Lam Research : MARCH 2026 Quarterly Earnings VIEW SLIDES

Published: 2026-04-22 16:57:14 ET LRCX

Published on 04/22/2026 at 04:57 pm EDT

March quarter 2026 financial results

April 22, 2026

Business review & industry outlook

Tim Archer, President and Chief Executive Officer

LAM R ESEAR C H

Solid start to CY26, with momentum building

March quarter financials

Revenues and profitability at upper end of guidance

EPS exceeded high end of range

Key milestones

Record revenue and EPS

First $2B CSBG revenue

quarter

Strong momentum

Accelerating AI-driven

semiconductor demand driving strong June quarter guide

Raising CY26 WFE outlook

WFE: $140B with bias to upside

Customer spending projections higher

across all device segments

Industry-wide constraints limiting supply

Sets stage for compelling 2027 WFE growth outlook

Set-up for continued outperformance

AI driving higher deposition and etch intensity

Expect SAM % of WFE above mid-30% in CY26 high-30s% longer-term goal

LAM R ESEAR C H

Increasing R&D velocity

Created broadest, most competitive product and services portfolio in the company's history

AI expanding Lam's opportunity across markets

NAND

Anticipate $40B conversion spending to >200 layers pulled forward by customers

Growth in bit demand driving greenfield capacity investments long-term

DRAM

Industry transitioning to 1c nodes to meet AI's power and efficiency requirements

Customers moving to low-k ALD films to reduce capacitance

FOUNDRY/LOGIC

PACKAGING

AI driving increased advanced packaging demand

Unmatched copper plating and

TSV etch experience

Record CY25, carrying momentum into CY26

First dielectric etch wins at a

leading manufacturer

Lam's opportunity

Outperform overall NAND WFE growth

Dielectric deposition SAM in DRAM to grow >20% at 1c node

Capturing more opportunities from leading-edge inflections

Advanced packaging revenues expected to grow >50% in CY26

CSBG: First $2B revenue quarter

Equipment Intelligence®

New deployment with leading customer for critical deposition applications

Customer deploying into R&D to accelerate new NAND and DRAM nodes

Dextro cobots

Expanded to 8 tool types, first deposition cobot shipping this quarter Next-gen delivers 10x compute in smaller footprint

LAM R ESEAR C H

Enabling customers to increase output and yields from existing capacity

LAM R ESEAR C H

Lam delivering on the opportunity,

with more to come

AI-demand environment driving rising deposition and etch intensity

Early strategic investments and focus on execution velocity paying off

Second half CY26 revenues expected to exceed first half

Positioned for multi-year

outperformance

LAM R ESEAR C H

March quarter 2026 financial results & June quarter 2026 outlook

Doug Bettinger, Executive Vice President and Chief Financial Officer

LAM R ESEAR C H

$5.84B

QDec'25 revenue: $5.34B

March quarter highlights

$1.47

QDec'25 earnings per share*: $1.27

*Data is presented on a non-GAAP basis. Reconciliations of U.S. GAAP results to non-GAAP results can be found at the end of this presentation. Based on a diluted share count of approximately 1.257 billion shares for QMAR'26 and 1.262 Billion shares for QDEC'25.

March quarter revenue mix

NVM

12%

Memory 39%

REVENUE BY REGION

Taiwan

23%

Japan

SEA 4%

Europe 2%

DRAM 27%

Foundry

54%

Logic/other

Korea

23%

China 34%

LAM R ESEAR C H

*Systems revenue includes equipment and equipment upgrade sales from etch, deposition, clean, and our Reliant® product line.

Customer Support Business Group

$2.11B

QDec'25 CSBG revenue: $1.99B QMar'25 CSBG revenue: $1.68B

March quarter financial results and capital return

Revenue

$5,841M

$5,345M

Non-GAAP gross margin*

49.9%

49.7%

Non-GAAP operating expenses*

$866M

$827M

Non-GAAP operating income*

$2,047M

$1,831M

Non-GAAP operating margin*

35.0%

34.3%

Non-GAAP other income (expense), net*

($8M)

$10M

Share repurchases

$796M

$1,442M

Cash dividends

$326M

$328M

U.S. GAAP diluted EPS

$1.45

$1.26

Non-GAAP diluted EPS*

$1.47

$1.27

Diluted share count

1,257M

1,262M

LAM R ESEAR C H

*A reconciliation of U.S. GAAP results to non-GAAP results can be found at the end of this presentation.

Key balance sheet and financial metrics

Total consolidated gross cash balance

$4,767M

$6,196M

Account receivables, net

$4,133M

$3,492M

Days sales outstanding

64 Days

59 Days

Inventories

$4,000M

$4,038M

Inventory turns

2.9

2.7

Deferred revenue*

$2,221M

$2,250M

Equity compensation expense

$97M

$89M

Amortization expense

$13M

Depreciation expense

$103M

$91M

Capital expenditures

$332M

$261M

Headcount

~20,600

~19,700

*Lam's deferred revenue balance does not include shipments to customers in Japan, to whom control does not transfer until customer acceptance. Estimated future revenue from shipments to customers in Japan was approximately $434M as of March 29, 2026 and $226M as of December 28, 2025.

June 2026 quarter guidance

50.5% +/- 1%

Non-GAAP gross margin*

36.5% +/- 1%

Non-GAAP operating margin*

$1.65 +/- $0.15**

Non-GAAP earnings per share*

$6.60B +/- $400M

Revenue

*A reconciliation of U.S. GAAP projected results to non-GAAP projected results can be found at the end of this presentation.

**Based on a diluted share count of approximately 1.255 billion shares.

Q&A

Appendix - reconciliation

Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin, Operating Expenses and Operating Income (in thousands, except percentages)

(unaudited)

Three Months Ended

March 29,

December 28,

2026

2025

U.S. GAAP gross margin

$ 2,910,527

$ 2,651,162

Pre-tax non-GAAP items:

Amortization related to intangible assets acquired through certain business combinations

2,668

EDC related liability valuation (decrease) increase

(6,476)

4,426

Workforce optimization charges

6,404

Non-GAAP gross margin

$ 2,913,123

$ 2,658,256

U.S. GAAP gross margin as a percent of revenue

49.8 %

49.6 %

Non-GAAP gross margin as a percent of revenue

49.9 %

49.7 %

U.S. GAAP operating expenses

$ 863,511

$ 840,959

Pre-tax non-GAAP items:

Amortization related to intangible assets acquired through certain business combinations

(348)

(193)

EDC related liability valuation decrease (increase)

19,427

(13,280)

Workforce optimization charges

(16,424)

Non-GAAP operating expenses

$ 866,166

$ 827,486

U.S. GAAP operating income

$ 2,047,016

$ 1,810,203

Non-GAAP operating income

$ 2,046,957

$ 1,830,770

U.S. GAAP operating margin

35.0 % 33.9 %

Non-GAAP operating margin

35.0 % 34.3 %

Appendix - reconciliation

Reconciliation of U.S. GAAP Income Tax Rate to Non-GAAP Income Tax Rate (in thousands, except percentages)

Three Months Ended

March 29,

December 28,

2026

2025

U.S. GAAP income before income taxes

$ 2,011,556

$ 1,836,613

U.S. GAAP income tax expense

$ 186,096

$ 242,619

U.S. GAAP income tax rate

9.3 %

13.2 %

Pre-tax non-GAAP items:

Amortization related to intangible assets acquired through certain business combinations - cost of goods sold

$ 2,668

EDC related liability valuation (decrease) increase - cost of goods sold

(6,476)

4,426

Workforce optimization charges - cost of goods sold

6,404

EDC related liability valuation (decrease) increase - research and development

(11,656)

7,968

Workforce optimization charges - research and development

9,437

Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative

348

193

EDC related liability valuation (decrease) increase - selling, general and administrative

(7,771)

5,312

Workforce optimization charges - selling, general and administrative

6,987

Amortization of note discounts - other income (expense), net

674

701

Loss (gain) on EDC related asset - other income (expense), net

27,265

(16,628)

Non-GAAP income before taxes

$ 2,039,436

$ 1,841,253

Net income tax benefit on non-GAAP items

$ 1,898

$ 1,008

Non-GAAP income tax expense

$ 187,994

$ 243,627

Non-GAAP income tax rate

9.2 %

13.2 %

(unaudited)

Appendix - reconciliation

Reconciliation of U.S. GAAP Other Income (Expense), Net to Non-GAAP Other Income (Expense), Net (in thousands)

(unaudited)

Three Months Ended

March 29,

2026

December 28,

2025

U.S. GAAP Other income (expense), net

Pre-tax non-GAAP items:

$ (35,460)

$ 26,410

Amortization of note discounts

674

701

Loss (gain) on EDC related asset

27,265

(16,628)

Non-GAAP Other income (expense), net

$ (7,521)

$ 10,483

Appendix - reconciliation

Calculation of Free Cash Flows (in thousands) (unaudited)

Three Months Ended

March 29,

2026

U.S. GAAP net cash provided by operating activities

$ 1,141,420

U.S. GAAP cash used for capital expenditures and intangible assets

(331,604)

Total free cash flow

$ 809,816

Appendix - reconciliation

Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data)

(unaudited)

Three Months Ended

March 29,

2026

U.S. GAAP net income $ 1,825,460

Pre-tax non-GAAP items:

Amortization related to intangible assets acquired through certain business combinations - cost of goods sold 2,668

Elective deferred compensation ("EDC") related liability valuation (decrease) increase - cost of goods sold (6,476)

Workforce optimization charges - cost of goods sold 6,404

EDC related liability valuation (decrease) increase - research and development (11,656) Workforce optimization charges - research and development 9,437

Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative 348

EDC related liability valuation (decrease) increase - selling, general and administrative (7,771)

Workforce optimization charges - selling, general and administrative 6,987

Amortization of note discounts - other income (expense), net 674

Loss (gain) on EDC related asset - other income (expense), net 27,265

Net income tax benefit on non-GAAP items (1,898)

Non-GAAP net income $ 1,851,442

Non-GAAP net income per diluted share $ 1.47

U.S. GAAP net income per diluted share $ 1.45

U.S. GAAP and non-GAAP number of shares used for per diluted share calculation 1,257,325

December 28,

2025

$ 1,593,994

2,668

4,426

7,968

193

5,312

701

(16,628)

(1,008)

$ 1,597,626

$ 1.27

$ 1.26

1,261,739

Appendix - reconciliation

Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended June 28, 2026

U.S. GAAP Reconciling Items Non-GAAP

Revenue

$6.60 Billion +/- $400 Million - $6.60 Billion +/- $400 Million

Gross margin

50.5%

+/-

$ 2.7

Million

50.5%

+/-

Operating margin

36.5%

+/-

$ 3.0

Million

36.5%

+/-

Net income per diluted share

$1.65

+/-

$0.15

$ 3.3

Million

$1.65

+/-

$0.15

Diluted share count

1.255 Billion - 1.255 Billion

The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other items that may be completed or realized after the date of this release, except as described below. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material.

Reconciling items included above are as follows:

Gross margin - amortization related to intangible assets acquired through business combinations, $2.7 million.

Operating margin - amortization related to intangible assets acquired through business combinations, $3.0 million.

Net income per diluted share - amortization related to intangible assets acquired through business combinations, $3.0 million; amortization of debt discounts,

$0.5 million; and associated tax benefit for non-GAAP items ($0.2 million); totaling $3.3 million.

Glossary

Artificial intelligence

ALD

Atomic layer deposition

CSBG

Customer Support Business Group

Calendar year

DRAM

Dynamic random-access memory

EPS

Earnings per share

NAND

Short for "NOT AND" flash memory

NVM

Non-volatile memory

QLC

Quad-level cell

R&D

Research and development

SAM

Served available market

SEA

Southeast Asia

TSV

Through-silicon via

WFE

Wafer fabrication equipment

LAM R ESEAR C H

Disclaimer

Lam Research Corporation published this content on April 22, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 22, 2026 at 20:56 UTC.