Lam Research Earnings Show Record Quarter and Strong Margins
Lam Research earnings posted records and strong margins; guidance and preliminary 2027 WFE outlook point to sustained AI-led capex and sector reweighting.
KEY TAKEAWAYS
- Reported record revenue of $8.2 billion and a 40.0% GAAP operating margin.
- Guided December-quarter revenue at $8.6 billion ± $0.4 billion and non-GAAP EPS $2.33 ± $0.15.
- Preliminary 2027 WFE outlook exceeded $200 billion and signaled a multiyear AI-led capex cycle.
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Lam Research earnings for the quarter ended September 27, 2026, showed record revenue and operating profit. Management’s December-quarter guidance and a preliminary 2027 industry forecast signaled continued AI-related semiconductor investment and elevated capital spending.
Record Quarter Results
The company reported $8.22 billion in revenue for the September 2026 quarter, with GAAP diluted earnings per share of $2.19 and non-GAAP diluted EPS of $2.20, according to its October 21 release. GAAP operating margin reached 40.0%, exceeding 40% for the first time, as management noted on the earnings call. Operating cash flow was about $3.5 billion for the period.
Systems revenue rose sharply to $5.73 billion, up from $4.25 billion in the prior quarter. The company described revenue, profitability, and EPS as records.
Guidance and Industry Outlook
For the December quarter, Lam Research guided revenue of $8.60 billion, plus or minus $400 million, and non-GAAP diluted EPS of $2.33, plus or minus $0.15, based on an expected diluted share count of about 1.253 billion shares. Non-GAAP gross-margin guidance was 52.5% plus or minus 1 percentage point, with non-GAAP operating-margin guidance at 40.5% plus or minus 1 percentage point.
Management expects calendar 2026 systems revenue to grow well over 40% year over year. The preliminary 2027 wafer-fabrication-equipment (WFE) outlook projects more than $200 billion in industry spending, with growth led by DRAM, followed by leading-edge foundry logic and NAND. Calendar 2026 WFE is expected in the mid-$150 billion range.
The outlook reflects AI-related semiconductor demand, a multiyear investment cycle, increased manufacturing complexity, new materials, advanced packaging, and higher deposition and etch intensity.
Timing and Filings
Lam Research distributed its financial-results release via PR Newswire on October 21, 2026, at 16:05 ET and filed a Form 8-K with the SEC under Item 2.02 and Item 9.01 at 16:13:03 ET the same day. The filing is available on the SEC docket.
