Lam Research Corporation

Strong quarter + profitability record (good/surprising): - June 2026 revenue: $6.72B, +15% sequentially, +30% YoY (above the guidance midpoint). - Gross margin: 52%, improving from ~49.9% in March and above the top end of guidance; described as the highest quarterly gross margin in 20 years. - Operating margin: 38.4% (above the top end of guidance). - EPS (diluted): $1.82 (record). - FY2026 (context): Revenue $23.2B, gross margin 50.6%, EPS $5.82 (+41% YoY).

Memory/CSBG mix shift driving growth (good): - Systems revenue mix: Memory 46% (up from 39% in March); within Memory, NAND systems dollars more than doubled sequentially. - Non-volatile memory: 23% of systems revenue (up from 12% in March) → tied to industry conversions to 256-layer and above, supporting enterprise SSD demand. - DRAM: 23% of systems revenue (down from 27% share), but DRAM revenue dollars “flattish” at a record level; spending focused on wafer adds + tech upgrades for DDR5, LPDDR5, HBM-related nodes. - Customer Support Business Group (CSBG): ~$2.5B, +17% sequentially, +43% YoY, with record upgrade revenue (plus Reliant/services/spares steady).

Guidance for September quarter: fast growth but controlled margin/rate of spend (forecast): - Revenue guide: $8.1B ± $400M. - Gross margin: 52% ± 1 ppt. - Operating margin: 39.5% ± 1 ppt. - EPS: $2.15 ± $0.15 on ~1.255B share count. - Implied expectation: revenue growth continues strongly, while spending grows but “at a much slower rate than revenue.”