Lam Research (NASDAQ:LRCX) Posts Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Lam Research (NASDAQ:LRCX) released its quarterly earnings results on Wednesday. The semiconductor company reported $1.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.17 by $0.10, FiscalAI reports. Lam Research had a return on equity of 60.60% and a net margin of 29.66%.The business had revenue of $5.34 billion during the quarter, compared to the consensus estimate of $5.23 billion. The company’s quarterly revenue was up 22.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.91 EPS. Lam Research updated its Q3 2026 guidance to 1.250-1.450 EPS.

Here are the key takeaways from Lam Research’s conference call:

• Record financials: Fiscal 2025 revenue hit $20.6 billion (+27% YoY) with December-quarter revenue of $5.34 billion and gross/operating margins and EPS all beating the high end of guidance.
• AI-driven demand and WFE outlook: Lam sees 2026 WFE around $135 billion driven by DRAM and leading-edge foundry logic, expects to expand SAM and gain share across successive nodes, and forecasts advanced packaging growth of >40% in 2026.
• Capacity constraints limit near-term upside: Management says semiconductor spending is being constrained by a shortage of clean-room space, making 2026 second-half weighted and preventing a clear quantification of lost WFE today.
• Product and services momentum plus capital return: New product wins (notably Acara etch), CSPG installed base topping 100,000 chambers, traction for Dextro/autonomous-fab initiatives, and $1.4 billion of buybacks in the quarter (with $5.1 billion remaining) support growth and shareholder returns.

Lam Research Stock Up 0.5%

Lam Research stock traded up $1.12 on Wednesday, hitting $239.58. 15,391,174 shares of the stock traded hands, compared to its average volume of 13,794,181. The company has a current ratio of 2.21, a quick ratio of 1.60 and a debt-to-equity ratio of 0.37. The business’s fifty day simple moving average is $181.49 and its 200 day simple moving average is $143.70. The firm has a market cap of $300.92 billion, a P/E ratio of 52.77, a price-to-earnings-growth ratio of 2.82 and a beta of 1.77. Lam Research has a 1 year low of $56.32 and a 1 year high of $243.99.

Lam Research Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, January 7th. Shareholders of record on Wednesday, December 3rd were issued a $0.26 dividend. The ex-dividend date was Wednesday, December 3rd. This represents a $1.04 annualized dividend and a yield of 0.4%. Lam Research’s dividend payout ratio is 22.91%.

Key Headlines Impacting Lam Research

Here are the key news stories impacting Lam Research this week:

• Positive Sentiment: Q2 results beat expectations — Lam reported $1.27 EPS (vs. ~$1.15–1.17 consensus) and revenue of $5.34B (vs. ~$5.23B), showing margin strength and strong profitability metrics. Lam Research (LRCX) Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management guided Q3 revenue above Wall Street expectations and cited stronger orders for chipmaking tools as customers ramp capacity — a direct driver for near-term revenue growth. Lam Research forecasts strong quarterly results on chipmaking tool demand
• Positive Sentiment: Official press release and conference materials confirm results and guidance — investors had access to the full release and call, supporting the strong market reaction. Lam Research Corporation Reports Financial Results for the Quarter Ended December 28, 2025
• Positive Sentiment: Analyst/market momentum: upgrades and bullish notes (Evercore ISI, other coverage) and commentary (Jim Cramer highlighting supply tightness) amplified buying interest. Lam Research (NASDAQ:LRCX) Stock Price Up 2.3% After Analyst Upgrade
• Neutral Sentiment: Market previews and live analyses framed expectations ahead of the print; coverage helped set the narrative but didn’t add new fundamentals by itself. Lam Research Earnings Preview: What to Watch When LRCX Reports After the Bell
• Negative Sentiment: Geopolitical and China exposure are flagged as headwinds in some coverage — management must navigate regional risks that could dampen demand or create supply-chain constraints. Lam Research leans on AI tailwinds as China weighs on outlook
• Negative Sentiment: Valuation and volatility caution — analysts and commentary note LRCX’s history of sharp corrections (multiple >30% drops) and suggest record highs could be followed by pullbacks, raising risk for short-term traders. Why Record Highs For LRCX Stock May Face A Reality Check In 2026

Insider Buying and Selling

In other Lam Research news, CFO Douglas R. Bettinger sold 40,080 shares of the stock in a transaction on Friday, November 14th. The stock was sold at an average price of $150.60, for a total transaction of $6,036,048.00. Following the sale, the chief financial officer directly owned 987,237 shares in the company, valued at approximately $148,677,892.20. This trade represents a 3.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Bethany Mayer sold 1,298 shares of the stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $159.99, for a total value of $207,667.02. Following the sale, the director directly owned 1,652 shares in the company, valued at $264,303.48. This trade represents a 44.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 41,408 shares of company stock valued at $6,248,501. 0.31% of the stock is owned by corporate insiders.

Institutional Trading of Lam Research

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Triumph Capital Management bought a new stake in Lam Research during the third quarter worth approximately $27,000. Measured Wealth Private Client Group LLC purchased a new stake in Lam Research during the 3rd quarter valued at $40,000. Strategic Wealth Investment Group LLC bought a new stake in Lam Research in the second quarter worth $29,000. JPL Wealth Management LLC purchased a new stake in shares of Lam Research during the third quarter valued at $46,000. Finally, Palisade Asset Management LLC bought a new position in shares of Lam Research in the third quarter worth about $65,000. 84.61% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages recently commented on LRCX. Weiss Ratings reissued a “buy (b)” rating on shares of Lam Research in a report on Monday, December 29th. Rothschild & Co Redburn raised their price objective on shares of Lam Research from $150.00 to $225.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. TD Cowen reaffirmed a “buy” rating on shares of Lam Research in a report on Thursday, October 23rd. The Goldman Sachs Group reiterated a “buy” rating and issued a $180.00 target price on shares of Lam Research in a research note on Friday, January 9th. Finally, Zacks Research upgraded shares of Lam Research from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, January 20th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $204.26.

Lam Research Company Profile

Lam Research Corporation (NASDAQ: LRCX) is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam’s product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.