Lam Research posts $8.22 billion quarter as supply limits cap its outlook

What happened

Lam Research reported revenue of $8.22 billion for the quarter ended Sunday 27 September, in a filing on Wednesday 21 October that set a December quarter outlook of $8.6 billion, plus or minus $400 million. ^{[1, 2]}

Revenue was 22 percent higher than in the June quarter, the company reported. Operating margin, the share of revenue left after running costs, was 40.0 percent, against 34.4 percent a year earlier. By the desk's arithmetic on the filed figures, revenue was 54 percent above the $5.32 billion of the September 2025 quarter. ^[2]

Why it matters

Lam makes the machines that deposit and etch the layers of a chip, so its outlook is an early read on how fast chipmakers can build. Its finance chief said the December figure would have been higher without supply limits. Chief executive Tim Archer said the company expects equipment spending of more than $200 billion in 2027, against the mid $150 billion range it expects for 2026. ^{[2, 3]}

The limits it named

Chief financial officer Doug Bettinger said on the call that the revenue guide 'would have been a bit higher if not for some near-term supply chain constraints that we are actively managing.' Asked about the size, he declined to put a number on it. ^[3]

Bettinger said that what Lam would have shipped in December 'because of timing, we will ship that in the March quarter.' Archer said clean room space and supply limits on certain components would keep holding back chipmakers and toolmakers into 2027. ^[3]

China was 35 percent of September quarter revenue, the release shows, up from 26 percent in June according to Bettinger. He said China would be a significantly lower share in December, driven by domestic Chinese customers. ^{[2, 3, 6]}

What settles it next

Lam's annual meeting of stockholders is listed for Tuesday 3 November on its investor site. Archer said the company would give a firmer 2027 spending view on its January call, once clean room schedules and supply limits are clearer. ^{[3, 5]}

Who it reaches

Lam Research (LRCX) is direct: the results and outlook are its own. Applied Materials (AMAT) is adjacent: Lam's annual report names it the primary competitor in deposition and etch, and Bettinger said the whole industry faces similar supply limits. ^{[1, 3, 4]}

Micron Technology (MU) and Taiwan Semiconductor Manufacturing (TSM) are adjacent: Lam's annual report names both among its most significant customers. Archer said memory chips called DRAM would lead 2027 spending growth, followed by leading-edge foundry logic. ^{[3, 4]}