June 2026 quarter
Filed Jul 29, 2026Lam Research reported record revenue, operating margin and earnings per share for the June 2026 quarter and guided September-quarter revenue to $8.10 Billion +/- $400 Million.
Revenue rose +15.1% Q/Q to $ 6,722,238, U.S. GAAP operating margin expanded + 240 bps to 37.4%, and U.S. GAAP diluted EPS increased +24.8% Q/Q to $ 1.81. September-quarter guidance calls for higher revenue, gross margin, operating margin and diluted EPS.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 6,722,238 (in thousands) | +15.1% | – |
| Cost of goods soldGAAP | $ 3,243,498 (in thousands) | – | – |
| Gross marginGAAP | $ 3,478,740 (in thousands) | – | – |
| Gross margin as a percent of revenueGAAP | 51.7 % | + 190 bps | – |
| Research and developmentGAAP | 642,922 (in thousands) | – | – |
| Selling, general and administrativeGAAP | 322,330 (in thousands) | – | – |
| Total operating expensesGAAP | $ 965,252 (in thousands) | – | – |
| Operating incomeGAAP | $ 2,513,488 (in thousands) | – | – |
| Operating marginGAAP | 37.4 % | + 240 bps | – |
| Other income (expense), netGAAP | 41,654 (in thousands) | – | – |
| Income before income taxesGAAP | 2,555,142 (in thousands) | – | – |
| Income tax expenseGAAP | (277,860) (in thousands) | – | – |
| Net incomeGAAP | $ 2,277,282 (in thousands) | – | – |
| Basic net income per shareGAAP | $ 1.82 | – | – |
| Diluted EPSGAAP | $ 1.81 | +24.8% | – |
| Non-GAAP gross marginnon-GAAP | $3.50 billion | – | – |
| Non-GAAP gross margin as a percent of revenuenon-GAAP | 52.0% | + 210 bps | – |
| Non-GAAP operating expensesnon-GAAP | $916.4 million | – | – |
| Non-GAAP operating marginnon-GAAP | 38.4% | + 340 bps | – |
| Non-GAAP net incomenon-GAAP | $2.28 billion | – | – |
| Non-GAAP diluted EPSnon-GAAP | $1.82 | +23.8% | – |
| Cash dividend declared per common shareGAAP | $ 0.26 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Systems revenueIncludes sales of new leading-edge equipment in deposition, etch and other wafer fabrication markets. | $ 4,249,848 (in thousands) | – | – |
| Customer support-related revenue and otherIncludes sales of customer service, spares, upgrades, and non-leading-edge equipment from the Reliant® product line. | 2,472,390 (in thousands) | – | – |
quarter ended September 27, 2026 outlook
- Revenue$8.10 Billion +/- $400 Million
- Gross margin52.0% +/- 1%
- NoteU.S. GAAP operating margin: 39.5% +/- 1%
- NoteNon-GAAP operating margin: 39.5% +/- 1%
- NoteU.S. GAAP net income per diluted share: $2.15 +/- $0.15
- NoteNon-GAAP net income per diluted share: $2.15 +/- $0.15
- NoteDiluted share count: 1.255 Billion
- NoteGross margin reconciling item: $ 2.7 Million
- NoteOperating margin reconciling item: $ 3.0 Million
- NoteNet income per diluted share reconciling items: $ 3.3 Million
Capital returns
- Cash dividend declared per common share: $ 0.26.
- Cash, cash equivalents, and restricted cash increased primarily from cash generated from operating activities, partially offset by cash deployed for capital return activities during the quarter.
What drove it
- Tim Archer cited AI-driven demand and rising semiconductor manufacturing complexity.
- The company said strategic investments and technology leadership are helping customers accelerate through rising manufacturing complexity.
- Systems revenue includes new leading-edge deposition, etch and other wafer fabrication equipment.
- Customer support-related revenue includes customer service, spares, upgrades and non-leading-edge Reliant® equipment.
- Revenue distribution was Taiwan 27%, China 26%, Korea 20%, Japan 9%, United States 9%, Southeast Asia 5%, and Europe 4%.
Concerns
- Trade regulations, export controls, tariffs, trade disputes and geopolitical tensions may inhibit sales.
- Supply chain cost increases, tariffs, export controls and other inflationary pressures have impacted and may continue to impact profitability.
- Supply chain disruptions, export controls or manufacturing capacity constraints may limit the ability to manufacture and sell products.
- Deferred revenue does not include shipments to customers in Japan until customer acceptance.
What to watch
- Delivery against September-quarter revenue guidance of $8.10 Billion +/- $400 Million.
- Whether gross margin sustains the guided 52.0% +/- 1% and operating margin reaches 39.5% +/- 1%.
- The progression of deferred revenue, which was $2.43 billion at June 28, 2026.
- The timing of customer acceptance for Japan shipments, for which estimated future revenue was approximately $490.2 million as of June 28, 2026.
- Effects of export controls, tariffs, geopolitical tensions, supply chain conditions and manufacturing capacity constraints.
Balance sheet and cash flow
- Cash, cash equivalents, and restricted cash balances: $5.60 billion at the end of the June 2026 quarter, compared to $4.77 billion at the end of the March 2026 quarter.
- Deferred revenue: $2.43 billion at the end of the June 2026 quarter, compared to $2.22 billion as of the end of the March 2026 quarter.
- Estimated future revenue from shipments to customers in Japan: approximately $490.2 million as of June 28, 2026, compared to $434.3 million as of March 29, 2026.
- Shipments to customers in Japan are classified as inventory at cost until customer acceptance because title does not transfer until customer acceptance.
Analysis
Lam reported record revenue, operating margin and earnings per share in the June 2026 quarter. U.S. GAAP revenue was $ 6,722,238 (in thousands), up +15.1% Q/Q from $ 5,841,488 (in thousands). U.S. GAAP diluted EPS was $ 1.81, up +24.8% Q/Q from $ 1.45, while non-GAAP diluted EPS was $1.82, up +23.8% Q/Q from $1.47. Management attributed the period to AI-driven demand and increasing semiconductor manufacturing complexity.
Margin performance improved sharply from the March quarter. U.S. GAAP gross margin reached 51.7 %, a + 190 bps Q/Q increase, and operating margin was 37.4 %, a + 240 bps Q/Q increase. Non-GAAP gross margin was 52.0%, up + 210 bps Q/Q, while non-GAAP operating margin was 38.4%, up + 340 bps Q/Q. Total U.S. GAAP operating expenses were $ 965,252 (in thousands), compared with $ 863,511 (in thousands) in the March quarter, while operating income rose to $ 2,513,488 (in thousands).
Systems revenue was $ 4,249,848 (in thousands), and customer support-related revenue and other was 2,472,390 (in thousands). Geographically, Taiwan represented 27% of revenue, China 26%, and Korea 20%. Deferred revenue increased to $2.43 billion from $2.22 billion, while estimated future revenue from Japan shipments rose to approximately $490.2 million from $434.3 million. Japan shipments remain inventory at cost until customer acceptance.
Liquidity increased, with cash, cash equivalents, and restricted cash reaching $5.60 billion from $4.77 billion. The company said cash generated from operating activities drove the increase, partially offset by capital return activity. The declared cash dividend was $ 0.26 per common share, unchanged from the March quarter.
For the September 2026 quarter, Lam guided revenue to $8.10 Billion +/- $400 Million, gross margin to 52.0% +/- 1%, operating margin to 39.5% +/- 1%, and diluted EPS to $2.15 +/- $0.15 on both a U.S. GAAP and non-GAAP basis. The outlook implies a further step-up from June-quarter reported revenue and margins, although the release identifies export controls, tariffs, geopolitical tensions, supply chain costs and manufacturing constraints as potential risks.
Management, verbatim
Lam delivered record revenue, operating margin and earnings per share in the June quarter as AI-driven demand continues to reshape the semiconductor industry.
Tim Archer, President and Chief Executive Officer
Our strategic investments and technology leadership are helping customers accelerate through rising manufacturing complexity, positioning Lam for a third consecutive year of outperformance in 2026.
Tim Archer, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter and prior-year percentage changes for cost of goods sold, gross-margin dollars, research and development, selling, general and administrative, total operating expenses, operating income, other income (expense), net, income before income taxes, income tax expense, net income, basic EPS, systems revenue, and customer support-related revenue and other were not printed.
- Year-over-year percentage changes for reported June-quarter metrics were not printed.
- Non-GAAP prior-year figures were not provided in the narrative non-GAAP financial results.
- Non-GAAP operating-income dollars were not printed.
- Operating cash flow was not provided in the supplied filing text.
- Free cash flow was not provided in the supplied filing text.
- Debt balances were not provided in the supplied filing text.
- Share-repurchase amounts were not provided in the supplied filing text.
- A tax-rate guidance figure was not provided.
- Operating-expense guidance was not provided.
- Previous-quarter outlook was not provided, so no comparison with prior guidance is available.
- The supplied filing text truncates the balance-sheet table after its heading.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.