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Lam Research (LRCX.US) Reports Q1 2026 Revenue of $5.32 Billion, Exceeding Estimates

GoAI StockTrace
GoAI StockTrace
October 22, 2025
GoGPT Summarizes Articles

Lam Research (LRCX.US) announced strong financial results for the quarter ended September 28, 2025 (Q1 2026), reporting revenue of $5.32 billion. This figure represents a 3% sequential increase compared to the prior quarter, surpassing analyst estimates of $5.23 billion. Non-GAAP diluted EPS for the quarter was $1.26, a 5% decrease quarter-over-quarter, which also exceeded analyst expectations of $1.21.

Strong Segment Performance

During the September 2025 quarter, systems revenue contributed significantly, reaching $3.55 billion. This marks a 3.2% increase from the previous quarter's $3.44 billion, highlighting robust sales of new leading-edge equipment.

 

Customer support-related revenue also demonstrated solid performance, growing to $1.78 billion from $1.73 billion in the June 2025 quarter, a 2.5% sequential increase. This growth was driven by sales of customer service, spares, upgrades, and non-leading-edge equipment.

 

Management Outlook

For the quarter ending December 28, 2025, Lam Research provided a revenue guidance of approximately $5.20 billion, with a fluctuation range of +/-$300 million. The company anticipates a non-GAAP diluted EPS of approximately $1.15, with a range of +/-$0.10.

 

CEO Tim Archer highlighted that Lam's innovations are instrumental in assisting customers with major AI-driven semiconductor manufacturing inflections. He emphasized the company's strong execution and expanding portfolio, positioning it well for continued growth in a dynamic environment.

 

Balance Sheet and Cash Flow Strength

Cash, cash equivalents, and restricted cash balances rose to $6.7 billion by the end of the September 2025 quarter, up from $6.4 billion in the prior quarter. This increase was primarily due to strong cash generation from operating activities.

 

Deferred revenue also saw an increase, reaching $2.77 billion at quarter-end, compared to $2.68 billion at the end of June 2025. This indicates a healthy pipeline for future revenue recognition.