Lam Research posts record $8.22 billion quarter as AI chip demand accelerates

Lam Research just had the biggest quarter in its history. The company reported first-quarter fiscal 2027 revenue of $8.22 billion, ahead of what Wall Street expected.

Adjusted earnings per share came in at $2.20, roughly matching estimates. The AI buildout is still hungry, and the companies selling the picks and shovels keep getting paid.

The numbers behind the record

The quarter ended on September 27, 2026. Revenue jumped 54.4% compared with the same period a year earlier.

Sequentially, the business grew 22% from the $6.72 billion Lam booked in the fourth quarter of fiscal 2026.

Consensus expectations sat at approximately $8.14 billion in revenue and $2.18 in non-GAAP earnings per share. Lam cleared the revenue bar and landed essentially on top of the earnings one, while also beating its own guidance.

Net income climbed to $2.75 billion. On a GAAP basis, diluted earnings per share were $2.19, a penny below the adjusted figure.

Profitability expanded alongside sales. GAAP gross margin reached 52.3%, up 1.9 percentage points from a year ago, with the non-GAAP version at 52.4%.

GAAP operating margin hit 40.0%, a 5.6 percentage point improvement year over year.

Growth that is speeding up, not slowing down

In the prior quarter, Lam’s revenue was growing at roughly 30% year over year. This quarter, that pace jumped to 54.4%.

The company attributed the surge to booming demand for AI-related semiconductors. It also pointed to devices becoming more complex, which requires more advanced manufacturing processes.

CEO Tim Archer emphasized operational excellence as manufacturing complexity rises.

A bigger forecast for the whole industry

Lam also raised its outlook for wafer fab equipment spending, known in the industry as WFE. The company now expects that spending to land at the low end of the $150 billion range.

Lam credited the higher forecast to persistent demand driven by AI projects.