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Can Healthy Revenue Growth Benefit Lattice's Q3 Earnings?

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Key Takeaways

  • LSCC is expected to report Q3 2026 revenues of $255.1 million, up from $133 million a year ago.
  • Demand for low-power FPGAs across industrial, communications and embedded computing markets may drive growth.
  • AI and cloud investments, the AMI acquisition and new design wins could strengthen quarterly performance.

Lattice Semiconductor Corporation (LSCC - Free Report) is set to report third-quarter 2026 results on Nov. 2, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 20.45%. It pulled off a trailing four-quarter earnings surprise of 8.59% on average, beating estimates twice in the previous quarters.

The company is expected to record year-over-year revenue growth, supported by favorable demand trends and progress in its strategic initiatives. Continued efforts to strengthen its market position might support its quarterly results.

Factors at Play

During the third quarter of 2026, Lattice Semiconductor is expected to have benefited from steady demand for its low-power FPGA solutions across industrial, communications and embedded computing markets. Growing adoption of programmable devices with better energy efficiency, flexibility and performance could have increased the company’s product sales during the quarter.

During the quarter under review, rising investments in AI and cloud infrastructure are expected to have supported demand for Lattice's solutions used in advanced computing systems. Higher spending by hyperscalers and enterprise customers might have created new business opportunities and supported quarterly revenues.

Lattice's acquisition of AMI is expected to have contributed to its September quarter performance by broadening its product portfolio with additional firmware and infrastructure management capabilities. The acquisition is also likely to have strengthened customer relationships and created opportunities to generate additional revenues from integrated solutions.

During the to-be-reported quarter, Lattice's continued investments in technology and software development are expected to have supported new design wins. Ongoing customer engagement and the development of solutions for emerging applications would have encouraged wider product adoption and strengthened its long-term growth prospects.

For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $255.1 million, indicating an increase from $133 million recorded a year ago. The consensus mark for earnings is pegged at 55 cents per share, indicating an increase from 28 cents reported in the year-ago quarter.

Earnings Whispers

Our proven model does not predict an earnings beat for Lattice for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -0.60%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Lattice sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +10.11% and sports a Zacks Rank #1 at present. It is set to release its third-quarter 2026 numbers on Nov. 3.

The Earnings ESP for Microchip Technology Incorporated (MCHP - Free Report) is +3.31%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report second-quarter fiscal 2027 numbers on Nov. 5.

The Earnings ESP for Yelp Inc. (YELP - Free Report) is +12.50%, and it sports a Zacks Rank of 1 at present. The company is scheduled to report third-quarter 2026 numbers on Nov. 5.

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