Lam Research Corp (NASDAQ:LRCX) stock rose 3.48% (As on October 23, 11:38:56 AM UTC-4, Source: Google Finance) after the company reported first quarter fiscal 2026 results that exceeded analyst expectations and provided an upbeat outlook for the current quarter. The company’s strong performance was driven by systems revenue, which reached $3.55 billion in the quarter, up significantly from $2.39 billion in the year-ago period. Customer support-related revenue was $1.78 billion, essentially flat YoY. The company’s gross margin improved to 50.6% on a non-GAAP basis, up from 50.3% in the previous quarter. Cash, cash equivalents, and restricted cash increased to $6.7 billion at the end of the quarter, up from $6.4 billion at the end of the June quarter. China represented Lam Research’s largest market during the quarter, accounting for 43% of revenue, followed by Taiwan at 19% and Korea at 15%. Deferred revenue at the end of the September 2025 quarter increased to $2.77 billion compared to $2.68 billion as of the end of the June 2025 quarter. Lam’s deferred revenue balance does not include shipments to customers in Japan, to whom control does not transfer until customer acceptance. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $131 million as of September 28, 2025 and $342 million as of June 29, 2025.

Moreover, for the September 2025 quarter, non-GAAP gross margin was $2,694 million, non-GAAP operating expenses were $832 million, non-GAAP operating income was 35.0% of revenue, and non-GAAP net income was $1,605 million. This compares to non-GAAP gross margin of $2,601 million, non-GAAP operating expenses of $822 million, non-GAAP operating income of 34.4% of revenue, and non-GAAP net income of $1,698 million for the June 2025 quarter.

LRCX in the first quarter of FY26 has reported the adjusted earnings per share of $1.26, beating the analysts’ estimates for the adjusted earnings per share of $1.22. The company had reported the adjusted revenue growth of 27.7 percent to $5.32 billion in the first quarter of FY26, beating the analysts’ estimates for revenue of $5.22 billion.

Looking ahead, Lam Research provided second quarter guidance that exceeded Wall Street expectations. The company forecasts revenue of $5.2 billion (plus or minus $300 million), well above the consensus estimate of $4.79 billion. Adjusted earnings per share are projected at $1.15 (plus or minus $0.10), compared to analysts’ expectations of $1.03.