Highlights

  • Lam Research generated USD 8.22bn in September-quarter revenue, increasing 22% QoQ as operating profitability and earnings reached record levels.
  • The company's planned laboratory investment exceeds USD 3bn over five years, targeting more experiments and faster semiconductor process development.
  • December-quarter guidance anticipates revenue of USD 8.6bn at the midpoint, supported by a higher expected non-GAAP operating margin.
  • Directors increased the quarterly dividend to USD 0.33 per share in August while the company continued its research spending programme.

A larger laboratory programme is taking shape alongside record sales at Lam Research Corporation (NASDAQ:LRCX), the wafer fabrication equipment and services supplier. September-quarter growth has strengthened the financial backdrop to a research plan that extends across several years and regions. Lam shares closed at USD 237.50, gaining 3.22%, after the market session ended on 26 October 2026. The immediate operating outlook centres on December demand, while the laboratory investment targets the materials and manufacturing processes needed for subsequent generations of chips.

Equipment and Customer Support Contribute to Quarterly Growth

For the quarter ended 27 September, revenue rose 22% QoQ to USD 8.22bn. Systems contributed USD 5.73bn, with customer support and other activities generating USD 2.49bn. The business therefore combined sales of new fabrication equipment with continuing work supporting customers' installed systems.

GAAP gross margin reached 52.3%, operating margin was 40.0% and diluted earnings amounted to USD 2.19 per share. Cash, equivalents and restricted cash totalled USD 7.45bn at quarter-end, against USD 5.60bn at the end of June.

China accounted for 35% of quarterly revenue. Korea contributed 20% and Taiwan 18%, establishing the geographic distribution of the completed period. Management linked demand to increasing semiconductor complexity associated with AI, while the quarterly figures measured equipment and service activity already recognised in revenue.

More Experiments Form the Core of the Laboratory Plan

The expansion announced on 13 August involves more than USD 3bn of planned investment over five years. Lam expects its global laboratory network to gain more than 50% additional experiment capacity through the programme.

Its existing laboratories already support more than one million experiments each year. The network spans the United States, Asia and Europe, with specialist facilities addressing areas such as materials, chemistries and mechatronics. Collaboration with customers forms part of the development process, including work close to their manufacturing operations.

The programme aims to shorten development cycles as fabrication processes become more demanding. New chip structures require work across equipment, materials and process integration. Additional laboratory capacity is intended to give engineers more scope to test those combinations before deployment in customers' factories.

The investment covers a multi-year period. Its intended experiment capacity increase consequently remains a development objective rather than a completed addition to the September operating figures.

December Guidance and Dividends Set Separate Priorities

For the December quarter, Lam models revenue of USD 8.6bn, plus or minus USD 400mn. Its non-GAAP operating margin forecast is 40.5%, plus or minus one percentage point. These expectations follow the September results and have a shorter horizon than the laboratory expansion.

Capital distributions also increased during the period. On 27 August, directors lifted the quarterly dividend from USD 0.26 to USD 0.33 per share. The USD 0.07 increase represented approximately 27%, with future declarations still subject to board review and approval.

Lam's announced programme thus includes investment in technology development, support for the installed equipment base and cash distributions. Delivery against the December model is the next financial milestone; expansion of research capabilities continues over a substantially longer timeframe.