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Lam Research Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
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Key Takeaways
LRCX posted Q2 non-GAAP EPS of $1.27, beating estimates by 8.5%, with earnings up 39.6% year over year.
Lam Research's revenues climbed 22% Y/Y to $5.34B, driven by growth in Customer Support revenues.
LRCX guided Q3 revenues of approximately $5.7B, with EPS projected at approximately $1.35.
Lam Research (LRCX - Free Report) reported second-quarter fiscal 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.
LRCX reported second-quarter non-GAAP earnings of $1.27 per share, which beat the Zacks Consensus Estimate by 8.5%. The bottom line increased 39.6% on a year-over-year basis.
In the second quarter of fiscal 2026, LRCX reported revenues of $5.34 billion, which surpassed the consensus mark by 2.1%. The top line rose 22% from the year-ago quarter’s $4.38 billion.
LRCX’s Q2 Revenues in Detail
Lam Research’s Systems revenues were $3.36 billion (62.8% of total revenues), down 5.4% from the previous quarter and up 28% year over year. The Zacks Consensus Estimate for Systems revenues was pegged at $3.44 billion.
In the Customer Support Business Group, revenues were $1.99 billion, comprising 37.2% of total revenues. This marks an 11.9% rise from the previous quarter’s $1.78 billion, and a 13.5% increase from the year-ago period. The Zacks Consensus Estimate for Customer Support Business Group revenues was pegged at $1.78 billion.
Lam Research Corporation Price, Consensus and EPS Surprise
During the quarter, China contributed 35% of total revenues, Taiwan 20%, and Korea 20%. Other regions like Japan contributed 10%, the United States 5%, Southeast Asia 8%, and Europe 2%.
Operating Details of LRCX
Lam Research’s non-GAAP gross margin declined to 49.7%, down 90 basis points from 50.6% in the previous quarter.
Non-GAAP operating expenses decreased to $827.49 million, down 0.5% from $831.92 million. As a percentage of revenues, non-GAAP operating expenses declined to 15.5% in the second quarter from 15.6% in the first quarter.
The non-GAAP operating margin contracted 70 basis points sequentially to 34.3%.
LRCX’s Balance Sheet & Cash Flow
As of Dec. 28, 2025, Lam Research held $6.18 billion in cash and cash equivalents, down from $6.69 billion at the end of the prior quarter.
Cash flow from operating activities decreased to $1.48 billion, down from $1.78 billion in the previous quarter.
During the quarter, Lam Research paid dividends totaling $327.5 million and repurchased shares worth $1.47 billion.
LRCX Provides Strong Guidance
For the third quarter of fiscal 2026, Lam Research projects revenues to be $5.7 billion (+/- $300 million). The Zacks Consensus Estimate for the fiscal third quarter is pegged at $5.38 billion, indicating year-over-year growth of 14%.
The company expects a non-GAAP gross margin of 49% (+/-1%) and a non-GAAP operating margin of 34% (+/-1%).
Non-GAAP earnings per share are projected to be $1.35 (+/- $0.10), with a diluted share count of 1.26 billion. The Zacks Consensus Estimate for the fiscal second quarter is pegged at $1.20 per share, indicating year-over-year growth of 15.4%.
Zacks Rank and Other Stocks to Consider
Currently, LRCX sports a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for Amphenol’s projected earnings for 2026 has been revised upward by 10 cents to $4.26 per share over the past seven days and suggests a year-over-year increase of 28.7%. Amphenol shares have jumped 38.6% in the past six months.
The Zacks Consensus Estimate for Amtech Systems’ fiscal 2026 earnings is pegged at 43 cents per share, up from the prior estimate of 15 cents per share over the past 60 days, calling for a year-over-year surge of 760%. Amtech Systems shares have soared 296.1% in the past six months.
The Zacks Consensus Estimate for BILL Holdings’ fiscal 2026 earnings has remained unchanged at $2.21 per share over the past 60 days, suggesting no year-over-year growth. BILL Holdings shares have jumped 2.8% in the past six months.
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Lam Research Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
Key Takeaways
Lam Research (LRCX - Free Report) reported second-quarter fiscal 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.
LRCX reported second-quarter non-GAAP earnings of $1.27 per share, which beat the Zacks Consensus Estimate by 8.5%. The bottom line increased 39.6% on a year-over-year basis.
In the second quarter of fiscal 2026, LRCX reported revenues of $5.34 billion, which surpassed the consensus mark by 2.1%. The top line rose 22% from the year-ago quarter’s $4.38 billion.
LRCX’s Q2 Revenues in Detail
Lam Research’s Systems revenues were $3.36 billion (62.8% of total revenues), down 5.4% from the previous quarter and up 28% year over year. The Zacks Consensus Estimate for Systems revenues was pegged at $3.44 billion.
In the Customer Support Business Group, revenues were $1.99 billion, comprising 37.2% of total revenues. This marks an 11.9% rise from the previous quarter’s $1.78 billion, and a 13.5% increase from the year-ago period. The Zacks Consensus Estimate for Customer Support Business Group revenues was pegged at $1.78 billion.
Lam Research Corporation Price, Consensus and EPS Surprise
Lam Research Corporation price-consensus-eps-surprise-chart | Lam Research Corporation Quote
During the quarter, China contributed 35% of total revenues, Taiwan 20%, and Korea 20%. Other regions like Japan contributed 10%, the United States 5%, Southeast Asia 8%, and Europe 2%.
Operating Details of LRCX
Lam Research’s non-GAAP gross margin declined to 49.7%, down 90 basis points from 50.6% in the previous quarter.
Non-GAAP operating expenses decreased to $827.49 million, down 0.5% from $831.92 million. As a percentage of revenues, non-GAAP operating expenses declined to 15.5% in the second quarter from 15.6% in the first quarter.
The non-GAAP operating margin contracted 70 basis points sequentially to 34.3%.
LRCX’s Balance Sheet & Cash Flow
As of Dec. 28, 2025, Lam Research held $6.18 billion in cash and cash equivalents, down from $6.69 billion at the end of the prior quarter.
Cash flow from operating activities decreased to $1.48 billion, down from $1.78 billion in the previous quarter.
During the quarter, Lam Research paid dividends totaling $327.5 million and repurchased shares worth $1.47 billion.
LRCX Provides Strong Guidance
For the third quarter of fiscal 2026, Lam Research projects revenues to be $5.7 billion (+/- $300 million). The Zacks Consensus Estimate for the fiscal third quarter is pegged at $5.38 billion, indicating year-over-year growth of 14%.
The company expects a non-GAAP gross margin of 49% (+/-1%) and a non-GAAP operating margin of 34% (+/-1%).
Non-GAAP earnings per share are projected to be $1.35 (+/- $0.10), with a diluted share count of 1.26 billion. The Zacks Consensus Estimate for the fiscal second quarter is pegged at $1.20 per share, indicating year-over-year growth of 15.4%.
Zacks Rank and Other Stocks to Consider
Currently, LRCX sports a Zacks Rank #1 (Strong Buy).
Amphenol (APH - Free Report) , Amtech Systems (ASYS - Free Report) and BILL Holdings, Inc. (BILL - Free Report) are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Amphenol, Amtech Systems and BILL Holdings sport a Zacks Rank #1 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Amphenol’s projected earnings for 2026 has been revised upward by 10 cents to $4.26 per share over the past seven days and suggests a year-over-year increase of 28.7%. Amphenol shares have jumped 38.6% in the past six months.
The Zacks Consensus Estimate for Amtech Systems’ fiscal 2026 earnings is pegged at 43 cents per share, up from the prior estimate of 15 cents per share over the past 60 days, calling for a year-over-year surge of 760%. Amtech Systems shares have soared 296.1% in the past six months.
The Zacks Consensus Estimate for BILL Holdings’ fiscal 2026 earnings has remained unchanged at $2.21 per share over the past 60 days, suggesting no year-over-year growth. BILL Holdings shares have jumped 2.8% in the past six months.