Why Lam Research's operating profit grew faster than its sales

Lam Research, a US maker of equipment used to manufacture semiconductors, reported revenue of USD 8.2bn for the third quarter of 2026, up 54.4% from USD 5.3bn a year earlier. Operating profit grew faster, by 79.5%, to USD 3.3bn. The operating margin widened to 40.0% from 34.4%, and net profit reached USD 2.8bn. Figures are consolidated, in US dollars, under US GAAP.

A business like this carries large fixed costs for research and production capacity. When sales jump, those costs do not grow in step, so more of each dollar reaches operating profit. Equity rose to USD 13.9bn, the equity ratio improved to 52.8% from 46.5%, and cash stands at USD 7.4bn. Kurzy.cz reported that the results beat consensus, but only by a small margin. I would not read that as a flaw in the quarter: the numbers are strong, and expectations were simply higher.