"American ASML" Lam Research Sets Quarterly Revenue Record

The AI data center construction boom is directly translating into orders for semiconductor equipment manufacturers.

On April 22nd, Eastern Time, Lam Research, a US semiconductor equipment manufacturer and the "American ASML," released its financial report for the third quarter of fiscal year 2026 (ending March 29, 2026). The financial report shows that the company's revenue and earnings per share both reached quarterly historical highs and exceeded Wall Street expectations, with the stock price increasing by about 4% after hours. The core data of the financial report shows:

• This quarter's revenue reached $5.84 billion, a year-over-year increase of 24%, a sequential increase of 9%, surpassing analysts' previous expectations of $5.75 billion.

• GAAP net profit was $1.825 billion, an increase of about 37% from the previous year's $1.331 billion, and an increase of about 14% from the previous quarter's $1.594 billion.

• Non-GAAP diluted earnings per share were $1.47, higher than the market expectation of $1.36, an increase of about 41% from last year's $1.04.

• The operating profit margin increased from 33.1% to 35.0% year-over-year, with continuous improvement in profit quality.

• This quarter's GAAP gross margin was 49.8%, an increase of 20 basis points sequentially.

CEO Tim Archer said in the financial report statement: "Lam Research achieved records for both revenue and earnings per share in the March quarter, with AI-driven demand reshaping the semiconductor industry. Our strategic investments and execution efficiency are generating strong momentum, supporting our customers' AI roadmaps, and driving Lam Research's continued outperformance in this critical growth phase."

In the earnings call, Archer further stated: "For Lam Research, the AI-driven demand environment is creating ideal conditions for continued outperformance." Looking further ahead, he also said, "it feels like 2027 will be a fairly good year."

AI Demand Drives, "Shovel Business" Continues to Prosper

Lam Research's core products are etch and deposition equipment - simply understood, machines that carve and stack microcircuits on silicon wafers, an indispensable part of the chip manufacturing process. It is one of the global leading suppliers in this market, alongside Applied Materials and Tokyo Electron.

With the acceleration of AI data center construction, chip manufacturers such as TSMC and Micron are significantly increasing capital expenditures, and equipment demand is rising accordingly. This upcycle, which began at the end of 2023, has continued to the present.

From the revenue structure perspective, this quarter's system equipment revenue was $3.73 billion, and customer support and service revenue was $2.11 billion, both increasing from the previous quarter.

Regionally, China remains the largest market, accounting for 34% of this quarter's revenue; South Korea and Taiwan each account for 23%; Japan accounts for 8%; and the United States accounts for only 6%.