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Earnings analysis · 10-Q

LRCX earnings analysis

Filed October 22, 2026 · Our reading of the company's report

The latest report

Lam reported $8.219 billion of revenue and $2.19 GAAP diluted EPS, with both gross and operating margins expanding substantially versus the prior quarter and prior year. Systems revenue of $5.733 billion supported the…

Read full summary

Lam reported $8.219 billion of revenue and $2.19 GAAP diluted EPS, with both gross and operating margins expanding substantially versus the prior quarter and prior year. Systems revenue of $5.733 billion supported the strong top-line performance, while management’s next-quarter outlook calls for $8.60 billion of revenue plus or minus $400 million and $2.33 of diluted EPS plus or minus $0.15. The principal risks remain concentrated exposure to China and export controls, geopolitical and rare-earth supply disruptions, and the company’s $3.75 billion debt burden.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

52% Gross margin Operating margin Apr 2026 Oct 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $48 Operating expenses $12 Left as operating profit $40

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Apr 2026 Oct 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$2.19
Segment
Systems revenue: $5.733 billion

What stood out

  • Revenue accelerated sharply

    Revenue was $8.219 billion, up approximately 22% from $6.72 billion in the prior quarter and approximately 55% from $5.32 billion in the comparable prior-year quarter.

  • Margins expanded materially

    Gross margin was 52.3%, improving from 51.8% in the prior quarter and 50.4% in the comparable prior-year quarter. Operating margin reached 40.0%, versus 37.4% and 34.4%, respectively.

  • EPS growth outpaced revenue

    GAAP diluted EPS was $2.19, up from $1.81 in the prior quarter and $1.24 in the comparable prior-year quarter, representing approximately 21% sequential and 77% year-over-year growth.

  • Systems drove reported revenue

    Systems revenue was $5.733 billion, making systems the principal disclosed revenue contributor during the quarter.

What to watch

  • China and export-control exposure

    China represented approximately 35% of revenue for the three months ended September 27, 2026. The filing states that expanded U.S. export-license requirements could materially and adversely affect revenue and the competitive position.

  • Geopolitical and rare-earth disruption

    The filing identifies the February 2026 U.S.-Israel-Persian Gulf-Iran conflict as having disrupted the Middle East, including restrictions around the Strait of Hormuz and Red Sea. Chinese controls on certain rare-earth elements and products containing them were described as suspended in part until November 2026, creating potential supply and cost risk.

  • Leverage and liquidity obligations

    Lam reported $3.75 billion of senior unsecured notes outstanding, alongside a $2.00 billion commercial-paper program and a $2.00 billion revolving credit facility. Debt service and covenant restrictions could limit cash available for operations, capital expenditures, dividends, and repurchases.

Management's outlook

The outlook indicates next-quarter revenue of $8.60 billion plus or minus $400 million and diluted EPS of $2.33 plus or minus $0.15. The filing does not provide the prior outlook, so the direction of the change cannot be determined.

Earlier filings 2

10-K · August 7, 2026

Lam delivered a strong FY2026, with revenue up 26.0% to $23.233 billion, diluted EPS up 38.8% to $5.76, gross margin expanding 180 basis points to 50.5%, and foundry, Taiwan, systems, and support revenue driving growth.…

10-Q · April 23, 2026

Lam Research reported March-quarter revenue of $5,841,488,000 (up from $5,344,791,000 in the prior quarter, +9%) with gross margin of 49.8% and GAAP diluted EPS of $1.45. Systems revenue and customer-support revenue…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.