EL7.AI
StocksMedium•22 October 2026•
2 min read

Lam Research shares fall 8.4% premarket despite 22% revenue growth

Key Facts

1Lam Research shares fell 8.4% before the opening of trading on October 22, 2026, according to Investing.com.
2Lam Research's September-quarter revenue reached $8.22 billion.
3Revenue rose 22% from the previous quarter.
4The company forecast December-quarter revenue at a midpoint of $8.60 billion, plus or minus $400 million.
5China accounted for 35% of the company's revenue in the September quarter.

Lam Research shares fell 8.4% in premarket U.S. trading on October 22, 2026, according to Investing.com, after the company reported higher revenue while management flagged supply constraints affecting shipments and its outlook. The company said in its earnings release that revenue for the quarter ended September 2026 reached $8.22 billion. That represented growth of 22% from the preceding June quarter, as management linked artificial intelligence to rising semiconductor demand. Adjusted diluted earnings per share were $2.20 in the September quarter, according to the company's release. The adjusted operating margin reached 40.2% in the same period, with both that margin and adjusted earnings per share based on non-GAAP measures.

Chief Executive Tim Archer said in the company's statement that "artificial intelligence is driving semiconductor demand higher and increasing device complexity." In the geographic sales breakdown, China accounted for 35% of Lam Research's revenue in the September quarter, according to the official release. The stock's decline came against a backdrop of sustained losses in the chip sector, with Investing.com reporting on October 22 that the Philadelphia Semiconductor Index had fallen for 8 consecutive sessions, its longest losing streak since October 2008. On the stock's valuation, BofA Securities cut its price target for Lam Research to $345 from $385, according to a report published by the website the same day. The firm nevertheless maintained its buy rating despite lowering the price target.

For the quarter ending December 27, 2026, Lam Research set the midpoint of its revenue forecast at $8.60 billion, plus or minus $400 million, according to its statement. That midpoint is slightly above analysts' consensus of $8.54 billion for the second quarter of fiscal 2027, according to Investing.com. Management said the December-quarter revenue forecast would have been higher without supply chain constraints, according to the website's coverage of the earnings call. The company also forecast adjusted diluted earnings per share of $2.33 for the December quarter, plus or minus $0.15, according to the official release. Component shortages are also affecting delivery timing, with Investing.com citing the chief financial officer as saying some shipments had been pushed into the following March quarter.