Lam Research Corporation Q2 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Semiconductors and Semiconductor Equipment | Market Cap: ₹4.0L Cr
- Strong demand expected across all major product areas, with WFE (wafer fab equipment) growth continuing into 2026 and 2027 driven by expanded clean room capacity and advanced technology needs. - Forecasted record earnings per share (EPS) of $1.65 ± $0.15 for the year, based on approximately 1.255 billion shares.
From Lam Research Corporation's Q2 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹318
Market Cap
₹4.0L Cr
P/E Ratio
61.0
Revenue Rank
Margin Rank
How does Lam Research Corporation rank in Semiconductors and Semiconductor Equipment?
Compare Lam Research Corporation against every Semiconductors and Semiconductor Equipment company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 3- →Strong demand expected across all major product areas, with WFE (wafer fab equipment) growth continuing into 2026 and 2027 driven by expanded clean room capacity and advanced technology needs.
- →NAND market sees increasing importance due to AI memory hierarchy, with anticipated demand ramp and capacity additions.
- →DRAM side shows solid growth (45% YoY), with higher layer count in HBM4 expected to increase equipment content per wafer.
- →Services and spares growth supported by high fab utilization, stable in near term with innovation in equipment intelligence and cobots enhancing productivity.
- →Upgrade spending (~$40 billion) expected through end of 2027, including both upgrades and new equipment, sustaining business volume.
- →Longer-term visibility improving due to customers' long-term fab plans and LTAs, aiding efficient capacity planning.
- →Overall, demand is broad-based across NAND, DRAM, foundry, and logic, fueling sustained revenue expansion.
📈 Profitability & Margins
Rank 3- →Forecasted record earnings per share (EPS) of $1.65 ± $0.15 for the year, based on approximately 1.255 billion shares.
- →Operating margins expected around 36.5% ± 1 percentage point, showing strong profitability.
- →Gross margin guidance of 50.5% ± 1 percentage point, reflecting operational efficiency and strong product mix.
- →Operating expenses expected to grow but at a pace lower than revenue, enabling margin expansion and leverage.
- →Management plans to update long-term financial targets later in the year, indicating confidence in continued growth and margin improvement.
- →Strong free cash flow generation allows for shareholder returns and financial stability without need for customer down payments.
- →Growth driven by expanding installed base, spares, services, and upgrade business amid robust industry utilization and demand.
🏗️ Capital Expenditure Plans
Yes- →Capital expenditures in the March quarter were $332 million, up $71 million from the prior quarter, supporting strong demand.
- →Investments are focused on a second manufacturing facility in Malaysia, and lab-related investments in the U.S. and Taiwan.
- →For the full year, capital expenditures are expected to be in the 4% to 5% of revenue range.
- →Additional R&D investments will continue throughout the year to extend technology leadership.
- →The company is growing headcount primarily in manufacturing, field organizations, and R&D to support volume growth and long-term product roadmap.
- →Plans include disciplined operational investments and some innovative initiatives funded by increased spending within affordability.
💰 Fundraising & Capital Structure
No information- →The company retired $750 million of unsecured notes that reached maturity using cash from the balance sheet in the March quarter.
- →There is no mention of any new debt fundraising planned.
- →The company does not require down payments from customers and generates ample free cash flow from operations.
- →Capital expenditures for the year are planned at 4% to 5% of revenue, supporting organic growth such as a new manufacturing facility in Malaysia.
- →Share repurchases continue, with $4.3 billion remaining on the share repurchase program as of March.
- →No indications of new equity fundraising; focus remains on returning capital to shareholders via buybacks and dividends.
- →Overall, no current or near-term plans for new fundraising via debt or equity were disclosed.
📋 Order Book & Pipeline
Yes- →Deferred revenue balance at quarter end was $2.22 billion, flat sequentially (Page 3).
- →Customer down payments decreased by roughly $300 million, now at the lowest level in nearly 4 years (Page 3).
- →Longer visibility with customers due to long-term contracts and fab construction plans, aiding in capacity planning (Page 11).
- →No down payments required from customers; ample free cash flow supports business (Page 11).
- →Demand environment strong with accelerating investments, especially in memory segments like DRAM and NAND (Pages 3, 4, 15).
- →Foundry segment remains robust with ongoing mature node spending and advanced packaging growth (Page 3).
- →Growth driven by expansion in spares, upgrades, and services with high fab utilization (Page 4).
Key Metrics
Revenue
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Capex
Fundraise
Order Book
Frequently Asked Questions
What were Lam Research Corporation Q2 FY26 results?
- Strong demand expected across all major product areas, with WFE (wafer fab equipment) growth continuing into 2026 and 2027 driven by expanded clean room capacity and advanced technology needs. - Forecasted record earnings per share (EPS) of $1.65 ± $0.15 for the year, based on approximately 1.255 billion shares.
What is Lam Research Corporation share price analysis?
Lam Research Corporation currently shows a below-average growth signal. The stock trades at a P/E of 61.0 with a market cap of $397,682. Investors should review the full earnings analysis for detailed insights.
Is Lam Research Corporation planning capital expenditure?
- Capital expenditures in the March quarter were $332 million, up $71 million from the prior quarter, supporting strong demand.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.