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what it is
Lattice sells small programmable chips and the software around them that help devices connect, control, and secure themselves.
how it gets paid
Last year Lattice Semicon made $523M in revenue.
why it's growing
Revenue grew 2.7% last year. Revenue for the December period was $145.8M, up 9% sequentially and 24% vs. prior year, according to the company commentary in the base research.
what just happened
The latest quarter showed a clean beat, with EPS at $0.32 versus the $0.31 consensus.
At a glance
B+ balance sheet — decent shape, but not bulletproof
50/100 earnings predictability — expect surprises
86.3x trailing p/e — you're paying up for this one
64.0% return on capital — a money-printing machine
xvary composite: 72/100 — average
What they do
Lattice sells small programmable chips and the software around them that help devices connect, control, and secure themselves.
Lattice wins by being the chip you design around, then hate to replace. Programmable logic devices (chips you can reprogram after manufacturing, so what: customers can tweak products without redesigning the whole board) create sticky design wins, and gross margin was 68.1% in the latest filing. The company also spent 24.8% of 2025 sales on R&D, so your risk is not weak engineering effort, it is whether demand catches up to the stock price.
How they make money
$523M
annual revenue · their business grew +2.7% last year
total revenue
$523M
+2.7%
The products that matter
programmable logic chips
Programmable Logic Devices
$523M revenue · entire business
it's the whole $523M company, and it grew 38.6% last year. That concentration keeps the story simple, but it also means one product family carries the entire investment case.
100% of revenue
Key numbers
86.3x
trailing p/e
P/E → price divided by profits → so what: you are paying 86 years of current earnings for a company still in recovery mode.
64.0%
return on capital
Return on capital → profit generated from money invested in the business → so what: when demand is there, this model throws off elite economics.
83%
foreign revenue
Foreign revenue → sales made outside the U.S. → so what: Lattice has broad reach, but your results depend heavily on overseas demand.
2.1%
operating margin
Operating margin → profit after running the business, before financing and taxes → so what: the comeback is visible, but the core cushion is still thin.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 15 / 100
- net profit margin 37.6% — keeps 38 cents of every dollar in revenue
- return on equity 64% — $0.64 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in LSCC 3 years ago → it's now worth $10,180.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
The latest quarter showed a clean beat, with EPS at $0.32 versus the $0.31 consensus.
Revenue for the December period was $145.8M, up 9% sequentially and 24% vs. prior year, according to the company commentary in the base research. Communications and computing drove the jump, with those markets up nearly 60% from the prior year.
$145.8M
revenue
$0.32
eps
68.1%
gross margin
the number that mattered
The key number was 24% revenue growth in the December period, because that says the recovery is real enough to show up in sales, not just cost control.
-
lattice semiconductor remains in recovery mode.
-
revenues for the december period were up 9% sequentially and 24% vs. prior year, to $145.8 million, the company’s best performance in two years.
-
the improvement was powered by the communications and computing markets, where sales jumped nearly 60% from the prior-year period, easily offsetting continued weakness in industrial and automotive markets (down 10%).meanwhile, adjusted earnings reached $0.32 a share, more than double the 2024 comparable period, which included a $0.05 charge related to test and assembly operations.
-
the turnaround should gain momentum in 2026.
-
the company’s march-quarter outlook calls for vs. prior year sales and earnings growth of 31%–43% and 55%-73%, respectively, well ahead of wall street’s earlier expectations.the rest of the year appears promising, too, prompting us to bump up our 2026 top- and bottom-line estimates by $60 million and $0.15 a share. management emphasizes that lattice’s field-programmable gate arrays (fpgas), though not at the center of the artificial intelligence (ai) revolution, play a myriad of supporting roles. demand for these products should continue to benefit from rising spending on data centers, as well as emerging efforts to incorporate ai into cameras, radar, and other devices that interact with the real world. the resulting growth will likely be most noticeable in communications and computing markets, though revenues at industrial and automotive customers should also begin to bounce back, particularly now that customers seem to have finished working through excess inventories.
source: company earnings report, 2026
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What could go wrong
the #1 risk is a recovery stall in communications and computing demand.
med
recovery stalls where the rebound is strongest
Recent improvement was powered by communications and computing, where sales jumped nearly 60%. When one end market does that much of the visible lifting, you watch it closely.
If that demand cools, the path from $523M revenue toward the $690M expectation gets a lot harder.
med
86.3x earnings leaves no cushion
Trailing p/e: 86.3x. In human terms, the market is already charging you for a smoother recovery than the current earnings line shows.
A stock with price stability at 15 / 100 can reprice fast when the multiple is this rich.
med
earnings quality still looks uneven
This page includes a latest quarter at $0.02 EPS on $133M revenue and a stronger December-period update at $0.32 adjusted EPS on $145.8M revenue. That tells you the trend is improving, but not yet clean.
With earnings predictability at 50 / 100, even a small miss can hit sentiment harder than the income statement.
A premium multiple, low price stability, and a still-forming recovery mean this stock can move a lot more than the business changes quarter to quarter.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarter revenue versus $145.8M
That December-period number is the cleanest proof of recovery on this page. You want to see it hold or improve.
trend
communications and computing demand
Those markets jumped nearly 60%. If that cools fast, the rebound story cools with it.
risk
whether premium valuation meets messy execution
An 86.3x trailing p/e and 15 / 100 price stability is a combination that magnifies disappointment.
metric
EPS moving beyond $0.02
The stock can handle volatility. It cannot handle a premium multiple with profits stuck near the latest quarter.
Analyst rankings
short-term outlook
top 5%
momentum score 1 is the highest rating. in human-speak, analysts think this has better near-term upside than almost everything else they cover.
risk profile
average
stability score 3 means middle-of-the-pack risk. Not a bunker stock. Not a total rollercoaster either.
chart momentum
average
technical score 3 says the chart is fine, not euphoric. The analysts like the setup more than the tape does.
earnings predictability
50 / 100
forecasting the next few quarters is harder here than the headline margins suggest. Expect some noise.
source: institutional data
Institutional activity
170 buyers vs. 121 sellers in 4q2025. total institutional holdings: 0.2B shares.
source: institutional data
Price targets
3-5 year target range
$56
$160
$91
current price
$108
target midpoint · +19% from current · 3-5yr high: $135 (+50% · 10% ann'l return)
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