FREMONT, Calif., April 22, 2026, 15:12 PDT.
Lam Research jumped roughly 4% after hours as the chip-equipment maker reported all-time high revenue and profit for the March quarter, and its outlook for June topped analyst estimates. Adjusted earnings landed at $1.47 per share on $5.84 billion in revenue—both beating expectations of $1.36 a share and $5.75 billion.
The figures have implications that stretch past just Lam. Makers rely on Lam’s wafer fabrication equipment—WFE—to build semiconductors, so the company’s backlog offers a glimpse into ongoing demand for AI processors and memory. Wednesday brought an update: Lam bumped its 2026 WFE forecast up to $140 billion, saying the risks lean toward even higher numbers.
That sentiment lines up with a bigger wager across the sector: AI is pushing chipmakers to ramp up tools, packaging, and memory. “Artificial intelligence infrastructure demand is immense, and supply is scarce,” William Kerwin, senior equity analyst at Morningstar, told Reuters back in February. Lam, for its part, said revenue in the second half of 2026 should top the first six months, and it expects advanced packaging revenue to jump more than 50% this year. Reuters
Lam posted a 24% jump in revenue to $5.84 billion year-over-year, according to its financial tables. U.S. GAAP diluted EPS increased, hitting $1.45 versus $1.03. The company’s systems sales generated $3.73 billion, while support-related revenue — covering service, spares, and upgrades — topped $2.11 billion for the first time, breaking past the $2 billion line in the quarter.
“Lam delivered record revenue and EPS in the March quarter,” Chief Executive Tim Archer said. He pointed to AI-fueled demand, saying it’s transforming the semiconductor world and paying off the company’s earlier bets. Lam, together with Applied Materials and KLA, is in the select group of U.S. equipment makers supplying TSMC for its top-tier processors. PR Newswire
Lam booked 34% of its revenue from China in the quarter—still its top market. Korea and Taiwan each delivered 23%. The U.S. share came to 6%.
Lam is forecasting June-quarter revenue at $6.6 billion, give or take $400 million, with adjusted earnings pegged at $1.65 per share, plus or minus 15 cents. That’s ahead of consensus, which had centered around $6.05 billion to $6.1 billion on the top line and roughly $1.45 a share in earnings.
Applied Materials CEO Gary Dickerson, back in February, chalked up the demand spike to “the acceleration of industry investments in AI computing.” KLA echoed the optimism with a bullish outlook in January. AI spending keeps driving momentum across the sector. Reuters
The China issue keeps resurfacing. On Wednesday, a House panel advanced the MATCH Act, aiming to close loopholes in U.S. rules on chipmaking equipment sold to China. Lawmakers did soften the measure from an earlier draft that rattled the industry, scrapping a broad ban on certain etch tools. Still, with China contributing a third of Lam’s revenue, any policy change in Washington could quickly shift the company’s earnings outlook.
