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Lam Research Q1 2027 Earnings Beat
Lam Research reports record $8.22B revenue and 40%+ operating margin as AI-driven demand accelerates.
In brief
Lam Research reports record $8.22B revenue and 40%+ operating margin as AI-driven demand accelerates. Lam Research achieved record Q1 2027 revenue of $8.22 billion with 40.2% operating margin, driven by AI demand and 256-layer NAND conversions. Originally reported by BigGo Finance.
Q1 2027 Revenue
![[Lam Research Q1 2027 Earnings Call] Lam Posts Record $8.22B Revenue, 40%+ Operating Margin; Sees 2027 WFE Above $200B as AI Supercycle Accelerates](https://img.biggo.com/I6R3laYTdsYzOxrDXdrFQLdQpQe-BSRL9je69S0f-6M/fit/1720/0/sm/0/aHR0cHM6Ly9pbWcuYmdvLm9uZS9uZXdzLWltYWdlL2Vhcm5pbmdzX2NhcmQvMjAyNi0xMC9VU19MUkNYXzIwMjYtMTAtMjFfMTc5MjYyNDc0My53ZWJw.webp)
Lam Research reported record revenue of $8.22 billion for Q1 2027, up 22% sequentially and 54% year-over-year.
Operating Margin
Operating margin reached 40.2%, the first time exceeding 40% in Lam Research's history.
AI-Driven Demand
CEO Tim Archer attributed Q1 strength to AI-driven demand and rising deposition and etch intensity across device types.
Memory Revenue
Memory accounted for 46% of systems revenue, with NAND revenue surging 40% sequentially.
China Revenue
China contributed 35% of total revenue, up from 26% in the June quarter.
CSBG Performance
Customer Support Business Group (CSBG) delivered a fourth consecutive record quarter with nearly $2.5 billion revenue.
2027 WFE Outlook
Lam previewed 2027 WFE above $200 billion, led by DRAM and 256-layer NAND conversions.
Q4 2027 Guidance
Lam guided December 2027 revenue to $8.6 billion, but noted supply chain constraints would have pushed it higher.
NAND Conversions
NAND revenue grew 40% sequentially, driven by conversions to 256-layer and above devices.
Advanced Packaging
Lam shipped panel-level packaging systems to over 20 customers, targeting market share above wafer-level packaging.
2027 WFE Details
Lam expects 2027 WFE to exceed $200 billion, with DRAM leading growth followed by foundry logic and NAND.
Supply Chain Constraints
Near-term supply chain constraints delayed revenue from December to March, costing $300-$400 million.
Gross Margin Outlook
Near-term gross margins expected to stay stable, with long-term potential to reach mid-50s through new products and pricing.
Capital Return
Lam returned $1 billion to shareholders through share repurchases and $325 million in dividends.
What it means
Lam Research achieved record Q1 2027 revenue of $8.22 billion with 40.2% operating margin, driven by AI demand and 256-layer NAND conversions.
