01—Abstract
Summary
Summary of the 8-K filed July 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Lam Research (LRCX) reported fiscal June 2026 quarter results on July 29, 2026 that were record-setting on revenue, operating margin, and EPS, driven by AI-related demand for leading-edge wafer fabrication equipment.
Revenue rose 15.1% sequentially to $6.72 billiona (up about 30% from $5.17 billion a year earlier), with U.S. GAAP gross margin of 51.7%, operating margin of 37.4%, and diluted EPS of $1.81. Non-GAAP diluted EPS was $1.82, reflecting modest adjustments for intangible amortization, elective deferred compensation valuation changes, and workforce optimization charges. Net income was $2.28 billion, and margins expanded roughly 190 to 240 basis points sequentially on both a GAAP and non-GAAP basis.
Balance sheet and cash flow strengthened. Cash and equivalents rose to $5.58 billionb from $4.75 billion, and operating cash flow was $1.46 billion for the quarter, though this was well below the prior-year quarter's $2.55 billion because of a large working capital build. Accounts receivable jumped to $5.34 billion from $4.13 billion, and inventories rose to $4.28 billion.
Deferred revenue increased to $2.43 billionc. Shareholder returns continued, with $247 million in buybacks and $325 million in dividends during the quarter, and the company declared a $0.26 per-share quarterly dividend.
Management guided September 2026 quarter revenue to $8.10 billiond (plus or minus $400 million), non-GAAP gross margin to 52.0% (plus or minus 1%), non-GAAP operating margin to 39.5% (plus or minus 1%), and non-GAAP diluted EPS to $2.15 (plus or minus $0.15) on 1.255 billion diluted shares. Investors should weigh the strong growth and margin trajectory against the rising receivables and working capital intensity, as well as exposure to concentrated customer geographies (Taiwan 27%, China 26%, Korea 20%) and ongoing export control and geopolitical risks.
02—Key points
Key Highlights
- Record quarterly revenue of $6.72B, up 15.1% sequentially and 30.0% year over year versus $5.17B in the June 2025 quarter.
- U.S. GAAP operating margin expanded to 37.4% from 35.0% sequentially; non-GAAP operating margin reached 38.4%.
- U.S. GAAP diluted EPS of $1.81 (up 24.8% Q/Q); non-GAAP diluted EPS of $1.82 (up 23.8% Q/Q).
- Systems revenue rose to $4.25B and customer support-related revenue reached $2.47B, a 43% year-over-year increase that reflects a growing installed base.
- Operating cash flow fell to $1.46B from $2.55B a year earlier, as accounts receivable rose to $5.34B and inventories to $4.28B.
- Q3 FY2026 guidance calls for revenue of $8.10B and non-GAAP EPS of $2.15, implying further sequential growth of roughly 20% in revenue.
- Shareholder returns continued with a $0.26 quarterly dividend and buybacks; diluted share count is guided to 1.255B, with shares outstanding roughly flat year over year.
03—Questions
Frequently Asked Questions
How did Lam Research perform in the June 2026 quarter?
Lam reported record revenue of $6.72 billion, U.S. GAAP operating margin of 37.4%, and U.S. GAAP diluted EPS of $1.81. All three figures were the strongest in the company's reported history, and each improved sharply from the March 2026 quarter.
What is Lam's guidance for the September 2026 quarter?
Lam guided revenue to $8.10 billion (plus or minus $400 million), non-GAAP gross margin to 52.0% (plus or minus 1%), non-GAAP operating margin to 39.5% (plus or minus 1%), and non-GAAP diluted EPS to $2.15 (plus or minus $0.15). The guidance assumes 1.255 billion diluted shares.
Why was operating cash flow lower than net income would suggest?
Operating cash flow was $1.46 billion against net income of $2.28 billion, mainly because of a $860 million outflow from changes in operating assets and liabilities. Accounts receivable rose by about $1.2 billion sequentially, driven by strong late-quarter shipments, and inventories also increased. This working capital build is a point investors should monitor for collection timing.
What drove the revenue growth, and how concentrated is it geographically?
Management attributed growth to AI-driven demand for advanced chips and rising manufacturing complexity. Revenue was concentrated in Taiwan (27%), China (26%), and Korea (20%), so Lam remains exposed to regional customer concentration and to trade and export-control policy in those markets.
Are the non-GAAP results materially different from GAAP results?
The differences are small. Non-GAAP EPS of $1.82 compares with GAAP EPS of $1.81, and the adjustments mainly cover intangible asset amortization, elective deferred compensation valuation changes, and workforce optimization charges. Investors should still review the reconciliation tables, since the deferred compensation items move with market valuations and can change from quarter to quarter.
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