Lam Research Corp (LRCX) · Oct 21, 2026 · Earnings
Beat — Non-GAAP EPS $2.20 vs ~$2.18 consensus; revenue $8.22B vs ~$8.13B
Lam Research earnings topped published revenue and EPS expectations, with systems revenue surging and next-quarter guidance pointing higher.
Lam Research is a leading supplier of deposition, etch, and clean equipment used to manufacture advanced chips; it is expanding capacity and R&D to capture the AI-driven increase in semiconductor complexity and fab investment.
The quarter beat a high bar, but not by much. Non-GAAP EPS of $2.20 exceeded the published consensus of roughly $2.18, while revenue of $8.22 billion topped approximately $8.13 billion. The company delivered $8.22 billion of revenue and $2.20 of non-GAAP diluted EPS.
| Metric | September 2026 | June 2026 | Year-ago / expectation |
|---|---|---|---|
| Revenue | $8.22B | $6.72B | $8.13B consensus |
| Non-GAAP diluted EPS | $2.20 | $1.82 | $2.18 consensus |
| Non-GAAP gross margin | 52.4% | 52.0% | — |
| Non-GAAP operating margin | 40.2% | 38.4% | — |
| Systems revenue | $5.73B | $4.25B | $3.55B year ago |
| Customer support-related revenue and other | $2.49B | $2.47B | $1.78B year ago |
The important operating signal is the systems ramp, not the small EPS beat. Systems revenue rose about 35% sequentially, while customer-support revenue was essentially flat; that means the quarter’s acceleration came primarily from new equipment demand rather than the steadier installed-base business. The release also says, “With AI driving higher semiconductor demand and greater device complexity,” Lam’s investments are aimed at expanding its opportunity. 〔0〕
Profitability improved alongside the volume increase. Non-GAAP operating margin reached 40.2%, up from 38.4% in June, while gross margin edged up to 52.4%. Management’s next-quarter framework calls for approximately $8.60 billion of revenue, 52.5% gross margin, 40.5% operating margin, and $2.33 EPS at the midpoint—another sequential step up, although the filing does not provide a comparable published consensus for that forecast.
Cash generation gives the expansion story financial support. Operating cash flow jumped to $3.50 billion from $1.46 billion in the prior quarter, lifting cash and restricted cash to $7.45 billion. Lam also repurchased roughly $1.02 billion of stock and paid $325 million in dividends during the quarter, so the stronger balance sheet came despite continued capital returns.
Bottom line: This was a genuine but narrow earnings beat, with the more meaningful development being that equipment demand—not just services—accelerated sharply. The higher forward framework reinforces Lam’s AI-led upcycle, but the surprise versus expectations is modest rather than transformational.
December-quarter earnings report
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