Analysts Offer Predictions for Lam Research FY2027 Earnings

Key Points

• Erste Group Bank raised its FY2027 EPS forecast for Lam Research to $8.05 from $7.98, while maintaining a “Hold” rating. MarketBeat reports a consensus “Moderate Buy” rating and average price target of $364.04.
• Lam Research exceeded quarterly expectations, reporting $1.82 in EPS and $6.72 billion in revenue, with revenue up 30% year over year. Its fiscal Q1 2027 guidance of $2.00–$2.30 EPS and approximately $7.7–$8.5 billion in revenue topped consensus forecasts.
• AI-related semiconductor investment is driving demand, but valuation, China-related uncertainty and broader macroeconomic risks could keep the stock volatile.

Lam Research Corporation (NASDAQ:LRCX - Free Report) - Analysts at Erste Group Bank increased their FY2027 earnings per share estimates for Lam Research in a research note issued on Monday, July 27th. Erste Group Bank analyst S. Lingnau now forecasts that the semiconductor company will post earnings of $8.05 per share for the year, up from their prior estimate of $7.98. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for Lam Research's current full-year earnings is $5.68 per share.

Lam Research (NASDAQ:LRCX - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, topping analysts' consensus estimates of $1.69 by $0.13. The company had revenue of $6.72 billion for the quarter, compared to the consensus estimate of $6.66 billion. Lam Research had a return on equity of 66.21% and a net margin of 30.94%.The company's quarterly revenue was up 30.0% compared to the same quarter last year. During the same period last year, the business posted $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS.

A number of other research analysts have also recently weighed in on the stock. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Lam Research from $300.00 to $325.00 and gave the stock a "buy" rating in a research note on Thursday, April 23rd. Jefferies Financial Group set a $335.00 target price on shares of Lam Research and gave the company a "buy" rating in a research note on Thursday. The Goldman Sachs Group restated a "buy" rating and set a $290.00 target price on shares of Lam Research in a report on Thursday, April 23rd. Bank of America upped their price target on shares of Lam Research from $330.00 to $480.00 and gave the stock a "buy" rating in a research report on Tuesday, June 23rd. Finally, Royal Bank Of Canada increased their price target on Lam Research from $290.00 to $310.00 and gave the company an "outperform" rating in a report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Lam Research currently has a consensus rating of "Moderate Buy" and an average price target of $364.04.

Lam Research Stock Down 6.4%

Shares of NASDAQ:LRCX opened at $252.35 on Thursday. The stock has a 50-day simple moving average of $341.14 and a 200-day simple moving average of $275.79. The stock has a market capitalization of $315.58 billion, a P/E ratio of 47.61, a PEG ratio of 1.60 and a beta of 1.80. Lam Research has a 1 year low of $90.93 and a 1 year high of $438.50. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.77 and a current ratio of 2.54.

Lam Research Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Wednesday, June 17th were issued a $0.26 dividend. The ex-dividend date was Wednesday, June 17th. This represents a $1.04 dividend on an annualized basis and a yield of 0.4%. Lam Research's payout ratio is currently 19.62%.

Insider Buying and Selling at Lam Research

In related news, SVP Neil J. Fernandes sold 18,170 shares of the business's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $255.14, for a total value of $4,635,893.80. Following the transaction, the senior vice president owned 66,129 shares in the company, valued at approximately $16,872,153.06. The trade was a 21.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of the stock in a transaction dated Monday, July 13th. The shares were sold at an average price of $335.00, for a total value of $6,124,470.00. Following the completion of the transaction, the director directly owned 87,142 shares of the company's stock, valued at $29,192,570. This represents a 17.34% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 98,611 shares of company stock valued at $32,250,190 in the last ninety days. Insiders own 0.31% of the company's stock.

Hedge Funds Weigh In On Lam Research

A number of institutional investors have recently made changes to their positions in the business. Clarus Group Inc. acquired a new stake in shares of Lam Research during the second quarter worth approximately $243,000. Wealth Advisory Solutions LLC acquired a new stake in Lam Research in the second quarter valued at $266,000. Petra Financial Advisors Inc. bought a new position in Lam Research during the 2nd quarter valued at $463,000. Bogart Wealth LLC grew its holdings in Lam Research by 10.9% during the 2nd quarter. Bogart Wealth LLC now owns 1,807 shares of the semiconductor company's stock worth $783,000 after acquiring an additional 177 shares in the last quarter. Finally, Stonebridge Financial Group LLC MO bought a new stake in shares of Lam Research in the 2nd quarter worth about $288,000. 84.61% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Lam Research

Here are the key news stories impacting Lam Research this week:

• Positive Sentiment: Quarterly results exceeded expectations. Lam Research reported $6.72 billion in revenue for the quarter ended June 28, up 30% year over year and above the $6.66 billion consensus estimate. Non-GAAP earnings were $1.82 per share, beating expectations of $1.69 and rising from $1.33 a year earlier. Reuters article
• Positive Sentiment: Outlook was the key catalyst. Lam guided for fiscal first-quarter 2027 revenue of approximately $7.7 billion to $8.5 billion and EPS of $2.00 to $2.30. The midpoint of the revenue range is well above the roughly $7.0 billion analyst estimate, while the EPS midpoint also exceeds the $1.81 consensus. Lam Research financial results
• Positive Sentiment: AI infrastructure spending is supporting demand. Management and analysts highlighted robust orders for semiconductor manufacturing equipment as customers expand advanced-chip and memory capacity for artificial-intelligence data centers. The company’s record quarterly revenue and raised outlook suggest that AI-related capital spending is translating into near-term sales. Lam Research AI demand article
• Neutral Sentiment: Investors remain focused on execution and valuation. LRCX has strong profitability, including a reported 30.94% net margin and 66.21% return on equity, but its elevated valuation and high beta leave the stock sensitive to changes in semiconductor spending expectations.
• Negative Sentiment: China and macroeconomic risks remain overhangs. Recent concerns about China’s developing lithography capabilities, potential changes in China-related equipment demand, tighter Federal Reserve expectations, geopolitical tensions and a broader semiconductor pullback could create volatility despite the favorable earnings report. China lithography and semiconductor sentiment article

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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