How strong were Lam Research's March 2026 quarter results?

Revenue of $5.84 billion was a company record, up 9% sequentially and roughly 24% year over year. U.S. GAAP operating margin was 35.0%, gross margin was 49.8%, and diluted EPS was $1.45, up 15% from the prior quarter.

What is the company guiding for the June 2026 quarter?

Management guided to revenue of $6.60 billion (±$400 million), U.S. GAAP gross margin of 50.5% (±1 point), operating margin of 36.5% (±1 point), and diluted EPS of $1.65 (±$0.15), on a diluted share count of about 1.255 billion.

Why did cash decline so much during the quarter?

Cash, equivalents and restricted cash dropped by about $1.43 billion. The main uses were $1.16 billion of share repurchases, $751 million of debt principal payments, $325 million of dividends, and $332 million of capital expenditures, partly offset by $1.14 billion of operating cash flow.

Are there any concerns in the working capital or receivables trend?

Accounts receivable rose to $4.13 billion from $3.49 billion, and changes in operating assets and liabilities consumed $875 million in the quarter. Investors should watch whether collections keep pace with the higher revenue base.

What are the main risks to the outlook?

Key risks include export controls, trade regulations and tariffs, and geopolitical tensions. Lam earns 34% of revenue from China, and Korea and Taiwan together account for another 46%. Supply chain constraints and customer capex timing could also affect results.

LRCX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 22, 2026. Cited figures are marked; the original filing is the authoritative source.

Lam Research (LRCX) reported fiscal Q3 2026 results (quarter ended March 29, 2026) that set company records for revenue and EPS.

Revenue rose 9% sequentially to $5.84 billion^a (up roughly 24% from $4.72 billion a year earlier), with U.S. GAAP operating margin expanding 110 basis points to 35.0% and U.S. GAAP diluted EPS climbing 15% to $1.45 (non-GAAP $1.47). Management attributed the strength to AI-driven demand for leading-edge wafer fabrication equipment, with systems revenue up about 11% sequentially and customer support revenue up about 6%. Cash-flow and balance-sheet items warrant attention.

Cash, equivalents and restricted cash fell to $4.77 billion^b from $6.20 billion, driven by $1.16 billion of share repurchases, $751 million of debt principal payments (including the repayment of a current debt maturity), $325 million of dividends and $332 million of capex. Operating cash flow was still a solid $1.14 billion, though working capital absorbed $875 million, largely from a $636 million increase in receivables. Japan-related shipments awaiting customer acceptance rose to about $434 million of future revenue, up from $226 million.

Guidance for the June 2026 quarter calls for revenue of $6.60 billion^c (plus or minus $400 million), U.S. GAAP gross margin of 50.5% and operating margin of 36.5% (each plus or minus 1 point), and diluted EPS of $1.65 (plus or minus $0.15) on 1.255 billion diluted shares. If delivered, this would imply further sequential revenue growth of roughly 13%. Investors should weigh the strength of the guidance against the sharp rise in receivables and the continued reliance on China (34% of revenue) and Korea and Taiwan (23% each) amid export-control and geopolitical risk.

02—Key points

Key Highlights

Record quarterly revenue of $5.84B, up 9% sequentially and about 24% year over year, driven by AI-related demand for leading-edge systems.
U.S. GAAP operating margin of 35.0%, up 110 bps sequentially; U.S. GAAP diluted EPS of $1.45 (+15% Q/Q), non-GAAP EPS of $1.47.
Systems revenue rose to $3.73B (+11% Q/Q) while customer support and other revenue reached $2.11B (+6% Q/Q).
Cash fell to $4.77B from $6.20B after $1.16B of buybacks, $751M of debt principal repayment, $325M of dividends and $332M of capex.
Operating cash flow of $1.14B was held back by an $875M working-capital build, led by a $636M increase in accounts receivable.
June 2026 quarter guidance: revenue of $6.60B (±$400M), GAAP gross margin 50.5%, operating margin 36.5%, and diluted EPS of $1.65 (±$0.15), implying roughly 13% sequential revenue growth.
Geographic concentration: China 34%, Korea 23%, Taiwan 23% of revenue; Japan-related deferred shipments grew to about $434M from $226M.

03—Questions

Frequently Asked Questions

How strong were Lam Research's March 2026 quarter results?
Revenue of $5.84 billion was a company record, up 9% sequentially and roughly 24% year over year. U.S. GAAP operating margin was 35.0%, gross margin was 49.8%, and diluted EPS was $1.45, up 15% from the prior quarter.
What is the company guiding for the June 2026 quarter?
Management guided to revenue of $6.60 billion (±$400 million), U.S. GAAP gross margin of 50.5% (±1 point), operating margin of 36.5% (±1 point), and diluted EPS of $1.65 (±$0.15), on a diluted share count of about 1.255 billion.
Why did cash decline so much during the quarter?
Cash, equivalents and restricted cash dropped by about $1.43 billion. The main uses were $1.16 billion of share repurchases, $751 million of debt principal payments, $325 million of dividends, and $332 million of capital expenditures, partly offset by $1.14 billion of operating cash flow.
Are there any concerns in the working capital or receivables trend?
Accounts receivable rose to $4.13 billion from $3.49 billion, and changes in operating assets and liabilities consumed $875 million in the quarter. Investors should watch whether collections keep pace with the higher revenue base.
What are the main risks to the outlook?
Key risks include export controls, trade regulations and tariffs, and geopolitical tensions. Lam earns 34% of revenue from China, and Korea and Taiwan together account for another 46%. Supply chain constraints and customer capex timing could also affect results.

04—Continue

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