Lam Research (NASDAQ:LRCX) reported better-than-expected earnings and revenue for its fiscal fourth quarter and issued upbeat guidance, though shares fell over 4% during Wednesday’s session.

For the quarter, the semiconductor equipment company posted adjusted earnings per share of $1.33, topping analysts’ estimate of $1.20. Revenue climbed to $5.17 billion, beating the $4.99 billion consensus and up 33.6% year-over-year.

For Q1 of fiscal 2026, the company projected revenue between $4.9 billion and $5.5 billion, with a midpoint of $5.2 billion exceeding Wall Street’s $4.66 billion estimate. Adjusted EPS is expected in the range of $1.10 to $1.30, also ahead of the $1.00 forecast.

Lam Research reported a 9.6% sequential increase in revenue. Adjusted gross margin rose to 50.3% from 49.0% in the prior quarter, and adjusted operating income improved to 34.4% of revenue from 32.8%.