Bull of the Day: Lam Research (LRCX)

Lam Research Corp.LRCX recently beat again on earnings. This Zacks Rank #1 (Strong Buy) is expected to see double digit sales growth in Fiscal 2026 and Fiscal 2027.

Lam Research is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. It’s equipment and services allow customers to build smaller and better performing devices.

Lam Research Beat for the 14^th Consecutive Quarter

On Oct 22, 2025, Lam Research reported its results for the quarter ending Sep 28, 2025 (the “September quarter”) and beat on the Zacks Consensus Estimate by $0.05. Earnings were $1.26 versus the consensus of $1.21.

This was the 14^th consecutive earnings beat. Lam Research has only missed once in the last 5 years. That’s impressive.

Revenue jumped 27.6% to $5.32 billion from $4.17 billion a year ago.

The regions of revenue were China at 43%, Taiwan at 19%, Korea at 15%, Japan at 10%, United States at 6%, Southeast Asia at 5% and Europe at 2%.

Gross margin as percentage of revenue rose to 50.6% in the quarter from 48% last year.

Analysts Are Bullish on Lam Research’s Next Two Years

The analysts liked what they heard in the earnings report. 8 estimates were revised higher for fiscal 2026 in the last week.

The fiscal 2026 Zacks Consensus rose to $4.68 from $4.53 which is earnings growth of 13%.

4 estimates were revised higher in the last 7 days for fiscal 2027 pushing the Zacks Consensus up to $5.44 from $5.08. That’s earnings growth of 16.1%.

Here’s what it looks like on the price and consensus chart.

Shares of Lam Research Break Out to New Highs

Shares of Lam Research are red hot. They have hit a new all-time high in 2025, gaining another 18.2% in the last month. Year to date they’re up 109.4%.

Lam Research is not cheap, but you’re paying for the growth. It has a forward price-to-earnings (P/E) ratio of 32.4. A P/E over 20 is considered expensive.

However, revenue is expected to be up 11.9% in Fiscal 2026 and another 11.7% in Fiscal 2027.

It also pays a dividend, currently yielding 0.7%.

For investors looking for a red-hot technology stock with rising earnings estimates, Lam Research is one to keep on the short list.

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This article originally published on Zacks Investment Research (zacks.com).

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