We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Lam Research (LRCX) Up 16.9% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Lam Research (LRCX - Free Report) . Shares have added about 16.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Lam Research due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Lam Research Q3 Earnings Surpass Expectations, Revenues Rise Y/Y
Lam Research delivered third-quarter fiscal 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate. LRCX reported fiscal third-quarter non-GAAP earnings of $1.47 per share, beating the Zacks Consensus Estimate by 8.1%. The bottom line increased 41.3% on a year-over-year basis.
In the third quarter of fiscal 2026, LRCX reported revenues of $5.84 billion, which rose 23.8% year over year and surpassed the consensus estimate by 1.3%. Strength was supported by an accelerating AI-driven semiconductor demand backdrop and a record quarter for customer support activities.
LRCX Revenue Mix Shows Broad-Based Strength
In the third quarter of fiscal 2026, Systems revenues were $3.73 billion (63.9% of total revenues), up 24% on a year-over-year basis. The Zacks Consensus Estimate for Systems revenues was pegged at $3.82 billion.
Customer Support Business Group revenues totaled $2.11 billion (36.1% of total revenues), which increased 25.3% on a year-over-year basis, reflecting continued expansion across spares, upgrades and services. The Zacks Consensus Estimate for Customer Support Business Group revenues was pegged at $1.93 billion.
During the quarter, China contributed 34% of total revenues, Taiwan 23%, and Korea 23%. Other regions like Japan contributed 8%, the United States 6%, Southeast Asia 4%, and Europe 2%.
LRCX Profitability Improves on Mix and Factory Efficiencies
Lam Research posted fiscal third-quarter non-GAAP gross margin of 49.9%, improving 20 basis points from 49.7% in the previous quarter. Management attributed performance to a favorable customer and product mix as well as improved factory efficiencies, supported by prior work to enhance the global manufacturing footprint.
Non-GAAP operating expenses were $866 million in the fiscal third quarter, up from $827 million in the prior quarter, driven by seasonal employee-related costs and higher headcount to support growth.
Even with higher spending, non-GAAP operating margin expanded 70 basis points to 35.0%, up from 34.3% in the previous quarter.
LRCX’s Balance Sheet & Cash Flow
As of March 29, 2026, Lam Research held $4.8 billion in cash and cash equivalents, down from $6.2 billion at the end of the prior quarter.
Cash flows from operating activities decreased to $1.14 billion, down from $1.48 billion in the previous quarter.
During the quarter, Lam Research paid dividends totaling $325.8 million and repurchased shares worth $796 million.
LRCX Provides Strong Guidance for Q4
For the fourth quarter of fiscal 2026, Lam Research expects revenues to be $6.60 billion (+/- $400 million). The company forecasts non-GAAP gross margin of 50.5% (+/- 1%) and non-GAAP operating margin of 36.5% (+/- 1%). Lam Research guided non-GAAP earnings of $1.65 per share (+/- $0.15), based on a diluted share count of 1.26 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 16.48% due to these changes.
VGM Scores
Currently, Lam Research has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Lam Research has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Why Is Lam Research (LRCX) Up 16.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Lam Research (LRCX - Free Report) . Shares have added about 16.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Lam Research due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Lam Research Q3 Earnings Surpass Expectations, Revenues Rise Y/Y
Lam Research delivered third-quarter fiscal 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate. LRCX reported fiscal third-quarter non-GAAP earnings of $1.47 per share, beating the Zacks Consensus Estimate by 8.1%. The bottom line increased 41.3% on a year-over-year basis.
In the third quarter of fiscal 2026, LRCX reported revenues of $5.84 billion, which rose 23.8% year over year and surpassed the consensus estimate by 1.3%. Strength was supported by an accelerating AI-driven semiconductor demand backdrop and a record quarter for customer support activities.
LRCX Revenue Mix Shows Broad-Based Strength
In the third quarter of fiscal 2026, Systems revenues were $3.73 billion (63.9% of total revenues), up 24% on a year-over-year basis. The Zacks Consensus Estimate for Systems revenues was pegged at $3.82 billion.
Customer Support Business Group revenues totaled $2.11 billion (36.1% of total revenues), which increased 25.3% on a year-over-year basis, reflecting continued expansion across spares, upgrades and services. The Zacks Consensus Estimate for Customer Support Business Group revenues was pegged at $1.93 billion.
During the quarter, China contributed 34% of total revenues, Taiwan 23%, and Korea 23%. Other regions like Japan contributed 8%, the United States 6%, Southeast Asia 4%, and Europe 2%.
LRCX Profitability Improves on Mix and Factory Efficiencies
Lam Research posted fiscal third-quarter non-GAAP gross margin of 49.9%, improving 20 basis points from 49.7% in the previous quarter. Management attributed performance to a favorable customer and product mix as well as improved factory efficiencies, supported by prior work to enhance the global manufacturing footprint.
Non-GAAP operating expenses were $866 million in the fiscal third quarter, up from $827 million in the prior quarter, driven by seasonal employee-related costs and higher headcount to support growth.
Even with higher spending, non-GAAP operating margin expanded 70 basis points to 35.0%, up from 34.3% in the previous quarter.
LRCX’s Balance Sheet & Cash Flow
As of March 29, 2026, Lam Research held $4.8 billion in cash and cash equivalents, down from $6.2 billion at the end of the prior quarter.
Cash flows from operating activities decreased to $1.14 billion, down from $1.48 billion in the previous quarter.
During the quarter, Lam Research paid dividends totaling $325.8 million and repurchased shares worth $796 million.
LRCX Provides Strong Guidance for Q4
For the fourth quarter of fiscal 2026, Lam Research expects revenues to be $6.60 billion (+/- $400 million). The company forecasts non-GAAP gross margin of 50.5% (+/- 1%) and non-GAAP operating margin of 36.5% (+/- 1%). Lam Research guided non-GAAP earnings of $1.65 per share (+/- $0.15), based on a diluted share count of 1.26 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 16.48% due to these changes.
VGM Scores
Currently, Lam Research has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Lam Research has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.