Lam Research (NASDAQ:LRCX) Posts Earnings Results

Lam Research (NASDAQ:LRCX) posted its earnings results on Wednesday. The semiconductor company reported $2.20 earnings per share for the quarter, topping analysts’ consensus estimates of $2.18 by $0.02, Zacks reports. Lam Research had a return on equity of 76.78% and a net margin of 32.34%. The firm had revenue of $8.22 billion for the quarter, compared to the consensus estimate of $8.14 billion. During the same quarter in the prior year, the business earned $1.26 EPS. The business’s revenue for the quarter was up 54.4% on a year-over-year basis.

Here are the key takeaways from Lam Research’s conference call:

• Lam reported record September-quarter results, with revenue up 54% year over year to $8.22 billion, gross margin of 52.4%, operating margin above 40% for the first time, and record non-GAAP EPS of $2.20.
• Management expects a strong multiyear semiconductor investment cycle, forecasting 2026 WFE in the mid-$150 billion range and preliminary 2027 WFE above $200 billion. Lam expects to outperform WFE for a third consecutive year as deposition, etch, and advanced-packaging intensity increases.
• Product momentum remains broad, including higher Aether revenue expectations of approximately $2.5 billion cumulatively by 2030, new wins in backside power and advanced packaging, and growing opportunities in NAND storage tiers such as SLC. CSBG revenue is expected to grow more than 30% in 2026 and over 15% in 2027.
• Near-term supply-chain constraints limited the December-quarter outlook; management said revenue guidance of $8.6 billion could have been higher and expects some delayed shipments to move into March. Clean-room availability and component constraints may continue to restrict industry growth in 2027.
• China represented an unusually high 35% of September-quarter revenue, but management expects its contribution to be meaningfully lower in December, primarily because of weaker domestic-customer spending. The company also expects its non-GAAP tax rate to remain elevated at roughly 16.5% versus 11% in the prior quarter.

Lam Research Stock Down 11.8%

NASDAQ LRCX opened at $230.15 on Friday. The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.30. Lam Research has a 12 month low of $135.50 and a 12 month high of $438.50. The stock’s 50 day moving average is $303.94 and its 200 day moving average is $309.88. The stock has a market cap of $288.01 billion, a PE ratio of 39.96, a P/E/G ratio of 0.95 and a beta of 1.85.

Lam Research Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd were issued a $0.33 dividend. The ex-dividend date of this dividend was Wednesday, September 23rd. This represents a $1.32 dividend on an annualized basis and a yield of 0.6%. This is a boost from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s payout ratio is presently 22.92%.

More Lam Research News

Here are the key news stories impacting Lam Research this week:

• Positive Sentiment: Lam Research reported record fiscal Q1 2027 revenue of $8.22 billion, up 54.4% year over year, and adjusted EPS of $2.20, narrowly beating analyst estimates. Operating margin exceeded 40% for the first time, supported by strong systems sales, NAND demand and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains
• Positive Sentiment: Management expects wafer-fabrication-equipment spending to exceed $200 billion in 2027, driven by artificial-intelligence infrastructure, memory upgrades and advanced chip manufacturing. Longer-term growth opportunities include expanding Aether dry-resist revenue and more than 30% annual growth in the Customer Support Business Group. LRCX Q1 Earnings Call Highlights $200B-Plus WFE Outlook for 2027
• Neutral Sentiment: Analysts remain broadly constructive on Lam Research’s long-term AI and semiconductor-cycle exposure, but several firms lowered price targets after the earnings call, reflecting increased near-term execution risk. Lam Research: Street trims target on supply headwinds but bullish long term
• Negative Sentiment: Component shortages, supply-chain bottlenecks and limited cleanroom capacity are restricting shipments and could limit the company’s ability to meet demand through 2027. December-quarter revenue guidance of approximately $8.6 billion was viewed as cautious despite being near consensus. Lam Research retreats amid cautious guidance and China revenue drop
• Negative Sentiment: Investors also expect China’s contribution to decline substantially from 35% of September-quarter revenue, adding geopolitical and regional-demand pressure. The warning triggered a broader semiconductor sell-off, weighing on related equipment stocks and amplifying LRCX’s decline. LRCX Stock Tumbles Overnight Despite Record Profits

Insider Activity at Lam Research

In other Lam Research news, Director Bethany Mayer sold 9,557 shares of the stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total transaction of $3,007,970.18. Following the completion of the transaction, the director owned 20,995 shares in the company, valued at $6,607,966.30. This trade represents a 31.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Ava Harter sold 5,000 shares of Lam Research stock in a transaction on Monday, August 31st. The stock was sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the completion of the transaction, the insider directly owned 42,462 shares of the company’s stock, valued at $12,843,056.52. The trade was a 10.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.31% of the company’s stock.

Wall Street Analysts Forecast Growth

LRCX has been the topic of several research reports. Zacks Research upgraded Lam Research from a “hold” rating to a “strong-buy” rating in a research report on Friday, July 17th. Berenberg Bank set a $420.00 price objective on Lam Research in a report on Wednesday, September 9th. B. Riley Financial raised their price objective on Lam Research from $350.00 to $390.00 and gave the company a “buy” rating in a research report on Thursday, October 1st. Weiss Ratings cut shares of Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, September 4th. Finally, Wells Fargo & Company restated an “overweight” rating and set a $350.00 target price (down from $450.00) on shares of Lam Research in a report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $354.55.

Lam Research Company Profile

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company’s product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.