Slides
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Lam Research Corporation September quarter 2026 financial results October 21, 2026
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LAM R E S E AR C H This presentation and the accompanying discussion contain “forward-looking statements” under U.S. securities laws. Forward-looking statements include any statements that are not statements of historical fact. Examples of forward-looking statements include, but are not limited to: (1) anticipated or expected business, balance sheet, cash flow, and financial measures and results and related drivers, including guidance or expectations, whether on a GAAP or non-GAAP basis, regarding revenue, gross margin, operating margin, earnings per share, share count, tax rate, variability in other income and expense, R&D and capital spending, and inventory growth; (2) economic, market, industry, and industry segment expectations or trends, including our outlook for calendar years 2026 and 2027 WFE and related assumptions, and demand, device complexity, technology adoption, deposition and etch intensity trends related to AI and related perceived opportunities or benefits, our belief regarding a multiyear investment cycle; (3) product performance, adoption, utilization, and growth trends, and changes in market share or customer requirements, including SAM expansion trends and perceived opportunities for growing SAM and market share, our expected outperformance relative to WFE, and customer focus on installed base efficiency; and (4) our ability to successfully execute business, capital allocation, product and growth plans or strategies, or otherwise deliver value for customers and stockholders, including to drive sustained outperformance, our capital return plans over time, the available amount for repurchase under our share repurchase program, and our progress on our cost scaling and pricing initiatives. Forward-looking statements speak only as of the date they are made and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied, including: our assumptions related to continued expansion of the wafer fabrication equipment market, continued rapid adoption of AI by enterprises and consumers, growth of deposition and etch intensity, the timing, composition, and amount of customer investments, our SAM and market share growth, and scaling of our operations may prove invalid; business, economic, political, and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy, including wafer fabrication equipment spending or demand related to AI, may deteriorate or change; the actions, performance, or investment levels of our customers and competitors may be inconsistent with our expectations; customer and product mix, including across market segments and geographical regions, may change; we may be unable to realize the value of our products and technology, successfully commercialize new products and technologies, implement pricing initiatives, or execute on perceived opportunities; we may be unable to achieve anticipated operational, manufacturing, supply chain, procurement, and scale efficiencies; customer technology transitions, capacity expansions, and fab construction projects may have different timing or be less successful than we expect; we may be unable to manage operating expenses effectively while continuing to invest in research and development, product innovation, customer support, and future growth opportunities; trade regulations, export controls (including entity listings, end use/user controls, technology controls, and foreign direct product rules), tariffs, trade disputes, and other geopolitical developments may inhibit our ability to sell our products or services; supply chain cost increases, tariffs, and other inflationary pressures may continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other factors discussed in our filings with the Securities and Exchange Commission, including specifically the “Risk Factors” described in our most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. You should not place undue reliance on forward-looking statements. Lam undertakes no obligation to update any forward-looking statements, except as required by law. Cautionary statement regarding forward-looking statements
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LAM R E S E AR C H Business review & industry outlook Tim Archer, President and Chief Executive Officer
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LAM R E S E AR C H WFE: CY26 mid-$150B range | Preliminary CY27 >$200B Cleanroom space availability and supply chain constraints for certain components limiting industry’s ability to fully meet end demand September quarter: Another record CY26: Expect third consecutive year of WFE outperformance CY27: Rapid AI adoption underpinning WFE growth Record revenue and profitability Gross margin*, operating margin*, EPS* all at record levels Operating margin* above 40% for the first time Expect systems revenue to grow well over 40% for the year Driven by SAM expansion and share gains Agentic workflows expanding demand for compute, memory, and storage *A reconciliation of U.S. GAAP results to non-GAAP results can be found at the end of this presentation.
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LAM R E S E AR C H Lam well positioned: industry’s largest NAND installed base, comprehensive deposition & etch portfolio NAND: AI driving demand for multiple storage tiers Expect QLC, TLC, and SLC-class storage tiers, each optimized for different AI workloads, to all grow SLC storage tier adoption could become a meaningful driver of NAND wafer capacity, requiring more capacity for the same bit demand
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LAM R E S E AR C H Advanced patterning Backside power Foundry/Logic & DRAM: Winning at key inflections Akara® conductor etch • Adopted by multiple chipmakers Aether® dry resist • Ramping in HBM high-volume manufacturing • Expect ~$2.5B cumulative revenue by the end of the decade More deposition, plating & etch steps • Production-proven VECTOR®, SABRE®, Flex® • Halo gaining traction in emerging Moly applications Gaining share in expanding SAM • Tool-of-record wins at a leading customer
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LAM R E S E AR C H Advanced packaging: A major growth driver for Lam TSV & bonding • Syndion®: four new positions across multiple customers in advanced logic & HBM TSV applications • Striker® ALD: multiple TSV liner wins • VECTOR® and TEOS 3D: wins for high-energy bonding films & inter-die gap fill applications Panel-level packaging • Panel plating systems shipped to >20 customers • Kallisto : differentiated coplanarity and plating uniformity • Well positioned for glass-core substrates Expect our panel-level packaging position to surpass our strong wafer-level packaging position
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LAM R E S E AR C H LAM R E S E AR C H CSBG: Exiting CY26 with solid momentum + CY26 revenue expected to grow >30% YoY + Broad-based growth across upgrades, spares, services, supported by high fab utilization and customers’ focus on installed base efficiency + Equipment Intelligence® and Dextro cobots recently helped secure performance-based service contracts with multiple memory manufacturers + Expect >15% revenue growth in CY27 YoY
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LAM R E S E AR C H Positioned for sustained outperformance LAM R E S E AR C H Technology leadership, growing installed base, and strategic investments in products and capacity position Lam to capitalize on inflections Early stages of a multiyear investment cycle, with customer visibility extending through 2028 Manufacturing complexity, new materials integration, and advanced packaging driving higher deposition & etch intensity
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LAM R E S E AR C H September quarter 2026 financial results & December quarter 2026 outlook Doug Bettinger, Executive Vice President and Chief Financial Officer
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LAM R E S E AR C H September quarter highlights QSEP’26 REVENUE QSEP’26 EARNINGS PER SHARE* $8.22B $2.20 *Data is presented on a non-GAAP basis. Reconciliations of U.S. GAAP results to non-GAAP results can be found at the end of this presentation. Based on a diluted share count of approximately 1.256 billion shares for QSep’26 and 1.256 billion shares for QJun’26. QJun’26 revenue: $6.72B QJun’26 earnings per share*: $1.82
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LAM R E S E AR C H *Systems revenue includes equipment and equipment upgrade sales from etch, deposition, clean, and our Reliant® product line. SYSTEMS REVENUE BY MARKET SEGMENT* REVENUE BY REGION Memory 46% September quarter revenue mix
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LAM R E S E AR C H QSEP’26 CSBG REVENUE $2.49B Customer Support Business Group QJun’26 CSBG revenue: $2.47B QSep’25 CSBG revenue: $1.78B
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LAM R E S E AR C H September quarter financial results QSEP’26 QJUN’26 Revenue $8,219M $6,722M Non-GAAP Gross Margin* 52.4 % 52.0 % Non-GAAP Operating Expenses* $1,004M $916M Non-GAAP Operating Income* $3,301M $2,581M Non-GAAP Operating Income as a percentage of Revenue* 40.2 % 38.4 % Non-GAAP Other Income (Expense), Net* $16M ($19M) Non-GAAP Income Tax Rate* 16.5 % 11.0 % U.S. GAAP Diluted EPS $2.19 $1.81 Non-GAAP Diluted EPS* $2.20 $1.82 Diluted Share Count 1,256M 1,256M *A reconciliation of U.S. GAAP results to non-GAAP results can be found at the end of this presentation.
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LAM R E S E AR C H Capital return and key financial metrics QSEP’26 QJUN’26 Share Repurchases $1,011M $246M Cash Dividends $325M $325M Total Consolidated Gross Cash Balance $7,451M $5,598M Account Receivables, Net $5,658M $5,340M Days Sales Outstanding 63 Days 72 Days Inventories $4,551M $4,276M Inventory Turns 3.4 3.0 Deferred Revenue* $2,661M $2,434M Equity Compensation Expense $115M $104M Amortization Expense $16M $15M Depreciation Expense $106M $105M Capital Expenditures $258M $189M Headcount ~24,300 ~22,400 *Lam’s deferred revenue balance does not include shipments to customers in Japan, to whom title does not transfer until customer acceptance. Estimated future revenue from shipments to customers in Japan was approximately $468M as of September 27, 2026 and $490M as of June 28, 2026.
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LAM R E S E AR C H December 2026 quarter guidance $8.60B +/- $400M Revenue 52.5% +/- 1% Non-GAAP gross margin* 40.5% +/- 1% Non-GAAP operating margin* $2.33 +/- $0.15** Non-GAAP earnings per share* *A reconciliation of U.S. GAAP projected results to non-GAAP projected results can be found at the end of this presentation. **Based on a diluted share count of approximately 1.253 billion shares.
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LAM R E S E AR C H Q&A
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LAM R E S E AR C H LAM R E S E AR C H Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited) Three Months Ended September 27, 2026 June 28, 2026 U.S. GAAP net income $ 2,753,138 $ 2,277,282 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations - cost of goods sold 2,668 2,668 Elective deferred compensation ("EDC") related liability valuation increase - cost of goods sold 3,498 15,379 Workforce optimization charges - cost of goods sold — 549 EDC related liability valuation increase - research and development 6,299 27,682 Workforce optimization charges - research and development — 960 Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative 348 348 EDC related liability valuation increase - selling, general and administrative 4,199 18,454 Workforce optimization charges - selling, general and administrative — 1,388 Amortization of note discounts - other income (expense), net 508 504 Gain on EDC related asset - other income (expense), net (12,870) (61,325) Net income tax benefit on non-GAAP items (825) (3,921) Income tax expense from a change in tax law 11,454 — Non-GAAP net income $ 2,768,417 $ 2,279,968 Non-GAAP net income per diluted share $ 2.20 $ 1.82 U.S. GAAP net income per diluted share $ 2.19 $ 1.81 U.S. GAAP and non-GAAP number of shares used for per diluted share calculation 1,255,768 1,256,032 Appendix – reconciliation
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LAM R E S E AR C H LAM R E S E AR C H Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin, Operating Expenses and Operating Income (in thousands, except percentages) (unaudited) Three Months Ended September 27, 2026 June 28, 2026 U.S. GAAP gross margin $ 4,298,853 $ 3,478,740 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 2,668 2,668 EDC related liability valuation increase 3,498 15,379 Workforce optimization charges — 549 Non-GAAP gross margin $ 4,305,019 $ 3,497,336 U.S. GAAP gross margin as a percent of revenue 52.3 % 51.7 % Non-GAAP gross margin as a percent of revenue 52.4 % 52.0 % U.S. GAAP operating expenses $ 1,015,126 $ 965,252 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (348) (348) EDC related liability valuation increase (10,498) (46,136) Workforce optimization charges — (2,348) Non-GAAP operating expenses $ 1,004,280 $ 916,420 U.S. GAAP operating income $ 3,283,727 $ 2,513,488 Non-GAAP operating income $ 3,300,739 $ 2,580,916 U.S. GAAP operating margin 40.0 % 37.4 % Non-GAAP operating margin 40.2 % 38.4 % Appendix – reconciliation
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LAM R E S E AR C H LAM R E S E AR C H Three Months Ended September 27, 2026 June 28, 2026 U.S. GAAP Other income (expense), net $ 28,493 $ 41,654 Pre-tax non-GAAP items: Amortization of note discounts 508 504 Gain on EDC related asset (12,870) (61,325) Non-GAAP Other income (expense), net $ 16,131 $ (19,167) Reconciliation of U.S. GAAP Other Income (Expense), Net to Non-GAAP Other Income (Expense), Net (in thousands) (unaudited) Appendix – reconciliation
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LAM R E S E AR C H LAM R E S E AR C H Calculation of Free Cash Flows (in thousands) (unaudited) Appendix – reconciliation Three Months Ended Calendar Year to Date September 27, 2026 September 27, 2026 U.S. GAAP net cash provided by operating activities $ 3,497,652 $ 6,096,300 U.S. GAAP cash used for capital expenditures and intangible assets (257,697) (778,102) Total free cash flow $ 3,239,955 $ 5,318,198
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LAM R E S E AR C H LAM R E S E AR C H Three Months Ended September 27, 2026 June 28, 2026 U.S. GAAP income before income taxes $ 3,312,220 $ 2,555,142 U.S. GAAP income tax expense $ 559,082 $ 277,860 U.S. GAAP income tax rate 16.9 % 10.9 % Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations - cost of goods sold $ 2,668 $ 2,668 EDC related liability valuation increase - cost of goods sold 3,498 15,379 Workforce optimization charges - cost of goods sold — 549 EDC related liability valuation increase - research and development 6,299 27,682 Workforce optimization charges - research and development — 960 Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative 348 348 EDC related liability valuation increase - selling, general and administrative 4,199 18,454 Workforce optimization charges - selling, general and administrative — 1,388 Amortization of note discounts - other income (expense), net 508 504 Gain on EDC related asset - other income (expense), net (12,870) (61,325) Non-GAAP income before taxes $ 3,316,870 $ 2,561,749 Net income tax benefit on non-GAAP items $ 825 $ 3,921 Income tax expense from a change in tax law $ (11,454) $ — Non-GAAP income tax expense $ 548,453 $ 281,781 Non-GAAP income tax rate 16.5 % 11.0 % Appendix – reconciliation Reconciliation of U.S. GAAP Income Tax Rate to Non-GAAP Income Tax Rate (in thousands, except percentages) (unaudited)
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LAM R E S E AR C H LAM R E S E AR C H Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ended December 27, 2026 The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other items that may be completed or realized after the date of this release, except as described below. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material. Reconciling items included above are as follows: • Gross margin - amortization related to intangible assets acquired through certain business combinations, $2.7 million. • Operating margin - amortization related to intangible assets acquired through certain business combinations, $3.0 million. • Net income per diluted share - amortization related to intangible assets acquired through certain business combinations, $3.0 million; amortization of note discounts, $0.5 million; and associated tax benefit for non-GAAP items ($0.2 million); totaling $3.3 million. U.S. GAAP Reconciling Items Non-GAAP Revenue $8.60 Billion +/- $400 Million — $8.60 Billion +/- $400 Million Gross margin as a percentage of revenue 52.5% +/- 1% $ 2.7 Million 52.5% +/- 1% Operating income as a percentage of revenue 40.5% +/- 1% $ 3.0 Million 40.5% +/- 1% Net income per diluted share $2.33 +/- $0.15 $ 3.3 Million $2.33 +/- $0.15 Diluted share count 1.253 Billion — 1.253 Billion Appendix – reconciliation
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LAM R E S E AR C H ACRONYM DEFINITION AI Artificial intelligence ALD Atomic layer deposition CSBG Customer Support Business Group CY Calendar year DRAM Dynamic random-access memory EPS Earnings per share EUV Extreme ultraviolet (lithography) GAAP Generally accepted accounting principles HBM High-bandwidth memory KV (KV-cache) Key-value cache Moly Molybdenum NA Numerical aperture Glossary ACRONYM DEFINITION NAND Short for “NOT AND” flash memory NVM Non-volatile memory QLC Quad-level cell R&D Research and development SAM Served available market SEA Southeast Asia SLC Single-level cell TLC Triple-level cell TSV Through-silicon via WFE Wafer fabrication equipment YoY Year-over-year YTD Year-to-date
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LAM R E S E AR C H