Lam Research Q2 Revenue Jumps 22.1% to $5.34B, EPS Beats Estimates
Lam Research’s Q2 revenue rose 22.1% to $5.34 billion and non-GAAP EPS of $1.27 beat estimates by $0.10, with Q3 EPS guided at $1.25–1.45. Effective March 6, 2026, Sesha Varadarajan is appointed COO and Karthik Rammohan takes on expanded SVP, Global Operations role to accelerate AI-era operational velocity.
1. Leadership Transitions to Accelerate AI-era Growth
On February 3, 2026, Lam Research announced two major promotions effective March 6, 2026. Sesha Varadarajan will become Chief Operating Officer, adding oversight of customer support, corporate strategy and government affairs to his existing global product portfolio responsibilities. In his prior role, Varadarajan drove rapid product innovation to capitalize on heightened deposition and etch intensity during recent technology inflections. Karthik Rammohan will be elevated to Senior Vice President, Global Operations and Enterprise Solutions, retaining leadership of manufacturing and supply chain while adding information technology, quality and facilities to his remit. These changes follow the planned retirement of longtime operations chief Pat Lord and are designed to increase Lam’s operational velocity as semiconductor demand accelerates in the AI era.
2. Q3 Results Highlight Strong Momentum
In the quarter ended December 28, Lam Research delivered non-GAAP EPS of $1.27, beating consensus by $0.10, while revenue rose 22.1% year-over-year to $5.34 billion. Net margin expanded to 30.2% and return on equity reached 62.8%. The company set Q3 fiscal 2026 EPS guidance of $1.25–$1.45, reflecting confidence in demand recovery across logic and memory segments. Lam’s services business grew double digits, contributing to an overall uptick in equipment installations and aftermarket support engagements. Management emphasized plans to expand served available market and accelerate growth in maintenance and consumables businesses.
3. Institutional Activity and Analyst Sentiment
In the most recent 13F filings, Wallace Hart LLC initiated an 8,671-share position in Lam Research, representing approximately $1.16 million in market value and accounting for 0.9% of the fund’s portfolio. Overall, institutional ownership stands at 84.6%. Analysts remain constructive: 28 have issued Buy ratings and seven Hold, underpinning a consensus view of Moderate Buy. The company also declared a quarterly dividend of $0.26 per share, marking a 21.3% payout ratio and reinforcing Lam’s commitment to returning capital amid continued investment in R&D and capacity expansion.