Q1 2026 Earnings Snapshot

Lattice Semiconductor (LSCC) has just posted its latest numbers with Q4 2025 revenue at US$145.8 million and a basic EPS loss of US$0.06, setting the stage for how you read the current Q1 2026 update. Over the past few quarters, the company has seen revenue move from US$120.2 million in Q1 2025 to US$145.8 million in Q4 2025, while quarterly basic EPS has ranged from a profit of US$0.04 in Q1 2025 to a loss of US$0.06 in Q4 2025, underscoring how sensitive margins have been to recent profit swings. The key question for investors is whether current pressure on margins is a temporary setback or a sign that profitability could stay tight.

See our full analysis for Lattice Semiconductor.

With the headline figures on the table, the next step is to set these results against the most widely held narratives about Lattice Semiconductor and see which stories the numbers support and which they call into question.

Margins Under Pressure at 0.6%

• Over the last 12 months, Lattice has generated US$523.3 million of revenue and net income of US$3.1 million, which works out to a net margin of 0.6% compared with 11.9% in the prior 12 month period, with a US$4.0 million one off loss weighing on profitability.
• Consensus narrative expects margin improvement from this low base, yet the recent numbers leave work to do:
  • Analysts see margins rising from 0.6% today to 21.2% in three years, while trailing earnings over five years have declined about 7.3% per year, so the historical trend does not yet line up with that improvement story.
  • Bulls highlight higher margin products and software as a key lever, but the most recent quarter still shows a basic EPS loss of US$0.06 and Q4 2025 net income of US$7.6 million loss, which is far away from the earnings levels implied in the bullish and consensus narratives.

Premium P/S vs DCF Fair Value

• The stock trades on a P/S of 32x versus 19.5x for peers and 8.1x for the US semiconductor industry, while a DCF fair value of US$44.82 sits well below the current share price of US$122.27.
• Critics highlight this valuation gap as a key plank of the bearish case, and the trailing figures give them some support:
  • Bears point to trailing 12 month earnings of US$3.1 million and a net margin of 0.6% as thin support for such a high multiple, especially when five year earnings have declined about 7.3% per year.
  • Forecasts still call for revenue growth of about 19.6% a year and earnings growth near 36% a year, so the bearish view is really arguing that even with those growth assumptions, a 32x P/S and a price far above the DCF fair value leave little room for disappointment.

Skeptics argue that a 32x P/S and price well above DCF fair value demand near perfect execution, and you can see how that tension plays out in the detailed bear case here 🐻 Lattice Semiconductor Bear Case.

Revenue Growth vs Earnings Drag

• On a quarterly view, revenue progressed from US$120.2 million in Q1 2025 to US$145.8 million in Q4 2025, yet basic EPS over the same stretch moved from a profit of US$0.04 to a loss of US$0.06 and trailing earnings over the last year are just US$3.1 million on US$523.3 million of revenue.
• This mix of solid top line and weak bottom line is central to the bullish story, which the current figures only partly reflect:
  • Bulls focus on forecast revenue growth around 23.7% a year and projected earnings reaching US$210.0 million by 2029, but the latest trailing net margin of 0.6% and the one off US$4.0 million loss show that recent profitability is still far from those targets.
  • At the same time, the move from US$117.4 million of revenue in Q4 2024 to US$145.8 million in Q4 2025 gives some backing to the growth angle, so the key question for the bullish narrative is whether that revenue momentum can eventually flow through to the bottom line in the way the forecasts assume.

Supporters argue that Q1 2026 is just the early stage of a much larger growth story, and you can see how they build that bullish case from these numbers in the full narrative 🐂 Lattice Semiconductor Bull Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Lattice Semiconductor on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mixed signals in these results leave you unsure, take a closer look at the full picture and quickly weigh both sides of the story. A good place to start is by checking the balance of potential upside against the concerns flagged in our breakdown of 1 key reward and 3 important warning signs

See What Else Is Out There

Lattice Semiconductor pairs a 32x P/S and a share price well above its DCF estimate with a 0.6% net margin and recent basic EPS loss.

If that mix of thin profitability and a rich price tag feels uncomfortable, you may want to look for stocks trading on more grounded valuations using the 51 high quality undervalued stocks

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.