European Investor
22 Oct 2026, 15:14
Lam Research Posts Record Q3 Revenue and Earnings as AI Demand Drives Semiconductor Equipment Growth
Lam Research (NASDAQ: LRCX) reported record results for the September 2026 quarter, with revenue, profit and earnings per share all reaching new highs as AI-driven semiconductor demand continued to support advanced wafer fabrication equipment spending.
Revenue rose to $8.22 billion, up 22% from $6.72 billion in the June quarter. GAAP net income increased to $2.75 billion from $2.28 billion, while diluted EPS climbed 21% sequentially to $2.19. On a non-GAAP basis, EPS was $2.20, also up 21%.
Profitability strengthened alongside revenue growth. GAAP gross margin improved 60 basis points sequentially to 52.3%, while operating margin expanded 260 basis points to 40.0%. Non-GAAP operating margin reached 40.2%, up from 38.4% in the prior quarter.
Systems revenue was especially strong, rising to $5.73 billion from $4.25 billion in June and $3.55 billion a year earlier. Customer support-related revenue was $2.49 billion, roughly flat sequentially but well above the $1.78 billion reported a year ago. China remained Lam’s largest geographic market at 35% of quarterly revenue, followed by Korea at 20% and Taiwan at 18%.
Management said AI is driving both higher semiconductor demand and greater device complexity, benefiting Lam’s deposition, etch and clean technologies. CEO Tim Archer said the company’s investments in technology transitions and manufacturing capacity are strengthening its ability to grow faster than the broader wafer fabrication equipment market.
Cash and restricted cash increased to $7.45 billion from $5.60 billion in the June quarter, while deferred revenue rose to $2.66 billion from $2.43 billion, providing additional visibility into future sales.
For the December quarter, Lam expects revenue of $8.60 billion, plus or minus $400 million, gross margin of about 52.5%, operating margin of approximately 40.5%, and diluted EPS of $2.33, plus or minus $0.15.
Overall, the quarter points to continued strong momentum in semiconductor capital spending, with AI-related investment driving rapid systems growth, expanding margins and a further increase in expected December-quarter revenue.
Lam Research (NASDAQ: LRCX) reported record results for the September 2026 quarter, with revenue, profit and earnings per share all reaching new highs as AI-driven semiconductor demand continued to support advanced wafer fabrication equipment spending.
Revenue rose to $8.22 billion, up 22% from $6.72 billion in the June quarter. GAAP net income increased to $2.75 billion from $2.28 billion, while diluted EPS climbed 21% sequentially to $2.19. On a non-GAAP basis, EPS was $2.20, also up 21%.
Profitability strengthened alongside revenue growth. GAAP gross margin improved 60 basis points sequentially to 52.3%, while operating margin expanded 260 basis points to 40.0%. Non-GAAP operating margin reached 40.2%, up from 38.4% in the prior quarter.
Systems revenue was especially strong, rising to $5.73 billion from $4.25 billion in June and $3.55 billion a year earlier. Customer support-related revenue was $2.49 billion, roughly flat sequentially but well above the $1.78 billion reported a year ago. China remained Lam’s largest geographic market at 35% of quarterly revenue, followed by Korea at 20% and Taiwan at 18%.
Management said AI is driving both higher semiconductor demand and greater device complexity, benefiting Lam’s deposition, etch and clean technologies. CEO Tim Archer said the company’s investments in technology transitions and manufacturing capacity are strengthening its ability to grow faster than the broader wafer fabrication equipment market.
Cash and restricted cash increased to $7.45 billion from $5.60 billion in the June quarter, while deferred revenue rose to $2.66 billion from $2.43 billion, providing additional visibility into future sales.
For the December quarter, Lam expects revenue of $8.60 billion, plus or minus $400 million, gross margin of about 52.5%, operating margin of approximately 40.5%, and diluted EPS of $2.33, plus or minus $0.15.
Overall, the quarter points to continued strong momentum in semiconductor capital spending, with AI-related investment driving rapid systems growth, expanding margins and a further increase in expected December-quarter revenue.
