Analysts Set Expectations for Lam Research FY2027 Earnings

Lam Research Corporation (NASDAQ:LRCX) – Analysts at Erste Group Bank raised their FY2027 EPS estimates for shares of Lam Research in a research note issued to investors on Wednesday, October 21st. Erste Group Bank analyst S. Lingnau now expects that the semiconductor company will earn $9.46 per share for the year, up from their previous forecast of $9.40. The consensus estimate for Lam Research’s current full-year earnings is $9.35 per share. Erste Group Bank also issued estimates for Lam Research’s FY2028 earnings at $12.08 EPS.

Lam Research (NASDAQ:LRCX) last posted its earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 earnings per share for the quarter, topping analysts’ consensus estimates of $2.18 by $0.02. The firm had revenue of $8.22 billion for the quarter, compared to analysts’ expectations of $8.14 billion. Lam Research had a net margin of 32.34% and a return on equity of 76.78%. The company’s revenue was up 54.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.26 earnings per share.

Other equities analysts have also recently issued research reports about the company. Weiss Ratings cut Lam Research from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, September 4th. Zacks Research upgraded Lam Research from a “hold” rating to a “strong-buy” rating in a report on Friday, July 17th. HSBC reaffirmed a “hold” rating and issued a $333.00 price objective on shares of Lam Research in a research note on Monday, July 27th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $375.00 price objective on shares of Lam Research in a report on Monday. Finally, Berenberg Bank set a $420.00 target price on shares of Lam Research in a research report on Wednesday, September 9th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Lam Research presently has a consensus rating of “Moderate Buy” and a consensus price target of $354.55.

Lam Research Trading Down 11.8%

NASDAQ LRCX opened at $230.15 on Friday. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30. Lam Research has a twelve month low of $135.50 and a twelve month high of $438.50. The company has a market cap of $288.01 billion, a price-to-earnings ratio of 39.96, a price-to-earnings-growth ratio of 0.95 and a beta of 1.85. The business’s fifty day moving average is $303.94 and its 200 day moving average is $309.88.

Institutional Investors Weigh In On Lam Research

Several large investors have recently modified their holdings of LRCX. State Street Corp grew its holdings in Lam Research by 2.6% during the 2nd quarter. State Street Corp now owns 60,704,130 shares of the semiconductor company’s stock worth $26,320,468,000 after acquiring an additional 1,545,830 shares during the period. Bank of America Corp DE raised its position in shares of Lam Research by 5.5% in the 2nd quarter. Bank of America Corp DE now owns 11,244,147 shares of the semiconductor company’s stock worth $4,872,426,000 after acquiring an additional 584,489 shares in the last quarter. Van ECK Associates Corp lifted its stake in shares of Lam Research by 411.8% in the 2nd quarter. Van ECK Associates Corp now owns 11,089,395 shares of the semiconductor company’s stock valued at $4,805,368,000 after purchasing an additional 8,922,854 shares during the period. Bank of New York Mellon Corp acquired a new position in shares of Lam Research in the 2nd quarter valued at about $3,777,585,000. Finally, Amundi lifted its stake in shares of Lam Research by 23.7% in the 1st quarter. Amundi now owns 10,147,479 shares of the semiconductor company’s stock valued at $2,168,107,000 after purchasing an additional 1,942,862 shares during the period. 84.61% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Lam Research

In related news, Director Bethany Mayer sold 9,557 shares of the company’s stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total value of $3,007,970.18. Following the sale, the director directly owned 20,995 shares in the company, valued at $6,607,966.30. This represents a 31.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Ava Harter sold 5,000 shares of the stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the sale, the insider directly owned 42,462 shares of the company’s stock, valued at $12,843,056.52. This represents a 10.53% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.31% of the company’s stock.

Lam Research Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 23rd were given a $0.33 dividend. This is a boost from Lam Research’s previous quarterly dividend of $0.26. The ex-dividend date was Wednesday, September 23rd. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.6%. Lam Research’s dividend payout ratio is presently 22.92%.

Key Lam Research News

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

• Positive Sentiment: Lam Research reported record fiscal Q1 2027 revenue of $8.22 billion, up 54.4% year over year, and adjusted EPS of $2.20, narrowly beating analyst estimates. Operating margin exceeded 40% for the first time, supported by strong systems sales, NAND demand and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains
• Positive Sentiment: Management expects wafer-fabrication-equipment spending to exceed $200 billion in 2027, driven by artificial-intelligence infrastructure, memory upgrades and advanced chip manufacturing. Longer-term growth opportunities include expanding Aether dry-resist revenue and more than 30% annual growth in the Customer Support Business Group. LRCX Q1 Earnings Call Highlights $200B-Plus WFE Outlook for 2027
• Neutral Sentiment: Analysts remain broadly constructive on Lam Research’s long-term AI and semiconductor-cycle exposure, but several firms lowered price targets after the earnings call, reflecting increased near-term execution risk. Lam Research: Street trims target on supply headwinds but bullish long term
• Negative Sentiment: Component shortages, supply-chain bottlenecks and limited cleanroom capacity are restricting shipments and could limit the company’s ability to meet demand through 2027. December-quarter revenue guidance of approximately $8.6 billion was viewed as cautious despite being near consensus. Lam Research retreats amid cautious guidance and China revenue drop
• Negative Sentiment: Investors also expect China’s contribution to decline substantially from 35% of September-quarter revenue, adding geopolitical and regional-demand pressure. The warning triggered a broader semiconductor sell-off, weighing on related equipment stocks and amplifying LRCX’s decline. LRCX Stock Tumbles Overnight Despite Record Profits

Lam Research Company Profile

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company’s product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.