Lattice Semiconductor's stock price rises 7% due to strong first-quarter guidance

Hillsboro, Oregon — Low-power programmable leader Lattice Semiconductor Corporation (NASDAQ: LSCC) saw its stock rise 7% after issuing first-quarter revenue guidance that significantly exceeded analyst expectations.

The company reported fourth-quarter adjusted earnings of $0.32 per share, in line with analyst estimates, with revenue of $145.8 million, slightly above the consensus of $143.2 million. Revenue grew 24.2% year-over-year, primarily driven by strong performance in the communications and computing segments, which increased their share of total revenue from 49% last year to 64%.

For the first quarter of 2026, Lattice expects revenue between $158 million and $172 million, well above the analyst consensus of $148 million. The midpoint of this guidance represents approximately 37% year-over-year growth. The company also forecasts adjusted earnings of $0.34 to $0.38 per share, higher than the consensus of $0.33.

CEO Ford Tamer stated, “2025 is a pivotal year. We achieved our committed goals: stable revenue, normalized channel inventory, and exceptional growth in data centers, with server revenue up approximately 85% year-over-year. We are prepared for higher growth in 2026 and beyond.”

The company’s full-year 2025 revenue was $523.3 million, up 2.7% from the previous year, with adjusted earnings of $1.05 per share. Lattice maintained strong gross margins, with non-GAAP gross margin at 69.4% in the fourth quarter.

CFO Lorenzo Flores noted, “With our industrial and automotive channel inventories normalized, we expect 2026 revenue to better track consumer demand. Demand remains strong in the communications and computing sectors, supported by sustained momentum in data centers.”

In 2025, the company also expanded its product portfolio by 60% and repurchased $100 million worth of common stock.

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