Lam Research (Nasdaq: LRCX) reported record revenue of $8.22 billion for its fiscal first quarter of 2027, the three months ended September 27, 2026, according to its earnings release.Revenue rose 22%Lam Research (Nasdaq: LRCX) reported record revenue of $8.22 billion for its fiscal first quarter of 2027, the three months ended September 27, 2026, according to its earnings release.Revenue rose 22%
Why Did Lam Research (LRCX) Stock Fall After Record Fiscal Q1 2027 Earnings?
Lam Research (Nasdaq: LRCX) reported record revenue of $8.22 billion for its fiscal first quarter of 2027, the three months ended September 27, 2026, according to its earnings release.
Revenue rose 22% from the June quarter, and non-GAAP EPS of $2.20 came in slightly above the roughly $2.18 analysts had expected.
Shares still fell about 6% in after-hours trading on October 21, as investors weighed a December-quarter outlook roughly in line with expectations, a sharp expected drop in China revenue and supply chain limits on growth.
On MEXC, the LRCXUSDT perpetual contract fell about 6.7% in the five hours after the release.
Key Takeaways
- Record quarter: Revenue of $8.22 billion, up 22% quarter over quarter and about 54% year over year, based on reported figures; CEO Tim Archer called it record revenue, profit and EPS.
- Margins: GAAP gross margin of 52.3% and GAAP operating margin of 40.0%; non-GAAP EPS of $2.20, up 21% from the June quarter.
- December-quarter guidance: Revenue of $8.60 billion ± $400 million and non-GAAP EPS of $2.33 ± $0.15, close to analyst expectations.
- China: China was 35% of revenue in the September quarter, and management expects it to be "meaningfully down" in December.
- Industry outlook: Lam expects wafer fabrication equipment (WFE) spending in the mid-$150 billion range in 2026 and more than $200 billion in 2027.
- MEXC reaction: LRCXUSDT went from 261.60 to 243.95 USDT in five hours, first-hour turnover was about 41 times the same hour a day earlier, and the first post-earnings funding settlement rose to 0.0585%.
A Record Quarter on AI-Driven Demand
Systems revenue reached $5.73 billion, up from $4.25 billion in the June quarter, while customer support-related and other revenue was $2.49 billion.
GAAP gross margin improved 60 basis points from the prior quarter to 52.3%, and GAAP operating margin rose 260 basis points to 40.0%.
GAAP diluted EPS was $2.19, compared with $1.81 in the June quarter and $1.24 a year earlier.
Archer tied the results to AI driving higher semiconductor demand and greater device complexity, and CFO Doug Bettinger said foundry also delivered record revenue.
Operating cash flow was $3.50 billion, and Lam returned about $1.35 billion to shareholders through $1.02 billion of buybacks and $325 million of dividends.
Cash and cash equivalents rose to $7.45 billion from $5.60 billion at the end of the June quarter.
Why the Stock Fell Anyway
The December-quarter guidance was roughly in line with expectations rather than above them: the $8.60 billion revenue midpoint compared with analyst estimates of about $8.54 billion, and the $2.33 EPS midpoint with about $2.32.
The guidance range is also wide, spanning $8.2 billion to $9.0 billion in revenue.
On the earnings call, Bettinger said China revenue would be "meaningfully down" in December, driven by domestic Chinese customers, while multinational customers in China should stay reasonably strong.
He also said the revenue guide "would have been a bit higher if not for some near-term supply chain constraints," and Archer said clean room space and component supply will keep limiting the industry's ability to fully meet demand into 2027.
Taken together, the release confirmed strong demand but did not show the upside some investors may have been looking for.
What Lam Sees for 2027
Archer said Lam expects WFE spending of more than $200 billion in 2027, up from the mid-$150 billion range in 2026, with DRAM leading percentage growth, followed by leading-edge foundry logic and NAND.
He described advanced packaging as a major growth driver for Lam, and Bettinger said the company sees room to expand gross margin into the mid-50s over the next several years.
Lam reiterated its long-term plan to return 85% of free cash flow to shareholders, with $3 billion remaining on its buyback authorization.
How LRCX Futures Reacted on MEXC
Data snapshot: MEXC, LRCXSTOCK_USDT hourly bars, index-price bars and funding history, retrieved 03:30 UTC on October 22, 2026. Figures will differ at later times.
Chart: LRCXUSDT hourly closing price (top) and hourly turnover (bottom) on MEXC, October 21, 2026, 4:00 a.m.–9:00 p.m. ET.
The dashed line marks the 4:00 p.m. ET close; the five-hour analysis below covers 4:00–9:00 p.m. ET.
The window starts with the hourly bar that opened at the 4:00 p.m. ET close on October 21 (20:00 UTC), the window in which the results were published.
Price: LRCXUSDT fell from 261.60 USDT at the close to 247.26 USDT an hour later, down about 5.5%, and reached 243.95 USDT by 9:00 p.m. ET, a decline of about 6.7%.
The contract's index price fell about 6.6% over the same five hours, so the contract moved with its reference price.
Trading activity: turnover in the first hour after the close was about 275,000 USDT, compared with about 6,700 USDT in the same hour a day earlier and an average of about 14,600 USDT per hour over the preceding 24 hours.
Across the five post-earnings hours, turnover totalled about 317,000 USDT, more than the roughly 234,000 USDT traded from 9:00 a.m. to 4:00 p.m. ET that day.
The jump is large in relative terms, but absolute turnover remains modest, which matters for anyone placing larger orders.
Premium to index: the contract traded above its index price both before and after the release, by about 1–19 basis points before and about 2–14 basis points after.
Funding: LRCXUSDT settles funding every eight hours; the last settlement before the release (16:00 UTC) was 0.0328%, and the first one after it (00:00 UTC on October 22) rose to 0.0585%.
Holding a long position became more expensive after the drop, because the contract continued to trade above its index.
Positive funding means longs pay shorts; it is a carrying-cost signal, not a count of bullish versus bearish traders.
Following LRCX Through MEXC
The LRCXUSDT perpetual contract on MEXC provides a derivatives market to follow Lam Research around earnings and outside Nasdaq hours.
A useful assessment pairs price changes with funding, trading activity and the premium to index, rather than reading a contract move as the stock's performance.
For eligible users considering share ownership, MEXC Real Stocks is a separate product route; availability and supported securities should be checked directly.
LRCXUSDT perpetual contracts do not confer shareholder rights and carry funding, leverage and liquidation risks.
FAQ
Why did Lam Research stock fall after record earnings?
The record quarter slightly beat estimates, but December-quarter guidance was roughly in line, China revenue is expected to fall meaningfully, and supply chain constraints capped the outlook.
What is Lam Research's December 2026 quarter guidance?
Lam guided revenue of $8.60 billion ± $400 million, gross margin of 52.5% ± 1 point, operating margin of 40.5% ± 1 point and diluted EPS of $2.33 ± $0.15.
How much of Lam Research's revenue comes from China?
China accounted for 35% of revenue in the September 2026 quarter, and management expects that share to drop meaningfully in the December quarter.
What does Lam expect for WFE spending in 2027?
Lam expects WFE spending of more than $200 billion in 2027, up from the mid-$150 billion range in 2026.
How did LRCX futures react on MEXC?
LRCXUSDT fell about 6.7% in the five hours after the October 21 close, in line with its index price, while funding rose to 0.0585% at the first settlement after the release.
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The articles shared on this page are sourced from public platforms and are provided for reference only. They do not represent the position or views of MEXC. All rights belong to James Mitchell. If you believe any content infringes upon the rights of a third party, please contact [email protected] for prompt removal. MEXC does not guarantee the accuracy, completeness, or timeliness of any content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be interpreted as a recommendation or endorsement by MEXC. For expert insights and in-depth analysis, visit MEXC Learn.
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