Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 4, 2026 · Beat 1 of last 1 quarters
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Lattice's record results and AMI acquisition underscore the accelerating AI infrastructure buildout, with FPGA attach rates rising per server and demand extending into 2027. The company's ability to secure capacity agreements and pass on some cost increases signals tightness in the supply chain, which could benefit other infrastructure suppliers.
Lattice delivered record Q2 revenue of $201M, up 62% YoY, with strength across all end markets. Compute & Communications grew 83% YoY on data center AI demand, while Industrial & Embedded grew 36% YoY. Non-GAAP EPS of $0.53 grew >120% YoY, and gross margin expanded to 71.7%. The company closed the AMI acquisition in late July 2026, for $1B cash and 5.2M shares, funded with $925M of financing and $75M of cash from balance sheet. Bookings accelerated and backlog extends well into 2027, with management noting 2027 is 'pretty much booked.'
Management guided Q3 FPGA revenue of $210M-$230M (midpoint $220M, ~65% YoY growth) and total revenue of $245M-$265M including ~2 months of AMI contribution, implying a >$1B annualized run rate. Non-GAAP EPS guidance is $0.54-$0.58 (midpoint $0.56, ~100% YoY growth). They expect AMI to be accretive to EPS starting in Q4, with AMI exiting 2026 at >$200M revenue run rate, gross margins >75%, and EBITDA margins >40%. Management stated a long-term goal of $3 billion by 2030 and noted they are ahead of plan, and expect to exit 2026 at a $1.2B run rate. They plan to reduce leverage to below 2x EBITDA by end of 2027.
“We've got visibility all the way to the end of 2027. 2027 is pretty much booked.”
on Backlog visibility
“We are a Rule of 105 right now. So we're above 100. We'll enjoy it for both Q2 and Q3. We're not promising to do this in the future, but 62% growth and 40% plus EBITDA gets us to about 105%.”
on Operating leverage
“The visibility is increasing daily. I mean it's really unprecedented.”
on Demand visibility
Can you talk about trends in FPGA attach rate per server and ASP?
Fouad noted the server TAM is now forecast at 20 million units for 2026, driven by the agentic revolution. Attach rates continue to grow, ASPs are increasing due to more complex security requirements, and FPGAs are finding new use cases such as power and cooling.
How much revenue is the AMI hardware pass-through business, and is it the reason for the Q3 margin step-down?
Lorenzo confirmed the hardware business is transitory and not a meaningful amount of revenue. It will be fully exited by end of 2026, and Q4 will not be impacted. The $200M AMI run rate excludes this hardware business.
Is the 25% AMI growth rate for 2027 organic, and does it include revenue synergies?
Fouad confirmed the 25% growth is over the $200M base and does not include revenue synergies. Lorenzo added that it will take time to bring joint solutions to market, but they expect additional synergies on top.