Lam Research Corporation Reports Financial Results for the Quarter Ended
Lam Research Corporation Reports Financial Results for the Quarter Ended September 27, 2026
FREMONT, Calif., October 21, 2026 - Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended September 27, 2026 (the “September 2026 quarter”).
• U.S. GAAP gross margin as a percent of revenue of 52.3%, U.S. GAAP operating margin as a percent of revenue of 40.0%, and U.S. GAAP diluted EPS of $2.19.
• Non-GAAP gross margin as a percent of revenue of 52.4%, non-GAAP operating margin as a percent of revenue of 40.2%, and non-GAAP diluted EPS of $2.20.
For the September 2026 quarter, revenue was $8.22 billion, gross margin was $4.30 billion, or 52.3% of revenue, operating expenses were $1.02 billion, operating margin was 40.0%, and net income was $2.75 billion, or $2.19 per diluted share on a U.S. GAAP basis. This compares to revenue of $6.72 billion, gross margin of $3.48 billion, or 51.7% of revenue, operating expenses of $965.3 million, operating margin of 37.4%, and net income of $2.28 billion, or $1.81 per diluted share, for the quarter ended June 28, 2026 (the “June 2026 quarter”).
For the September 2026 quarter, non-GAAP gross margin was $4.31 billion, or 52.4% of revenue, non-GAAP operating expenses were $1.00 billion, non-GAAP operating margin was 40.2%, and non-GAAP net income was $2.77 billion, or $2.20 per diluted share. This compares to non-GAAP gross margin of $3.50 billion, or 52.0% of revenue, non-GAAP operating expenses of $916.4 million, non-GAAP operating margin of 38.4%, and non-GAAP net income of $2.28 billion, or $1.82 per diluted share, for the June 2026 quarter.
“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,” said Tim Archer, Lam Research's President and Chief Executive Officer. “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.”
Cash, cash equivalents, and restricted cash balances increased to $7.45 billion at the end of the September 2026 quarter compared to $5.60 billion at the end of the June 2026 quarter. The increase was primarily the result of cash generated from operating activities during the quarter partially offset by cash deployed for capital return activities and capital expenditures.
Deferred revenue at the end of the September 2026 quarter increased to $2.66 billion compared to $2.43 billion as of the end of the June 2026 quarter. Lam's deferred revenue balance does not include shipments to customers in Japan, to whom control does not transfer until customer acceptance. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $468.3 million as of September 27, 2026 and $490.2 million as of June 28, 2026.
The geographic distribution of revenue during the September 2026 quarter is shown in the following table:
Region Revenue China 35% Korea 20% Taiwan 18% Japan 9% United States 8% Southeast Asia 6% Europe 4%
The following table presents revenue disaggregated between systems and customer support-related revenue:
Systems revenue includes sales of new leading-edge equipment in deposition, etch, clean, and other wafer fabrication markets.
Customer support-related revenue includes sales of customer services, spares, upgrades, and non-leading-edge equipment from our Reliant® product line.
For the quarter ending December 27, 2026, Lam is providing the following guidance:
The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other items that may be completed or realized after the date of this release, except as described below. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material. Reconciling items included above are as follows:
• Gross margin - amortization related to intangible assets acquired through certain business combinations, $2.7 million.
• Operating margin - amortization related to intangible assets acquired through certain business combinations, $3.0 million.
• Net income per diluted share - amortization related to intangible assets acquired through certain business combinations, $3.0 million; amortization of note discounts, $0.5 million; and associated tax benefit for non-GAAP items ($0.2 million); totaling $3.3 million.
In addition to U.S. GAAP results, this press release also contains non-GAAP financial results. The Company’s non-GAAP results for both the September 2026 and June 2026 quarters exclude amortization related to intangible assets acquired through certain business combinations, the effects of elective deferred compensation-related assets and liabilities, amortization of note discounts, and the net income tax effect of non-GAAP items. The September 2026 quarter also excludes the net income tax effect of a change in tax law, and the June 2026 quarter excludes workforce optimization charges and the related income tax effect.
Management uses non-GAAP gross margin, operating expense, operating income, operating margin, net income, and net income per diluted share to evaluate the Company’s operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors’ ability to view the Company’s results from management’s perspective. Tables presenting reconciliations of non-GAAP results to U.S. GAAP results are included at the end of this press release and on the Company’s website at https://investor.lamresearch.com .
Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning: our outlook and guidance for future financial results, including revenue, gross margin, operating margin, net income per diluted share, and diluted share count; AI- driven semiconductor demand and device complexity; our focus on operational execution; the perceived benefits of our strategic investments; our ability to outgrow the wafer fabrication equipment market as the industry expands; and deferred revenue. These statements are not a guarantee of future performance and involve a number of risks, uncertainties, and other factors that could cause our actual results or outcomes, or the timing of our results or outcomes, to differ materially from those expressed or implied in this press release. Such risks, uncertainties, and other factors include: our assumptions related to continued expansion of the wafer fabrication equipment market, growth of deposition and etch intensity, and scaling of our operations may prove invalid; business, economic, political, and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy, including wafer fabrication equipment spending or demand related to AI, may deteriorate or change; the actions, performance, or investment levels of our customers and competitors may be inconsistent with our expectations; customer and product mix, including across market segments and geographical regions, may change; we may be unable to realize the value of our products and technology, successfully commercialize new products and technologies, implement pricing initiatives, or execute on perceived opportunities; we may be unable to achieve anticipated operational, manufacturing, supply chain, procurement, and scale efficiencies; customer technology transitions, capacity expansions, and fab construction projects may have different timing or be less successful than we expect; we may be unable to manage operating expenses effectively while continuing to invest in research and development, product innovation, customer support, and future growth opportunities; trade regulations, export controls (including entity listings, end use/user controls, technology controls, and foreign direct product rules), tariffs, trade disputes, and other geopolitical developments may inhibit our ability to sell our products or services; supply chain cost increases, tariffs, and other inflationary pressures may continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; natural and human- caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the “Risk Factors” described in our most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. You should evaluate all forward-looking statements made in this press release in the context of these risks, uncertainties, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on our current beliefs, expectations, and assumptions about future events. Except as required by law, we undertake no obligation to update the information or statements made in this press release.
Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe. Learn more at www.lamresearch.com. (LRCX)
(1) Derived from audited financial statements. Common shares issued and outstanding were 1,249,145 as of September (2) 27, 2026, 1,251,278 as of June 28, 2026, and 1,259,176 as of September 28, 2025.
September September Three Months 27, June 28, 28, Ended 2026 2026 2025 ────────────────────────────────────────────────────────────────────────────── CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 2,753,138 $ 2,277,282 $ 1,568,660 Adjustments to reconcile net income to net cash provided by operating activities: Depreciati… and 122,072 119,642 101,644 amortizati… Deferred income -55,300 -175,752 -62,875 taxes Equity-bas… compensati… 114,696 103,985 97,241 expense Other, net 27,633 -8,006 -1,890 Changes in operating 535,413 -859,923 76,184 assets and liabilities Net cash provided by 3,497,652 1,457,228 1,778,964 operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditur… and -257,697 -188,801 -185,121 intangible assets Other, net -9,292 45,060 -927 Net cash used for -266,989 -143,741 -186,048 investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on debt, including finance lease -34,489 -1,355 -1,417 obligations and payments for debt issuance costs Treasury stock purchases, -1,024,965 -246,560 -975,791 including excise tax payments Dividends -325,402 -325,318 -291,981 paid Reissuance of treasury stock related to — 88,780 — employee stock purchase plan Proceeds from issuance of common 4,263 4,426 — stock, net of issuance costs Other, net -1,786 -282 -12,449 Net cash used for -1,382,379 -480,309 -1,281,638 financing activities Effect of exchange rate changes on cash, 4,663 -2,056 -7,059 cash equivalent… and restricted cash Net change in cash, cash equivalent… 1,852,947 831,122 304,219 and restricted cash Cash, cash equivalent… and restricted 5,597,943 4,766,821 6,407,656 cash at beginning of period (1) Cash, cash equivalent… and restricted $ 7,450,890 $ 5,597,943 $ 6,711,875 cash at end of period(1)
(1) Restricted cash is reported within Other assets in the Condensed Consolidated Balance Sheets.
September 27, June 28, Three Months Ended 2026 2026 ────────────────────────────────────────────────────────────────────────────── U.S. GAAP net income $ 2,753,138 $ 2,277,282 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through 2,668 2,668 certain business combinations - cost of goods sold Elective deferred compensation ("EDC") related liability 3,498 15,379 valuation increase - cost of goods sold Workforce optimization charges - cost of — 549 goods sold EDC related liability valuation increase 6,299 27,682 - research and development Workforce optimization charges - — 960 research and development Amortization related to intangible assets acquired through certain business 348 348 combinations - selling, general and administrative EDC related liability valuation increase 4,199 18,454 - selling, general and administrative Workforce optimization charges - — 1,388 selling, general and administrative Amortization of note discounts - other 508 504 income (expense), net Gain on EDC related asset - other income -12,870 -61,325 (expense), net Net income tax benefit -825 -3,921 on non-GAAP items Income tax expense from a change in tax 11,454 — law Non-GAAP net income $ 2,768,417 $ 2,279,968 Non-GAAP net income per $ 2.20 $ 1.82 diluted share U.S. GAAP net income $ 2.19 $ 1.81 per diluted share U.S. GAAP and non-GAAP number of shares 1,255,768 1,256,032 used for per diluted share calculation
Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin, Operating Expenses and Operating Income
September 27, June 28, Three Months Ended 2026 2026 ────────────────────────────────────────────────────────────────────────────── U.S. GAAP gross $ 4,298,853 $ 3,478,740 margin Pre-tax non-GAAP items: Amortization related to intangible assets acquired 2,668 2,668 through certain business combinations EDC related liability 3,498 15,379 valuation increase Workforce optimization — 549 charges Non-GAAP gross $ 4,305,019 $ 3,497,336 margin U.S. GAAP gross margin as a 52.3 % 51.7 % percent of revenue Non-GAAP gross margin as a 52.4 % 52.0 % percent of revenue U.S. GAAP operating $ 1,015,126 $ 965,252 expenses Pre-tax non-GAAP items: Amortization related to intangible assets acquired -348 -348 through certain business combinations EDC related liability -10,498 -46,136 valuation increase Workforce optimization — -2,348 charges Non-GAAP operating $ 1,004,280 $ 916,420 expenses U.S. GAAP $ 3,283,727 $ 2,513,488 operating income Non-GAAP $ 3,300,739 $ 2,580,916 operating income U.S. GAAP 40.0 % 37.4 % operating margin Non-GAAP 40.2 % 38.4 % operating margin
Full text with the tables
Exhibit 99.1
FOR IMMEDIATE RELEASE
Lam Research Corporation Reports Financial Results for the Quarter Ended
September 27, 2026
FREMONT, Calif., October 21, 2026 - Lam Research Corporation (the "Company,"
"Lam," "Lam Research") today announced financial results for the quarter ended
September 27, 2026 (the “September 2026 quarter”).
Highlights for the September 2026 quarter were as follows:
• Revenue of $8.22 billion.
• U.S. GAAP gross margin as a percent of revenue of 52.3%, U.S. GAAP operating
margin as a percent of revenue of 40.0%, and U.S. GAAP diluted EPS of $2.19.
• Non-GAAP gross margin as a percent of revenue of 52.4%, non-GAAP operating
margin as a percent of revenue of 40.2%, and non-GAAP diluted EPS of $2.20.
Key Financial Data for the Quarters Ended
September 27, 2026 and June 28, 2026
(in thousands, except per share data, percentages, and basis points)
U.S. Septem… June Change
GAAP 2026 2026 Q/Q
──────────────────────────────────────────────────────────────────────────────
Reve… $ 8,219,… $ 6,722,… +22%
Gross 52.3 % 51.7 % + 60
marg… bps
Oper… 40.0 % 37.4 % + 260
marg… bps
Dilu… $ 2.19 $ 1.81 + 21%
EPS
Non-…
Septe… June Change
2026 2026 Q/Q
Reve… $ 8,219,… $ 6,722,… +22%
Gross 52.4 % 52.0 % + 40
marg… bps
Oper… 40.2 % 38.4 % + 180
marg… bps
Dilu… $ 2.20 $ 1.82 + 21%
EPS
U.S. GAAP Financial Results
For the September 2026 quarter, revenue was $8.22 billion, gross margin was
$4.30 billion, or 52.3% of revenue, operating expenses were $1.02 billion,
operating margin was 40.0%, and net income was $2.75 billion, or $2.19 per
diluted share on a U.S. GAAP basis. This compares to revenue of $6.72 billion,
gross margin of $3.48 billion, or 51.7% of revenue, operating expenses of $965.3
million, operating margin of 37.4%, and net income of $2.28 billion, or $1.81
per diluted share, for the quarter ended June 28, 2026 (the “June 2026
quarter”).
Non-GAAP Financial Results
For the September 2026 quarter, non-GAAP gross margin was $4.31 billion, or
52.4% of revenue, non-GAAP operating expenses were $1.00 billion, non-GAAP
operating margin was 40.2%, and non-GAAP net income was $2.77 billion, or $2.20
per diluted share. This compares to non-GAAP gross margin of $3.50 billion, or
52.0% of revenue, non-GAAP operating expenses of $916.4 million, non-GAAP
operating margin of 38.4%, and non-GAAP net income of $2.28 billion, or $1.82
per diluted share, for the June 2026 quarter.
“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,” said Tim Archer, Lam Research's
President and Chief Executive Officer. “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.”
Balance Sheet and Cash Flow Results
Cash, cash equivalents, and restricted cash balances increased to $7.45 billion
at the end of the September 2026 quarter compared to $5.60 billion at the end of
the June 2026 quarter. The increase was primarily the result of cash generated
from operating activities during the quarter partially offset by cash deployed
for capital return activities and capital expenditures.
Deferred revenue at the end of the September 2026 quarter increased to $2.66
billion compared to $2.43 billion as of the end of the June 2026 quarter. Lam's
deferred revenue balance does not include shipments to customers in Japan, to
whom control does not transfer until customer acceptance. Shipments to customers
in Japan are classified as inventory at cost until the time of acceptance. The
estimated future revenue from shipments to customers in Japan was approximately
$468.3 million as of September 27, 2026 and $490.2 million as of June 28, 2026.
Revenue
The geographic distribution of revenue during the September 2026 quarter is
shown in the following table:
Region Revenue
China 35%
Korea 20%
Taiwan 18%
Japan 9%
United States 8%
Southeast Asia 6%
Europe 4%
The following table presents revenue disaggregated between systems and customer
support-related revenue:
September September
Three Months 27, June 28, 28,
Ended 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
-in
thousands
Systems $ 5,732,907 $ 4,249,848 $ 3,547,565
revenue
Customer
support-re… 2,486,511 2,472,390 1,776,608
revenue and
other
$ 8,219,418 $ 6,722,238 $ 5,324,173
Systems revenue includes sales of new leading-edge equipment in deposition,
etch, clean, and other wafer fabrication markets.
Customer support-related revenue includes sales of customer services, spares,
upgrades, and non-leading-edge equipment from our Reliant® product line.
Outlook
For the quarter ending December 27, 2026, Lam is providing the following
guidance:
U.S.
GAAP Reco… Non-…
$8.60 $400 Items $8.60 $400
Rev… Bill… +/- Mill… — Bill… +/- Mil…
──────────────────────────────────────────────────────────────────────────────
Gro… 52.5% +/- 1% $ 2.7 Mill… 52.5% +/- 1%
mar…
Ope… 40.5% +/- 1% $ 3.0 Mill… 40.5% +/- 1%
mar…
Net
inc…
per $2.33 +/- $0.15 $ 3.3 Mill… $2.33 +/- $0.…
dil…
sha…
Dil… 1.253 1.253
sha… Bill… — Bill…
cou…
The information provided above is only an estimate of what the Company believes
is realizable as of the date of this release and does not incorporate the
potential impact of any business combinations, asset acquisitions, divestitures,
restructuring, balance sheet valuation adjustments, financing arrangements,
other investments, or other items that may be completed or realized after the
date of this release, except as described below. U.S. GAAP to non-GAAP
reconciling items provided include only those items that are known and can be
estimated as of the date of this release. Actual results will vary from this
model and the variations may be material. Reconciling items included above are
as follows:
• Gross margin - amortization related to intangible assets acquired through
certain business combinations, $2.7 million.
• Operating margin - amortization related to intangible assets acquired through
certain business combinations, $3.0 million.
• Net income per diluted share - amortization related to intangible assets
acquired through certain business combinations, $3.0 million; amortization of
note discounts, $0.5 million; and associated tax benefit for non-GAAP items
($0.2 million); totaling $3.3 million.
Use of Non-GAAP Financial Results
In addition to U.S. GAAP results, this press release also contains non-GAAP
financial results. The Company’s non-GAAP results for both the September 2026
and June 2026 quarters exclude amortization related to intangible assets
acquired through certain business combinations, the effects of elective deferred
compensation-related assets and liabilities, amortization of note discounts, and
the net income tax effect of non-GAAP items. The September 2026 quarter also
excludes the net income tax effect of a change in tax law, and the June 2026
quarter excludes workforce optimization charges and the related income tax
effect.
Management uses non-GAAP gross margin, operating expense, operating income,
operating margin, net income, and net income per diluted share to evaluate the
Company’s operating and financial results. The Company believes the presentation
of non-GAAP results is useful to investors for analyzing business trends and
comparing performance to prior periods, along with enhancing investors’ ability
to view the Company’s results from management’s perspective. Tables presenting
reconciliations of non-GAAP results to U.S. GAAP results are included at the end
of this press release and on the Company’s website at
https://investor.lamresearch.com .
Caution Regarding Forward-Looking Statements
Statements made in this press release that are not of historical fact are
forward-looking statements and are subject to the safe harbor provisions created
by the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements include, but are not limited to, statements concerning: our outlook
and guidance for future financial results, including revenue, gross margin,
operating margin, net income per diluted share, and diluted share count; AI-
driven semiconductor demand and device complexity; our focus on operational
execution; the perceived benefits of our strategic investments; our ability to
outgrow the wafer fabrication equipment market as the industry expands; and
deferred revenue. These statements are not a guarantee of future performance and
involve a number of risks, uncertainties, and other factors that could cause our
actual results or outcomes, or the timing of our results or outcomes, to differ
materially from those expressed or implied in this press release. Such risks,
uncertainties, and other factors include: our assumptions related to continued
expansion of the wafer fabrication equipment market, growth of deposition and
etch intensity, and scaling of our operations may prove invalid; business,
economic, political, and/or regulatory conditions in the consumer electronics
industry, the semiconductor industry and the overall economy, including wafer
fabrication equipment spending or demand related to AI, may deteriorate or
change; the actions, performance, or investment levels of our customers and
competitors may be inconsistent with our expectations; customer and product mix,
including across market segments and geographical regions, may change; we may be
unable to realize the value of our products and technology, successfully
commercialize new products and technologies, implement pricing initiatives, or
execute on perceived opportunities; we may be unable to achieve anticipated
operational, manufacturing, supply chain, procurement, and scale efficiencies;
customer technology transitions, capacity expansions, and fab construction
projects may have different timing or be less successful than we expect; we may
be unable to manage operating expenses effectively while continuing to invest in
research and development, product innovation, customer support, and future
growth opportunities; trade regulations, export controls (including entity
listings, end use/user controls, technology controls, and foreign direct product
rules), tariffs, trade disputes, and other geopolitical developments may inhibit
our ability to sell our products or services; supply chain cost increases,
tariffs, and other inflationary pressures may continue to impact our
profitability; supply chain disruptions or manufacturing capacity constraints
may limit our ability to manufacture and sell our products; natural and human-
caused disasters, disease outbreaks, war, terrorism, political or governmental
unrest or instability, or other events beyond our control may impact our
operations and revenue in affected areas; as well as the other risks and
uncertainties that are described in the documents filed or furnished by us with
the Securities and Exchange Commission, including specifically the “Risk
Factors” described in our most recently filed periodic reports on Form 10-K and
Form 10-Q and subsequent filings. You should evaluate all forward-looking
statements made in this press release in the context of these risks,
uncertainties, and other factors. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof and are based on our current beliefs, expectations, and assumptions about
future events. Except as required by law, we undertake no obligation to update
the information or statements made in this press release.
Lam Research Corporation is a global supplier of innovative wafer fabrication
equipment and services to the semiconductor industry. Lam's equipment and
services allow customers to build smaller and better performing devices. In
fact, today, nearly every advanced chip is built with Lam technology. We combine
superior systems engineering, technology leadership, and a strong values-based
culture, with an unwavering commitment to our customers. Lam Research (Nasdaq:
LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with
operations around the globe. Learn more at www.lamresearch.com. (LRCX)
Condensed Consolidated Financial Tables Follow.
###
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data and percentages)
(unaudited)
Three September September
Months 27, June 28, 28,
Ended 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Revenue $ 8,219,418 $ 6,722,238 $ 5,324,173
Cost of
goods 3,920,565 3,243,498 2,639,294
sold
Gross 4,298,853 3,478,740 2,684,879
margin
Gross
margin as
a percent 52.3 % 51.7 % 50.4 %
of
revenue
Research
and 666,398 642,922 576,446
developm…
Selling,
general 348,728 322,330 279,345
and
administ…
Total
operating 1,015,126 965,252 855,791
expenses
Operating 3,283,727 2,513,488 1,829,088
income
Operating 40.0 % 37.4 % 34.4 %
margin
Other
income 28,493 41,654 30,074
(expense…
net
Income
before 3,312,220 2,555,142 1,859,162
income
taxes
Income
tax -559,082 -277,860 -290,502
expense
Net $ 2,753,138 $ 2,277,282 $ 1,568,660
income
Net
income
per
share:
Basic $ 2.20 $ 1.82 $ 1.24
Diluted $ 2.19 $ 1.81 $ 1.24
Number of
shares
used in
per share
calculat…
Basic 1,250,883 1,251,286 1,264,446
Diluted 1,255,768 1,256,032 1,269,313
Cash
dividend
declared $ 0.33 $ 0.26 $ 0.26
per
common
share
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September September
27, June 28, 28,
2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
-unaudit… -1 -unaudited
ASSETS
Cash and
cash $ 7,437,384 $ 5,579,171 $ 6,693,046
equivale…
Accounts
receivab… 5,658,379 5,339,682 3,633,034
net
Inventor… 4,550,544 4,276,111 4,095,054
Prepaid
expenses
and other 477,805 415,741 385,580
current
assets
Total
current 18,124,112 15,610,7… 14,806,7…
assets
Property
and 3,126,029 2,956,472 2,510,531
equipmen…
net
Goodwill
and 1,911,547 1,895,859 1,826,950
intangib…
assets
Other 3,191,368 3,066,707 2,756,016
assets
Total $ 26,353,056 $ 23,529,7… $ 21,900,2…
assets
LIABILIT…
AND
STOCKHOL…
EQUITY
Current
portion
of
long-term $ 3,486 $ 4,073 $ 754,363
debt and
finance
lease
obligati…
Other
current 7,309,013 5,933,176 5,953,547
liabilit…
Total
current 7,312,499 5,937,249 6,707,910
liabilit…
Long-term
debt and
finance 3,731,958 3,730,490 3,729,580
lease
obligati…
Income
taxes 684,273 681,197 646,044
payable
Other
long-term 715,852 709,886 623,925
liabilit…
Total 12,444,582 11,058,8… 11,707,4…
liabilit…
Stockhol…
equity 13,908,474 12,470,9… 10,192,7…
(2)
Total
liabilit…
and $ 26,353,056 $ 23,529,7… $ 21,900,2…
stockhol…
equity
(1) Derived from audited financial statements.
Common shares issued and outstanding were 1,249,145 as of September
(2) 27, 2026, 1,251,278 as of June 28, 2026, and 1,259,176 as of
September 28, 2025.
LAM RESEARCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
September September
Three Months 27, June 28, 28,
Ended 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
CASH FLOWS
FROM
OPERATING
ACTIVITIES:
Net income $ 2,753,138 $ 2,277,282 $ 1,568,660
Adjustments
to
reconcile
net income
to
net cash
provided by
operating
activities:
Depreciati…
and 122,072 119,642 101,644
amortizati…
Deferred
income -55,300 -175,752 -62,875
taxes
Equity-bas…
compensati… 114,696 103,985 97,241
expense
Other, net 27,633 -8,006 -1,890
Changes in
operating 535,413 -859,923 76,184
assets and
liabilities
Net cash
provided by 3,497,652 1,457,228 1,778,964
operating
activities
CASH FLOWS
FROM
INVESTING
ACTIVITIES:
Capital
expenditur…
and -257,697 -188,801 -185,121
intangible
assets
Other, net -9,292 45,060 -927
Net cash
used for -266,989 -143,741 -186,048
investing
activities
CASH FLOWS
FROM
FINANCING
ACTIVITIES:
Principal
payments on
debt,
including
finance
lease -34,489 -1,355 -1,417
obligations
and
payments
for debt
issuance
costs
Treasury
stock
purchases, -1,024,965 -246,560 -975,791
including
excise tax
payments
Dividends -325,402 -325,318 -291,981
paid
Reissuance
of treasury
stock
related to — 88,780 —
employee
stock
purchase
plan
Proceeds
from
issuance of
common 4,263 4,426 —
stock,
net of
issuance
costs
Other, net -1,786 -282 -12,449
Net cash
used for -1,382,379 -480,309 -1,281,638
financing
activities
Effect of
exchange
rate
changes on
cash, 4,663 -2,056 -7,059
cash
equivalent…
and
restricted
cash
Net change
in cash,
cash
equivalent… 1,852,947 831,122 304,219
and
restricted
cash
Cash, cash
equivalent…
and
restricted 5,597,943 4,766,821 6,407,656
cash at
beginning
of period
(1)
Cash, cash
equivalent…
and
restricted $ 7,450,890 $ 5,597,943 $ 6,711,875
cash at end
of
period(1)
(1) Restricted cash is reported within Other assets in the Condensed
Consolidated Balance Sheets.
Non-GAAP Financial Summary
(in thousands, except percentages and per share data)
(unaudited)
September 27, June 28,
Three Months Ended 2026 2026
──────────────────────────────────────────────────────────────────────────────
Revenue $ 8,219,418 $ 6,722,238
Gross margin $ 4,305,019 $ 3,497,336
Gross margin as a
percent of 52.4 % 52.0 %
revenue
Operating $ 1,004,280 $ 916,420
expenses
Operating income $ 3,300,739 $ 2,580,916
Operating margin 40.2 % 38.4 %
Net income $ 2,768,417 $ 2,279,968
Net income per $ 2.20 $ 1.82
diluted share
Shares used in
per share 1,255,768 1,256,032
calculation -
diluted
Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income
(in thousands, except per share data)
(unaudited)
September 27, June 28,
Three Months Ended 2026 2026
──────────────────────────────────────────────────────────────────────────────
U.S. GAAP net income $ 2,753,138 $ 2,277,282
Pre-tax non-GAAP items:
Amortization related to
intangible
assets acquired through 2,668 2,668
certain business
combinations - cost of
goods sold
Elective deferred
compensation ("EDC")
related liability 3,498 15,379
valuation increase -
cost of goods sold
Workforce optimization
charges - cost of — 549
goods sold
EDC related liability
valuation increase 6,299 27,682
- research and
development
Workforce optimization
charges - — 960
research and
development
Amortization related to
intangible
assets acquired through
certain business 348 348
combinations - selling,
general and
administrative
EDC related liability
valuation increase 4,199 18,454
- selling, general and
administrative
Workforce optimization
charges - — 1,388
selling, general and
administrative
Amortization of note
discounts - other 508 504
income (expense), net
Gain on EDC related
asset - other income -12,870 -61,325
(expense), net
Net income tax benefit -825 -3,921
on non-GAAP items
Income tax expense from
a change in tax 11,454 —
law
Non-GAAP net income $ 2,768,417 $ 2,279,968
Non-GAAP net income per $ 2.20 $ 1.82
diluted share
U.S. GAAP net income $ 2.19 $ 1.81
per diluted share
U.S. GAAP and non-GAAP
number of shares 1,255,768 1,256,032
used for per diluted
share calculation
Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating
Income to Non-GAAP Gross Margin, Operating Expenses and Operating Income
(in thousands, except percentages)
(unaudited)
September 27, June 28,
Three Months Ended 2026 2026
──────────────────────────────────────────────────────────────────────────────
U.S. GAAP gross $ 4,298,853 $ 3,478,740
margin
Pre-tax non-GAAP
items:
Amortization
related to
intangible
assets acquired 2,668 2,668
through certain
business
combinations
EDC related
liability 3,498 15,379
valuation
increase
Workforce
optimization — 549
charges
Non-GAAP gross $ 4,305,019 $ 3,497,336
margin
U.S. GAAP gross
margin as a 52.3 % 51.7 %
percent of
revenue
Non-GAAP gross
margin as a 52.4 % 52.0 %
percent of
revenue
U.S. GAAP
operating $ 1,015,126 $ 965,252
expenses
Pre-tax non-GAAP
items:
Amortization
related to
intangible
assets acquired -348 -348
through certain
business
combinations
EDC related
liability -10,498 -46,136
valuation
increase
Workforce
optimization — -2,348
charges
Non-GAAP
operating $ 1,004,280 $ 916,420
expenses
U.S. GAAP $ 3,283,727 $ 2,513,488
operating income
Non-GAAP $ 3,300,739 $ 2,580,916
operating income
U.S. GAAP 40.0 % 37.4 %
operating margin
Non-GAAP 40.2 % 38.4 %
operating margin
Lam Research Corporation Contacts:
Ram Ganesh, Investor Relations, phone: 510-572-1615, e-mail:
investor.relations@lamresearch.com