Lam Research (NASDAQ:LRCX) Issues Q2 2027 Earnings Guidance

Lam Research (NASDAQ:LRCX) issued an update on its second quarter 2027 earnings guidance on Friday. The company provided EPS guidance of 2.180-2.480 for the period, compared to the consensus earnings per share estimate of 2.300. The company issued revenue guidance of $8.2 billion-$9.0 billion, compared to the consensus revenue estimate of $8.5 billion.

Analyst Ratings Changes

A number of brokerages have recently issued reports on LRCX. Wells Fargo & Company reissued an “overweight” rating and set a $350.00 target price (down from $450.00) on shares of Lam Research in a research note on Thursday, July 30th. Stifel Nicolaus increased their target price on shares of Lam Research from $325.00 to $425.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Citigroup reiterated a “buy” rating and set a $435.00 target price (down from $450.00) on shares of Lam Research in a report on Thursday. Fundamental Research set a $390.00 target price on shares of Lam Research in a research report on Thursday, October 1st. Finally, UBS Group restated a “buy” rating and issued a $400.00 price target (down from $425.00) on shares of Lam Research in a report on Thursday. Twenty-six equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $354.55.

Lam Research Stock Down 0.0%

LRCX traded down $0.05 on Friday, hitting $230.10. The company had a trading volume of 12,190,366 shares, compared to its average volume of 9,494,070. The stock has a fifty day moving average price of $301.90 and a 200-day moving average price of $309.32. Lam Research has a 12-month low of $135.50 and a 12-month high of $438.50. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.91 and a current ratio of 2.48. The stock has a market capitalization of $287.95 billion, a price-to-earnings ratio of 34.29, a P/E/G ratio of 0.83 and a beta of 1.85.

Lam Research (NASDAQ:LRCX) last released its quarterly earnings results on Wednesday, October 21st. The semiconductor company reported $2.20 EPS for the quarter, beating the consensus estimate of $2.18 by $0.02. The business had revenue of $8.22 billion during the quarter, compared to analyst estimates of $8.14 billion. Lam Research had a net margin of 32.34% and a return on equity of 72.15%. The company’s quarterly revenue was up 54.4% on a year-over-year basis. During the same period in the prior year, the firm posted $1.26 earnings per share. Analysts predict that Lam Research will post 9.48 EPS for the current fiscal year.

Lam Research Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 23rd were given a dividend of $0.33 per share. The ex-dividend date of this dividend was Wednesday, September 23rd. This is a boost from Lam Research’s previous quarterly dividend of $0.26. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.6%. Lam Research’s payout ratio is currently 22.92%.

Insider Buying and Selling at Lam Research

In related news, insider Ava Harter sold 5,000 shares of the company’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the transaction, the insider directly owned 42,462 shares of the company’s stock, valued at $12,843,056.52. This represents a 10.53% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the firm’s stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $314.74, for a total value of $3,007,970.18. Following the completion of the sale, the director directly owned 20,995 shares of the company’s stock, valued at approximately $6,607,966.30. This represents a 31.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.31% of the company’s stock.

Key Stories Impacting Lam Research

Here are the key news stories impacting Lam Research this week:

• Positive Sentiment: Record results and strong profitability: Fiscal first-quarter revenue rose 54.4% year over year to $8.22 billion, exceeding estimates, while adjusted EPS of $2.20 also beat forecasts. Operating margin topped 40% for the first time, supported by strong systems sales, memory demand and record foundry revenue. Lam Research Q1 Earnings Beat on Systems Sales and Margin Gains
• Positive Sentiment: Long-term AI and memory demand remains supportive: Lam expects wafer-fabrication-equipment spending to exceed $200 billion in 2027, driven by AI infrastructure, memory upgrades and advanced manufacturing. Customer Support revenue is expected to grow more than 30%, while Aether dry-resist revenue is projected to reach $2.5 billion cumulatively. LRCX Q1 Earnings Call Highlights
• Positive Sentiment: Some analysts remain bullish: Mizuho reiterated an Outperform rating and recommended buying the pullback, while Bank of America maintained a Buy rating. Erste Group also modestly increased its FY2027 and FY2028 EPS estimates. Mizuho recommends buying the pullback
• Neutral Sentiment: Guidance was broadly in line but leaves limited room for disappointment: Fiscal second-quarter revenue guidance of $8.2 billion-$9.0 billion and EPS guidance of $2.18-$2.48 bracket consensus estimates of $8.5 billion and $2.30, respectively. Mizuho trimmed its price target to $360 from $365, signaling continued upside but greater near-term caution.
• Negative Sentiment: Supply bottlenecks are limiting shipments: Component shortages and cleanroom capacity constraints could restrict equipment deliveries through 2027, preventing Lam from fully converting strong demand into revenue. Lam Research says supply bottlenecks are holding back revenue
• Negative Sentiment: China exposure and sector pressure are weighing on sentiment: China’s revenue contribution is expected to decline substantially from 35% in the September quarter. Citi warned of additional downside for Lam and peers, while a broad AI-chip sell-off amplified concerns about valuations and spending.

About Lam Research

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company’s product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.