Key Highlights

  • June quarter revenue reached $6.72 billion, up 15% sequentially and roughly 30% year over year.
  • Non-GAAP operating margin rose to 38.4%, up 340 basis points from the prior quarter.
  • Non-GAAP diluted earnings per share climbed to $1.82, an increase of nearly 24% sequentially.
  • September quarter guidance points to revenue of $8.1 billion, plus or minus $400 million.

Record Results Reflect Broadening AI-Driven Demand

Lam Research Corporation (NASDAQ:LRCX) reported revenue of $6.72 billion for the quarter ended June 28, 2026, up 15.1% from the prior quarter and roughly 30% from a year earlier. The result extended a pattern of sequential acceleration, with customer support-related revenue rising to $2.47 billion alongside systems revenue of $4.25 billion.

Geographically, Taiwan and China together accounted for more than half of quarterly revenue, at 27% and 26% respectively, reflecting continued capacity investment among leading-edge foundry and memory customers. Deferred revenue increased to $2.43 billion from $2.22 billion in the prior quarter, an indicator of orders already booked for future recognition.

Margin Expansion Outpaces Revenue Growth

Non-GAAP gross margin reached 52.0% of revenue, up from 49.9% in the prior quarter, while non-GAAP operating margin expanded to 38.4%, a gain of 340 basis points sequentially. Management attributed the improvement to a combination of manufacturing cost efficiencies and a richer mix of memory-related equipment sales, as customers convert existing capacity to higher-layer-count NAND architectures.

Non-GAAP diluted earnings per share rose to $1.82 from $1.47 in the prior quarter, an increase of nearly 24%. The company's board also declared its regular quarterly dividend of $0.26 per share, consistent with the prior quarter's payout.

Cash and restricted cash balances grew to $5.60 billion from $4.77 billion, with the increase driven primarily by operating cash generation, even as the company continued returning capital to shareholders through dividends and share repurchases during the quarter.

Guidance Implies Continued Strength, But Customer Concentration Bears Watching

Management guided to September quarter revenue of $8.1 billion, plus or minus $400 million, representing sequential growth of more than 20% at the midpoint. Non-GAAP gross margin is expected to hold near 52%, with operating margin guided to approximately 39.5% and earnings per share projected at $2.15, plus or minus $0.15.

Executives cited artificial intelligence-driven demand as broadening beyond leading-edge logic into memory and advanced packaging, a trend they said could support outperformance relative to overall wafer fabrication equipment spending for a third consecutive year. The company's long-term financial targets, including a mid-50% gross margin and mid-40% operating margin, appear increasingly within reach based on current trends, though achieving them consistently may depend on sustained capital spending across a concentrated set of large semiconductor manufacturers.

Geographic concentration in Taiwan, China, and Korea also leaves results somewhat exposed to shifts in regional trade policy or export control regimes, a risk factor common across the broader semiconductor equipment industry.

Conclusion

Lam Research's June quarter results reflect a business benefiting from an increasingly broad set of AI-related semiconductor demand drivers, spanning both leading-edge logic and memory production. Guidance for the September quarter points to continued sequential growth in revenue and margins, though the durability of this trajectory will likely hinge on whether capital spending among the company's concentrated customer base remains as robust as current order trends suggest.