10-QPeriod: Q3 FY2026

LAM RESEARCH CORP Quarterly Report for Q3 Ended Mar 29, 2026

Filed April 23, 2026For Securities:LRCX

Summary

Lam Research Corporation reported a strong third quarter for fiscal year 2026, with significant year-over-year growth in both revenue and net income. Revenue for the quarter ending March 29, 2026, reached $5.84 billion, an increase of 23.7% compared to the same period in the prior year. Net income also saw a substantial jump to $1.83 billion, up 37.2% year-over-year, translating to diluted earnings per share of $1.45. This performance was driven by robust demand across key semiconductor markets, particularly in foundry and memory segments, and a solid contribution from customer support services. The company also demonstrated effective cost management, with gross margins improving to 49.8%. Looking at the nine-month period, revenue grew to $16.51 billion, reflecting continued strong market conditions and the company's strategic positioning. While operating expenses increased, they were outpaced by revenue growth, leading to higher profitability. Lam Research continues to return capital to shareholders through significant share repurchases and dividend payments, underscoring its financial strength and commitment to shareholder value. The company maintains a healthy balance sheet with substantial cash reserves, providing flexibility for future investments and navigating potential market fluctuations.

Financial Highlights

50 data points
Beta

Revenue

$5.84B

49.8% Gross Margin

Net Income

$1.83B

31.2% Net Margin

EPS (Diluted)

$1.45

Total Assets

$20.79B

Cash & Equivalents

$4.75B

Free Cash Flow

$1.14B

Financial Statements
Beta
Revenue$5.84B
Gross Profit$2.91B
R&D Expenses$583.20M
SG&A Expenses$280.31M
Operating Expenses$863.51M
Operating Income$2.05B
Net Income$1.83B
EPS (Basic)$1.46
EPS (Diluted)$1.45
Shares Outstanding (Basic)1.25B
Shares Outstanding (Diluted)1.26B

Key Highlights

  • 1Revenue for the three months ended March 29, 2026, increased by 23.7% year-over-year to $5.84 billion.
  • 2Net income for the same period rose by 37.2% year-over-year to $1.83 billion.
  • 3Diluted earnings per share (EPS) for the quarter was $1.45, a significant increase from $1.03 in the prior year.
  • 4Gross margin improved to 49.8% in the current quarter, up from 48.2% in the prior year's nine-month period, indicating improved operational efficiency.
  • 5The company returned $3.60 billion to shareholders through share repurchases and $945.3 million in dividends paid during the nine months ended March 29, 2026.
  • 6Cash, cash equivalents, and restricted cash stood at $4.77 billion as of March 29, 2026, demonstrating a strong liquidity position.
  • 7Deferred revenue remained substantial at $2.22 billion, providing a revenue backlog for future periods.

Frequently Asked Questions

The strong performance was primarily driven by increased customer investments in the DRAM market segment, higher foundry equipment spending, and a robust increase in customer support-related revenue, including spares, upgrades, and services. These factors, combined with improved factory efficiencies contributing to higher gross margins, fueled the revenue and net income growth.

Lam Research maintains a strong liquidity position with $4.77 billion in cash, cash equivalents, and restricted cash as of March 29, 2026. During the nine months ended March 29, 2026, the company actively returned capital to shareholders, repurchasing $3.60 billion of its common stock and paying $945.3 million in dividends, demonstrating a commitment to shareholder value.

The company's executive summary suggests continued growth in 2026, driven by AI market demand across memory and non-memory segments. While acknowledging short-term volatility from trade restrictions, Lam Research believes long-term secular demand for semiconductors and technology inflections like 3D device scaling will drive sustainable growth and expand its served available market in deposition, etch, and clean businesses.

Gross margin improved to 49.8% in the March 2026 quarter compared to 49.6% in the prior quarter and 48.2% in the prior year's nine-month period, mainly due to improved factory efficiencies. Operating expenses increased, primarily driven by employee-related costs and workforce optimization efforts, but were managed effectively relative to revenue growth.