Lattice CEO Guides To At Least 60% Growth In 2027, Says It Could Hit 70% Or 80%
Backlog runs into 2028, the CEO said, but he sees no benefit in promising more than "over 60%" on November 2.
Lattice Semiconductor expects revenue to grow at least 60% in 2027, CEO Fouad Tamer said on the company's earnings call Monday, and he told an analyst the result could be 70% or 80% even as he held the target where it is. The company, which designs low-power programmable chips called FPGAs, reported record third-quarter revenue of $291 million, up 118% from a year earlier.
Why 60% and not more
Tamer also said Lattice expects revenue to compound at more than 30% a year over the next five years. Asked whether the caution on the back half of 2027 came from data, customer feedback or gut feel, he pointed to backlog covering all four quarters of 2027 and the first two of 2028.
"We are on November 2nd of 2026," Tamer said, adding that results could be 70% or 80%, "but it could be 60%." On that date, he said, "we don't see a benefit or upside to go beyond over 60%."
Inside the 60% guide, he said, Lattice assumes growth in the first and second quarters but not the same pace in the third and fourth. If the early quarters deliver, he said, the company may be able to raise those numbers.
Chief Financial Officer Lorenzo Flores said the company still expects meaningful year-over-year growth in the second half, and that the caution is a planning choice. He anchored the 2027 outlook on a 2026 revenue base of about $1 billion.
Backlog, servers and AMI
Tamer listed the drivers: backlog extending past 2027, long-term customer agreements, rising AI content per server, an industrial recovery, a full year of the AMI business it bought, and newer products. He ranked unit growth of existing products first, new products second and AMI plus joint solutions third.
On servers, Tamer expects about 25 million units next year, up from about 20 million this year, with AI servers rising from roughly 25% of the total to about 40%.
For the fourth quarter, Lattice guided to revenue of $325 million to $345 million, with adjusted earnings of 82 to 86 cents a share. Flores said the outlook implies about $1 billion in 2026 revenue and adjusted earnings of about $2.50 a share.
Debt and supply
Flores said Lattice paid down $50 million of debt in the quarter and expects net leverage under two times EBITDA by the end of 2026, with more aggressive paydown in 2027. Third-quarter free cash flow was $77.6 million.
Tamer said the company has secured multi-year supply agreements and could supply numbers well above next year's growth plans. Asked about double ordering, he said there were no signs of it in industrial and embedded, and that compute and communications bookings extend well into 2028.
Management is scheduled to present at the RBC technology conference in New York on November 17.
Sources
- Lattice Semiconductor pops as Q3 results, guidance top estimates (LSCC:NASDAQ) | Seeking Alpha — seekingalpha.com
- Lattice Semiconductor (LSCC) Tops Q3 Earnings and Revenue Estimates — Yahoo Finance
- Lattice Semiconductor Non-GAAP EPS of $0.72 beats by $0.17, revenue of $291.04M beats by $35.13M (NASDAQ:LSCC) | Seeking Alpha — seekingalpha.com
- Lattice Semiconductor Reports Record 3Q26 Revenue, Up 118% YOY – Company Announcement - FT.com — Financial Times
- Lattice Semiconductor Q3 2026 Earnings Preview (NASDAQ:LSCC) | Seeking Alpha — seekingalpha.com
