Lam Research posts $2.75 billion profit, shares fall after hours
Key Facts
Lam Research reported U.S. GAAP net income of $2.75 billion for the quarter ended September 27, 2026, as sales rose and results exceeded analysts' expectations. The profit announced in the company's October 21 statement was higher than the $2.28 billion in net income recorded in the previous quarter ended June 28, 2026. Revenue for the September quarter totaled $8.22 billion, up 22% from the June quarter, according to the company's financial disclosure. That exceeded analysts' pre-earnings forecast of $8.13 billion, according to Investing.com. Adjusted diluted earnings per share came in at $2.20, compared with analysts' expectations of $2.18 for the same period. The company's non-GAAP operating margin was 40.2% in the September quarter.
Providing details on its financial position and geographic sales breakdown, Lam Research said cash, cash equivalents and restricted cash rose to $7.45 billion at the end of the September quarter. China accounted for 35% of revenue during the same quarter, according to the geographic breakdown in the earnings statement. Lam Research shares closed the October 21, 2026 session at $260.81, according to EL7 data. The stock then fell 6.25% in after-hours trading to $244.50 following the earnings release, according to a report published by Investing.com. The decline came after both revenue and adjusted earnings per share beat analysts' estimates for the quarter, while management outlined constraints on the industry's ability to meet demand during the earnings call.
Chief Executive Tim Archer said in the earnings statement that "artificial intelligence is driving semiconductor demand higher and increasing design complexity." On the earnings call, Archer explained that the availability of cleanroom space and supply-chain constraints affecting certain components were limiting the ability to meet demand. He added, according to a transcript of his remarks published by Benzinga, that these constraints affected both chipmakers and equipment manufacturers and would continue to have an impact heading into next year. As part of its logistics expansion, Lam Research announced on September 29, 2026 the opening of its largest warehouse in the United States, spanning 470,000 square feet. The company described the facility as a logistics and supply-chain hub, part of an expansion of the infrastructure supporting its operations. In research and development, the company had announced in August 2026 that construction had begun on a new laboratory in Oregon. The laboratory is part of a planned investment of more than $3 billion in its global laboratory network over the 5 years following the August announcement, according to the company's statement on the project.
For the quarter ending December 27, 2026, Lam Research expects revenue of $8.60 billion at the midpoint of its guidance range, according to the financial outlook in the earnings statement. The company set a range of plus or minus $400 million around that level for quarterly revenue. It also set the midpoint of its diluted earnings per share guidance at $2.33 on both a U.S. GAAP and an adjusted basis. The earnings per share guidance carries a range of plus or minus $0.15, according to the same December-quarter outlook. For calendar 2026, Archer said on the earnings call that management expected systems revenue to grow "well above 40% year on year," including the midpoint of the December-quarter guidance.