Lattice Semiconductor’s Compute and Communications revenue rose 132% year over year in the third quarter of 2026, to $171.9 million from $74.0 million, by our arithmetic from the earnings release it filed with the SEC on 2 November. That one end market supplied $97.9 million, or 62%, of the company’s $157.7 million revenue increase.
Total revenue rose 118.3% to $291.0 million, which Tamer called record third quarter revenue. About 29 points of that growth came from AMI, the firmware company Lattice acquired on 27 July, which contributed $39.1 million. Without AMI, revenue rose 88.9%, by our arithmetic, in line with the approximately 90% growth Lattice reported for its FPGA revenue.
Chief executive Ford Tamer said FPGA revenue was “fueled by accelerating data center AI demand”. The release does not give a separate figure for AI or AI-server revenue.
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The key insight: By our arithmetic, Compute and Communications supplied $97.9 million, or 62%, of Lattice’s $157.7 million year-over-year revenue increase, and AMI about 29 of the 118.3 points of growth; without AMI, revenue rose 88.9%.
Lattice reports revenue in three end markets. Compute and Communications went from $74.0 million to $171.9 million year over year. Industrial and Embedded went from $59.3 million to $80.0 million, up 35% by our arithmetic. AMI, shown as a separate end market from this quarter, added $39.1 million.
Of the $157.7 million increase, by our arithmetic, Compute and Communications supplied 62%, AMI 25% and Industrial and Embedded 13%. Compute and Communications was 59% of revenue in the quarter, against 63% in the second quarter, as AMI entered the mix.
Compute and Communications added $45.9 million from the second quarter, up 36%, by our arithmetic. That is the largest quarter-on-quarter dollar gain in the seven quarters Lattice has published on this basis, which start in the first quarter of 2025.
Its year-over-year growth also sped up: 85.7% in the first quarter of 2026, 83.4% in the second and 132.3% in the third, by our arithmetic from the recast figures in Lattice’s releases.
Lattice Semiconductor’s quarterly revenue by end market, Q1 2025 to Q3 2026, $ million, from the end-market tables in its earnings releases (8-K Exhibit 99.1); 2025 quarters as recast by Lattice in May 2026. Totals, changes and the 62% share are our arithmetic.Animated: Lattice’s Compute and Communications revenue by quarter, Q1 2025 to Q3 2026, $ million, from its earnings releases (8-K Exhibit 99.1; 2025 quarters as recast by Lattice in May 2026): 57.4, 68.7, 74.0, 92.6, 106.6, 126.0 and 171.9. Growth of 132% (2.3x) and the $45.9 million quarterly gain are our arithmetic.
What Lattice Says About AI Servers
The release links the growth to data centres in two places. Tamer’s statement says FPGA revenue grew “approximately 90%, fueled by accelerating data center AI demand and continued momentum across Industrial & Embedded applications”.
Its highlights say revenue from new products “grew more than 70% year over year and is tracking to reach 25% of FPGA revenue in 2026, led by AI-related server demand and Industrial and Embedded accelerated recovery”.
The product news points the same way. Lattice says samples of its new Mach-N2 family “have shipped to leading Compute & Communications customers”. It also announced a collaboration combining “Arm AGI CPU server platforms, Lattice FPGAs and AMI firmware”, and AMI Rack Manager support for AMD Helios rack-scale systems.
The release gives no AI-server revenue figure, unit count or attach rate. Lattice scheduled its earnings call for 5:00 p.m. Eastern Time (22:00 UTC) on 2 November; we had not heard it when we wrote this piece, so any figure given on the call is not covered here.
Against Lattice’s Own Guidance
In its second-quarter release in August, Lattice guided third-quarter FPGA revenue to between $210 million and $230 million, and total revenue, including about two months of AMI, to between $245 million and $265 million.
FPGA revenue, which we take as total revenue less AMI’s $39.1 million, was $251.9 million: $21.9 million above the top of that range, by our arithmetic. Total revenue of $291.0 million was $26.0 million above the top of its range.
Non-GAAP earnings per share were $0.72, against guidance of $0.54 to $0.58. Non-GAAP gross margin was 70.9%, against guidance of 69.5% plus or minus one point.
For the fourth quarter, Lattice guides revenue to between $325 million and $345 million, which it describes as approximately 130% year-over-year growth. The $335 million midpoint is 129.8% above fourth-quarter 2025 revenue of $145.8 million and 15.1% above the third quarter, by our arithmetic.
The release headline says Industrial and Embedded revenue growth is expected to accelerate to 70% year over year in the fourth quarter. The fourth-quarter range does not separate FPGA and AMI revenue.
What the AMI Deal Did to the Income Statement
GAAP net income fell to $11.2 million from $19.4 million in the second quarter, while non-GAAP net income rose to $103.7 million from $74.4 million, according to the release. GAAP gross margin was 67.4%, against 70.3% in the second quarter.
The reconciliation tables show $25.9 million of acquisition-related charges in operating expenses and $12.9 million of amortization of acquired intangible assets, $7.0 million of it in gross margin, in the third quarter, by our arithmetic for the total.
Over the first nine months, Lattice paid $971.3 million in cash for the acquisition, net of cash acquired, and raised $912.7 million of long-term debt, net of issuance costs, of which it has repaid $50.0 million, according to its cash flow statement.
How Each Side Reads These Figures
For readers who see strength, the figures include Compute and Communications revenue up 132%, FPGA revenue $21.9 million above the top of Lattice’s own range, non-GAAP earnings per share of $0.72 against guidance of $0.54 to $0.58, and a fourth-quarter range of $325 million to $345 million.
For readers who see caution, the figures include about 29 points of the 118.3% growth coming from an acquisition, GAAP net income of $11.2 million against $103.7 million on a non-GAAP basis, and $912.7 million of new long-term debt. The release does not say how much of the revenue comes from AI servers. We cite no analysts’ views here.
For the wider data-centre picture, see our piece on full-stack co-design in the AI factory, drawn from a 2026 OCP Global Summit keynote; Lattice says it announced its Secure Control and Management Plane at that summit, and our page on AMD’s revenue.
The Structural Read
As we read it, the headline 118% mixes two things: growth in Lattice’s own chips, which the release puts at approximately 90%, and a firmware business that was not part of Lattice a year earlier.
As we read it, the end-market table is the closest the release comes to an AI number: it gives no AI-server revenue, but the segment Tamer tied to data center AI demand grew faster than the company excluding AMI, 132% against 88.9%.
As we read it, the guidance check is the cleaner signal than the headline: FPGA revenue, measured without AMI, finished $21.9 million above the top of the range Lattice set in August.
Ford Tamer, CEO, Lattice Semiconductor Q3 2026 earnings release
“FPGA revenue grew approximately 90%, fueled by accelerating data center AI demand and continued momentum across Industrial & Embedded applications.”
Three Implications
FOR INVESTORS TRACKING LATTICE Revenue rose 118.3% to $291.0 million; about 29 points came from AMI, and FPGA revenue without AMI was $251.9 million, $21.9 million above the top of the August guidance range, by our arithmetic.
FOR AI SERVER BUILDERS AND SUPPLIERS Lattice says Mach-N2 samples have shipped to Compute and Communications customers and lists work with Arm, AMD, Intel and Microsoft on server control and management; the release gives no AI-server revenue figure.
FOR READERS COMPARING CHIP SUPPLIERS Compute and Communications revenue rose 132% to $171.9 million, by our arithmetic; onsemi, reporting the same day, put its AI data center revenue growth at 175%.
The Business Engineer Lens
This story maps onto the Business Engineer framework The AI Supercycle.
The framework puts it this way: “Each layer is constrained by the one below it.”
As we read it, Lattice’s release places its FPGAs and AMI firmware in the control and management of servers, beneath the processors that run AI models. The framework was published in June 2026 and does not discuss Lattice or AMI.
This piece is based on Lattice’s earnings releases filed as Exhibit 99.1 to its 8-K reports of 10 February, 4 May, 4 August and 2 November 2026. Growth rates, shares of the increase, FPGA revenue as total less AMI, guidance gaps and the fourth-quarter midpoint comparison are our arithmetic, not company statements.
The release does not quantify AI or AI-server revenue, and Compute and Communications also includes other customers. We did not hear the earnings call or read analyst estimates, and the 10-Q for the quarter had not been filed when we read the release, so its risk factors are not covered. We did not contact Lattice.
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Lattice’s Compute and Communications revenue rose 132% to $171.9 million and supplied 62% of the company’s $157.7 million revenue increase, by our arithmetic. AMI added about 29 points to the 118.3% headline growth, and FPGA revenue without AMI finished $21.9 million above the top of Lattice’s own guidance range.
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A note on sourcing. Every company figure comes from Lattice Semiconductor’s quarterly earnings releases, filed with the SEC as Exhibit 99.1 to its 8-K reports of 10 February, 4 May, 4 August and 2 November 2026, read on EDGAR on 2 November. Growth rates, shares of the increase, FPGA revenue as total less AMI and the guidance comparisons are our arithmetic. We did not contact Lattice.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
