Lam Research Corporation

Strong June quarter results; record profitability - Lam delivered record revenue, operating margin, and EPS in the June 2026 quarter: $6.72B revenue (+15% sequential, +30% YoY). - Gross margin: 52% (up from 49.9% in March; above the high end of guidance). - Operating margin: 38.4% (above guidance; up from 35% in March). - Diluted EPS: $1.82 (record). - Company also reported fiscal year 2026 records: $23.2B revenue, 50.6% gross margin, $5.82 diluted EPS (+41% YoY).

September quarter outlook: upside momentum despite “flattish” segment mix - Guidance for September 2026 quarter: - Revenue: $8.1B ± $400M (implies >20% sequential growth). - Gross margin: 52% ± 1pp. - Operating margin: 39.5% ± 1pp (EPS strength expected from scale while spending grows slower than revenue). - EPS: $2.15 ± $0.15 on ~1.255B shares. - Asked specifically about services/CSBG: management expects a similar profile to June—upgrades strong, spares strong given utilization, and Advanced Services (Equipment Intelligence + cobots) continuing to ramp.

Capital return and balance-sheet/cost dynamics - Shareholder returns in June quarter: - $246M share repurchases - $325M dividends - Returned 45% of free cash flow in the quarter; 81% YTD; goal remains ≥85% over time. - Balance sheet: $5.6B cash + short-term investments (up from $4.8B in March). - Working capital/inventory: inventory rose to $4.3B (building for demand), but inventory turns improved to ~3.0x (vs 2.9x). - Tax headwind possible: non-GAAP tax rate expected mid-teens in September (higher mix, especially U.S. jurisdictions and GILTI), implying a potential EPS sensitivity.