Fremont, Calif. — Lam Research Corp. (NASDAQ: LRCX) today hosted its financial conference call for the quarter ended March 29, 2026, reporting revenue of $5.7 billion and diluted earnings per share of $1.35. The results reflect a 22% increase in revenue and a 31% increase in earnings compared to the same period in the previous year, driven by a sustained rebound in the semiconductor industry and accelerating investments in artificial intelligence (AI) infrastructure.
Chief Executive Officer Tim Archer stated during the call that the company’s expanding portfolio is facilitating the industry’s transition to more complex three-dimensional (3D) devices and advanced packaging. Archer noted that nearly every advanced chip currently in production utilizes Lam technology, positioning the company at the center of the AI-driven compute expansion. He emphasized that the company's focus on systems engineering and technology leadership has allowed it to capture significant market share in NAND and foundry logic segments.
Financial performance for the quarter was characterized by strong margins. Lam reported a non-GAAP gross margin of 49.0% and a non-GAAP operating margin of 34.0%, both aligning with the company’s previous guidance. Systems revenue, which includes sales of new leading-edge equipment for deposition and etch processes, reached approximately $3.82 billion. The Customer Support segment, encompassing services, spares, and upgrades, contributed $1.94 billion in revenue, representing a 15% year-over-year increase. This segment was bolstered by the company’s Reliant product line, which focuses on non-leading-edge equipment and specialty technologies.
Executive Vice President and Chief Financial Officer Doug Bettinger provided details on the company’s capital allocation and market outlook. Bettinger highlighted that the wafer fab equipment (WFE) market is projected to reach $135 billion in 2026, up from $110 billion in 2025. He attributed this growth to broadening capacity adds across foundry, logic, and DRAM sectors, particularly as AI compute requirements drive demand for higher-density devices. Bettinger also noted that while the company faces some short-term volatility due to global trade restrictions, the secular demand for semiconductor technology remains a primary growth driver.
A significant portion of the discussion focused on advanced packaging, which Lam expects to grow by more than 40% throughout 2026. The company also referenced its March 2026 agreement to develop novel materials and High NA EUV lithography techniques to enable future logic nodes.
As of the end of the March quarter, Lam Research reported cash, cash equivalents, and restricted cash of approximately $6.2 billion. The company maintained its commitment to long-term growth targets, aiming to more than double its revenue and profit over a five-year period. This strategy is supported by vertical scaling and strategic investments in research and development, which the company continues to prioritize to maintain its technology leadership in wafer fabrication.
The conference call concluded with a reaffirmation of the company’s role in supporting technology inflections. Management indicated that growth in the second half of 2026 is expected to be weighted more heavily as clean room constraints at customer sites are resolved.