PhoTime
Oct 22, 12:40 AM
$LRCX Q1 FY27 Earnings: Textbook AI Supercycle Beat & Raise, but missed “whisper” numbers.
$LRCX standout Q1 results, topping consensus with
$8.22B in revenue (+22% QoQ) & Non-GAAP EPS of
$2.20.
PROS:
Operating leverage: Non-GAAP operating margin topped 40.2% on disciplined Opex.
Supercycle visibility: Industry WFE projected to surge from ~
$150B (CY26) to >
$200B (CY27); visibility extends into 2028!
FCF monster: Generated
$3.24B in quarterly FCF, funding
$1.01B in buybacks & higher dividends!
AI drivers: Dominant footprint in HBM, advanced packaging (TSV/glass substrates), & backside power delivery.
CONS:
Heavy China concentration (35% of revenue), leaving long-term exposure to export restrictions.
Supply chain bottlenecks & fab cleanroom capacity pacing near-term deliveries.
I’m still strongly bullish, because guidance for Q2 (
$8.6B midpoint) easily clears expectations. With Systems revenue up >40% & multi-year AI demand.
$ASML $AMAT $TSM
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