- First-quarter revenue grew 27.6% YoY, although slowing from the 33.6% pace seen in the previous quarter.
- CEO Tim Archer said the company is executing well in an environment of tremendous opportunity.
- Retail sentiment toward LRCX stock improved to ‘extremely bullish’ on Stocktwits by late Wednesday.
Semiconductor equipment maker Lam Research Corp’s (LRCX) stock slipped 0.54% in Wednesday’s extended session following its quarterly results, but it has since wiped the losses. In overnight trading, LRCX stock traded up 0.17%, according to Yahoo Finance.
Lam Research stock has nearly doubled this year (+97%).
Lam Research’s Q1 Earnings Snapshot
Fremont, California-based Lam Research’s revenue for the first quarter of the fiscal year 2026 grew 27.6% year-over-year (YoY), although slowing from the 33.6% pace seen in the previous quarter, while adjusted earnings per share (EPS) jumped nearly 47%. The revenue marked a quarterly record.
-Revenue: $5.32 billion Vs. Fiscal.ai-compiled consensus of $5.23 billion
-Adjusted EPS: $1.26 Vs. $1.22 consensus
-Adjusted gross margin: 35%, up 60 basis points from Q4’25
Lam Research’s CEO Tim Archer said the company’s innovations are helping its customers address major artificial intelligence (AI)-driven manufacturing inflections. “We are executing well in an environment of tremendous opportunity, and with our expanding portfolio of products and solutions across critical device segments, we are strongly positioned for continued growth.”
Among business segments, systems revenue, accounting for roughly 67% of the total revenue, jumped about 49% and 3% sequentially. Geographically, China accounted for 43% of the total revenue, Taiwan 19%, Korea 15% and Japan 10%.
Lam Research’s Outlook
The company guided second-quarter revenue in the range of $4.9 billion to $5.5 billion and adjusted EPS of $1.05 to $1.25. Analysts, on average, expect the metrics to be at $5.23 billion and $1.03, respectively. It expects adjusted margins to come in at 33% +/- 1%.
On the earnings call, CEO Archer said the quarterly revenue guidance incorporated roughly a $200 million revenue impact from the recently announced 50% affiliate rule restricting shipments to certain domestic Chinese customers, according to a transcript provided by Koyfin. The company expects the rule to impact its full-year revenue by about $600 million.
Archer expects the China region to represent less than 30% of our overall revenues in calendar year 2026. Worldwide wafer fabrication equipment (WFE) spending has been shaping up to be slightly better than the company’s prior view of $105 billion in the calendar year 2025, predominantly due to better-than-expected high-bandwidth memory (HBM)-related investments, he added.
What Retail’s Feeling About LRCX Stock
Retail sentiment toward LRCX stock improved to ‘extremely bullish’ on Stocktwits by late Wednesday, from the ‘neutral’ mood seen a day ago. Retail chatter also grew to ‘extremely high’ levels. The message volume on the stream climbed nearly 1,800% over the 24 hours leading up to late Wednesday.
A bullish user lamented that “good companies” are being held down as usual, adding that the stock could climb to $300 next year. LRCX stock settled in Wednesday’s regular session at $141.25.
Another user suggested that the post-earnings stock reaction may have been due to the soft guidance, which potentially triggered profit-taking. ‘Planning to reload later,” they said.
According to Koyfin, the consensus price target for LRCX stock is $130.96, implying over 7% downside from current levels.
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