SAN FRANCISCO, Jan 28, 2026, 14:15 PST
- Shares climbed in after-hours trading following Lam’s fiscal Q2 results, which beat expectations
- The chip-tool maker projected March-quarter revenue around $5.7 billion
- The company reported that China made up 35% of its quarterly revenue
Lam Research shares climbed roughly 2% in early after-hours on Wednesday after the chip equipment maker posted fiscal Q2 results that exceeded forecasts. The uptick came soon after the earnings announcement, according to Seeking Alpha. (Seeking Alpha)
The results come as investors seek confirmation that chipmakers continue to invest in new factory equipment despite a volatile economy and stricter trade regulations. Lam occupies a central position in this cycle, providing tools essential for producing cutting-edge logic and memory chips powering AI servers and premium devices.
The key now is that equipment demand often comes in waves. When major chipmakers slash or boost capital spending, suppliers like Lam see an immediate impact — and the same goes for peers like Applied Materials, ASML, and Tokyo Electron.
Lam reported a roughly 22% jump in revenue for the quarter ending Dec. 28, hitting $5.34 billion. Adjusted (non-GAAP) earnings came in at $1.27 per share, while the adjusted gross margin stood at 49.7%, reflecting profit after direct costs. The company projects March-quarter revenue around $5.70 billion, with a $300 million margin of error, and adjusted EPS near $1.35, give or take 10 cents. Gross margin is expected to hover around 49%. CEO Tim Archer said, “Lam delivered another strong quarter to cap a record year.” China accounted for 35% of the quarterly revenue, and sales tied to customer support — including service, spares, and upgrades — reached $1.99 billion. (PR Newswire)
FactSet estimates shared by MT Newswires have the Street expecting $1.17 per share on $5.23 billion in revenue before the report drops. Lam’s stock last changed hands at $248.62 in after-hours trading, up from a close of $239.58 during the regular session. (MarketScreener)
Investor’s Business Daily reported the stock reached an all-time high of $243.99 earlier Wednesday, prior to the earnings release. (Investors)
A note from Zacks Equity Research earlier named Lam its “Bull of the Day,” while calling generator maker Generac its “Bear of the Day.” Kevin Cook, senior stock strategist at Zacks, said the bull case for wafer-fab equipment — the machines that produce chips — has evolved. It’s no longer just about a cyclical rebound; it’s now a structural “content gain” story as devices become more complex. (TradingView)
Orders could slump fast if customers postpone factory expansions or clear out surplus capacity. Over a third of Lam’s quarterly revenue comes from China, so any stricter U.S. export controls on chipmaking equipment would pose an immediate threat.
