Lam Research reported first-quarter fiscal 2027 revenue of $8.22 billion, above Wall Street expectations. The chip equipment maker credited demand for AI-related semiconductors and raised its outlook for wafer fab equipment spending.
Lam Research reported first-quarter fiscal 2027 revenue of $8.22 billion, ahead of what Wall Street expected. The company just had the biggest quarter in its history.
Adjusted earnings per share came in at $2.20, roughly matching estimates.
Revenue climbs 54.4% from a year earlier
The quarter ended on September 27, 2026. Revenue jumped 54.4% compared with the same period a year earlier. Sequentially, the business grew 22% from the $6.72 billion Lam booked in the fourth quarter of fiscal 2026.
Consensus expectations sat at approximately $8.14 billion in revenue and $2.18 in non-GAAP earnings per share. Lam cleared the revenue bar, landed essentially on top of the earnings one and beat its own guidance.
Margins widen alongside sales
Net income climbed to $2.75 billion. On a GAAP basis, diluted earnings per share were $2.19, a penny below the adjusted figure.
Profitability expanded with sales. The GAAP gross margin reached 52.3%, up 1.9 percentage points from a year ago, with the non-GAAP version at 52.4%. GAAP operating margin hit 40.0%, a 5.6 percentage point improvement year over year.
AI demand lifts the spending outlook
In the prior quarter, Lam's revenue was growing at roughly 30% year over year. This quarter, that pace rose to 54.4%. The company attributed the surge to booming demand for AI-related semiconductors, and it pointed to devices becoming more complex, which requires more advanced manufacturing processes.
Lam also raised its outlook for wafer fab equipment spending, known in the industry as WFE. The company now expects that spending to land at the low end of the $150 billion range, crediting persistent demand driven by AI projects.
Source: Crypto Briefing
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