Lam Research Corp.

Record results in the September 2026 quarter (profitability at new highs) - Revenue: $8.22B, +22% sequentially and +54% YoY. - Profitability: gross margin 52.4% (all-time record), operating margin 40.2% (record; first time >40%). - EPS (diluted): $2.20 (record). - Strong deferred revenue: $2.66B at quarter end (+$227M vs June), mainly from higher volumes (partly offset by lower customer down payments).

December 2026 outlook: solid growth but tempered by near-term supply chain constraints - Guidance for Dec 2026 quarter: revenue $8.6B ± $0.4B; gross margin 52.5% ± 1pp; operating margin 40.5% ± 1pp; EPS $2.33 ± $0.15. - Management emphasized no “one-off episodic” revenue driving the guidance; shortfall is tied to near-term supply chain constraints (not demand), implying higher revenue was possible without those constraints. - Investors were also told that any delayed shipments driven by constraints would be expected to shift into the March quarter, not lost.

Big picture demand opportunity: AI-driven WFE growth, with Lam expecting continued outperformance - Calendar 2026 systems revenue expected to grow “well over 40% YoY” (using the midpoint of Dec guidance). - WFE (semiconductor equipment) for 2026: expected mid-$150B range. - Lam’s view: 2026 is expected to be the third consecutive year of WFE outperformance (expansion of served available market (SAM) as device complexity rises). - Preliminary 2027 WFE outlook: >$200B spending, with growth led by DRAM, followed by leading-edge foundry logic, then NAND.