior-year figure of $51.4 million, and adjusted EBITDA increased to $67.8 million from $40.1 million in the year-ago quarter, with respective margins of 39.6% and 33.4%.
Cash Flow & Liquidity
In the first quarter, Lattice generated $50.3 million in cash from operations compared with $31.9 million in the year-earlier quarter. As of April 4, 2026, it had $140 million in cash and cash equivalents with $ 34.1 million of long-term operating lease liabilities (net of current portion).
Outlook
For the second quarter of 2026, Lattice expects revenues in the range of $175-$195 million. Non-GAAP gross margin is anticipated to be in the band of 69-71%. Non-GAAP total operating expenses are projected to be in the range of $64-$67 million, and non-GAAP earnings are expected to be in the range of 42-46 cents per share.
HubSpot, Inc. (HUBS - Free Report) is scheduled to release first-quarter 2026 earnings on May 7. The Zacks Consensus Estimate for earnings is pegged at $2.47 per share, suggesting growth of 38.76% from the year-ago reported figure.
HubSpot has a long-term earnings growth expectation of 20%. The company delivered an average earnings surprise of 3.01% in the last four reported quarters.
CDW Corporation (CDW - Free Report) is set to release first-quarter 2026 earnings on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.28 per share, implying growth of 6.05% from the year-ago reported figure.
CDW has a long-term earnings growth expectation of 7.25%. The company delivered an average earnings surprise of 5.72% in the last four reported quarters.
Motorola Solutions, Inc. (MSI - Free Report) is set to release first-quarter 2026 earnings on May 7. The Zacks Consensus Estimate for earnings is pegged at $3.25 per share, implying growth of 2.2% from the year-ago reported figure.
Motorola has a long-term earnings growth expectation of 9.4%. The company delivered an average earnings surprise of 5.66% in the last four reported quarters.
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Lattice's Q1 Earnings Beat Estimates on Solid Revenue Growth
Key Takeaways
Lattice Semiconductor Corporation (LSCC - Free Report) reported strong first-quarter 2026 results with both adjusted earnings and revenues beating the Zacks Consensus Estimate.
The Hillsboro-based semiconductor company posted a 42.2% year-over-year increase in revenues, driven by strong demand for its low-power FPGAs in artificial intelligence (AI) and data center applications, along with growth across all end markets.
Net Income
Net income on a GAAP basis was $21.8 million or 16 cents per share compared with $5 million or 4 cents per share in the prior-year quarter. Top-line growth boosted the bottom line during the quarter.
Non-GAAP net income in the reported quarter was $57 million or 41 cents per share compared with $30.7 million or 22 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate by 5 cents.
Lattice Semiconductor Corporation Price, Consensus and EPS Surprise
Lattice Semiconductor Corporation price-consensus-eps-surprise-chart | Lattice Semiconductor Corporation Quote
Revenues
Net sales in the quarter rose to $170.9 million from $120.2 million in the year-ago quarter, backed by solid growth in the Compute and Communications end market, which contributed 62.4% of the total revenues. The top line beat the Zacks Consensus Estimate of $163.3 million.
In the first quarter, Compute and Communications revenues increased to $106.6 million from $57.4 million, driven by continued momentum in data center AI applications. Revenues from Industrial and Embedded increased to $64.3 million from $62.8 million in the prior-year quarter.
Region-wise, in the first quarter of 2026, the company generated 78% of revenues from Asia, while the Americas, along with Europe and Africa, contributed 11% each.
Other Details
Non-GAAP gross profit aggregated $119.6 million compared with $82.9 million in the year-ago quarter, with respective margins of 70% and 69%. During the quarter, non-GAAP operating expenses increased to $60.8 million from the prior-year figure of $51.4 million, and adjusted EBITDA increased to $67.8 million from $40.1 million in the year-ago quarter, with respective margins of 39.6% and 33.4%.
Cash Flow & Liquidity
In the first quarter, Lattice generated $50.3 million in cash from operations compared with $31.9 million in the year-earlier quarter. As of April 4, 2026, it had $140 million in cash and cash equivalents with $ 34.1 million of long-term operating lease liabilities (net of current portion).
Outlook
For the second quarter of 2026, Lattice expects revenues in the range of $175-$195 million. Non-GAAP gross margin is anticipated to be in the band of 69-71%. Non-GAAP total operating expenses are projected to be in the range of $64-$67 million, and non-GAAP earnings are expected to be in the range of 42-46 cents per share.
Zacks Rank
Lattice currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
HubSpot, Inc. (HUBS - Free Report) is scheduled to release first-quarter 2026 earnings on May 7. The Zacks Consensus Estimate for earnings is pegged at $2.47 per share, suggesting growth of 38.76% from the year-ago reported figure.
HubSpot has a long-term earnings growth expectation of 20%. The company delivered an average earnings surprise of 3.01% in the last four reported quarters.
CDW Corporation (CDW - Free Report) is set to release first-quarter 2026 earnings on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.28 per share, implying growth of 6.05% from the year-ago reported figure.
CDW has a long-term earnings growth expectation of 7.25%. The company delivered an average earnings surprise of 5.72% in the last four reported quarters.
Motorola Solutions, Inc. (MSI - Free Report) is set to release first-quarter 2026 earnings on May 7. The Zacks Consensus Estimate for earnings is pegged at $3.25 per share, implying growth of 2.2% from the year-ago reported figure.
Motorola has a long-term earnings growth expectation of 9.4%. The company delivered an average earnings surprise of 5.66% in the last four reported quarters.