01—Abstract
Summary
Summary of the 8-K filed October 21, 2026. Cited figures are marked; the original filing is the authoritative source.
Lam Research Corporation reported robust financial results for the fiscal quarter ended September 27, 2026, showcasing significant year-over-year and quarter-over-quarter growth.
The company achieved record revenue of $8.22 billiona, a substantial increase driven by strong demand for its semiconductor manufacturing equipment, particularly influenced by the AI sector. This top-line growth translated into impressive profitability, with both U.S. GAAP and non-GAAP diluted Earnings Per Share (EPS) showing a 21% increase compared to the previous quarter. Key operational improvements and strategic investments in technology and manufacturing capacity were highlighted as contributing factors to this performance.
The company also demonstrated strong cash generation, with cash, cash equivalents, and restricted cash increasing significantly. Lam Research provided an optimistic outlook for the next quarter, projecting continued revenue growth and stable to improved margins, underscoring the company's favorable position in the expanding semiconductor equipment market, fueled by AI advancements.
02—Key points
Key Highlights
- Achieved record revenue of $8.22 billion for the quarter ended September 27, 2026, a 22% increase from the prior quarter.
- Reported U.S. GAAP diluted EPS of $2.19 and non-GAAP diluted EPS of $2.20, representing a 21% increase quarter-over-quarter.
- Demonstrated strong profitability with U.S. GAAP gross margin at 52.3% and operating margin at 40.0%, both improving from the prior quarter.
- Cash, cash equivalents, and restricted cash increased to $7.45 billion, reflecting strong operational cash flow generation.
- Geographically, China represented the largest portion of revenue at 35%, followed by Korea (20%) and Taiwan (18%).
- Provided guidance for the quarter ending December 27, 2026, expecting revenue between $8.20 billion and $9.00 billion, with an outlook for continued strong margins and EPS.
- CEO Tim Archer cited AI driving higher semiconductor demand and device complexity as key growth drivers.
03—Questions
Frequently Asked Questions
What were Lam Research's key financial performance metrics for the September 2026 quarter?
For the quarter ended September 27, 2026, Lam Research reported revenue of $8.22 billion, U.S. GAAP gross margin of 52.3%, U.S. GAAP operating margin of 40.0%, and U.S. GAAP diluted EPS of $2.19. Non-GAAP metrics were slightly higher, with gross margin at 52.4%, operating margin at 40.2%, and diluted EPS at $2.20.
How did the September 2026 quarter performance compare to the previous quarter (June 2026)?
The company saw significant growth compared to the June 2026 quarter. Revenue increased by 22% ($8.22 billion vs. $6.72 billion), while diluted EPS (both GAAP and non-GAAP) rose by 21% ($2.19/$2.20 vs. $1.81/$1.82). Operating margin also saw substantial improvement, increasing by 260 basis points on a GAAP basis and 180 basis points on a non-GAAP basis.
What is Lam Research's outlook for the next quarter (December 2026)?
Lam Research is guiding for the quarter ending December 27, 2026, with revenue expected to be between $8.60 billion, with a range of +/- $400 million. They also anticipate strong gross and operating margins (around 52.5% and 40.5%, respectively) and a diluted EPS of approximately $2.33, with a range of +/- $0.15.
What factors are driving the company's strong performance, according to management?
According to CEO Tim Archer, the company's strong performance is driven by the significant demand for semiconductors fueled by Artificial Intelligence (AI), leading to greater device complexity. Lam Research's focus on operational execution and strategic investments in technology and manufacturing capacity are also cited as key contributors.
04—Continue