Lam Research reported non-GAAP earnings of $1.27 per share for the quarter ended December 28, 2025, exceeding the consensus estimate of $1.17 by 8.6% and up from $0.91 a year earlier. Quarterly revenue came in at $5.34 billion, surpassing analyst projections by 2.1% and representing a 22% year-over-year increase from $4.38 billion. Systems equipment sales contributed $3.36 billion, while customer support and spares added $1.99 billion, highlighting broad‐based strength across new equipment and service offerings. Gross margin on a non-GAAP basis was 49.7%, down slightly from 50.6% the prior quarter but consistent with company expectations given product mix shifts.

Management provided guidance for the March 2026 quarter of $1.25–$1.45 in adjusted EPS versus a $1.20 consensus estimate, and revenue of $5.4–$6.0 billion versus a $5.3 billion estimate, signaling continued demand in advanced nodes and three-dimensional packaging tools. Following the strong results and optimistic outlook, Summit Insights Group upgraded Lam Research’s rating from Hold to Buy, citing accelerating AI-driven capital expenditure at major foundries and consistent outperformance against Wall Street forecasts over the past four quarters.

During the December quarter, China accounted for 35% of total revenue, Taiwan and Korea each contributed 20%, Japan represented 10%, Southeast Asia 8%, the United States 5% and Europe 2%. Cash, cash equivalents and restricted cash declined to $6.2 billion from $6.7 billion at the end of September, primarily reflecting capital return programs and increased R&D spending. Deferred revenue decreased to $2.25 billion from $2.77 billion, driven by timing of customer acceptance in key markets, notably Japan where approximately $226 million remains in inventory prior to final acceptance.