This week we already saw KLA (process control) guide to a 9% quarterly jump, and Teradyne (final test) double its revenue. Lam Research (NASDAQ: LRCX) is the third leg - the equipment that actually builds the chip - and it just completed the picture.
What Lam Does
If KLA checks that the chip is made correctly and Teradyne checks that it works, Lam makes the machines that physically build it: deposition equipment - laying the material layers onto the wafer - and etch equipment - carving the structures into them.
And why it is critical for memory in particular: manufacturing three-dimensional memory - layered NAND, and stacked HBM - is fundamentally a process of repeated deposition and etch, layer upon layer. The taller the memory, the more Lam machines are required. And in a week when SK hynix reported a 76% operating margin on HBM memory - the demand for those machines explains itself.
What Was Reported
| Metric | June 2026 | March 2026 | Sequential change |
|---|---|---|---|
| Revenue | $6.72 billion | $5.84 billion | +15.1% |
| Adjusted gross margin | 52.0% | 49.9% | +210 bps |
| Adjusted operating margin | 38.4% | 35.0% | +340 bps |
| Adjusted EPS | $1.82 | $1.47 | +23.8% |
| GAAP net income | $2.28 billion | $1.83 billion | +25% |
And against the comparable quarter a year ago ($5.17 billion) - growth of about 30%.
Systems revenue - the new equipment itself - reached $4.25 billion, against $3.44 billion a year ago (+24%), with customer support and spares adding $2.47 billion.
The Headline: the Guidance
| Metric | September-quarter guidance |
|---|---|
| Revenue | $8.10 billion (±$400 million) |
| Gross margin | 52.0% (±1%) |
| Operating margin | 39.5% (±1%) |
| Diluted EPS | about $2.15 (±) |
From $6.72 to $8.10 billion - a jump of more than 20% in a single quarter.
For comparison: KLA guided this week to a 9% jump and was considered aggressive. Lam is guiding to more than double that. And the operating margin is expected to keep expanding to 39.5% - meaning the growth comes with operating leverage, not at its expense.
Three guides, one direction
KLA (process control): guidance +9% in the quarter. Teradyne (final test): revenue +104% year-over-year. Lam Research (deposition and etch): guidance +20% in the quarter. Three companies, three different stages of production, the same message: chipmakers are ordering equipment at an unprecedented pace. And equipment is ordered 12-18 months before production - meaning this is a statement about 2027, not about next quarter.
The Geographic Mix - and the Concentration In It
| Region | Share of revenue |
|---|---|
| Taiwan | 27% |
| China | 26% |
| Korea | 20% |
| Japan | 9% |
| United States | 9% |
Nearly three quarters of revenue comes from three East Asian markets. That is natural - the fabs are there - but it is also concentrated risk: export regulation, geopolitical tension around Taiwan, and restrictions on sales to China are variables outside the company's control that can move a whole quarter.
The Bull Thesis
Whoever reads it positively will point first to the guidance - +20% in a quarter with margins still expanding. That is a level of confidence conservative management teams do not show without a real order book.
Beyond that: the operating leverage works - revenue +15% sequentially became profit +24%, and the gross margin crossed 52%. And the positioning: the move to three-dimensional memory is the trend that serves Lam most directly, and it is exactly the one accelerating with HBM.
The Bear Thesis
Whoever reads it critically will recall the cyclicality - semiconductor equipment is the most volatile industry there is, and a +20% guide is precisely the kind that appears near cycle peaks.
Second, the geographic concentration: 73% of revenue from Taiwan, China and Korea - full exposure to geopolitical risk and export regulation.
Third, the memory dependence. If the HBM cycle cools - and in this industry that happens fast - Lam's orders react first.
The debate in one line
The bulls see a +20% quarterly guide with expanding margins, an equipment trio reporting acceleration in parallel, and perfect positioning for the move to 3D memory. The bears see an industry at a pronounced cycle peak, 73% concentration in East Asia, and dependence on memory - the most volatile market of all. Both sides are reading the same report.
My Angle
A personal opinion of Ilan Abramov - not advice, not a recommendation
What catches me is that three independent equipment companies said the same thing this week - without coordinating.
KLA, Teradyne and Lam do not share information. Each sees its own orders, from a different stage of production. When all three guide to acceleration simultaneously, that is not management optimism - it is an order book that already exists.
And the important point is the timeline. Equipment ordered today is built, shipped and installed through 2027. These guides are a statement by the chipmakers about the next two years - they have already paid deposits.
And what I hold as caution: in this industry, the most aggressive guides always come near the peak. Not because managements are wrong - because the orders really are there. The question is what happens after the capacity is installed. In 2019 and 2023 the answer was oversupply.
And what I will follow: the ratio of systems revenue to service. Systems are the cycle; service is the stable base. Right now systems are growing faster (63% of the total) - the higher that ratio climbs, the more exposed the company is to the moment orders stop.
Summary
Lam Research closed its fiscal year with revenue of $6.72 billion (+15% sequentially, about 30% year-over-year), an adjusted gross margin of 52.0% and adjusted EPS of $1.82.
And the headline is the guidance: $8.10 billion for next quarter - a jump of more than 20% - with a 39.5% operating margin and EPS of about $2.15.
And beyond the company: the chip-equipment trio - KLA, Teradyne and Lam - reported acceleration in unison this week. Equipment is ordered a year to eighteen months in advance, so this is the chipmakers' statement about 2027. The question for the investor is not whether the demand exists - three independent guides answer that - but how much of this cycle is already priced, and what happens when the ordered capacity is installed.
Sources: Lam Research's official results announcement for the quarter ended June 28, 2026 (July 29, 2026), as filed with the U.S. Securities and Exchange Commission on Form 8-K, including revenue, GAAP and adjusted margins, EPS, the systems and customer-support split, the geographic breakdown and guidance for the September 2026 quarter. Data accurate as of the time of writing. The chart is shown in real time via TradingView. Nothing herein constitutes a forecast, recommendation or advice - see the full disclaimer at the bottom of the page.