Lam Research (LRCX) Q4 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $6.72 billion in June 2026, with record operating margin and EPS, driven by strong NAND and CSBG growth and AI-related demand.

• Fiscal year 2026 revenue reached $23.23 billion, up from $18.44 billion in FY2025, and non-GAAP EPS rose to $5.82 from $4.13 year-over-year.

• Net income rose to $2.28 billion, with diluted EPS of $1.81 (GAAP) and $1.82 (non-GAAP), reflecting strong operational execution.

• AI-driven demand is accelerating technology transitions and capacity investments across NAND, DRAM, and advanced packaging.

Financial highlights

• June quarter revenue was $6.72 billion, up 15% sequentially and 30% year-over-year, with non-GAAP EPS of $1.82, up from $1.47 sequentially.

• Gross margin reached 52% (non-GAAP), up from 49.9% in the prior quarter; operating margin was 38.4% (non-GAAP), up from 35% sequentially.

• Deferred revenue increased to $2.43 billion, up $213 million from the previous quarter.

• Free cash flow for the June quarter was $1.27 billion, with a gross cash balance of $5.60 billion at quarter end.

Outlook and guidance

• September 2026 quarter revenue guidance is $8.10 billion ± $400 million, with non-GAAP gross margin of 52% ±1 percentage point, operating margin 39.5% ±1 percentage point, and EPS of $2.15 ±$0.15.

• Long-term targets include gross margins in the mid-50% and operating margins in the mid-40% as AI transformation continues.

• CY26 WFE spending expected in the low $150 billion range, with continued outperformance and multi-year growth driven by customer fab projects and technology transitions.