Shares of Lam Research Corporation (NASDAQ:LRCX – Get Free Report) traded up 3.6% on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $251.38 and last traded at $248.17. 16,549,562 shares were traded during trading, an increase of 19% from the average session volume of 13,952,390 shares. The stock had previously closed at $239.58.
The semiconductor company reported $1.27 EPS for the quarter, beating analysts’ consensus estimates of $1.17 by $0.10. Lam Research had a return on equity of 62.81% and a net margin of 30.22%.The business had revenue of $5.34 billion during the quarter, compared to the consensus estimate of $5.23 billion. During the same quarter in the previous year, the firm earned $0.91 earnings per share. Lam Research’s revenue for the quarter was up 22.1% compared to the same quarter last year. Lam Research has set its Q3 2026 guidance at 1.250-1.450 EPS.
Lam Research Announces Dividend
The firm also recently declared a quarterly dividend, which was paid on Wednesday, January 7th. Stockholders of record on Wednesday, December 3rd were issued a dividend of $0.26 per share. The ex-dividend date of this dividend was Wednesday, December 3rd. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.4%. Lam Research’s payout ratio is 21.31%.
Key Headlines Impacting Lam Research
- Positive Sentiment: Multiple major brokers sharply raised targets (many to $275–$300), signaling broad analyst bullishness after the quarter and suggesting upside versus earlier prices. These Analysts Boost Their Forecasts On Lam Research Following Strong Q2 Results
- Positive Sentiment: JPMorgan and Citigroup raised targets to $300 (overweight/buy), and firms including Needham, TD Cowen, Wells Fargo, Deutsche and Stifel also lifted targets — a strong institutional vote of confidence for continued AI/foundry-driven demand. Analyst target increases (Benzinga)
- Positive Sentiment: Lam beat Q2 estimates (EPS $1.27 vs. $1.17 est.; revenue $5.34B vs. $5.23B) and issued Q3 EPS guidance of $1.25–$1.45 and revenue above consensus — concrete operational drivers behind analyst upgrades. Lam Research Q2 Earnings Surpass Expectations, Revenues Rise Y/Y
- Neutral Sentiment: New Street Research raised its target to $235 but kept a neutral rating, reflecting near-term upside limited relative to recent price strength. New Street adjusts price target on Lam Research to $235
- Negative Sentiment: HSBC raised its target to $221 but maintained a “hold,” which implies downside from recent levels and highlights some analyst caution despite better results. HSBC adjusts price target on Lam Research to $221
- Negative Sentiment: Coverage notes flag valuation concerns after a large run (high P/E and steep analyst target dispersion), which may limit further upside and explains some profit‑taking. Lam Research Earnings Beat Highlights AI Demand But Raises Valuation Questions
Wall Street Analysts Forecast Growth
A number of research analysts have issued reports on the company. Royal Bank Of Canada reiterated an “outperform” rating and issued a $290.00 target price (up previously from $260.00) on shares of Lam Research in a research report on Thursday. JPMorgan Chase & Co. raised their price target on shares of Lam Research from $165.00 to $300.00 and gave the company an “overweight” rating in a research note on Thursday. Barclays set a $250.00 price objective on shares of Lam Research in a research report on Thursday. Zacks Research raised shares of Lam Research from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, January 20th. Finally, Berenberg Bank raised their target price on shares of Lam Research from $122.00 to $165.00 and gave the company a “buy” rating in a research report on Thursday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $238.32.
Read Our Latest Report on Lam Research
Insider Buying and Selling at Lam Research
In other news, CFO Douglas R. Bettinger sold 40,080 shares of the firm’s stock in a transaction dated Friday, November 14th. The stock was sold at an average price of $150.60, for a total transaction of $6,036,048.00. Following the completion of the transaction, the chief financial officer directly owned 987,237 shares in the company, valued at $148,677,892.20. This trade represents a 3.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Bethany Mayer sold 1,298 shares of the company’s stock in a transaction that occurred on Monday, November 3rd. The shares were sold at an average price of $159.99, for a total value of $207,667.02. Following the completion of the sale, the director owned 1,652 shares in the company, valued at $264,303.48. The trade was a 44.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 41,408 shares of company stock valued at $6,248,501. 0.31% of the stock is owned by corporate insiders.
Institutional Inflows and Outflows
Hedge funds have recently added to or reduced their stakes in the company. PMV Capital Advisers LLC acquired a new position in Lam Research in the fourth quarter valued at $25,000. IMG Wealth Management Inc. acquired a new stake in Lam Research during the 2nd quarter worth about $26,000. Stance Capital LLC bought a new position in shares of Lam Research in the 3rd quarter worth about $26,000. Howard Hughes Medical Institute acquired a new position in shares of Lam Research in the 2nd quarter valued at about $27,000. Finally, Triumph Capital Management bought a new stake in shares of Lam Research during the 3rd quarter valued at about $27,000. Institutional investors own 84.61% of the company’s stock.
Lam Research Trading Down 5.9%
The firm has a 50-day moving average of $187.29 and a 200 day moving average of $146.02. The company has a market cap of $293.23 billion, a P/E ratio of 47.84, a price-to-earnings-growth ratio of 3.05 and a beta of 1.77. The company has a current ratio of 2.26, a quick ratio of 1.60 and a debt-to-equity ratio of 0.37.
Lam Research Company Profile
Lam Research Corporation (NASDAQ: LRCX) is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.
Lam’s product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.
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