$LRCX · LAM RESEARCH CORP
Lam Research filed its 10-Q for Q1 FY2027 (ended September 27, 2026), reporting revenue of $8.219B (+54.4% YoY), net income of $2.753B, and diluted EPS of $2.19. Gross margin was 52.3% and operating margin reached 40.0%. Operating cash flow surged to $3.498B. The company repurchased $1.025B in stock during the quarter.
- Revenue of $8.219B, up 54.4% YoY from $5.324B, driven by AI-related wafer fabrication spending.
- Diluted EPS of $2.19 vs $1.24 a year ago — a 76.6% increase.
- Gross margin contracted to 52.3% from 50.4% a year ago but operating margin expanded to 40.0%.
- Operating cash flow nearly doubled to $3.498B from $1.779B in the prior-year quarter.
- Share count declined to 1.249B shares outstanding as of October 20, 2026, reflecting ongoing buybacks.
Stock down 11.76% in regular session to $230.15 despite blowout results; extended-hours last trade at $229.83 (-0.14% vs close). The selloff suggests the market had priced in even stronger AI-driven wafer fab equipment demand or is rotating out of semis.
Lam's 54.4% revenue surge and near-doubling of EPS confirm AI is driving an extraordinary semiconductor equipment cycle, yet the 11.8% stock drop signals investor fears that peak growth is priced in.
Lam's 54.4% revenue growth mirrors the AI-fueled capex cycle across semiconductor equipment peers. The 40.0% operating margin underscores the sector's operating leverage at scale, though the post-earnings selloff hints at peak-cycle anxiety.
Trade regulations, export controls, and tariffs could inhibit product sales; customer and product mix shifts may pressure margins; supply chain disruptions or manufacturing constraints could limit revenue. AI-driven demand assumptions may prove invalid if wafer fabrication equipment spending deceler
Get filings like this before the market reacts.
Real-time SEC filing alerts, AI summaries, and a free daily digest — plus portfolio tracking that ties filings to your positions.