Semiconductor designer Lattice Semiconductor (NASDAQ: LSCC) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 24.2% year on year to $145.8 million. On top of that, next quarter’s revenue guidance ($165 million at the midpoint) was surprisingly good and 11.6% above what analysts were expecting. Its non-GAAP profit of $0.32 per share was in line with analysts’ consensus estimates.
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Lattice Semiconductor (LSCC) Q4 CY2025 Highlights:
- Revenue: $145.8 million vs analyst estimates of $143.2 million (24.2% year-on-year growth, 1.8% beat)
- Adjusted EPS: $0.32 vs analyst estimates of $0.32 (in line)
- Adjusted EBITDA: $53.2 million vs analyst estimates of $50.81 million (36.5% margin, 4.7% beat)
- Revenue Guidance for Q1 CY2026 is $165 million at the midpoint, above analyst estimates of $147.8 million
- Adjusted EPS guidance for Q1 CY2026 is $0.36 at the midpoint, above analyst estimates of $0.33
- Operating Margin: 0.7%, up from -10.4% in the same quarter last year
- Free Cash Flow Margin: 30.2%, down from 33.8% in the same quarter last year
- Inventory Days Outstanding: 177, down from 193 in the previous quarter
- Market Capitalization: $11.97 billion
Ford Tamer, Chief Executive Officer, said, "2025 was a pivotal year where we delivered on what we said we would do: stabilized revenue, normalized channel inventories, and drove exceptional data center growth, with server revenues up approximately 85% year over year. We advanced our leadership product roadmap, strengthened our software and solutions, and secured design wins across all our segments to fuel production ramps. We finished the year with strong momentum led by accelerating growth in AI and datacenters, higher Lattice FPGA attach rates per system and increasing ASPs as diversified customers move to our newer product platforms and solutions. When taken together, we believe we are positioned for higher growth in 2026 and beyond."
Company Overview
A global leader in its category, Lattice Semiconductor (NASDAQ: LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.
Revenue Growth
A company’s top-line performance can indicate its business quality. Rapid growth can signal it’s benefiting from an innovative new product or burgeoning market trend. Lattice Semiconductor struggled to generate demand over the last two years as its sales dropped by 15.7% annually, a poor baseline for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.
We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Lattice Semiconductor’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 15.7% annually. 
This quarter, Lattice Semiconductor reported robust year-on-year revenue growth of 24.2%, and its $145.8 million of revenue topped Wall Street estimates by 1.8%. Company management is currently guiding for a 37.3% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 20.9% over the next 12 months, an improvement versus the last two years. This projection is healthy and indicates its newer products and services will fuel better top-line performance.
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Product Demand & Outstanding Inventory
Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business’ capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production.
This quarter, Lattice Semiconductor’s DIO came in at 177, which is 2 more days than its five-year average. These numbers suggest that despite the recent decrease, the company’s inventory levels are slightly above the long-term average.
Key Takeaways from Lattice Semiconductor’s Q4 Results
We were impressed by Lattice Semiconductor’s optimistic revenue and EPS guidance for next quarter, both of which exceeded analysts’ expectations. We were also glad its revenue in the quarter beat and inventory levels shrunk. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $94.27 immediately following the results.
Lattice Semiconductor had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
