Lam Research Q2 revenue and EPS beat expectations

Overview

• Semiconductor equipment supplier's Q2 revenue rose, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company's cash balances decreased due to capital return activities

Outlook

• Lam Research expects for the quarter ending March 29, 2026 revenue of $5.70 bln +/- $300 mln

• Company anticipates for the quarter ending March 29, 2026 GAAP gross margin of 49.0% +/- 1%

• Lam Research forecasts for the quarter ending March 29, 2026 EPS of $1.35 +/- $0.10

Result Drivers

• AI DEMAND - Co noted AI is accelerating demand for its products, supporting customer growth and multi-year outperformance

• REGIONAL PERFORMANCE - Revenue distribution shows strong performance in China, Taiwan, and Korea, contributing significantly to overall revenue

• CAPITAL EXPENDITURES - Decrease in cash balances primarily due to capital return activities and capital expenditures

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 25 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"

• Wall Street's median 12-month price target for Lam Research Corp is $233.00, about 2.3% below its January 27 closing price of $238.46

• The stock recently traded at 43 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nPn2lsyGWa

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