NEW YORK, July 30, 2026, 10:14 a.m. EDT
- Lam shares rose 20.9% to $305.18 during regular U.S. trading.
- September revenue guidance beat LSEG consensus by 14.2%. The EPS midpoint was 17.5% higher.
- Guidance implies a 44.9% incremental adjusted operating margin, based on midpoint calculations.
Lam Research surged on Thursday after forecasting a sharp September-quarter expansion. The shares traded at $305.18 around 10 a.m. EDT, up 20.9%. U.S. regular trading was underway.
The investor signal sits inside the margin guide. Lam could add about $619 million of adjusted operating profit on $1.38 billion of sequential sales. That produces a 44.9% incremental margin.
The June quarter beat forecasts, though revenue was only modestly ahead.
| Metric | June result | Consensus | Surprise | Sequential change |
|---|---|---|---|---|
| Revenue | $6.72 billion | $6.67 billion | +0.8% | +15.1% |
| Adjusted EPS | $1.82 | $1.68 | +8.3% | +23.8% |
| Adjusted gross margin | 52.0% | — | — | +210 basis points |
| Adjusted operating margin | 38.4% | — | — | +340 basis points |
The forward guide was far stronger. Revenue midpoint cleared consensus by $1.01 billion. EPS midpoint beat by $0.32. These are preliminary company estimates, not reported results.
| September-quarter metric | Midpoint | Guidance range | Comparison | Midpoint difference |
|---|---|---|---|---|
| Revenue | $8.10 billion | $7.70–$8.50 billion | $7.09 billion consensus | +14.2% |
| Adjusted EPS | $2.15 | $2.00–$2.30 | $1.83 consensus | +17.5% |
| Adjusted gross margin | 52.0% | 51.0%–53.0% | 52.0% in June | Flat |
| Adjusted operating margin | 39.5% | 38.5%–40.5% | 38.4% in June | +110 basis points |
At the midpoint, revenue rises 20.5% sequentially. Implied adjusted operating profit increases almost 24%. Expenses therefore grow more slowly than sales.
| Operating-leverage measure | June actual | September midpoint | Change |
|---|---|---|---|
| Revenue | $6.72 billion | $8.10 billion | +20.5% |
| Adjusted operating margin | 38.4% | 39.5% | +110 basis points |
| Adjusted operating income | $2.58 billion | $3.20 billion | +24.0% |
| Incremental operating margin | — | — | 44.9% |
Implied from the revenue and operating-margin midpoints.
Support revenue also improved earnings quality. It grew nearly twice as fast as systems revenue. Its share of total sales rose to 36.8% from 33.5% one year earlier.
| Revenue stream | June 2026 | June 2025 | Year-on-year growth | June 2026 mix |
|---|---|---|---|---|
| Systems | $4.25 billion | $3.44 billion | +23.6% | 63.2% |
| Customer support and other | $2.47 billion | $1.73 billion | +42.6% | 36.8% |
Support posted a third consecutive quarterly record, helped by equipment upgrades. Management also lifted its 2026 wafer-fabrication-equipment estimate to the low-$150 billion range from $140 billion. “Looking into 2027, we see an extraordinary setup for WFE growth,” Chief Executive Tim Archer said. Investing.com
JPMorgan Chase NYSE:JPM analyst Harlan Sur raised his price target to $340 from $315. He retained an Overweight rating. That target stood about 11% above Lam’s morning price.
The read-through spread across the equipment group. Applied Materials NASDAQ:AMAT, KLA NASDAQ:KLAC and ASML Holding NASDAQ:ASML all rallied. The iShares Semiconductor ETF NASDAQ:SOXX gained 8.0%.
| Security | Morning price | Daily move |
|---|---|---|
| Lam Research | $305.18 | +20.9% |
| Applied Materials | $503.05 | +15.3% |
| KLA | $185.45 | +9.0% |
| ASML Holding | $1,662.58 | +7.2% |
| iShares Semiconductor ETF | $502.24 | +8.0% |
Risks remain. China generated 26% of June revenue, while domestic Chinese customers declined sequentially. Export controls and stretched lead times can disrupt shipments. Lam also traded near 57 times trailing earnings after the jump.
The next test is whether the 45% incremental margin survives the ramp. Support growth must also remain ahead of systems. If both hold, management’s mid-50% gross-margin and mid-40% operating-margin goals become more credible.
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