Lam Research Corp. R

Record quarter + strong profitability (what’s good) - June 2026 quarter revenue: $6.72B, +15% sequentially and +30% YoY; above the guidance midpoint. - Gross margin: 52% (highest in 20 years; above the upper end of guidance; up from 49.9% in March). - Operating margin: 38.4% (above high end of guidance; up from 35% in March). - EPS: $1.82 (record). - Why margin beat: pricing actions + operational/scale efficiencies + favorable product mix (explicitly cited); also supported by operational execution and global “close-to-customer” manufacturing footprint.

Memory mix momentum: NAND surge + services strength (what’s good / surprising) - Systems revenue mix shift toward Memory: Memory = 46% of systems revenue (up from 39% in March), driven by a record Memory dollar level. - NAND: more than doubled sequentially (attributed to industry conversions toward 256-layer+ enterprise SSDs; also tied to AI-driven flash/storage needs like larger context windows and persistent memory). - DRAM: 23% of systems revenue (down from 27% mix-wise vs March) but DRAM dollars were flattish vs the prior record quarter. - CSBG (customer support) revenue: ~$2.5B, +17% sequentially and +43% YoY for a 3rd straight record quarter, mainly from upgrade revenue; also supports resilience even as WFE is constrained.

September 2026 outlook: continued strong growth, margins resilient (forecast) - Guidance (September quarter): - Revenue: $8.1B ± $400M - Gross margin: 52% ± 1 pp - Operating margin: 39.5% ± 1 pp - EPS: $2.15 ± $0.15 (share count ~1.255B) - Implied message: growth continues but margin is guided roughly flat at ~52% despite higher revenue—investors asked specifically about services; management expects a similar upgrade/spares/advanced services profile to June.