Lam Research

Lam Research reported Q4 FY2026. EPS came in at $1.82 against a $1.69 consensus, beat by 7.7%. Revenue was $6.7B versus $6.7B expected, beat by 0.9%. Gross margin was 51.7%, up 190 bps from last quarter.

Lam Research reported a strong Q3 FY2026, beating both revenue and EPS estimates, driven by record revenues and a significant uptick in advanced packaging and customer support. The company's outlook for the next quarter and the year ahead suggests continued momentum, particularly in NAND and advanced packaging segments.

Lam Research printed only a modest revenue beat, but the market is likely underpricing the durability of earnings if advanced packaging and gate-all-around intensity keep lifting Lam’s served opportunity while revenue is already near record levels. The variant view is that Q2 was not a cyclical peak signal, it was evidence that Lam can hold operating leverage even as customer prepayments normalize.

Lam Research printed a modest Street beat, but the actionable read is that investors are likely over-discounting the China export-control drag while underweighting the durability of foundry-led etch and deposition demand. The quarter’s surprise was not the +1.9% revenue beat or +3.3% EPS beat; it was management quantifying a contained China impact while mix moved toward foundry at 60% of systems revenue.

Lam Research beat a revenue bar that already assumed recovery, but the variant read is that investors should not treat the upside as merely a China WFE pull-forward. The print shows a higher-margin Lam with foundry concentration rising, deferred revenue building, and packaging language tied directly to AI scaling, while the next-quarter EPS guide embeds a pause that looks more like mix and timing than demand rollover.