Lam Research reported record quarterly results in a filing submitted to the U.S. Securities and Exchange Commission on Oct. 21. For the quarter ended Sept. 27, revenue reached $8.22 billion, up 22% from $6.72 billion in the June quarter and above $5.32 billion in the same period last year.
The company said revenue, profit and earnings per share all set records. Under U.S. generally accepted accounting principles, gross margin was 52.3%, operating margin was 40.0%, and diluted earnings per share came in at $2.19.
Chief Executive Officer Tim Archer said AI is driving higher semiconductor demand while components are becoming more complex. He said the company’s focus on operational execution helped produce record revenue, profit and earnings per share in the September quarter. Archer also said Lam Research’s strategic investments in technology transitions and capacity are starting to pay back, giving the company a stronger position to outperform the wafer fabrication equipment market during industry expansion.
China share returns to 35% while Taiwan declines to 18%
According to the company’s 10-Q filed in the same period, September-quarter revenue by region was split as follows: China 35%, South Korea 20%, Taiwan 18%, Japan 9%, the United States 8%, Southeast Asia 6%, and Europe 4%.
China’s share had dropped to 26% in the June quarter, then returned to 35% in the latest quarter. That was in line with the full-year 2026 level of 34%, though still below 43% a year earlier. Taiwan’s share fell from 27% in the June quarter to 18%.
By dollar amount, revenue from China was $2.89 billion, compared with $2.28 billion a year earlier. South Korea generated $1.63 billion, more than double the $780 million reported a year earlier. Taiwan contributed $1.48 billion, up from $1.03 billion in the same quarter last year. Based on customer fab location, U.S. revenue was $660 million, versus $300 million a year earlier.
Risk disclosure cites expanded U.S. export licensing rules
In the risk factors section of the 10-Q, Lam Research said expanded U.S. export licensing requirements have already restricted the market for its products in China and had an adverse effect on revenue. The filing said the impact could become larger in the future.
New equipment revenue led the quarterly increase
The quarter’s growth was mainly driven by new equipment. Systems revenue, which includes advanced process equipment for deposition, etch and clean, was $5.73 billion, up about 35% from $4.25 billion in the June quarter. Customer support and other revenue was $2.49 billion, little changed from $2.47 billion in the prior quarter.
At quarter end, cash, cash equivalents and restricted cash rose to $7.45 billion. Deferred revenue stood at $2.66 billion. The company also said about $470 million of shipments to Japanese customers had not yet been recognized because acceptance was still pending.
December-quarter guidance calls for $8.6 billion in revenue
Lam Research forecast December-quarter revenue of $8.6 billion, plus or minus $400 million. It guided for GAAP gross margin of 52.5%, plus or minus 1 percentage point, operating margin of 40.5%, plus or minus 1 percentage point, and diluted earnings per share of $2.33, plus or minus $0.15.