Lam Research Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 28 January 2026: press release. Guidance figures: 4 new, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose slightly from September quarter: Revenue was $5.34 billion, up from $5,324 million in the September 2025 quarter and $4,376 million a year earlier. Six-month revenue was $10,669 million. Source
• China was largest region at 35%: China accounted for 35% of revenue, Taiwan and Korea 20% each, Japan 10%, Southeast Asia 8%, the United States 5% and Europe 2%. Source
• China share fell from 43%: China's share of revenue was 43% in the September 2025 quarter. Korea rose from 15% to 20% and Taiwan from 19% to 20%.
• Support revenue rose while systems fell: Customer support-related revenue and other was $1,987 million, up from $1,777 million. Systems revenue was $3,357 million, down from $3,548 million in the September quarter. Source
• Margins eased from September quarter: U.S. GAAP gross margin was 49.6%, down from 50.4%, and operating income was 33.9% of revenue, down from 34.4%. Non-GAAP gross margin fell to 49.7% from 50.6%. Source
• Deferred revenue declined quarter on quarter: Deferred revenue was $2.25 billion, down from $2.77 billion. The balance excludes Japan shipments, for which control does not transfer until customer acceptance. Source
• Cash balance fell to $6.2 billion: Cash, cash equivalents and restricted cash fell to $6.2 billion from $6.7 billion, mainly from capital return and capital expenditures, partly offset by operating cash generation. Source
• Share repurchases rose to $1.47 billion: Treasury stock purchases, including excise tax payments, were $1,466 million, up from $976 million in the September quarter. Source

“Lam delivered another strong quarter to cap a record year,”

Tim Archer, Lam Research's President and Chief Executive Officer

Guidance

What changed from last quarter

• New guidance: Guidance was given for the quarter ending March 29, 2026. The prior release gave guidance for the quarter ended December 28, 2025. Source

Results and growth drivers

• Revenue rose slightly from September quarter: Revenue was $5.34 billion, up from $5,324 million in the September 2025 quarter and $4,376 million a year earlier. Six-month revenue was $10,669 million. Source
• GAAP net income per diluted share $1.26: Net income was $1,594 million on a U.S. GAAP basis, against $1,569 million in the September quarter. Diluted EPS was $1.26, against $1.24. Source
• Non-GAAP earnings per share $1.27: Non-GAAP net income was $1,598 million, or $1.27 per diluted share, against $1,605 million, or $1.26, in the September quarter. Source

Segments and regions

• China was largest region at 35%: China accounted for 35% of revenue, Taiwan and Korea 20% each, Japan 10%, Southeast Asia 8%, the United States 5% and Europe 2%. Source
• China share fell from 43%: China's share of revenue was 43% in the September 2025 quarter. Korea rose from 15% to 20% and Taiwan from 19% to 20%.

“Entering 2026, our expanding product and services portfolio is enabling the market's transition to smaller, more complex three-dimensional devices and packages.”

Tim Archer, Lam Research's President and Chief Executive Officer

Products and customers

• Support revenue rose while systems fell: Customer support-related revenue and other was $1,987 million, up from $1,777 million. Systems revenue was $3,357 million, down from $3,548 million in the September quarter. Source
• Systems revenue covers leading-edge equipment: Systems revenue covers new leading-edge equipment for deposition, etch and other wafer fabrication markets. Support revenue covers services, spares, upgrades and Reliant non-leading-edge equipment. Source

Costs, margins and pricing

• Margins eased from September quarter: U.S. GAAP gross margin was 49.6%, down from 50.4%, and operating income was 33.9% of revenue, down from 34.4%. Non-GAAP gross margin fell to 49.7% from 50.6%. Source
• Operating expenses fell slightly: Total operating expenses were $841 million, against $856 million in the September quarter. Research and development was $573 million and SG&A $268 million. Source
• Deferred compensation valuation adjustments narrowed: Non-GAAP results excluded a deferred compensation liability valuation increase of $13.3 million in operating expenses, against $18.0 million in the September quarter. No impairment charge was recorded this quarter. Source
• Tax expense lower; prior quarter had charge: Income tax expense was $243 million, against $291 million. The September quarter included a $27.5 million charge from a change in tax law, which was excluded from non-GAAP results. Source

“With AI accelerating, we are ramping execution velocity across the company to support our customers' growth and realize our vision for multi-year outperformance”

Tim Archer, Lam Research's President and Chief Executive Officer

Demand and the order book

• Deferred revenue declined quarter on quarter: Deferred revenue was $2.25 billion, down from $2.77 billion. The balance excludes Japan shipments, for which control does not transfer until customer acceptance. Source
• Japan shipments awaiting acceptance rose: Estimated future revenue from shipments to Japan customers was $226 million, up from $131 million. Such shipments are held as inventory at cost until acceptance. Source

Capital, cash and shareholder returns

• Cash balance fell to $6.2 billion: Cash, cash equivalents and restricted cash fell to $6.2 billion from $6.7 billion, mainly from capital return and capital expenditures, partly offset by operating cash generation. Source
• Operating cash flow fell from prior quarter: Net cash from operating activities was $1,480 million, against $1,779 million in the September quarter. Changes in operating assets and liabilities used $255 million. Source
• Share repurchases rose to $1.47 billion: Treasury stock purchases, including excise tax payments, were $1,466 million, up from $976 million in the September quarter. Source
• Capital spending rose to $261 million: Capital expenditures and intangible assets were $261 million, against $185 million in the September quarter. Source
• Quarterly dividend held at $0.26: Cash dividend declared per share was $0.26, unchanged from the September quarter and up from $0.23 a year earlier. Dividends paid were $328 million. Source
• Shares outstanding declined again: Common shares issued and outstanding fell to 1,251,180 at December 28, 2025, from 1,259,176 at September 28, 2025. Source

Debt and balance sheet

• Debt balances broadly unchanged: Long-term debt and finance lease obligations were $3,730 million, and the current portion was $754 million, both close to September quarter levels. Source
• Equity and total assets declined: Stockholders' equity was $10,145 million, against $10,193 million at September 28, 2025. Total assets were $21,391 million, against $21,900 million. Source

Figures management reported

Other quarters

• Q4 FY2026 earnings call
• Q3 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.