Fremont-based Lam Research reported record revenue of $8.22 billion for the quarter ended Sept. 27, 2026, up 22% from $6.72 billion the quarter before, with net income of $2.75 billion, or $2.19 a share, the company said on Wednesday, Oct. 21.
Why it matters: Lam says nearly every advanced chip is built with its technology, so its results are a read on the AI chip boom. Its stock still fell as much as 11% on Thursday, Yahoo Finance reported.
By the numbers
- Revenue: $8.22 billion, vs. $5.32 billion a year earlier.
- Earnings: $2.19 a share (GAAP); $2.20 adjusted. The AP said analysts surveyed by Zacks expected $2.17 and $8.14 billion in revenue.
- Gross margin: 52.3%; operating margin 40.0%.
- Cash: $7.45 billion, up from $5.60 billion.
- Dividend: 33 cents a share declared, up from 26 cents.
- Where sales went: China 35%, Korea 20%, Taiwan 18%, Japan 9%, U.S. 8%.
The guidance that worried Wall Street
For the quarter ending Dec. 27, Lam guided to revenue of $8.6 billion, plus or minus $400 million, and $2.33 a share, plus or minus 15 cents.
CFO Doug Bettinger said that guidance "would have been a bit higher if not for some near-term supply chain constraints," which the company is managing, Yahoo Finance reported. Chip stocks fell broadly after the call; see Thursday's Bay Area chip selloff.
"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," CEO Tim Archer said.