Lam Research Corporation (LRCX) Q4 2026 Financial Results Summary
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Lam Research Corporation (LRCX) Q1 2027: Record Revenue and Earnings Growth — Strongly Positive
Lam Research Corporation (LRCX) reported impressive financial results for the quarter ended September 27, 2026, showcasing significant growth compared to the previous quarter. The company achieved revenue of $8.22 billion, marking an increase of $1.50 billion or +22% from $6.72 billion in the prior quarter. This robust performance is indicative of strong demand in the semiconductor sector, driven by advancements in AI and increased device complexity.
Key Financial Metrics
- Revenue: $8.22 billion (up $1.50 billion or +22% Q/Q)
- U.S. GAAP Gross Margin: 52.3% (up 60 bps Q/Q)
- U.S. GAAP Operating Margin: 40.0% (up 260 bps Q/Q)
- U.S. GAAP Diluted EPS: $2.19 (up $0.38 or +21% Q/Q)
- Non-GAAP Diluted EPS: $2.20 (up $0.38 or +21% Q/Q)
Analyst Opinion
This quarter is a strong positive for shareholders, as Lam Research not only exceeded revenue expectations but also improved its margins and earnings per share significantly. The increase in both gross and operating margins reflects effective cost management and operational efficiency, which are crucial in a competitive market. The company’s strategic investments in technology and manufacturing capacity are clearly paying off, positioning Lam to capitalize on the growing demand for semiconductor equipment.
Dividend and Share Buyback
Lam Research declared a cash dividend of $0.33 per common share, up from $0.26 in the previous quarter. This increase in dividends signals confidence in future cash flows and profitability, which is a positive indicator for investors.
Guidance for Next Quarter
Looking ahead, Lam Research has provided guidance for the quarter ending December 27, 2026, projecting revenue of $8.60 billion with a gross margin of 52.5% and an operating margin of 40.5%. The expected diluted EPS is $2.33, indicating continued growth momentum.
Forward Catalyst
Investors should closely monitor the upcoming quarter's performance, particularly how Lam Research navigates the anticipated demand fluctuations in the semiconductor market. Additionally, updates on their strategic initiatives and any potential new product launches will be critical in assessing the company's ability to maintain its growth trajectory.
In summary, Lam Research's strong financial results and positive outlook present a compelling case for investors, reinforcing the company's leadership position in the semiconductor equipment industry.
Note: All amounts are in thousands.
| Three Months Ended | September 27, 2026 | June 28, 2026 | September 28, 2025 |
|---|---|---|---|
| Revenue | $8,219,418 | $6,722,238 | $5,324,173 |
| Cost of goods sold | $3,920,565 | $3,243,498 | $2,639,294 |
| Gross margin | $4,298,853 | $3,478,740 | $2,684,879 |
| Gross margin as a percent of revenue | 52.3% | 51.7% | 50.4% |
| Research and development | $666,398 | $642,922 | $576,446 |
| Selling, general and administrative | $348,728 | $322,330 | $279,345 |
| Total operating expenses | $1,015,126 | $965,252 | $855,791 |
| Operating income | $3,283,727 | $2,513,488 | $1,829,088 |
| Operating margin | 40.0% | 37.4% | 34.4% |
| Other income (expense), net | $28,493 | $41,654 | $30,074 |
| Income before income taxes | $3,312,220 | $2,555,142 | $1,859,162 |
| Income tax expense | $-559,082 | $-277,860 | $-290,502 |
| Net income | $2,753,138 | $2,277,282 | $1,568,660 |
| Net income per share: | |||
| Basic | $2.20 | $1.82 | $1.24 |
| Diluted | $2.19 | $1.81 | $1.24 |
| Number of shares used in per share calculation | Basic: 1,250,883 | 1,251,286 | 1,264,446 |
| Diluted: 1,255,768 | 1,256,032 | 1,269,313 | |
| Cash dividend declared per common share | $0.33 | $0.26 | $0.26 |
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