LRCX Q3 2026 (fiscal Q1 2027) Earnings Review
Lam Research (LRCX) beat estimates on its fiscal first-quarter results slightly and came in at the high end for the current period, but shares still dropped in after-hours trading on Thursday.
The Fremont, Calif., chip-equipment manufacturer reported adjusted earnings of $2.20 per share on revenue of $8.22 billion for the quarter ending Sept. 27, versus Wall Street estimates of $2.18 per share and $8.14 billion in sales. Earnings per share increased 75% year-over-year and revenue rose 55%.
Key Takeaways:
Lam’s outlook for Q2 is in line with market expectations: The company forecasted $2.33 per share and revenue of $8.6 billion in adjusted earnings, compared to analysts’ estimates of $2.33 per share and $8.57 billion in sales.
The outlook implies a significant increase compared to the previous year: LRCX recorded $1.27 per share on $5.34 billion in revenue in the same period last year.
Growth in demand for semiconductors driven by AI: Demand for chips and the resulting complex devices is fueling growth in the sector, according to Lam Research CEO Tim Archer.
Lam Research has seen record results for the September quarter: According to Archer, the company’s strong execution during the period contributed to record revenues, profits, and earnings per share.
The company has allocated funds to prepare for future growth: Lam Research is investing in technologies and production capacities to expand its capabilities to exceed the growth of the wafer fabrication equipment market.
Revenue Growth Is Accelerating
LRCX has maintained strong long-term revenue growth. Specifically, the company’s sales have grown by 10.6% per year on average during the last five years, which reflects a consistent increase in the company’s revenue.
However, during the last two years, Lam Research Corp. has demonstrated significant growth in sales, 29.5% per year on average, which is considerably higher than the five-year growth rate. Therefore, Lam Research Corp. appears to be growing at an increasing rate, although it is unclear what factors have contributed to this recent growth and whether they will continue to do so.
The semiconductor equipment company reported a year-over-year revenue increase of 54.4%, hitting $8.22 billion, which met the estimates of Wall Street analysts. The company recorded ten consecutive quarters of growth, which indicates that the current upcycle has been strong, and it probably ended at the ten-quarter mark, as usual for such a period.
Next quarter, the management expects sales to increase by 60.9% year over year, which indicates that Lam expects to continue growing, despite the prolonged upcycle.
Analysts’ Expectations (before earnings)
An analyst from B.Riley maintained Lam Research (NASDAQ: LRCX) at ’buy’ with a price target of $338.00 from a prior price target of $390.00.
An analyst from Deutsche Bank maintained Lam Research (NASDAQ: LRCX) at ’buy’ with a price target of $375.00 from a prior price target of $320.00.
SHARIAH Compliance Metrics
LRCX qualifies all three Musaffa Shariah screening parameters based on AAOIFI methodology as of October 2026.
Business Activity 98.85% Halal, Doubtful is 0.00%, and non-Halal is 1.15%.
Interest-bearing securities and assets = 3.26% (Shariah-complaint is < 30%).
Interest-bearing debt = 2.18% (Shariah-complaint is < 30%).
You can get a more detailed breakdown of Lam Research Shariah status on its stock page.