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Lam Research (LRCX) is lower despite reporting another quarterly beat and upside guide in its Q3 (Mar) report last night. The company, a leading supplier of wafer fabrication equipment and related services to the semiconductor industry, reported adj. EPS of $1.47, up 41% yr/yr, while revenue increased 24% yr/yr to $5.84 bln. Additionally, it expects Q4 (Jun) EPS of $1.50-1.80 and revenue of $6.20-7.00 bln.

• The AI-driven demand environment continues to fuel LRCX's outperformance, with rising AI compute needs driving higher deposition and etch intensity across all major device segments.
• NAND demand is strengthening as AI data-center storage needs accelerate technology upgrades, and DRAM continues to benefit from HBM demand and the shift to more advanced nodes driven by power and efficiency requirements. Foundry/logic remains supported by leading-edge inflections, while advanced packaging revenue is expected to increase more than 50% in CY26.
• Systems revenue increased 23% yr/yr to $3.73 bln, with foundry accounting for 54% of systems revenue and memory 39%, including DRAM at 27% and NAND at 12%.
• Customer Support Group revenue increased 25% yr/yr to a record $2.1 bln, benefiting from stronger utilization and continued growth across spares, upgrades, and services.
• Non-GAAP gross margin improved sequentially to 49.9%, supported by favorable customer and product mix as well as improved factory efficiencies, while the midpoint of Q4 (Jun) guidance implies another sequential increase to 50.5%.
• LRCX also raised its CY26 WFE outlook to $140 bln from $135 bln, with customer spending projections moving higher across all device segments as the industry continues to work through ongoing constraints, which it believes sets the stage for another year of strong growth in CY27.

Briefing.com Analyst Insight

This was another strong quarter by LRCX, beating expectations and issuing another upside guide. That reinforces its favorable demand backdrop, with AI-related spending continuing to broaden across memory, foundry/logic, packaging, and the installed base. Additionally, forward commentary remained favorable, particularly in NAND. Its decision to raise its CY26 WFE outlook, alongside commentary around constraints and rising customer spending, further strengthens the view for another year of growth in CY27. Margins also improved sequentially and are expected to stay relatively strong next quarter, which is encouraging as China is expected to decline as a percentage of revenue, with that being offset by stronger contributions from both Taiwan and Korea. Overall, the results reinforce the AI-related tailwinds, although the stock's strong run into the report and proximity to highs are likely keeping shares in check.