September 2026 quarter
Filed Oct 21, 2026Lam Research Corporation Reports Financial Results for the Quarter Ended September 27, 2026
Revenue, gross margin, operating margin, net income, and diluted EPS all increased sequentially, while the Company guided to $8.60 Billion +/- $400 Million of revenue for the quarter ending December 27, 2026.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $8.22B | +22% | – |
| Gross marginGAAP | $4.30B | – | – |
| Gross margin as a percent of revenueGAAP | 52.3 % | + 60 bps | – |
| Research and developmentGAAP | 666,398 | – | – |
| Selling, general and administrativeGAAP | 348,728 | – | – |
| Total operating expensesGAAP | $1.02B | – | – |
| Operating incomeGAAP | $3.28B | – | – |
| Operating marginGAAP | 40.0 % | + 260 bps | – |
| Income before income taxesGAAP | 3,312,220 | – | – |
| Income tax expenseGAAP | (559,082) | – | – |
| Net incomeGAAP | $2.75B | – | – |
| Basic net income per shareGAAP | $ 2.20 | – | – |
| Diluted EPSGAAP | $ 2.19 | + 21% | – |
| Diluted shares used in per share calculationGAAP | 1,255,768 | – | – |
| Revenuenon-GAAP | $8.22B | +22% | – |
| Gross marginnon-GAAP | $4.31B | – | – |
| Gross margin as a percent of revenuenon-GAAP | 52.4 % | + 40 bps | – |
| Operating expensesnon-GAAP | $1.00B | – | – |
| Operating incomenon-GAAP | $3.30B | – | – |
| Operating marginnon-GAAP | 40.2 % | + 180 bps | – |
| Net incomenon-GAAP | $2.77B | – | – |
| Net income per diluted sharenon-GAAP | $ 2.20 | + 21% | – |
| Shares used in per share calculation - dilutednon-GAAP | 1,255,768 | – | – |
| Cash dividend declared per common shareGAAP | $ 0.33 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Systems revenueSystems revenue includes sales of new leading-edge equipment in deposition, etch, clean, and other wafer fabrication markets. | $5.73B | – | – |
| Customer support-related revenue and otherCustomer support-related revenue includes sales of customer services, spares, upgrades, and non-leading-edge equipment from our Reliant® product line. | 2.49B | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
quarter ending December 27, 2026 outlook
- Revenue$8.60 Billion +/- $400 Million
- Gross margin52.5% +/- 1%
- NoteU.S. GAAP operating margin: 40.5% +/- 1%
- NoteNon-GAAP operating margin: 40.5% +/- 1%
- NoteU.S. GAAP net income per diluted share: $2.33 +/- $0.15
- NoteNon-GAAP net income per diluted share: $2.33 +/- $0.15
- NoteU.S. GAAP diluted share count: 1.253 Billion
- NoteNon-GAAP diluted share count: 1.253 Billion
- NoteU.S. GAAP reconciling item for gross margin: $ 2.7 Million
- NoteU.S. GAAP reconciling item for operating margin: $ 3.0 Million
- NoteU.S. GAAP reconciling item for net income per diluted share: $ 3.3 Million
Capital returns
- Treasury stock purchases, including excise tax payments: (1,024,965)
- Dividends paid: (325,402)
- Cash dividend declared per common share: $ 0.33
- Common shares issued and outstanding were 1,249,145 as of September 27, 2026.
What drove it
- AI driving higher semiconductor demand and greater device complexity.
- Management cited operational execution.
- Management cited strategic investments in technology inflections and manufacturing capacity.
- China represented 35% of September 2026 quarter revenue, followed by Korea at 20%, Taiwan at 18%, Japan at 9%, United States at 8%, Southeast Asia at 6%, and Europe at 4%.
Concerns
- The Company stated that actual results will vary from its guidance model and that variations may be material.
- Deferred revenue does not include shipments to customers in Japan, for which control does not transfer until customer acceptance.
- The estimated future revenue from shipments to customers in Japan was approximately $468.3 million as of September 27, 2026, compared to $490.2 million as of June 28, 2026.
- The Company identified risks related to wafer fabrication equipment spending, customer investment levels, product and geographic mix, trade regulations, export controls, tariffs, supply chain costs, and manufacturing capacity constraints.
What to watch
- Revenue against guidance of $8.60 Billion +/- $400 Million for the quarter ending December 27, 2026.
- Gross margin against guidance of 52.5% +/- 1%.
- Operating margin against guidance of 40.5% +/- 1%.
- Net income per diluted share against guidance of $2.33 +/- $0.15.
- Systems revenue and customer support-related revenue and other.
- Deferred revenue and the timing of customer acceptance for shipments to customers in Japan.
Balance sheet and cash flow
- Cash, cash equivalents, and restricted cash at end of period: $ 7,450,890
- Cash and cash equivalents: $ 7,437,384
- Cash, cash equivalents, and restricted cash at end of period for June 28, 2026: $ 5,597,943
- Deferred revenue: $2.66 billion
- Deferred revenue as of the end of the June 2026 quarter: $2.43 billion
- Estimated future revenue from shipments to customers in Japan: approximately $468.3 million as of September 27, 2026
- Current portion of long-term debt and finance lease obligations: $ 3,486
- Long-term debt and finance lease obligations: 3,731,958
- Net cash provided by operating activities: 3,497,652
- Capital expenditures and intangible assets: (257,697)
- Net cash used for investing activities: (266,989)
- Principal payments on debt, including finance lease obligations and payments for debt issuance costs: (34,489)
- Net cash used for financing activities: (1,382,379)
- Net change in cash, cash equivalents, and restricted cash: 1,852,947
Analysis
Lam reported record revenue, profit, and earnings per share for the September 2026 quarter. U.S. GAAP revenue was $8.22 billion, compared with $6.72 billion in the June 2026 quarter, with the Company reporting a +22% Q/Q change. U.S. GAAP net income was $2.75 billion and diluted EPS was $2.19, compared with $2.28 billion and $1.81, respectively, in the prior quarter. Non-GAAP net income was $2.77 billion and non-GAAP diluted EPS was $2.20, compared with $2.28 billion and $1.82 in the June 2026 quarter.
Margins expanded sequentially despite higher spending. U.S. GAAP gross margin was 52.3%, up + 60 bps Q/Q, while U.S. GAAP operating margin was 40.0%, up + 260 bps Q/Q. Non-GAAP gross margin was 52.4%, up + 40 bps Q/Q, and non-GAAP operating margin was 40.2%, up + 180 bps Q/Q. U.S. GAAP total operating expenses were $1.02 billion, compared with $965.3 million in the June 2026 quarter, while non-GAAP operating expenses were $1.00 billion, compared with $916.4 million.
The revenue mix showed a substantial sequential increase in systems revenue to $ 5,732,907 from $ 4,249,848, while customer support-related revenue and other was 2,486,511 compared with 2,472,390. China accounted for 35% of revenue, the largest reported geographic share, followed by Korea at 20% and Taiwan at 18%. Management attributed the period to AI-driven semiconductor demand, device complexity, operational execution, and investments in technology inflections and manufacturing capacity.
Cash generation increased liquidity while supporting capital deployment. Net cash provided by operating activities was 3,497,652 and capital expenditures and intangible assets were (257,697). Cash, cash equivalents, and restricted cash ended the quarter at $ 7,450,890. The Company made treasury stock purchases, including excise tax payments, of (1,024,965), paid dividends of (325,402), and declared a $ 0.33 cash dividend per common share.
For the quarter ending December 27, 2026, Lam guided to revenue of $8.60 Billion +/- $400 Million, gross margin of 52.5% +/- 1%, operating margin of 40.5% +/- 1%, net income per diluted share of $2.33 +/- $0.15, and diluted share count of 1.253 Billion on both a U.S. GAAP and non-GAAP basis. The guide calls for a further step-up from the September 2026 quarter's $8.22 billion of revenue, while gross-margin and operating-margin guide ranges encompass the September 2026 quarter's reported margins.
Management, verbatim
With AI driving higher semiconductor demand and greater device complexity, our focus on operational execution helped Lam deliver record revenue, profit, and earnings per share in the September quarter.
Tim Archer, Lam Research's President and Chief Executive Officer
Our strategic investments in technology inflections and manufacturing capacity are paying off, strengthening our ability to outgrow the wafer fabrication equipment market as the industry expands.
Tim Archer, Lam Research's President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior outlook was not provided, so no comparison of actual results versus prior guidance is available.
- Free cash flow was not reported.
- Year-over-year percentage changes were not reported for revenue, profitability, segment revenue, cash flow, or balance-sheet metrics.
- Operating expenses guidance was not provided.
- Tax rate guidance was not provided.
- A total debt figure was not reported as a single line item.
Written by an AI language model 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 checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.