Lam Research Corporation Q3 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Key Financial Highlights (March 2026 Quarter)

  • Revenue: $5.84 billion (record), +9% sequentially vs. December 2025 quarter, +24% year-over-year vs. March 2025 quarter. Third consecutive record revenue quarter.
  • Customer Support Business Group (CSBG): Record $2.1 billion (+6% sequentially vs. Dec 2025, +25% YoY vs. Mar 2025). First quarter above $2 billion; driven by spares, upgrades, and services with mid-teens services growth.
  • Gross Margin: 49.9% (high end of guidance), improved due to favorable product mix and factory efficiencies.
  • Operating Margin: 35% (high end of guidance).
  • Non-GAAP EPS: Record $1.47 (exceeded high end of guidance range); diluted share count 1.26 billion.
  • Other Metrics: Deferred revenue $2.22 billion (flat sequentially); DSO 64 days (up from 59 days); inventory turns 2.9x (improved from 2.7x, highest in over 4 years).

Business Outlook and WFE Environment

  • Updated 2026 WFE outlook to $140 billion (with upside bias) from prior $135 billion view in January 2026, driven by AI demand across NAND, DRAM, and foundry/logic. Expects compelling WFE growth in 2027.
  • Lam SAM expected to expand to slightly more than mid-30s percent of WFE in 2026, on track for high-30s percent target.
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Operator: Good day, and welcome to the Lam Research Corporation's March 2026 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. Ram Ganesh: Thank you, and good afternoon, everyone. Welcome to 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 March 2026 quarter and our outlook for the June 2026 quarter. The press release detailing our financial results was distributed a little after 1:00 p.m. Pacific Time. The release and the accompanying presentation slides for today's call can also be found on the Investors section of the company's website. Today's presentation and Q&A include forward-looking statements that are subject to risks and uncertainties reflected in the risk factors disclosed in our SEC public filings. Actual results could materially -- differ materially from those expressed in such forward-looking statements. Please see the accompanying presentation slides for additional information. Today's discussion of our financial results will be presented on a non-GAAP financial basis, unless otherwise specified. A detailed reconciliation between GAAP and non-
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