Lam Research forecasts $8.60 billion in revenue as supply constraints curb guidance
Key Facts
Lam Research management said supply chain constraints curbed its outlook for the December 2026 quarter as it reported revenue of $8.22 billion for the quarter ended in September, according to the company's earnings release and Investing.com's coverage of its earnings call. The company set the midpoint of its revenue guidance for the quarter ending in December at $8.60 billion, above revenue recorded in the September quarter. Management said the December outlook would have been higher without those constraints, according to the website. The company reported adjusted diluted earnings per share of $2.20 for the September quarter on a non-GAAP basis. The results and guidance came as Chief Executive Tim Archer said artificial intelligence was "driving semiconductor demand higher."
Challenges in meeting demand had also emerged in Marvell Technology's previous quarterly filing, in which it acknowledged the impact of supply difficulties on some of its products. The company said in the filing: "These supply challenges limited our ability to fully meet demand for some of our products." In markets, Reuters reported on Monday, October 19, 2026, that the Philadelphia Semiconductor Index had lost more than 11% over the previous week. Losses in the Friday, October 16 session included a 6% decline in AMD shares, a 4.5% drop in Broadcom and a 5.8% fall in Intel, according to the Associated Press. Marvell Technology and Lam Research shares then fell more than 2% in premarket trading on Tuesday, October 20, according to Investing.com.
Looking ahead, Lam Research's December-quarter guidance combines an expected increase in revenue from the September quarter with the impact of supply constraints cited by management. The projected quarterly revenue measures the company's own business, while its preliminary estimate for 2027 extends to industry-wide spending on chipmaking equipment. The company initially forecast that such spending would exceed $200 billion in 2027, according to Investing.com's coverage of its earnings call. That estimate comes alongside Archer's description of artificial intelligence as a driver of increased semiconductor demand. The nearer-term horizon for the company's business is the December 2026 quarter, for which it set the midpoint of its revenue guidance at $8.60 billion.