Lam Research Q2 Earnings Surpass Expectations, Revenues Rise Y/Y

Lam Research LRCX reported second-quarter fiscal 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.LRCX reported second-quarter non-GAAP earnings of $1.27 per share, which beat the Zacks Consensus Estimate by 8.5%. The bottom line increased 39.6% on a year-over-year basis.In the second quarter of fiscal 2026, LRCX reported revenues of $5.34 billion, which surpassed the consensus mark by 2.1%. The top line rose 22% from the year-ago quarter’s $4.38 billion.LRCX’s Q2 Revenues in DetailLam Research’s Systems revenues were $3.36 billion (62.8% of total revenues), down 5.4% from the previous quarter and up 28% year over year. The Zacks Consensus Estimate for Systems revenues was pegged at $3.44 billion.In the Customer Support Business Group, revenues were $1.99 billion, comprising 37.2% of total revenues. This marks an 11.9% rise from the previous quarter’s $1.78 billion, and a 13.5% increase from the year-ago period. The Zacks Consensus Estimate for Customer Support Business Group revenues was pegged at $1.78 billion.Lam Research Corporation Price, Consensus and EPS Surprise Lam Research Corporation price-consensus-eps-surprise-chart | Lam Research Corporation QuoteDuring the quarter, China contributed 35% of total revenues, Taiwan 20%, and Korea 20%. Other regions like Japan contributed 10%, the United States 5%, Southeast Asia 8%, and Europe 2%.Operating Details of LRCXLam Research’s non-GAAP gross margin declined to 49.7%, down 90 basis points from 50.6% in the previous quarter.Non-GAAP operating expenses decreased to $827.49 million, down 0.5% from $831.92 million. As a percentage of revenues, non-GAAP operating expenses declined to 15.5% in the second quarter from 15.6% in the first quarter.The non-GAAP operating margin contracted 70 basis points sequentially to 34.3%.LRCX’s Balance Sheet & Cash FlowAs of Dec. 28, 2025, Lam Research held $6.18 billion in cash and cash equivalents, down from $6.69 billion at the end of the prior quarter.Cash flow from operating activities decreased to $1.48 billion, down from $1.78 billion in the previous quarter.During the quarter, Lam Research paid dividends totaling $327.5 million and repurchased shares worth $1.47 billion.LRCX Provides Strong GuidanceFor the third quarter of fiscal 2026, Lam Research projects revenues to be $5.7 billion (+/- $300 million). The Zacks Consensus Estimate for the fiscal third quarter is pegged at $5.38 billion, indicating year-over-year growth of 14%.The company expects a non-GAAP gross margin of 49% (+/-1%) and a non-GAAP operating margin of 34% (+/-1%).Non-GAAP earnings per share are projected to be $1.35 (+/- $0.10), with a diluted share count of 1.26 billion. The Zacks Consensus Estimate for the fiscal second quarter is pegged at $1.20 per share, indicating year-over-year growth of 15.4%.Zacks Rank and Other Stocks to ConsiderCurrently, LRCX sports a Zacks Rank #1 (Strong Buy).Amphenol APH, Amtech Systems ASYS and BILL Holdings, Inc. BILL are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Amphenol, Amtech Systems and BILL Holdings sport a Zacks Rank #1 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Amphenol’s projected earnings for 2026 has been revised upward by 10 cents to $4.26 per share over the past seven days and suggests a year-over-year increase of 28.7%. Amphenol shares have jumped 38.6% in the past six months.The Zacks Consensus Estimate for Amtech Systems’ fiscal 2026 earnings is pegged at 43 cents per share, up from the prior estimate of 15 cents per share over the past 60 days, calling for a year-over-year surge of 760%. Amtech Systems shares have soared 296.1% in the past six months.The Zacks Consensus Estimate for BILL Holdings’ fiscal 2026 earnings has remained unchanged at $2.21 per share over the past 60 days, suggesting no year-over-year growth. BILL Holdings shares have jumped 2.8% in the past six months.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.SeeWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Amtech Systems, Inc. (ASYS): Free Stock Analysis Report BILL Holdings, Inc. (BILL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks