Q4 2026 Lam Research Corp Earnings Call Transcript
Key Points
- Record revenue, operating margin, and earnings per share in the June quarter, with revenue up 15% sequentially and 30% year-over-year.
- Strong NAND revenue growth, doubling from the prior quarter, driven by AI demand for flash storage and upgrades to 200-plus layer architectures.
- Expanding SAM (served available market) per wafer in NAND, expected to double from 128-layer to 500-plus layer devices, positioning Lam for future growth.
- Record revenue in the Customer Support Business Group (CSBG), driven by upgrades, Reliant services, and Equipment Intelligence solutions like Dextro cobots.
- Positive long-term outlook with WFE expected to reach low $150 billion in 2026, and an extraordinary setup for growth in 2027 due to AI-driven demand and new fab projects.
- Revenue from China declined sequentially, dropping from 34% to 26% of total revenue, with domestic customer spending decreasing.
- Operating expenses increased due to higher headcount and variable compensation, which could pressure margins if revenue growth slows.
- Days sales outstanding (DSO) increased to 72 days from 64 days, indicating slower cash collection from customers.
- Tax rate expected to rise to mid-teens in the September quarter due to higher revenue in higher-tax jurisdictions like the United States.
- Potential supply chain constraints and lead time challenges could limit the ability to meet unexpected upside demand in the near term.
Good day, and welcome to the Lam Research Corporation June '26 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Ram Ganesh, Vice President of Investor Relations. Please go ahead.
Thank you, and good afternoon, everyone. Welcome to the Lam Research quarterly earnings conference call. With me today are Tim Archer, President and Chief Executive Officer; and Doug Bettinger, Executive Vice President and Chief Financial Officer.
During today's call, we will share our overview on the business environment and we'll review our financial results for the June 2026 quarter and our outlook for the September 2026 quarter. The press release detailing our financial results was distributed a little after 1:00 PM Pacific Time. The release and the accompanying presentation slides for today can be found on the Investors section of the company's website.
Today's presentation and Q&A include
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