Lam Research (LRCX.US) Q1 revenue surges 54% YoY to a record high! Results and guidance only slightly beat expectations.

On Wednesday, October 21, after the U.S. stock market close, Lam Research (LRCX.US) reported its fiscal first-quarter 2027 results for the period ended September 27, 2026. The report showed quarterly revenue of $8.219 billion, up 54% year over year and 22% sequentially, a record high for a single quarter and above the analyst consensus of $8.153 billion. On a GAAP basis, net income rose 76% year over year to $2.753 billion; diluted earnings per share were $2.19; gross margin improved 60 basis points sequentially to 52.3%; and operating margin rose 260 basis points sequentially to 40.0%. On a Non-GAAP basis, diluted earnings per share were $2.20, above the analyst consensus of $2.18. Revenue growth was driven by advanced-node equipment. By business segment, systems revenue was $5.733 billion, up 62% year over year and 35% sequentially, reflecting strong demand for advanced deposition and etch equipment; customer support-related revenue was $2.487 billion, up 40% year over year. Cash flow and shareholder returns strengthened in tandem. Quarterly operating cash flow was $3.5 billion, and cash and restricted cash at quarter-end were $7.45 billion; deferred revenue was $2.66 billion, up sequentially. The company repurchased $1.02 billion of stock during the quarter ($247 million in the prior quarter), paid $325 million in dividends, and raised its quarterly dividend to $0.33 per share from $0.26. CEO Tim Archer said in the press release that AI-driven semiconductor demand and rising device complexity drove the company's record results, and that its strategic investments at technology inflection points and in capacity are paying off. For guidance, the company expects fiscal second-quarter 2027 revenue, for the period ending December 27, of $8.6 billion (plus or minus $400 million), slightly above the analyst consensus of about $8.54 billion; GAAP and Non-GAAP diluted earnings per share are both expected at $2.33 (plus or minus $0.15), also slightly above the analyst consensus of $2.31. Although both results and guidance slightly beat expectations, Lam Research shares fell more than 6% in Wednesday after-hours trading as of press time. Market analysts believe the company only modestly beat expectations this time, with a relatively wide guidance range, and that, combined with a cumulative gain of about 80% over the year before the report, this triggered typical profit-taking.