Lam Research Corporation Reports Financial Results for the Quarter Ended March 29, 2026
Rhea-AI Summary
Lam Research (Nasdaq: LRCX) reported March quarter revenue of $5.84 billion and U.S. GAAP diluted EPS of $1.45. Gross margin was 49.8% and operating margin was 35.0%. Cash and equivalents declined to $4.77 billion from $6.20 billion, driven by capital returns, debt principal payments, and capex. For the June quarter, Lam guides revenue of $6.60 billion ± $400 million, gross margin ~50.5%, and EPS ~$1.65 ± $0.15.
Positive
- Revenue of $5.84 billion in March 2026 quarter
- U.S. GAAP diluted EPS $1.45 and non-GAAP EPS $1.47
- Operating margin expanded to 35.0% (GAAP), +110 bps quarter-over-quarter
- Guidance for June quarter: revenue $6.60B ± $400M and EPS $1.65 ± $0.15
Negative
- Cash and equivalents declined by ~$1.43 billion to $4.77B quarter-end
- Accounts receivable increased to $4.13 billion, raising short-term working capital needs
News Market Reaction – LRCX
In the Apr 23 session, LRCX declined 2.63%, reflecting a moderate negative market reaction. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 28 | Quarterly earnings | Positive | +3.6% | Reported $5.34B revenue and EPS $1.26 with solid margins and outlook. |
| Oct 22 | Quarterly earnings | Positive | +4.5% | Posted $5.32B revenue, 50.4% gross margin, and upbeat forward guidance. |
| Jul 30 | Quarterly earnings | Positive | -4.3% | Strong Q2 2025 growth and margins but shares fell despite positive metrics. |
| Apr 23 | Quarterly earnings | Positive | +6.3% | Q1 2025 revenue $4.72B with 49.0% gross margin and growth guidance. |
| Jan 29 | Quarterly earnings | Positive | +7.4% | Q4 2024 revenue grew 5% Q/Q with margin expansion and higher EPS. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have typically produced positive moves, with only one notable selloff despite generally strong results.
Over the past five earnings cycles, Lam has consistently delivered multi‑billion dollar quarterly revenue with gross margins near or above 49% and operating margins in the mid‑30% range. Prior quarters showed revenue climbing from $4.38B in late 2024 to $5.34B by December 2025, with EPS also rising. Guidance has generally called for steady sequential growth. Against this backdrop, the March 2026 results continue a pattern of scaling revenue and maintaining strong profitability.
Key Terms
u.s. gaap financial
non-gaap financial
deferred revenue financial
amortization of debt discounts financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Highlights for the March 2026 quarter were as follows:
- Revenue of
$5.84 billion U.S. GAAP gross margin as a percent of revenue of49.8% ,U.S. GAAP operating margin as a percent of revenue of35.0% , andU.S. GAAP diluted EPS of$1.45 - Non-GAAP gross margin as a percent of revenue of
49.9% , non-GAAP operating margin as a percent of revenue of35.0% , and non-GAAP diluted EPS of$1.47
Key Financial Data for the Quarters Ended March 29, 2026 and December 28, 2025 (in thousands, except per-share data, percentages, and basis points) | ||||||
March 2026 | December 2025 | Change Q/Q | ||||
Revenue | $ 5,841,488 | $ 5,344,791 | +9 % | |||
Gross margin | 49.8 % | 49.6 % | + 20 bps | |||
Operating margin | 35.0 % | 33.9 % | + 110 bps | |||
Diluted EPS | $ 1.45 | $ 1.26 | + 15 % | |||
Non-GAAP | ||||||
March 2026 | December 2025 | Change Q/Q | ||||
Revenue | $ 5,841,488 | $ 5,344,791 | +9 % | |||
Gross margin | 49.9 % | 49.7 % | + 20 bps | |||
Operating margin | 35.0 % | 34.3 % | + 70 bps | |||
Diluted EPS | $ 1.47 | $ 1.27 | + 16 % | |||
For the March 2026 quarter, revenue was
Non-GAAP Financial Results
For the March 2026 quarter, non-GAAP gross margin was
"Lam delivered record revenue and EPS in the March quarter as AI-driven demand reshapes the semiconductor industry," said Tim Archer, Lam Research's President and Chief Executive Officer. "Our strategic investments and the velocity of our execution are generating strong momentum, enabling customers' AI roadmaps and driving Lam's outperformance during this critical phase of industry growth."
Balance Sheet and Cash Flow Results
Cash, cash equivalents, and restricted cash balances decreased to
Deferred revenue at the end of the March 2026 quarter decreased slightly to
Revenue
The geographic distribution of revenue during the March 2026 quarter is shown in the following table:
Region | Revenue |
34 % | |
23 % | |
23 % | |
8 % | |
6 % | |
4 % | |
2 % |
The following table presents revenue disaggregated between systems and customer support-related revenue:
Three Months Ended | |||||
March 29, | December 28, | March 30, | |||
(In thousands) | |||||
Systems revenue | $ 3,730,582 | $ 3,357,493 | $ 3,035,276 | ||
Customer support-related revenue and other | 2,110,906 | 1,987,298 | 1,684,899 | ||
$ 5,841,488 | $ 5,344,791 | $ 4,720,175 | |||
Systems revenue includes sales of new leading-edge equipment in deposition, etch, and other wafer fabrication markets.
Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from our Reliant® product line.
Outlook
For the quarter ending June 28, 2026, Lam is providing the following guidance:
Reconciling Items | Non-GAAP | |||||||||
Revenue | +/- | — | +/- | |||||||
Gross margin | 50.5 % | +/- | 1 % | $ 2.7 | Million | 50.5 % | +/- | 1 % | ||
Operating margin | 36.5 % | +/- | 1 % | $ 3.0 | Million | 36.5 % | +/- | 1 % | ||
Net income per diluted share | +/- | $ 3.3 | Million | +/- | ||||||
Diluted share count | 1.255 Billion | — | 1.255 Billion | |||||||
The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other items that may be completed or realized after the date of this release, except as described below.
- Gross margin - amortization related to intangible assets acquired through business combinations,
$2.7 million - Operating margin - amortization related to intangible assets acquired through business combinations,
$3.0 million - Net income per diluted share - amortization related to intangible assets acquired though business combinations,
$3.0 million $0.5 million $0.2 million $3.3 million
Use of Non-GAAP Financial Results
In addition to
Management uses non-GAAP gross margin, operating expense, operating income, operating margin, net income, and net income per diluted share to evaluate the Company's operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors' ability to view the Company's results from management's perspective. Tables presenting reconciliations of non-GAAP results to
Caution Regarding Forward-Looking Statements
Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to: our outlook and guidance for future financial results, including revenue, gross margin, operating margin, net income per diluted share, and diluted share count; the extent to which our investments and rate of operational execution are enabling our customers, driving our performance and generating momentum; and customer and industry trends, including the role of AI as an industry driver. Some factors that may affect these forward-looking statements include: business, economic, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; the actions of our customers and competitors may be inconsistent with our expectations; trade regulations, export controls, tariffs, trade disputes, and other geopolitical tensions may inhibit our ability to sell our products; supply chain cost increases, tariffs, export controls and other inflationary pressures have impacted and may continue to impact our profitability; supply chain disruptions, export controls or manufacturing capacity constraints may limit our ability to manufacture and sell our products; and natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the Risk Factors described in our most recent annual report on Form 10-K or subsequent quarterly report on Form 10-Q. These uncertainties and changes could materially affect the forward-looking statements and cause actual results to vary from expectations in a material way. The Company undertakes no obligation to update the information or statements made in this release.
Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in
Consolidated Financial Tables Follow.
LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data and percentages) (unaudited) | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
March 29, | December 28, | March 30, | March 29, | March 30, | |||||
Revenue | $ 5,841,488 | $ 5,344,791 | $ 4,720,175 | ||||||
Cost of goods sold | 2,930,961 | 2,693,629 | 2,406,489 | 8,263,884 | 6,874,848 | ||||
Gross margin | 2,910,527 | 2,651,162 | 2,313,686 | 8,246,568 | 6,389,350 | ||||
Gross margin as a percent of revenue | 49.8 % | 49.6 % | 49.0 % | 49.9 % | 48.2 % | ||||
Research and development | 583,200 | 573,305 | 525,904 | 1,732,951 | 1,516,209 | ||||
Selling, general and administrative | 280,311 | 267,654 | 226,023 | 827,310 | 713,301 | ||||
Total operating expenses | 863,511 | 840,959 | 751,927 | 2,560,261 | 2,229,510 | ||||
Operating income | 2,047,016 | 1,810,203 | 1,561,759 | 5,686,307 | 4,159,840 | ||||
Operating margin | 35.0 % | 33.9 % | 33.1 % | 34.4 % | 31.4 % | ||||
Other income (expense), net | (35,460) | 26,410 | (25,035) | 21,024 | 19,308 | ||||
Income before income taxes | 2,011,556 | 1,836,613 | 1,536,724 | 5,707,331 | 4,179,148 | ||||
Income tax expense | (186,096) | (242,619) | (206,057) | (719,217) | (541,019) | ||||
Net income | $ 1,825,460 | $ 1,593,994 | $ 1,330,667 | $ 4,988,114 | |||||
Net income per share: | |||||||||
Basic | $ 1.46 | $ 1.27 | $ 1.04 | $ 3.97 | $ 2.82 | ||||
Diluted | $ 1.45 | $ 1.26 | $ 1.03 | $ 3.95 | $ 2.81 | ||||
Number of shares used in per share calculations: | |||||||||
Basic | 1,249,728 | 1,254,856 | 1,283,779 | 1,256,343 | 1,290,041 | ||||
Diluted | 1,257,325 | 1,261,739 | 1,288,100 | 1,262,792 | 1,294,545 | ||||
Cash dividend declared per common share | $ 0.26 | $ 0.26 | $ 0.23 | $ 0.78 | $ 0.69 | ||||
LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) | |||||
March 29, | December 28, | June 29, | |||
(unaudited) | (unaudited) | (1) | |||
ASSETS | |||||
Cash and cash equivalents | $ 4,750,936 | $ 6,180,440 | $ 6,390,659 | ||
Accounts receivable, net | 4,132,890 | 3,491,987 | 3,378,071 | ||
Inventories | 3,999,992 | 4,037,682 | 4,307,991 | ||
Prepaid expenses and other current assets | 413,099 | 307,914 | 440,274 | ||
Total current assets | 13,296,917 | 14,018,023 | 14,516,995 | ||
Property and equipment, net | 2,853,614 | 2,710,989 | 2,428,744 | ||
Goodwill and intangible assets | 1,882,017 | 1,864,037 | 1,808,685 | ||
Other assets | 2,759,362 | 2,798,122 | 2,590,836 | ||
Total assets | $ 20,791,910 | $ 21,391,171 | $ 21,345,260 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current portion of long-term debt and finance lease obligations | $ 4,095 | $ 754,006 | $ 754,311 | ||
Other current liabilities | 5,238,303 | 5,459,147 | 5,814,114 | ||
Total current liabilities | 5,242,398 | 6,213,153 | 6,568,425 | ||
Long-term debt and finance lease obligations | 3,730,384 | 3,729,742 | 3,730,194 | ||
Income taxes payable | 621,572 | 667,639 | 603,412 | ||
Other long-term liabilities | 612,777 | 635,211 | 581,610 | ||
Total liabilities | 10,207,131 | 11,245,745 | 11,483,641 | ||
Stockholders' equity (2) | 10,584,779 | 10,145,426 | 9,861,619 | ||
Total liabilities and stockholders' equity | $ 20,791,910 | $ 21,391,171 | $ 21,345,260 | ||
(1) | Derived from audited financial statements. |
(2) | Common shares issued and outstanding were 1,250,539 as of March 29, 2026, 1,251,180 as of December 28, 2025, and |
LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited) | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
March 29, | December 28, | March 30, | March 29, | March 30, | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net income | $ 1,825,460 | $ 1,593,994 | $ 1,330,667 | $ 4,988,114 | $ 3,638,129 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 116,322 | 103,925 | 97,343 | 321,891 | 287,838 | ||||
Deferred income taxes | (19,478) | (30,957) | (19,992) | (113,310) | (211,568) | ||||
Equity-based compensation expense | 96,616 | 88,539 | 87,115 | 282,396 | 249,085 | ||||
Other, net | (2,855) | (19,961) | 1,654 | (24,706) | (7,395) | ||||
Changes in operating assets and liabilities | (874,645) | (255,495) | (188,124) | (1,053,956) | (337,013) | ||||
Net cash provided by operating activities | 1,141,420 | 1,480,045 | 1,308,663 | 4,400,429 | 3,619,076 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
Capital expenditures and intangible assets | (331,604) | (260,879) | (288,058) | (777,604) | (586,995) | ||||
Other, net | (2,976) | 3,096 | (4,857) | (807) | 8,154 | ||||
Net cash used for investing activities | (334,580) | (257,783) | (292,915) | (778,411) | (578,841) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
Principal payments on debt, including finance lease obligations and payments for debt issuance costs | (751,194) | (1,462) | (504,037) | (754,073) | (506,003) | ||||
Treasury stock purchases, including excise tax payments | (1,162,837) | (1,466,155) | (435,321) | (3,604,783) | (2,130,044) | ||||
Dividends paid | (325,829) | (327,507) | (295,716) | (945,317) | (854,335) | ||||
Reissuance of treasury stock related to employee stock purchase plan | — | 67,185 | — | 67,185 | 60,557 | ||||
Proceeds from issuance of common stock, net issuance costs | 9,167 | 3,854 | 1,993 | 13,021 | 1,756 | ||||
Other, net | 55 | (1,117) | 526 | (13,511) | 963 | ||||
Net cash used for financing activities | (2,230,638) | (1,725,202) | (1,232,555) | (5,237,478) | (3,427,106) | ||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (4,979) | (13,337) | 2,380 | (25,375) | (960) | ||||
Net change in cash, cash equivalents, and restricted cash | (1,428,777) | (516,277) | (214,427) | (1,640,835) | (387,831) | ||||
Cash, cash equivalents, and restricted cash at beginning of period (1) | 6,195,598 | 6,711,875 | 5,677,399 | 6,407,656 | 5,850,803 | ||||
Cash, cash equivalents, and restricted cash at end of period (1) | $ 4,766,821 | $ 6,195,598 | $ 5,462,972 | $ 4,766,821 | $ 5,462,972 | ||||
(1) | Restricted cash is reported within Other assets in the Condensed Consolidated Balance Sheets |
Non-GAAP Financial Summary (in thousands, except percentages and per share data) (unaudited) | |||
Three Months Ended | |||
March 29, | December 28, | ||
Revenue | $ 5,841,488 | $ 5,344,791 | |
Gross margin | $ 2,913,123 | $ 2,658,256 | |
Gross margin as a percent of revenue | 49.9 % | 49.7 % | |
Operating expenses | $ 866,166 | $ 827,486 | |
Operating income | $ 2,046,957 | $ 1,830,770 | |
Operating margin | 35.0 % | 34.3 % | |
Net income | $ 1,851,442 | $ 1,597,626 | |
Net income per diluted share | $ 1.47 | $ 1.27 | |
Shares used in per share calculation - diluted | 1,257,325 | 1,261,739 | |
Reconciliation of (in thousands, except per share data) (unaudited) | |||
Three Months Ended | |||
March 29, | December 28, | ||
$ 1,825,460 | $ 1,593,994 | ||
Pre-tax non-GAAP items: | |||
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold | 2,668 | 2,668 | |
Elective deferred compensation ("EDC") related liability valuation (decrease) increase - cost of goods sold | (6,476) | 4,426 | |
Workforce optimization charges - cost of goods sold | 6,404 | — | |
EDC related liability valuation (decrease) increase - research and development | (11,656) | 7,968 | |
Workforce optimization charges - research and development | 9,437 | — | |
Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative | 348 | 193 | |
EDC related liability valuation (decrease) increase - selling, general and administrative | (7,771) | 5,312 | |
Workforce optimization charges - selling, general and administrative | 6,987 | — | |
Amortization of note discounts - other income (expense), net | 674 | 701 | |
Loss (gain) on EDC related asset - other income (expense), net | 27,265 | (16,628) | |
Net income tax benefit on non-GAAP items | (1,898) | (1,008) | |
Non-GAAP net income | $ 1,851,442 | $ 1,597,626 | |
Non-GAAP net income per diluted share | $ 1.47 | $ 1.27 | |
$ 1.45 | $ 1.26 | ||
1,257,325 | 1,261,739 | ||
Reconciliation of Operating Expenses and Operating Income (in thousands, except percentages) (unaudited) | |||
Three Months Ended | |||
March 29, | December 28, | ||
$ 2,910,527 | $ 2,651,162 | ||
Pre-tax non-GAAP items: | |||
Amortization related to intangible assets acquired through certain business combinations | 2,668 | 2,668 | |
EDC related liability valuation (decrease) increase | (6,476) | 4,426 | |
Workforce optimization charges | 6,404 | — | |
Non-GAAP gross margin | $ 2,913,123 | $ 2,658,256 | |
49.8 % | 49.6 % | ||
Non-GAAP gross margin as a percent of revenue | 49.9 % | 49.7 % | |
$ 863,511 | $ 840,959 | ||
Pre-tax non-GAAP items: | |||
Amortization related to intangible assets acquired through certain business combinations | (348) | (193) | |
EDC related liability valuation decrease (increase) | 19,427 | (13,280) | |
Workforce optimization charges | (16,424) | — | |
Non-GAAP operating expenses | $ 866,166 | $ 827,486 | |
$ 2,047,016 | $ 1,810,203 | ||
Non-GAAP operating income | $ 2,046,957 | $ 1,830,770 | |
35.0 % | 33.9 % | ||
Non-GAAP operating margin | 35.0 % | 34.3 % | |
Lam Research Corporation Contacts:
Ram Ganesh, Investor Relations, phone: 510-572-1615, e-mail: investor.relations@lamresearch.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/lam-research-corporation-reports-financial-results-for-the-quarter-ended-march-29-2026-302750629.html
SOURCE Lam Research Corporation