Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Lam Research's fiscal 2026 results were defined by surging demand from foundry customers, fueled by AI infrastructure buildout. Systems revenue, particularly from the foundry segment, drove overall growth, with the foundry share of equipment and upgrade revenue jumping from 45% to 54%. Gross margin benefited from favorable customer mix, though partly offset by tariffs, while the company returned substantial capital to shareholders, leading to a decrease in cash balances.
Revenue
$23.23B
+26.02% YoY
EPS (Diluted)
$5.76
+38.80% YoY
Gross Margin
50.5%
+1.8 pts YoY
Operating Income
$8.2B
+38.96% YoY
Filed · Source: SEC EDGAR 10-K filing · Audit Opinion: Unqualified (Source: Report of Independent Registered Public Accounting Firm)
Next LRCX earnings expected
Source: SEC XBRL
Lam Research (LRCX) reported FY2026 revenue of $23.23B, up 26.0% year over year. Operating margin was 35.3%, up 3.3 points from 32.0% a year earlier. Operating cash flow was $5.86B, down 5.1% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.82 | 1.72 | Beat +6.0% |
| Mar 2026 | 1.46 | 1.39 | Beat +4.9% |
| Dec 2025 | 1.27 | 1.19 | Beat +6.4% |
| Sep 2025 | 1.26 | 1.25 | Beat +1.1% |
Reported EPS of $1.82 versus the $1.72 analyst consensus — a +6.0% beat for Jun 2026.
Compiled by AI from 10-K Item 7 of this filing
The foundry market share of leading- and non-leading-edge equipment and upgrade revenue rose from 45% to 54% in fiscal 2026, driven by mature node spending and leading-edge investments.
Source: 10-K Item 7 MD&A
Gross margin as a percentage of revenue increased 180 basis points to 50.5%, primarily due to favorable customer mix, partially offset by aluminum and steel tariff-related spend.
Source: 10-K Item 7 MD&A
Total operating expenses increased 14.5%, largely from employee-related costs due to increased headcount, with R&D up 13.3% and SG&A up 17.1%.
Source: 10-K Item 7 MD&A
$750.0 million of Senior Notes were repaid upon maturity in March 2026, and the commercial paper program capacity was increased to $2.0 billion to support capital allocation.
Source: 10-K Item 7 MD&A
Deferred revenue decreased to $2.43 billion from $2.68 billion, primarily due to a decrease in customer down payments, partially offset by higher earned system credits.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 3 high, 2 medium, 0 low
Lam must continually develop new products and processes to keep pace with semiconductor scaling, AI, and 3D architecture inflection. Failure to deliver timely and competitive solutions could lead to lost market share and obsolete inventory.
Source: 10-K Item 1A
A limited number of key customers account for a significant portion of revenue, making the company vulnerable to individual customer investment decisions, pricing pressure, and credit risk.
Source: 10-K Item 1A
Competitors include large multinationals and emerging regional players backed by foreign governments, some with greater financial resources. Customers may standardize on rival equipment, eroding Lam's market position.
Source: 10-K Item 1A
Lam relies on complex IT systems and holds sensitive intellectual property and customer data. Cyberattacks, including state-sponsored intrusions, could disrupt operations, compromise data, and damage reputation.
Source: 10-K Item 1A
Rapid shifts in semiconductor capital spending, especially from AI, require Lam to scale operations and allocate resources effectively. Misjudging demand trends can result in excess fixed costs or insufficient capacity, harming margins and market standing.
Source: 10-K Item 1A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 23.23 $B | 18.44 $B | +26.02% |
Cost of Revenue $B | 11.51 $B | 9.46 $B | +21.69% |
Gross Profit $B | 11.73 $B | 8.98 $B | +30.59% |
Operating Income $B | 8.20 $B | 5.90 $B | +38.96% |
Net Income $B | 7.27 $B | 5.36 $B | +35.59% |
EPS (Basic) $ | 5.79 $ | 4.17 $ | +38.85% |
EPS (Diluted) $ | 5.76 $ | 4.15 $ | +38.80% |
R&D Expense $B | 2.38 $B | 2.10 $B | +13.33% |
SG&A Expense $B | 1.15 $B | 0.98 $B | +17.11% |
Answers draw on this SEC filing and the data on this page
LRCX reported strong financial performance in Q3 FY2026, with significant growth in revenue, net income, and EPS driven by operational efficiency and increased market demand.
LRCX reported strong financial performance in Q2 FY2026 with significant growth in revenue, net income, and operating cash flow, driven by increased demand and operational efficiency.
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