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

Lam Research (NASDAQ:LRCX) released its earnings results on Wednesday. The semiconductor company reported $1.82 earnings per share for the quarter, topping analysts’ consensus estimates of $1.69 by $0.13, FiscalAI reports. Lam Research had a net margin of 31.27% and a return on equity of 71.15%. The firm had revenue of $6.72 billion for the quarter, compared to analyst estimates of $6.66 billion. During the same period in the prior year, the firm earned $1.33 earnings per share. The business’s quarterly revenue was up 30.0% compared to the same quarter last year. 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 Price Performance

Shares of NASDAQ:LRCX traded up $5.14 on Friday, hitting $302.86. The company had a trading volume of 5,868,693 shares, compared to its average volume of 11,395,103. The company has a current ratio of 2.54, a quick ratio of 1.77 and a debt-to-equity ratio of 0.35. The company has a market cap of $378.75 billion, a PE ratio of 52.62, a PEG ratio of 1.50 and a beta of 1.80. Lam Research has a 52-week low of $90.93 and a 52-week high of $438.50. The business has a 50 day moving average of $341.06 and a 200 day moving average of $276.36.

Lam Research Announces Dividend

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

Analysts Set New Price Targets

A number of research analysts have recently commented on LRCX shares. Erste Group Bank downgraded Lam Research from a “buy” rating to a “hold” rating in a report on Thursday, April 2nd. UBS Group restated a “buy” rating and issued a $375.00 price objective (up from $310.00) on shares of Lam Research in a research note on Tuesday, June 9th. BNP Paribas Exane raised their target price on shares of Lam Research from $250.00 to $260.00 and gave the stock a “neutral” rating in a research report on Thursday, April 23rd. Royal Bank Of Canada lifted their target price on shares of Lam Research from $290.00 to $310.00 and gave the company an “outperform” rating in a report on Thursday, April 23rd. Finally, Needham & Company LLC reiterated a “buy” rating and set a $390.00 price target on shares of Lam Research in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $358.47.

Insiders Place Their Bets

In other Lam Research news, Director Eric Brandt sold 54,500 shares of Lam Research stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $350.80, for a total value of $19,118,600.00. Following the completion of the sale, the director directly owned 199,205 shares of the company’s stock, valued at approximately $69,881,114. The trade was a 21.48% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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 company’s stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $335.00, for a total transaction of $6,124,470.00. Following the transaction, the director directly owned 87,142 shares of the company’s stock, valued at approximately $29,192,570. This represents 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. In the last three months, insiders sold 80,441 shares of company stock valued at $27,614,296. Company insiders own 0.31% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Triumph Capital Management grew its stake in Lam Research by 22.5% during the 4th quarter. Triumph Capital Management now owns 245 shares of the semiconductor company’s stock worth $42,000 after buying an additional 45 shares during the last quarter. Bank of Jackson Hole Trust grew its position in shares of Lam Research by 12.6% during the fourth quarter. Bank of Jackson Hole Trust now owns 428 shares of the semiconductor company’s stock worth $73,000 after acquiring an additional 48 shares during the last quarter. Hoxton Planning & Management LLC grew its position in shares of Lam Research by 1.2% during the fourth quarter. Hoxton Planning & Management LLC now owns 4,452 shares of the semiconductor company’s stock worth $762,000 after acquiring an additional 52 shares during the last quarter. Vermillion & White Wealth Management Group LLC increased its holdings in shares of Lam Research by 21.4% in the 4th quarter. Vermillion & White Wealth Management Group LLC now owns 374 shares of the semiconductor company’s stock worth $64,000 after acquiring an additional 66 shares during the period. Finally, FineMark National Bank & Trust lifted its position in Lam Research by 3.7% in the 4th quarter. FineMark National Bank & Trust now owns 1,992 shares of the semiconductor company’s stock valued at $341,000 after purchasing an additional 72 shares during the last quarter. Institutional investors and hedge funds own 84.61% of the company’s stock.

Lam Research News Roundup

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

• Positive Sentiment: Strong earnings beat and exceptional guidance: Lam Research reported record quarterly revenue of $6.72 billion, up 30% year over year, and adjusted earnings of $1.82 per share versus the $1.69 consensus estimate. Management guided first-quarter fiscal 2027 revenue to $7.7 billion-$8.5 billion and EPS to $2.00-$2.30, well above analyst expectations of approximately $7.0 billion in revenue and $1.81 EPS. Reuters report on Lam Research forecast
• Positive Sentiment: Memory and AI demand are key catalysts: NAND revenue more than doubled sequentially, customer-support revenue reached another record, and management cited accelerating demand across memory, packaging and wafer-fabrication markets. Investors view Lam as a potential beneficiary of the AI memory boom because it sells the equipment used to manufacture advanced memory chips. Zacks report on NAND and customer support
• Positive Sentiment: Analysts raised their expectations: Needham reaffirmed its Buy rating with a $390 price target and increased EPS estimates after Lam expanded its chip-equipment market outlook. Several analysts described the company as having an “extraordinary runway” into 2027. Benzinga report on Needham estimates
• Neutral Sentiment: Valuation remains a concern: Despite approximately 3.9 times appreciation over five years, valuation measures suggest LRCX is not clearly inexpensive. The strong outlook may already reflect elevated investor expectations, increasing the risk of volatility if AI or memory spending slows. Yahoo Finance valuation analysis
• Negative Sentiment: Some target reductions and company-specific risks remain: Morgan Stanley lowered its target to $367 from $404 while retaining an Overweight rating, and B. Riley reduced its target to $350 but kept a Buy rating. Investors are also monitoring potential changes in China-related equipment demand and the fact that reported insider transactions have been heavily weighted toward sales. Benzinga analyst rating updates

Lam Research Company Profile

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.