Lam Research reported record Q4 FY2026 revenue and raised FY2027 guidance by over $1 billion, driven by AI chip demand surge and HBM/advanced packaging requirements.

Lam Research reported record quarterly revenue and earnings on Wednesday, driven by robust demand for semiconductor manufacturing equipment as artificial intelligence investment continues to fuel advanced chip production.

The wafer fabrication equipment maker posted revenue of $6.72 billion for the quarter ended June 28, representing a 15.1% increase from the previous quarter. U.S. GAAP net income rose to $2.28 billion, or $1.81 per diluted share, compared with $1.83 billion, or $1.45 per share, in the March quarter. Gross margin improved to 51.7% from 49.8%, while operating margin increased to 37.4% from 35.0%.

Chief Executive Tim Archer highlighted the company's record revenue, operating margin, and earnings per share in the June quarter, attributing the performance to AI-driven demand that continues to reshape the semiconductor industry. He noted that Lam's technology investments are helping customers navigate increasing manufacturing complexity and position the company for a third consecutive year of outperformance in 2026.

Looking ahead, Lam forecasted September-quarter revenue of $8.10 billion, plus or minus $400 million. The company expects gross margin of approximately 52.0%, operating margin of roughly 39.5%, and diluted earnings per share of $2.15, plus or minus $0.15.

Cash, cash equivalents, and restricted cash increased to $5.60 billion at the end of the June quarter from $4.77 billion three months earlier. Deferred revenue rose to $2.43 billion from $2.22 billion. Taiwan accounted for 27% of quarterly revenue, followed by China at 26% and Korea at 20%.