Catch up on the essentials
- Earnings per share were $2.20, compared with an expected $2.18, according to the October 26 report on the company's results and market reaction.
- For the second quarter of fiscal 2027, Lam Research guided to revenue of approximately $8.6 billion, plus or minus $400 million.
- The bank said Lam Research's results and guidance were in line with expectations and noted that relatively elevated investor expectations contributed to its view that the shares could edge lower after the results.
Selected from this article · 2026-10-26
Read on for the full pictureLam Research results exceed analyst estimates
Lam Research reported first-quarter fiscal 2027 revenue of $8.22 billion, above the analysts' estimate of $8.13 billion, as demand for advanced chip-manufacturing equipment remained strong. Earnings per share were $2.20, compared with an expected $2.18, according to the October 26 report on the company's results and market reaction.
The report did not specify whether the $2.20 earnings-per-share figure was GAAP or adjusted. It also said Lam Research had previously indicated that supply-chain shortages would affect December.
Second-quarter guidance offers limited upside
For the second quarter of fiscal 2027, Lam Research guided to revenue of approximately $8.6 billion, plus or minus $400 million. That midpoint was only slightly above the analysts' estimate of about $8.54 billion.
The company also forecast adjusted earnings per share of $2.33, plus or minus $0.15, broadly matching the market expectation of $2.32. The guidance implied a slowing pace of sequential revenue growth from the prior quarters, which the report said disappointed investors.
Shares decline after the outlook
Lam Research shares fell more than 8% to $239.04 on Thursday, according to the October 26 market report. The decline followed the company's results and fiscal second-quarter outlook.
Goldman Sachs maintained a "Buy" rating on the company and a $380 price target, according to a separate October 26 report. The bank said Lam Research's results and guidance were in line with expectations and noted that relatively elevated investor expectations contributed to its view that the shares could edge lower after the results.
Industry outlook remains an important factor
The Goldman Sachs report said its 2027 wafer-fab-equipment outlook exceeded $200 billion. That figure was an industry outlook rather than Lam Research's revenue guidance, and the reviewed reports did not provide details about how much of that market Lam Research expected to capture.
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