Lam Research delivered a robust QQ1 2026 showing strong top-line growth, healthy profitability, and ample liquidity. Revenue reached $5.324B, up 27.7% versus the prior-year quarter and 12.8% sequentially, underscoring sustained demand for semiconductor processing equipment amid an ongoing capex cycle. Gross margin rose to 50.4%, supported by favorable product mix and favorable cost discipline, while operating margin extended to 34.3% and net margin to 29.5%, aided by efficient operating leverage and D&A discipline. Free cash flow was strong at $1.593B, with operating cash flow of $1.778B, reflecting durable cash generation even as Lam continued capital returns to shareholders through buybacks and dividends. The company ended the period with a solid balance sheet: cash and cash equivalents of approximately $6.69B, net debt of about -$2.21B (net cash position), and total stockholders’ equity of ~$10.19B. The result highlights Lam’s leadership position in a cyclical but structurally favorable end-market and its ability to translate volume growth into meaningful margin expansion and shareholder value.
Management commentary for QQ1 2026 focused on continued demand strength for advanced semiconductor manufacturing equipment, ongoing capacity expansion within key end markets, and the company’s execution in delivering high-value product mix while maintaining disciplined cost management. Lam also emphasized its strong cash generation and commitment to capital returns, positioning the company well for the next phase of the semiconductor cycle.