# Lam Research Stock Q3 2026: Revenue Up 54% to $8.2bn on Memory and AI Demand
> Lam Research stock Q3 2026: revenue up 54% to $8.22bn, a 40% operating margin, China at 35% of sales and an $8.6bn December guide. LRCX earnings and risks.

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## Facts
- Ticker: LRCX
- QSILabs fair value: $111.41 USD
- Price: $239.11 (as of 2026-10-30)
- As of: Fiscal Q1 FY2027 results (quarter ended 2026-09-27, reported 2026-10-21) and Form 10-Q filed 2026-10-22; price as of 2026-10-30 close
- Fiscal period: fiscal Q1 FY2027 (July-September 2026, calendar Q3 2026)
- Published: 2026-11-02
- Updated: 2026-11-02
- Author: QSI Labs Research
- Canonical: https://www.quantitativesuperintelligencelabs.com/research/lam-research-stock-q3-2026-earnings-china-memory/

## Short answer
Lam Research stock Q3 2026 rests on the company's fiscal Q1 FY2027, the quarter to 27 September 2026, which covers the same July-to-September months as calendar Q3. Revenue rose 54% to $8.22bn, GAAP operating margin reached 40.0% and diluted EPS rose 77% to $2.19, as chipmakers spent more on wafer fabrication equipment for AI-driven memory and foundry capacity. China supplied 35% of revenue, down from 43% a year earlier, while Korea's revenue more than doubled. Lam guided December-quarter revenue to $8.60bn, plus or minus $0.40bn. Our discounted cash flow model values LRCX at $111.41 a share, against a $239.11 close on 30 October 2026. The business is earning record profits, in the company's words; the share price assumes those profits keep growing for longer, and fade less, than we expect from a cyclical equipment maker.

## Key takeaways
- Revenue up 54%. Fiscal Q1 FY2027 revenue was $8,219m, up from $5,324m a year earlier and $6,722m in the June quarter. Systems revenue rose 62% to $5,733m; customer support-related revenue and other rose 40% to $2,487m.
- Margins widened. GAAP gross margin was 52.3%, against 50.4% a year earlier, and GAAP operating margin 40.0%, against 34.4%. Net income rose 76% to $2,753m.
- Memory and Korea led. Memory customers took 46% of equipment and upgrade revenue, up from 34% a year earlier. Revenue from Korea rose 110% to $1,634m.
- China's share fell. China revenue rose 26% to $2,886m but fell to 35% of the total from 43%; it had been 26% in the June quarter.
- Cash flow doubled. Operating cash flow was $3,498m and operating cash flow less capital spending $3,240m, against $1,594m a year earlier. Lam spent $1,025m on buybacks and $325m on dividends, and raised the quarterly dividend to $0.33 from $0.26.
- Guidance. For the quarter to 27 December 2026 Lam expects revenue of $8.60bn plus or minus $0.40bn, a gross margin of 52.5%, an operating margin of 40.5% and EPS of $2.33 plus or minus $0.15. The midpoint is 61% above the December 2025 quarter.
- Our value: $111.41 a share, about 53% below the $239.11 close on 30 October 2026. A two-stage cross-check gives $114.21; analysts' average target is $364.03.
- What to watch. Whether wafer fabrication equipment spending holds up into 2027, how China revenue moves under US export controls, and whether margins stay near 40% as revenue growth slows.

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