Lam Research Stock Fall After Hours Despite Record Revenue
Lam Research reported record revenue and profit and guided slightly above Wall Street revenue forecasts, but the chip-equipment maker's shares still fell in after-hours trading on Wednesday.
Lam Research (NASDAQ: LRCX), which makes the equipment used to manufacture semiconductors, saw its shares fall 6.4% in after-hours trading on Wednesday despite record quarterly results. Revenue came in above Yahoo Finance consensus.
The shares had closed the regular session at $260.81, down 1%, before the report landed.
LRCX.US
Revenue for the September quarter was $8.22bn, up 22% from $6.72bn in the June quarter and 54% from $5.32bn a year earlier. Adjusted (non-GAAP) earnings per share were $2.20, against $1.82 in the June quarter.
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Systems revenue, from the tools Lam sells, rose to $5.73bn from $3.55bn a year earlier. Adjusted gross margin was 52.4% and operating margin 40.2%. China accounted for 35% of revenue, ahead of Korea at 20% and Taiwan at 18%.
Results were only modestly ahead of Yahoo Finance consensus, as was the forecast for the next quarter. Yahoo labels its EPS consensus “GAAP Normalized”, while Lam’s $2.20 is non-GAAP:
Measure
Lam
Yahoo consensus
September revenue
$8.22bn
$8.14bn
September EPS
$2.20
$2.18
December revenue guidance
$8.60bn
$8.54bn
December EPS guidance
$2.33
$2.32
Revenue was about 1% above consensus, and the guidance midpoints sit only slightly above it, inside the analyst range of $8.08bn to $9.00bn. Lam guided revenue of $8.60bn, plus or minus $400m, for the December quarter.
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Lam Research quarterly revenue, $bn, with December 2026 guidance midpoint. Source: Lam Research
Chief executive Tim Archer tied the quarter to demand from artificial intelligence. Lam’s president and CEO said:
With AI driving higher semiconductor demand and greater device complexity, our focus on operational execution helped Lam deliver record revenue, profit, and earnings per share in the September quarter.
Our strategic investments in technology inflections and manufacturing capacity are paying off, strengthening our ability to outgrow the wafer fabrication equipment market as the industry expands.
Tim Archer, President and CEO, Lam Research
Lam guided December gross margin of 52.5% and operating margin of 40.5%, each plus or minus 1 percentage point.
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