Lam Research (NASDAQ:LRCX) Shares Up 3.6% After Earnings Beat

Shares of Lam Research Corporation (NASDAQ:LRCX) traded up 3.6% during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $251.38 and last traded at $248.17. 16,549,562 shares changed hands during trading, an increase of 19% from the average session volume of 13,952,390 shares. The stock had previously closed at $239.58.

The semiconductor company reported $1.27 EPS for the quarter, topping the consensus estimate of $1.17 by $0.10. Lam Research had a return on equity of 60.60% and a net margin of 29.66%.The company had revenue of $5.34 billion for the quarter, compared to analyst estimates of $5.23 billion. During the same quarter in the previous year, the company posted $0.91 earnings per share. The firm’s revenue was up 22.1% compared to the same quarter last year. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS.

Lam Research Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, January 7th. Investors of record on Wednesday, December 3rd were paid a dividend of $0.26 per share. The ex-dividend date was Wednesday, December 3rd. This represents a $1.04 dividend on an annualized basis and a yield of 0.4%. Lam Research’s dividend payout ratio is currently 21.31%.

Key Lam Research News

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

• Positive Sentiment: Q2 beat and strong Q3 guide — Lam reported $1.27 EPS vs. $1.17 expected and revenue above estimates, then guided Q3 revenue and EPS above consensus, which underpins the rally. PR Newswire: Lam Research Reports Financial Results
• Positive Sentiment: Broad analyst re-ratings — Multiple firms raised price targets and ratings after the results, adding momentum as buy-side models get repriced higher. Benzinga: These Analysts Boost Their Forecasts
• Positive Sentiment: Megabank and boutique upgrades — Notable lifts include JPMorgan, Citi, Needham and TD Cowen boosting targets (several to ~$290–$300), signaling institutional conviction in near-term demand for wafer-fab tools. Benzinga: JPMorgan raises target on Lam
• Positive Sentiment: Bullish media and investor commentary — High-profile bulls (Jim Cramer) and coverage (Barron’s calling results “extraordinarily bullish”) are amplifying optimism around AI/CPU-driven tool demand. InsiderMonkey: Jim Cramer on Lam Barron’s: Lam Earnings Bullish
• Neutral Sentiment: Catalyst vs. cyclicality — Analysts highlight structural AI/foundry demand but also note Lam’s history of volatile drawdowns; the setup is bullish but not immune to cyclic swings. Forbes: Reality Check for LRCX
• Negative Sentiment: Some cautious bench marks — Morgan Stanley moved its target higher but kept an equal-weight rating (implying limited near-term upside from current levels), a reminder some strategists view shares as fairly valued after the rally. Benzinga: Morgan Stanley on Lam

Analyst Upgrades and Downgrades

A number of research firms have weighed in on LRCX. UBS Group set a $300.00 price objective on Lam Research in a research report on Thursday. Summit Insights raised Lam Research from a “hold” rating to a “buy” rating in a report on Thursday. Sanford C. Bernstein set a $275.00 price objective on shares of Lam Research in a research report on Thursday. Dbs Bank lifted their target price on shares of Lam Research from $119.40 to $184.20 in a report on Monday, October 27th. Finally, Jefferies Financial Group reissued a “buy” rating and set a $200.00 price target (up from $175.00) on shares of Lam Research in a report on Monday, December 15th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $234.55.

Insider Transactions at Lam Research

In other news, CFO Douglas R. Bettinger sold 40,080 shares of Lam Research stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of $150.60, for a total transaction of $6,036,048.00. Following the completion of 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Bethany Mayer sold 1,298 shares of the company’s stock in a transaction that occurred on Monday, November 3rd. The stock was sold at an average price of $159.99, for a total value of $207,667.02. Following the completion of the sale, the director owned 1,652 shares in the company, valued at approximately $264,303.48. This represents a 44.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 41,408 shares of company stock valued at $6,248,501. 0.31% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lam Research

Several institutional investors and hedge funds have recently made changes to their positions in the business. Norges Bank acquired a new stake in shares of Lam Research in the second quarter valued at approximately $1,894,585,000. Arrowstreet Capital Limited Partnership lifted its stake in Lam Research by 781.3% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 11,340,865 shares of the semiconductor company’s stock valued at $1,518,542,000 after buying an additional 10,053,978 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in Lam Research by 14.4% during the 2nd quarter. JPMorgan Chase & Co. now owns 40,622,437 shares of the semiconductor company’s stock valued at $3,954,188,000 after buying an additional 5,102,589 shares during the last quarter. Invesco Ltd. grew its holdings in Lam Research by 18.2% during the 3rd quarter. Invesco Ltd. now owns 21,182,948 shares of the semiconductor company’s stock valued at $2,836,397,000 after buying an additional 3,263,658 shares during the last quarter. Finally, Nordea Investment Management AB raised its holdings in shares of Lam Research by 34.1% in the second quarter. Nordea Investment Management AB now owns 10,594,574 shares of the semiconductor company’s stock worth $1,029,210,000 after acquiring an additional 2,692,189 shares during the last quarter. 84.61% of the stock is currently owned by hedge funds and other institutional investors.

Lam Research Price Performance

The company has a debt-to-equity ratio of 0.37, a current ratio of 2.21 and a quick ratio of 1.60. The company has a 50-day moving average price of $183.31 and a 200-day moving average price of $144.37. The firm has a market capitalization of $311.71 billion, a PE ratio of 54.66, a P/E/G ratio of 3.01 and a beta of 1.77.

About Lam Research

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.