TLDR
- Lam Research (LRCX) stock fell about 6% in after-hours trading Wednesday and was down 8% premarket Thursday at $239.31, after closing at $260.81.
- Revenue was $8.22 billion and non-GAAP EPS was $2.20, beating estimates of $8.13 billion and $2.18.
- December quarter guidance is $8.60 billion in revenue, above the $8.538 billion consensus, with EPS of $2.33 at the midpoint.
- China made up 35% of sales, followed by Korea at 20% and Taiwan at 18%.
- Wide guidance ranges and an 80% rise over the past year likely led investors to take profits.
Lam Research (LRCX) stock dropped about 8% in premarket trading Thursday, hitting $239.31. It closed Wednesday at $260.81, down 1%, before the report came out.
Lam Research Corporation, LRCX
The chip equipment maker posted fiscal first-quarter results that beat Wall Street targets. The market did not care for the details.
Non-GAAP earnings came in at $2.20 per share on revenue of $8.22 billion. Analysts had expected $2.18 per share and $8.13 billion.
Revenue jumped 22% from the prior quarter. Last quarter’s revenue was $6.72 billion.
LAM RESEARCH $LRCX Q1’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $8.2B (Est. $8.15B) 🟢
🔹 Adj. EPS: $2.20 (Est. $2.18) 🟢
🔹 GAAP EPS: $2.19; +77% YoY
🔹 Adj. Gross Margin: 52.4%Q2 FY27 Guide:
🔹 Revenue: $8.20B-$9.00B (Est. $8.53B) 🟡
🔹 Adj. EPS: $2.18-$2.48 (Est. $2.31) 🟡
🔹 Adj.… pic.twitter.com/QDgvbJBCDh— Wall St Engine (@wallstengine) October 21, 2026
Margins moved higher as well. Non-GAAP gross margin rose 40 basis points to 52.4%, and non-GAAP operating margin reached 40.2%.
CEO Tim Archer pointed to AI as the driver. He said demand and chip complexity helped Lam post record revenue, profit and earnings per share.
Where the Sales Came From
China was the biggest source of revenue at 35% of total sales. Korea followed at 20%, Taiwan at 18% and Japan at 9%.
The United States made up 8%, Southeast Asia 6% and Europe 4%. Systems revenue grew to $5.73 billion from $4.25 billion in the June quarter.
Customer support-related revenue was nearly flat at $2.49 billion. A year earlier it was $1.78 billion.
The balance sheet looked strong. Cash and restricted cash rose to $7.45 billion from $5.60 billion.
Operating cash flow hit $3.50 billion. Lam returned more than $1.3 billion to shareholders through buybacks and dividends.
The Guidance Detail
For the December quarter, Lam expects revenue of $8.60 billion, give or take $400 million. The consensus was $8.538 billion.
The company sees non-GAAP EPS of $2.33, plus or minus $0.15. Analysts were looking for about $2.32.
The catch is the range. Revenue could land between $8.2 billion and $9.0 billion, and EPS between $2.18 and $2.48.
Some investors wanted a tighter outlook. The low end of that range sits right around what analysts already expect.
The stock had also gained nearly 80% over the past year heading into the report. Many traders appear to have sold into the news.
Lam declared a cash dividend of $0.33 per share for the quarter, up from $0.26 in the prior quarter. The company reported 1.249 billion shares outstanding as of September 27.
LRCX was trading at $239.31 in premarket action Thursday.
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