Lam Research reported fourth quarter fiscal 2026 revenue of $4.3 billion, an 18% increase year-over-year, driven by strength in both the memory and logic segments. Non-GAAP earnings per share came in at $7.45, a 25% rise compared with the prior year period. Gross margin expanded by 200 basis points to 50.8%, reflecting improved operational efficiency and higher factory utilization rates. Operating cash flow reached $1.2 billion, representing a 30% jump as working capital turned positive on receivables collection and inventory management initiatives.

Customer commitments remain elevated, with a book-to-bill ratio of 1.15 in the quarter and total backlog standing at $17 billion, up 22% from the same period last year. Memory customers accounted for 55% of orders, while logic and foundry clients represented the remaining 45%. Management highlighted strong pull-through for next-generation etch and deposition tools, particularly for advanced DRAM and 3-nanometer logic nodes. Capital spending forecasts from major chipmakers point to sustained equipment investment through mid-2027.

For the first quarter of fiscal 2027, Lam Research forecasts revenue in a range of $4.2 to $4.4 billion and non-GAAP EPS between $7.30 and $7.60. Full-year sales growth is expected to be approximately 12%, up from previous guidance of 10%. The company plans to increase its R&D budget by 14% year-over-year to $580 million, targeting advanced materials research and AI-driven process control solutions. Capital expenditures are projected at $1.1 billion for the year, supporting factory expansions in Taiwan and the U.S. Risks include potential supply-chain disruptions and broader semiconductor cyclical dynamics.