Lam Research revenue rises 22% quarter on quarter as equipment sales jump
Key Facts
Lam Research reported a 22% quarter-on-quarter increase in revenue in its earnings release issued on October 21, 2026, as equipment sales expanded and earnings rose. Revenue totaled $8,219.418 million in the quarter ended September 27, 2026, compared with $6,722.238 million in the quarter ended June 28. The result exceeded the midpoint of the company's previous guidance for the period of $8.10 billion, plus or minus $400 million. Adjusted diluted earnings per share, a non-GAAP measure, rose to $2.20 from $1.82 in the June quarter. GAAP net income totaled $2,753.138 million, compared with $1,568.660 million in the September quarter a year earlier.
Equipment sales drove the quarterly increase in the company's revenue, according to the business breakdown in its financial statement. Revenue from this business totaled $5,732.907 million in the September quarter, compared with $4,249.848 million in the June quarter. By contrast, customer support and other revenue showed limited change, totaling $2,486.511 million against $2,472.390 million in the previous quarter. Archer linked the demand backdrop to artificial intelligence in the company's statement, saying: "With artificial intelligence driving increased demand for semiconductors and greater device complexity." Lam Research allocated $666.398 million to research and development during the September quarter. That compared with spending of $576.446 million in the same period a year earlier, alongside the expansion in the equipment business shown in the results.
The geographic revenue mix shifted between China and Taiwan compared with the previous quarter, according to the company's disclosures for the two periods. China accounted for 35% of total September-quarter revenue, leading the markets in the disclosed breakdown. Its share was 26% in the June quarter, according to the company's previous earnings release. In the opposite direction, Taiwan's share fell to 18% of September-quarter revenue from 27% in the June quarter. Korea accounted for 20% of revenue in the reported quarter, putting its share above Taiwan's and below China's during the same period.
The quarterly improvement extended to cash generated from operations, which totaled $3,497.652 million in the September quarter, compared with $1,457.228 million in the June quarter, according to the company's cash flow statement. During the reported period, Lam Research spent $1,024.965 million on share repurchases, including excise tax payments related to the purchases. It also paid cash dividends to shareholders of $325.402 million during the same quarter. Capital expenditure and intangible assets totaled $257.697 million. During the September quarter, the company thus combined higher operating cash generation than in the previous quarter with returns to shareholders through buybacks and dividends, alongside spending on assets.
For the quarter ending December 27, 2026, Lam Research expects revenue of $8.60 billion, according to the guidance in its earnings release. The company set a range of plus or minus $400 million around that level, which represents the midpoint of its sales forecast. It targets adjusted diluted earnings per share of $2.33, plus or minus $0.15. It also targets an adjusted operating margin of 40.5% in the December quarter. That estimate carries a range of plus or minus one percentage point as part of its profitability guidance for the coming period. Before the quarter ends, the company will hold its annual shareholders' meeting on November 3, 2026, at 9:30 a.m. Pacific Standard Time, according to its events calendar.