Lam Research (NASDAQ:LRCX) reported record quarterly revenue and earnings on Wednesday as continued investment in artificial intelligence supported strong demand for semiconductor manufacturing equipment. The company also issued an upbeat outlook for the current quarter, sending its shares sharply higher in premarket trading.
The stock climbed more than 7% before Thursday’s opening bell following the earnings announcement.
Record Financial Performance Driven by AI Demand
For the quarter ended June 28, Lam Research generated record revenue of $6.72 billion, an increase of 15.1% from the previous quarter.
U.S. GAAP net income rose to $2.28 billion, or $1.81 per diluted share, compared with $1.83 billion, or $1.45 per diluted share, in the March quarter.
Profitability also improved, with gross margin increasing to 51.7% from 49.8%, while operating margin expanded to 37.4% from 35.0%.
Analysts Highlight Long-Term Growth Opportunities
Bernstein analyst Stacy Rasgon described the results as one of the company’s strongest performances to date.
“This was about as good of a print from the company as we have ever seen, and things appear only getting better from here,” Bernstein analyst Stacy Rasgon said in a note.
“As strong as this year is it remains cleanroom-constrained, limits that should begin to free up into 2027/28 allowing Lam to further benefit as spending levels move higher, with favorable exposure to key inflections (GAA, packaging, HBM, NAND upgrades and greenfield builds. etc.) and growing success at capturing more value from them,” he added.
Company Raises Outlook Following Record Quarter
Chief Executive Tim Archer said the June quarter delivered record revenue, operating margin and earnings per share, adding that ongoing investment in artificial intelligence continues to reshape semiconductor manufacturing.
He noted that Lam’s technology investments are enabling customers to manage increasingly complex production requirements while positioning the company for a third consecutive year of outperforming the broader wafer fabrication equipment market in 2026.
For the September quarter, Lam expects revenue of approximately $8.10 billion, with a variance of plus or minus $400 million.
The company also forecast a gross margin of around 52.0%, an operating margin of roughly 39.5% and diluted earnings per share of approximately $2.15, plus or minus $0.15.
Balance Sheet Continues to Strengthen
Cash, cash equivalents and restricted cash increased to $5.60 billion at the end of the June quarter, up from $4.77 billion three months earlier.
Deferred revenue also rose to $2.43 billion from $2.22 billion, reflecting continued order growth.
By geography, Taiwan generated 27% of quarterly revenue, followed by China at 26% and South Korea at 20%.
Lam Research Corp stock price
