01—Abstract
Summary
Summary of the 10-Q filed April 23, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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.
02—Key points
Key Highlights
- Revenue for the three months ended March 29, 2026, increased by 23.7% year-over-year to $5.84 billion.
- Net income for the same period rose by 37.2% year-over-year to $1.83 billion.
- Diluted earnings per share (EPS) for the quarter was $1.45, a significant increase from $1.03 in the prior year.
- Gross 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.
- The 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.
- Cash, cash equivalents, and restricted cash stood at $4.77 billion as of March 29, 2026, demonstrating a strong liquidity position.
- Deferred revenue remained substantial at $2.22 billion, providing a revenue backlog for future periods.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Lam Research Corp kept $0.31.
- Revenue$5.84B100.0%
- Cost of revenue−$2.93B50.2%
- Gross profit$2.91B49.8%
- Operating costs−$863.5M14.8%
- Operating income$2.05B35.0%
- Interest, other & tax−$221.6M3.8%
- Net income$1.83B31.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed April 23, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $5.84B$4.72B | +23.8% |
| Gross Profit | $2.91B$2.31B | +25.8% |
| R&D Expenses | $583.20M$525.90M | +10.9% |
| SG&A Expenses | $280.31M$226.02M | +24.0% |
| Operating Expenses | $863.51M$751.93M | +14.8% |
| Operating Income | $2.05B$1.56B | +31.1% |
| Net Income | $1.83B$1.33B | +37.2% |
| EPS (Basic) | $1.46$1.04 | +40.4% |
| EPS (Diluted) | $1.45$1.03 | +40.8% |
| Shares Outstanding (Basic) | 1.25B1.28B | −2.7% |
| Shares Outstanding (Diluted) | 1.26B1.29B | −2.4% |
05—Questions
Frequently Asked Questions
What drove the significant increase in revenue and net income for Lam Research in the most recent quarter?
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.
How is Lam Research managing its cash and returning capital to shareholders?
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.
What is the outlook for the semiconductor industry and Lam Research's position within it, based on this filing?
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.
Are there any significant changes in operating expenses or margins?
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.
06—Continue