$LRCX · LAM RESEARCH CORP

Lam Research reported Q1 FY2027 (September quarter) results with record revenue of $8.22B, up 22% sequentially and 54% year-over-year. GAAP gross margin reached 52.3%, operating margin hit 40.0%, and diluted EPS came in at $2.19. The company guided Q2 revenue to $8.60B ± $400M with EPS of $2.33 ± $0.15, both above consensus. Cash balances swelled to $7.45B as operating cash flow hit $3.50B for the quarter.

Extended-hours trading shows LRCX at $245.19, down 5.99% from the $260.81 regular close, despite record revenue and an above-consensus Q2 guide of $8.60B ± $400M. The selloff suggests the market may have priced in even stronger results or is reacting to China concentration risk at 35% of revenue.

Record revenue, margins, and EPS paired with an above-consensus guide should be bullish — but a ~6% after-hours plunge signals the market is pricing in peak-cycle and geopolitical risk that outweighs

Lam's record results and AI-driven demand narrative align with the broader wafer fabrication equipment upcycle. Peer read-through is significant for AMAT, KLAC, and ASML, though the after-hours selloff may signal peak-cycle anxiety across the semicap space.

China accounted for 35% of revenue, exposing Lam to escalating export controls, entity-list risk, and potential trade restrictions. The filing flags that trade regulations, tariffs, and geopolitical developments may inhibit the company's ability to sell products.