Lam Research (NASDAQ:LRCX) Posts Earnings Results, Beats Expectations By $0.13 EPS

Lam Research (NASDAQ:LRCX) released its earnings results on Wednesday. The semiconductor company reported $1.82 EPS for the quarter, beating the consensus estimate of $1.69 by $0.13, FiscalAI reports. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The firm had revenue of $6.72 billion during the quarter, compared to analyst estimates of $6.66 billion. Lam Research updated its Q1 2027 guidance to 2.000-2.300 EPS.

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

• Record June-quarter performance: Revenue reached $6.72 billion, up 15% sequentially, while gross margin rose to 52%, operating margin to 38.4%, and EPS to a record $1.82. Lam also guided September-quarter revenue to $8.1 billion, representing more than 20% sequential growth.
• Lam raised its 2026 WFE outlook to the low-$150 billion range from $140 billion previously and expects a strong setup for 2027 as new fabs, AI-related capacity additions, and technology transitions drive demand.
• Memory was a major growth driver, with NAND revenue more than doubling sequentially on upgrades to 200-plus-layer devices, while DRAM spending remained strong across advanced nodes and HBM. Lam expects its NAND served available market per wafer to double by 500-plus-layer architectures.
• Advanced packaging revenue is now expected to grow more than 70% year over year, supported by HBM, chiplets, TSV etch, electroplating, and emerging panel-level packaging. Lam has already shipped large-format panel systems into development programs.
• China revenue declined to 26% of total revenue from 34% in the prior quarter, primarily because domestic customers reduced spending, although multinational customers in China grew. Management expects China WFE to remain flat to slightly up, while the tax rate is expected to rise into the mid-teens in September and beyond.

Lam Research Stock Down 6.4%

Shares of LRCX stock traded down $17.26 during trading hours on Wednesday, reaching $252.35. The company had a trading volume of 15,979,888 shares, compared to its average volume of 11,361,557. The company has a market capitalization of $315.58 billion, a P/E ratio of 47.61, a price-to-earnings-growth ratio of 1.73 and a beta of 1.80. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54. Lam Research has a twelve month low of $90.93 and a twelve month high of $438.50. The stock’s fifty day simple moving average is $341.94 and its 200 day simple moving average is $275.43.

Lam Research Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th were paid a $0.26 dividend. The ex-dividend date was Wednesday, June 17th. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.4%. Lam Research’s dividend payout ratio (DPR) is 19.62%.

Insider Buying and Selling

In other Lam Research news, SVP Neil J. Fernandes sold 18,170 shares of the company’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $255.14, for a total value of $4,635,893.80. Following the completion of the transaction, the senior vice president owned 66,129 shares in the company, valued at $16,872,153.06. This represents a 21.55% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of the stock in a transaction that occurred on Monday, July 13th. The shares were sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the completion of the sale, the director directly owned 87,142 shares of the company’s stock, valued at $29,192,570. This trade represents a 17.34% decrease in their position. 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. In the last ninety days, insiders have sold 98,611 shares of company stock valued at $32,250,190. Corporate insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Triumph Capital Management grew its stake in Lam Research by 22.5% during the 4th quarter. Triumph Capital Management now owns 245 shares of the semiconductor company’s stock valued at $42,000 after purchasing an additional 45 shares in the last quarter. Bank of Jackson Hole Trust raised its position in shares of Lam Research by 12.6% in the 4th quarter. Bank of Jackson Hole Trust now owns 428 shares of the semiconductor company’s stock valued at $73,000 after purchasing an additional 48 shares in the last quarter. Hoxton Planning & Management LLC boosted its stake in shares of Lam Research by 1.2% during the 4th quarter. Hoxton Planning & Management LLC now owns 4,452 shares of the semiconductor company’s stock valued at $762,000 after buying an additional 52 shares during the last quarter. Vermillion & White Wealth Management Group LLC boosted its stake in shares of Lam Research by 21.4% during the 4th quarter. Vermillion & White Wealth Management Group LLC now owns 374 shares of the semiconductor company’s stock valued at $64,000 after buying an additional 66 shares during the last quarter. Finally, FineMark National Bank & Trust grew its position in shares of Lam Research by 3.7% during the fourth quarter. FineMark National Bank & Trust now owns 1,992 shares of the semiconductor company’s stock worth $341,000 after buying an additional 72 shares in the last quarter. Hedge funds and other institutional investors own 84.61% of the company’s stock.

More Lam Research News

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

• Positive Sentiment: Upside guidance substantially exceeded expectations. Lam Research forecast fiscal first-quarter 2027 EPS of $2.00–$2.30 and revenue of $7.7 billion–$8.5 billion, compared with consensus estimates of $1.81 EPS and $7.0 billion revenue. Reuters article
• Positive Sentiment: Quarterly results beat analyst estimates. The company reported $1.82 in EPS versus the $1.69 consensus and $6.72 billion in revenue versus expectations of $6.66 billion. Lam also reported a 30.94% net margin and 66.21% return on equity. Lam Research financial results
• Positive Sentiment: AI-related demand remains the key growth catalyst. Management’s outlook reflects increased spending on AI data centers, advanced logic and memory, which is driving demand for Lam’s wafer-fabrication equipment. The stock had also benefited recently from expectations for strong semiconductor capital spending. Benzinga earnings article
• Neutral Sentiment: Market conditions may be offsetting company-specific strength. U.S. equity indexes were under pressure ahead of major technology results and a Federal Reserve briefing, potentially weighing on LRCX alongside broader semiconductor-sector volatility. U.S. market update
• Negative Sentiment: Investors may be taking profits after a substantial run-up. With LRCX trading at a high earnings multiple and having recently rallied on AI optimism, the strong results may have been largely anticipated, creating a “sell-the-news” reaction despite the guidance beat.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Jefferies Financial Group upped their price objective on shares of Lam Research from $285.00 to $315.00 and gave the company a “buy” rating in a research note on Thursday, April 23rd. Bank of America upped their price objective on Lam Research from $330.00 to $480.00 and gave the stock a “buy” rating in a report on Tuesday, June 23rd. Stifel Nicolaus lifted their target price on Lam Research from $325.00 to $425.00 and gave the company a “buy” rating in a report on Friday, July 10th. Citigroup reiterated a “buy” rating and issued a $450.00 target price (up from $315.00) on shares of Lam Research in a report on Wednesday, June 17th. Finally, Royal Bank Of Canada boosted their price target on Lam Research from $290.00 to $310.00 and gave the company an “outperform” rating in a research report on Thursday, April 23rd. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $363.37.

About Lam Research

Lam Research Corporation (NASDAQ: LRCX) is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam’s product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.