Lam Research Corporation (LRCX), a global supplier of wafer fabrication equipment, reported revenue of $8.22 billion for the quarter ended September 27, 2026, a 22% sequential increase that accelerated from the 15.1% sequential rise in the June quarter.

The company said the quarter set records for revenue, profit, and earnings per share. U.S. GAAP diluted earnings were $2.19 a share, up 21% from $1.81 a share in the June quarter. Non-GAAP diluted earnings were $2.20 a share.

President and Chief Executive Officer Tim Archer said AI was driving higher semiconductor demand and greater device complexity, and that operational execution helped Lam deliver the records. He said strategic investments in technology inflections and manufacturing capacity were paying off and strengthening the company’s ability to outgrow the wafer fabrication equipment market as the industry expands.

Systems revenue, which includes new leading-edge equipment in deposition, etch, clean, and other wafer fabrication markets, increased to $5.73 billion from $4.25 billion in the June quarter. Customer support-related revenue and other, covering services, spares, upgrades, and Reliant non-leading-edge equipment, was $2.49 billion, essentially unchanged from $2.47 billion.

U.S. GAAP gross margin expanded 60 basis points to 52.3% of revenue from 51.7%, after a 190 basis-point expansion in the June quarter. Non-GAAP gross margin rose 40 basis points to 52.4%. U.S. GAAP operating margin expanded 260 basis points to 40.0% from 37.4%, after a 240 basis-point expansion in the June quarter. Non-GAAP operating margin rose 180 basis points to 40.2%.

China accounted for 35% of September-quarter revenue. Korea contributed 20%, Taiwan 18%, Japan 9%, the United States 8%, Southeast Asia 6%, and Europe 4%.

Cash, cash equivalents, and restricted cash increased to $7.45 billion at quarter-end from $5.60 billion at the end of the June quarter. The company said the increase was primarily the result of cash generated from operating activities, partially offset by capital return activities and capital expenditures. Operating cash flow was $3.50 billion. Treasury stock purchases were $1.02 billion and dividends paid were $325.4 million.

Deferred revenue increased to $2.66 billion from $2.43 billion at June quarter-end. The balance excludes shipments to customers in Japan, to whom control does not transfer until acceptance; those shipments remain in inventory at cost. Estimated future revenue from Japan shipments was $468.3 million as of September 27, 2026, down from $490.2 million as of June 28, 2026.

For the quarter ending December 27, 2026, Lam is guiding revenue of $8.60 billion, plus or minus $400 million. It is guiding U.S. GAAP and non-GAAP gross margin of 52.5%, plus or minus 1%, operating margin of 40.5%, plus or minus 1%, and diluted earnings of $2.33 a share, plus or minus $0.15, on a diluted share count of 1.253 billion.

Non-GAAP results for the September quarter excluded the net income tax effect of a change in tax law. The June quarter had excluded workforce optimization charges and related tax effects, which were absent in September.