LAM RESEARCH (LRCX) Company Report

SAM expansion: Lam’s share of total wafer fab equipment (WFE) investment rose from ~30% in 2024 to ~35% in 2025 and is projected to reach the high-30s percent range over the next few years, with a targeted 50% win rate of its addressable market.
Foundry & logic outperformance: The foundry and logic segment grew 49% in 2025 and now represents 59% of equipment sales (vs. 60% memory four years ago), driven by R&D investments in gate-all-around, backside power, and advanced packaging.
Strong industry demand: Lam forecasts 2026 WFE at $135 billion (↑23% YoY), led by leading-edge logic and DRAM, and cites clean-room constraints as an indicator for continued strength into 2027.
Advanced packaging growth: With a $1 billion business in 2024, advanced packaging (TSV etch via Syndion and 3D plating via SABRE) is expected to grow >40% in 2026, driven by high-bandwidth memory stacking for AI compute.
Stable annuity business: The Customer Support Business Group (~33% of revenue) covering spares, services, upgrades, and mature tools is highly profitable and cash-generative, with an installed chamber base aiming for 1.5× growth by 2028 through results-based service offerings.

6 days ago

Transcript

Lam Research outlines strong WFE growth and portfolio execution

LRCX

Guidance Update

Demand surge: Industry WFE is expected to rise from $110 billion in 2025 to $135 billion in 2026 (+23%), driven by leading-edge foundry and AI-focused DRAM, with capacity constrained by clean-room availability and extended visibility into 2027.
Strategic R&D investment: Post-COVID R&D spend doubled to capture architecture shifts (gate-all-around, backside power, CFET), helping Lam flip its equipment sales mix from 60% memory in 2021 to 59% foundry & logic in 2025 as SAM per wafer doubles on next-gen nodes.
Product leadership in memory and packaging: Lam holds >50% share in conductor etch, is deploying its new Akara etch platform and ramping dry-resist tools into production, and dominates TSV steps (Syndion, SABRE) to support 40% advanced packaging growth in 2026.
Margin and supply-chain execution: Maintaining ~49% gross margin, targeting 50% by 2027-28, while expanding its manufacturing footprint globally (notably Malaysia) and strengthening its supplier network to meet surging tool demand.
Growing annuity business: The Customer Support Business Group—comprising spare parts, service, upgrades and Reliant mature tools—now represents ~⅓ of revenue with 102,000 installed chambers, delivering resilient margins, free cash flow and results-based service offerings.

6 days ago

Transcript

Lam Research outlines growth strategy and demand outlook

LRCX

Guidance Update

Since 2018, architecture transitions (3D NAND, gate-all-around, CFET, backside power) are driving SAM per wafer to double in foundry/logic and grow 1.7×–1.8× in DRAM/NAND, lifting Lam’s SAM as a percent of total WFE to the mid-30s% range and projected to the high-30s% by the late 2020s.
Foundry & logic revenue surged 49% in 2025, flipping mix to 59% of equipment sales versus memory, reflecting R&D investments targeting leading-edge nodes.
Industry WFE is forecast to rise from $110 bn in 2025 to $135 bn in 2026, driven by leading-edge logic and DRAM, with clean-room capacity constraints suggesting continued strength into 2027.
Gross margin management aims for ~50% by 2027–2028, supported by pricing discipline, cost optimization and a global manufacturing footprint expansion (notably Malaysia) to shorten lead times.
The Customer Support Business Group (CSBG) now represents ~1/3 of revenue, leveraging 102,000 installed chambers for annuity-like growth in spares, service, upgrades and mature Reliant equipment, with results-based service initiatives boosting per-tool revenue.

6 days ago

Transcript

Lam Research beats Q2 estimates, forecasts strong Q3

LRCX

Earnings

Guidance Update

Lam Research reported Q2 revenue of $5.34 billion and adjusted EPS of $1.27, with an adjusted gross margin near 49.7%, topping Wall Street estimates.
On a GAAP basis, net income was $1.59 billion or $1.26 per share, and adjusted operating margin reached 34.3%.
Systems revenue climbed to $3.36 billion and customer-support sales to $1.99 billion, with 35% of quarterly revenue derived from China.
Management guided Q3 revenue to $5.7 billion (±$300 million), adjusted EPS of $1.35 (±$0.10), and gross margins near 49%, driven by AI workloads and memory demand.

Jan 28, 2026, 11:43 PM

Morningstar

Lam Research reports Q4 2025 results and 2026 guidance

LRCX

Earnings

Guidance Update

Record 2025 revenue of $20.6 B (+27% YoY) and Q4 revenue of $5.34 B, marking ten consecutive quarters of growth.
Full-year gross margin of 49.9%, the highest since 2012, and diluted EPS of $4.89 (+49% YoY).
Q1 2026 guidance: revenue of $5.7 B ± $300 M; gross margin of 49% ± 1 pp; EPS of $1.35 ± $0.10. 2026 WFE expected at ~$135 B, second-half weighted.
Gained >1 pp share of WFE in 2025; served available market share in WFE expanded into the mid-30s%; advanced packaging business to grow >40% in 2026.
Industry growth constrained by clean-room capacity, but AI-driven investments across DRAM, foundry logic, and NAND are expected to sustain robust demand.

Jan 28, 2026, 10:00 PM

Transcript

Lam Research announces Q2 2026 results

LRCX

Earnings

Guidance Update

Revenue reached $4.0 billion in the December quarter, driven by $2.7 billion in product sales and $1.3 billion in services.
Overall gross margin was 45%, with product margin at 48% and services margin at 38%.
Operating income was $800 million (20% of revenue), with net income of $700 million and diluted EPS of $5.00.
Q3 guidance projects revenue of $3.8 billion to $4.3 billion, gross margin of 44%–47%, operating margin of 18%–21%, and diluted EPS of $4.50–$5.50.

Jan 28, 2026, 10:00 PM

Presentation

Lam Research reports Q2 FY2026 results

LRCX

Earnings

Guidance Update

Revenue was $5.34 billion, with GAAP gross margin of 49.6%, operating margin of 33.9%, and diluted EPS of $1.26 for the quarter ended December 28, 2025.
On a non-GAAP basis, gross margin was 49.7%, operating margin was 34.3%, and diluted EPS was $1.27.
Cash and equivalents totaled $6.18 billion at quarter end, and deferred revenue was $2.25 billion as of December 28, 2025.
Q3 FY2026 guidance: revenue of $5.70 billion ± $300 million; GAAP gross margin of 49.0% ± 1%; operating margin of 33.9% ± 1%; diluted EPS of $1.35 ± $0.10.

Jan 28, 2026, 9:06 PM

8-K

Lam Research reports Q4 2025 results

LRCX

Earnings

Guidance Update

Lam Research delivered $5.34 B in revenue, a 49.6% U.S. GAAP gross margin, 33.9% operating margin, and $1.26 GAAP diluted EPS for the quarter ended December 28, 2025.
On a non-GAAP basis, gross margin was 49.7% and diluted EPS was $1.27.
Cash, cash equivalents and restricted cash totaled $6.2 B at quarter-end, down from $6.7 B at the end of the prior quarter.
Deferred revenue declined to $2.25 B, excluding approximately $226 M of Japan shipments pending customer acceptance.
For Q1 FY2026, the company forecasts $5.70 B ± $300 M in revenue, a 49.0% ± 1% gross margin, and $1.35 ± $0.10 EPS.

Jan 28, 2026, 9:05 PM

Press Release

Lam Research outlines 2026 market outlook and growth strategy at UBS Tech & AI Conference

LRCX

Guidance Update

New Projects/Investments

Revenue Acceleration/Inflection

1H 2026 wafer fab equipment spending expected to be flat to modestly up, with growth accelerating in 2H 2026 due to infrastructure lead times and rising AI-driven demand.
All three device segments—advanced foundry logic, DRAM, and NAND—offer significant growth from increased etch and deposition intensity, and Lam expects to capture over 50% of the resulting serviceable available market expansion.
Customers are accelerating a $40 billion upgrade cycle to 2xx-layer NAND, with successive upgrades to 3xx and 4xx layers needed to meet enterprise SSD performance requirements.
Advanced packaging revenue topped $1 billion in 2025; new product launches include the Aqara etch tool for precision conductor etch, molybdenum metallization transitions, and dry photoresist now in high-volume production.
Financial model targets 50%+ gross margin by 2028 and 1.5× growth in the CSPG service business by 2028, driven by new tools, Asia factory network proximity, and advanced services like cobots.

Dec 2, 2025, 5:55 PM

Transcript

Lam Research outlines growth drivers at UBS 2025 Global Technology and AI Conference

LRCX

Guidance Update

Product Launch

Lam forecasts the wafer fab equipment market to be flat to modestly up in H1 2026, accelerating in H2 2026, driven by AI-related demand across advanced foundry logic, DRAM (HBM), and NAND (enterprise SSD).
All three device segments will see tremendous growth, with etch and deposition intensity expanding Lam's SAM from low 30s to high 30s by 2030, and Lam targeting over 50% share of the newly created SAM.
The NAND upgrade cycle ($40 billion to reach 2xx layers) is expected to accelerate due to higher-than-anticipated bit demand, leading to continued upgrades to 300+ and 400+ layers.
Key product innovations include the Aqara etch tool for precision 4F² DRAM and GAA logic etch, leadership in Moly metallization for NAND, and high-volume dry resist production in DRAM via a JSR partnership.
The service business (CSPG) aims for 1.5× growth by 2028, leveraging spares, upgrades, Reliant equipment, and advanced services like cobots on the Sense.i platform for consistent tool maintenance.

Dec 2, 2025, 5:55 PM

Transcript

Fintool News

In-depth analysis and coverage of LAM RESEARCH.

Corporate

Lam Research COO Pat Lord Retires After 207% Stock Surge; Product Chief Sesha Varadarajan Takes Helm

Feb 3

View all news

Earnings Transcripts

Quarterly earnings call transcripts for LAM RESEARCH.

Q2 2026

Jan 28, 2026

→

Q1 2026

Oct 22, 2025

→

Q4 2025

Jul 30, 2025

→

View All Transcripts

Ask Fintool AI Agent

Get instant answers from SEC filings, earnings calls & more

What did Timothy M. Archer say about margins?What are LAM RESEARCH's strategic priorities?How is LAM RESEARCH positioned vs competitors?How did LAM RESEARCH do last quarter?

LAM RESEARCH (LRCX)

Analyst Earnings Quarterly Reports

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q2 2026

Executives

Timothy M. Archer

Ava A. Harter

Douglas R. Bettinger

Patrick J. Lord

Seshasayee (Sesha) Varadarajan

Board Members

Abhijit Y. Talwalkar

Bethany J. Mayer

Eric K. Brandt

Ho Kyu Kang

Ita M. Brennan

John M. Dineen

Jyoti K. Mehra

Mark Fields

Michael R. Cannon

Sohail U. Ahmed

Analyst Coverage

Blayne Curtis

Harlan Sur

Stacy Rasgon

Timothy Arcuri

Brian Chin

Vijay Rakesh

Atif Malik

CJ Muse

Krish Sankar

Vivek Arya

Mehdi Hosseini

Thomas O’Malley

Timm Schulze-Melander

Charles Shi

Christopher Muse

Edward Yang

James Schneider

Jim Schneider

Joseph Moore

Melissa Weathers

Sreekrishnan Sankarnarayanan

Srinivas Pajjuri

Toshiya Hari

Christopher Caso

Joseph Quatrochi

Latest news

Fintool News

Lam Research COO Pat Lord Retires After 207% Stock Surge; Product Chief Sesha Varadarajan Takes Helm

Earnings Transcripts

Q2 2026

Q1 2026

Q4 2025

Ask Fintool AI Agent