Haverhill Financial Research · News · Earnings · October 23, 2026
What happened
Lam Research reported revenue of $8.22 billion for the quarter ended in September, up from $5.32 billion a year earlier and $6.72 billion in the June quarter. Gross margin was 52.3%, operating margin was 40.0% and earnings per share were $2.19. Lam makes the equipment chipmakers use to etch and deposit materials on wafers, so its results are a direct read on how much the industry is spending on new capacity.
Quarterly revenue, $ billions. December quarter shows the guided range. Source: Lam Research.
The numbers
| Measure | Sep. 2026 quarter | Dec. 2026 guidance |
|---|---|---|
| Revenue | $8.22B | $8.60B ± $0.40B |
| Gross margin | 52.3% | — |
| Operating margin | 40.0% | — |
| Earnings per share | $2.19 | $2.33 ± $0.15 |
| Revenue from ChinaShare of total | 35% | — |
| Operating cash flow | $3.50B | — |
Lam also bought back about $1.02 billion of stock in the quarter.
Why it matters
The results add to the evidence that spending on AI chips is spreading down the supply chain. The cloud companies are spending record amounts on data centers, and chipmakers are adding capacity to supply them. Lam's guidance for the December quarter implies another increase, to about $8.6 billion.
What comes next
The share of revenue from China is the number we would watch. It is lower than in recent years, but any new export restrictions would affect it first. The December-quarter guidance gives a clear benchmark for the next report.
Sources and disclosures
Figures come from Lam Research's fiscal first-quarter 2027 results, filed with the SEC on October 21, 2026. The 55% growth rate is our calculation.
Disclosures. Haverhill Financial Research is a publisher of general financial commentary. This article is not personalized investment advice and does not consider any reader's financial situation; readers should do their own research. Nothing here is a recommendation to buy or sell any security. Company figures and guidance can change. The author of this post does not hold positions in Lam Research or the other companies named. Data as of October 23, 2026.
