Lam Research Earnings Jump on AI Demand
Lam Research earnings had a record quarter and raised September guidance after management tied the outlook to AI chip demand that boosts WFE spending.
KEY TAKEAWAYS
- Lam posted record June quarter revenue of $6.7 billion and record non-GAAP EPS of $1.82.
- September quarter guidance implies $8.1 billion revenue midpoint and $2.15 EPS linked to AI spending.
- Management said AI infrastructure demand and a doubling in NAND revenue drove the upside.
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Lam Research Corporation (NASDAQ: LRCX) reported record earnings in its fiscal fourth quarter ended June 28, 2026, in a press release dated July 29, 2026. Management attributed the stronger results and a raised outlook for the September quarter to accelerating demand for AI chips.
Quarterly Results
Lam Research, based in Fremont, California, posted revenue of $6.72 billion for the June quarter. GAAP net income reached $2.28 billion, or $1.81 per diluted share. Gross profit was $3.48 billion, representing a 51.7% gross margin. Operating expenses totaled $965 million, resulting in a GAAP operating margin of 37.4%.
On a non-GAAP basis, diluted earnings per share (EPS) hit a record $1.82. Non-GAAP gross margin expanded to 52.0% from 49.9% in the prior quarter, while non-GAAP operating margin rose to 38.4% from 35.0%. Revenue grew about 30% year-over-year and 15.1% sequentially. Adjusted EPS increased 36.8% from the year-ago quarter.
For fiscal 2026, Lam reported revenue of $23.23 billion and net income of $7.27 billion, or $5.76 per share.
The company had previously guided June-quarter revenue around $6.6 billion with a $400 million range and non-GAAP EPS near $1.65 (± $0.15). Actual results exceeded those midpoints, with the non-GAAP operating margin surpassing the 36.5% implied in prior guidance.
Guidance and AI Demand
Lam forecast September-quarter revenue at $8.1 billion (± $400 million) and diluted non-GAAP EPS at $2.15 (± $0.15). Management expects gross margin near 52.0% and operating margin around 39.5%. The revenue midpoint is about 14–15% above consensus estimates, while the EPS midpoint exceeds expectations by roughly 17–18%.
Management linked the quarter’s results and outlook to AI infrastructure spending. Top-line growth was driven by a sequential doubling in NAND-related revenue, reflecting demand for storage used in AI systems. Non-volatile memory accounted for 23% of systems revenue, up from 12% in the prior quarter. The Customer Support Business Group also posted strong revenue, supported by upgrades, Reliant products, and Equipment Intelligence-enabled services.
CEO Tim Archer said, "Lam delivered record revenue, operating margin and earnings per share in the June quarter as AI-driven demand continues to reshape the semiconductor industry."
Earlier in 2026, Lam raised its calendar-year wafer fabrication equipment (WFE) market forecast to about $140 billion, citing upside potential as customers increase spending on AI-centric chips and related architectures. This outlook underpins the company’s optimistic near-term view for wafer fabrication equipment demand.
