Lam Research reports strong earnings and guidance driven by etching equipment sales for advanced semiconductor nodes.
Lam Research (LRCX) reported Q1 FY26 revenue of $5.84 billion, with 50% gross margins and 35% operating margins. The company guided next quarter revenue to $6.6 billion, reflecting 13% quarter-over-quarter growth, fueled by demand for etching equipment used in AI chip manufacturing.
The growth is attributed to critical equipment sales to major semiconductor manufacturers like TSMC, Samsung, SK Hynix, and Micron. Wafer fab equipment expenditure is projected to reach $140 billion in FY26, a 27% year-over-year increase, as the industry shifts to 3D chip architectures.
Lam Research’s Akara line and solid-state plasma technology support next-generation transistor designs, including CFET and 3D memory structures like HBM and 3D NAND, positioning the company as a key player in semiconductor innovation.