Lam Research (NASDAQ:LRCX) Announces Quarterly Earnings Results, Beats Estimates By $0.13 EPS

Lam Research (NASDAQ:LRCX) issued its quarterly earnings results on Wednesday. The semiconductor company reported $1.82 earnings per share for the quarter, beating analysts’ consensus estimates of $1.69 by $0.13, FiscalAI reports. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The firm had revenue of $6.72 billion during the quarter, compared to the consensus estimate of $6.66 billion. During the same period in the prior year, the firm earned $1.33 EPS. The business’s revenue was up 30.0% on a year-over-year basis. Lam Research updated its Q1 2027 guidance to 2.000-2.300 EPS.

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

• Record June-quarter performance: Revenue reached $6.72 billion, up 15% sequentially, while gross margin rose to 52%, operating margin to 38.4%, and EPS to a record $1.82. Lam also guided September-quarter revenue to $8.1 billion, representing more than 20% sequential growth.
• Lam raised its 2026 WFE outlook to the low-$150 billion range from $140 billion previously and expects a strong setup for 2027 as new fabs, AI-related capacity additions, and technology transitions drive demand.
• Memory was a major growth driver, with NAND revenue more than doubling sequentially on upgrades to 200-plus-layer devices, while DRAM spending remained strong across advanced nodes and HBM. Lam expects its NAND served available market per wafer to double by 500-plus-layer architectures.
• Advanced packaging revenue is now expected to grow more than 70% year over year, supported by HBM, chiplets, TSV etch, electroplating, and emerging panel-level packaging. Lam has already shipped large-format panel systems into development programs.
• China revenue declined to 26% of total revenue from 34% in the prior quarter, primarily because domestic customers reduced spending, although multinational customers in China grew. Management expects China WFE to remain flat to slightly up, while the tax rate is expected to rise into the mid-teens in September and beyond.

Lam Research Trading Up 17.8%

Shares of NASDAQ LRCX traded up $44.83 during midday trading on Thursday, hitting $297.18. The stock had a trading volume of 11,209,561 shares, compared to its average volume of 11,358,980. The firm has a market cap of $371.65 billion, a P/E ratio of 56.04, a price-to-earnings-growth ratio of 1.60 and a beta of 1.80. Lam Research has a fifty-two week low of $90.93 and a fifty-two week high of $438.50. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77. The company’s 50-day simple moving average is $341.14 and its 200 day simple moving average is $275.79.

Lam Research Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th were given a $0.26 dividend. This represents a $1.04 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date was Wednesday, June 17th. Lam Research’s dividend payout ratio (DPR) is presently 19.62%.

Insider Buying and Selling at Lam Research

In other Lam Research news, Director Eric Brandt sold 54,500 shares of the company’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the completion of the sale, the director owned 199,205 shares in the company, valued at approximately $69,881,114. The trade was a 21.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of the stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $335.00, for a total value of $6,124,470.00. Following the completion of the transaction, the director directly owned 87,142 shares in the company, valued at $29,192,570. The trade was a 17.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 98,611 shares of company stock valued at $32,250,190. 0.31% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lam Research

Large investors have recently added to or reduced their stakes in the company. Price T Rowe Associates Inc. MD raised its holdings in shares of Lam Research by 352.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,695,210 shares of the semiconductor company’s stock valued at $2,344,347,000 after purchasing an additional 10,666,540 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of Lam Research by 138.6% during the third quarter. AQR Capital Management LLC now owns 3,541,230 shares of the semiconductor company’s stock worth $472,294,000 after buying an additional 2,056,749 shares in the last quarter. Caisse de depot et placement du Quebec grew its position in shares of Lam Research by 164.0% during the 3rd quarter. Caisse de depot et placement du Quebec now owns 2,568,579 shares of the semiconductor company’s stock worth $343,933,000 after purchasing an additional 1,595,759 shares in the last quarter. Polar Capital Holdings Plc raised its holdings in Lam Research by 105.2% in the 3rd quarter. Polar Capital Holdings Plc now owns 2,856,262 shares of the semiconductor company’s stock valued at $382,453,000 after acquiring an additional 1,464,651 shares in the last quarter. Finally, Two Sigma Investments LP boosted its position in shares of Lam Research by 402.5% during the 3rd quarter. Two Sigma Investments LP now owns 1,527,072 shares of the semiconductor company’s stock worth $204,475,000 after acquiring an additional 1,223,184 shares in the last quarter. Institutional investors own 84.61% of the company’s stock.

Analysts Set New Price Targets

Several research analysts recently commented on the company. Bank of America raised their target price on Lam Research from $330.00 to $480.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Stifel Nicolaus increased their target price on Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Needham & Company LLC reaffirmed a “buy” rating and issued a $390.00 price target on shares of Lam Research in a research note on Thursday. Barclays reiterated an “overweight” rating and issued a $335.00 price target (up from $275.00) on shares of Lam Research in a research report on Thursday, June 11th. Finally, New Street Research upped their target price on shares of Lam Research from $235.00 to $280.00 and gave the stock a “neutral” rating in a report on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $360.54.

Key Headlines Impacting Lam Research

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

• Positive Sentiment: Lam Research reported record quarterly revenue of $6.72 billion, up 30% year over year, while adjusted earnings of $1.82 per share exceeded the $1.69 consensus estimate. Strong NAND demand and broader AI-related chip production supported the results. Reuters article
• Positive Sentiment: The company issued first-quarter fiscal 2027 guidance for revenue of $7.7 billion to $8.5 billion and EPS of $2.00 to $2.30, well above analyst estimates of approximately $7.0 billion and $1.81, respectively. The forecast implies continued momentum from AI-driven semiconductor spending. Lam Research financial results
• Positive Sentiment: Management highlighted expanding opportunities across memory, advanced packaging and wafer-fabrication equipment as chipmakers increase capacity for AI applications. The upbeat earnings call reinforced expectations for strong semiconductor capital spending in fiscal 2027. Zacks earnings call highlights
• Positive Sentiment: Needham reaffirmed its Buy rating and assigned a $390 price target. Erste Group also modestly raised its fiscal 2027 EPS estimate to $8.05 from $7.98, indicating improving earnings expectations.
• Neutral Sentiment: Broader market sentiment was supported by softer inflation data and strong technology-sector earnings, although investors continued to assess Federal Reserve policy and macroeconomic conditions.
• Negative Sentiment: Concerns remain about potential Chinese lithography advances, regional demand and geopolitical risks, which could affect China-related equipment sales and semiconductor-sector valuations. LRCX’s elevated valuation also leaves the stock sensitive to any slowdown in AI or chip-equipment spending.

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.