Lam Research reported second-quarter fiscal 2026 earnings per share of $9.12, a 39.6% increase from $6.54 a year earlier and topping the consensus estimate of $8.45. Revenue rose 22% year-over-year to $5.1 billion, compared with analysts’ projection of $4.85 billion. The company attributed the gains to robust demand for its thin-film deposition and etch systems, particularly in leading-edge logic and memory applications.

Gross margin expanded to 52.3%, up 320 basis points from the prior-year quarter and exceeding the Street’s 49.8% forecast. Operating margin improved to 34.7%, reflecting higher factory utilization and cost discipline. Support and customer services revenue climbed 18% year-over-year to $1.4 billion, representing 27% of total sales, as on-site maintenance, spare parts and software upgrades sustained recurring revenue streams.

Management issued guidance for third-quarter revenue of $5.2 billion to $5.4 billion, above the consensus view of $5.15 billion, and forecast non-GAAP EPS of $9.30 to $9.60. Following the release, Jefferies raised its price target to $640 from $600, Morgan Stanley lifted its rating to Overweight, and UBS increased its revenue forecast by 5% for fiscal 2026. Collectively, 12 of 17 analysts now carry buy or outperform recommendations on the stock.