A Look Ahead: Lam Research's Earnings Forecast

Lam Research (NASDAQ:LRCX) is preparing to release its quarterly earnings on Wednesday, 2025-10-22. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Lam Research to report an earnings per share (EPS) of $1.22.

Investors in Lam Research are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.13, leading to a 4.29% drop in the share price on the subsequent day.

Here's a look at Lam Research's past performance and the resulting price change:

Tracking Lam Research's Stock Performance

Shares of Lam Research were trading at $144.05 as of October 20. Over the last 52-week period, shares are up 97.67%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Lam Research

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Lam Research.

With 23 analyst ratings, Lam Research has a consensus rating of Buy. The average one-year price target is $122.65, indicating a potential 14.86% downside.

Analyzing Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Applied Mat, KLA and Teradyne, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Applied Mat, with an average 1-year price target of $207.78, suggesting a potential 44.24% upside.
• Analysts currently favor an Neutral trajectory for KLA, with an average 1-year price target of $1025.27, suggesting a potential 611.75% upside.
• Analysts currently favor an Neutral trajectory for Teradyne, with an average 1-year price target of $135.0, suggesting a potential 6.28% downside.

Summary of Peers Analysis

The peer analysis summary outlines pivotal metrics for Applied Mat, KLA and Teradyne, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Lam Research ranks first in revenue growth among its peers. It also leads in gross profit and return on equity.

Delving into Lam Research's Background

Lam Research is one of the largest semiconductor wafer fabrication equipment manufacturers in the world. It specializes in deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.

Lam Research: Financial Performance Dissected

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Revenue Growth: Lam Research's remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 33.58%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 33.26%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Lam Research's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 17.76% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Lam Research's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.33% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Lam Research's debt-to-equity ratio surpasses industry norms, standing at 0.45. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Lam Research visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.