Equities

Lam Research sinks after a record quarter as Lockheed raises its outlook again

Lam Research's supply constraints and China warning outweighed record revenue. Tesla cut its spending plan, Lockheed's backlog hit a record, and P&G beat on earnings.

By Marcus Rodriguez · Oct 23, 2026, 3:50 PM EDT

For information only, not investment advice. Prices delayed.

Tickers: LRCX, TSLA, LMT, PG, HON, UNP, CMCSA, PHM

Lam Research ($LRCX) had the kind of quarter most companies frame and hang on the wall, and its stock still had the roughest day of anyone in this roundup. The chip-equipment maker posted record revenue of $8.22 billion, beating the $8.14 billion consensus and up 54% from a year ago, Yahoo Finance reported. Shares closed down 11.76% as of Oct 22, 4:00 PM ET.

The record wasn't the part investors focused on. Lam disclosed supply constraints delaying some shipments and warned that China's revenue contribution would fall in the December quarter, according to Yahoo Finance. China was 35% of September revenue, up from 26% in June, and Lam expects that share to fall substantially in December. Chief financial officer Doug Bettinger said, "I would mention that this revenue guide would have been a bit higher if not for some near-term supply chain constraints that we are actively managing."

Tesla spends less than it said it would

Tesla ($TSLA) reported third-quarter net income attributable to common stockholders of $787 million, down $586 million from a year earlier, on revenue of $28.05 billion, according to its quarterly filing. Reuters reported that Tesla lowered its 2026 capital spending forecast to about $20 billion from more than $25 billion after spending far less than expected on AI and robotics, which led to a surprise positive free cash flow. The filing itself says Tesla expects capital spending "in excess of $20 billion" this year. Tesla's shareholder update puts free cash flow at $1.5 billion. Reuters said the company didn't say where the cuts would land. The stock was down 3.08% as of Oct 22, 4:00 PM ET.

The rest of the day's reports

Lockheed Martin ($LMT) posted revenue of $20.7 billion, above the $20.48 billion estimate and up 11%, per Yahoo Finance. Backlog hit a record $292.0 billion, including a $52.5 billion multi-year award for PAC-3 interceptors, and the company now expects 2026 earnings per share of $30.35 to $30.75 and revenue of $80 billion to $82 billion. Chief executive Jim Taiclet said in the company's release it's "the second consecutive quarter we have raised our financial guidance." Shares were up 6.96% as of Oct 22, 4:00 PM ET.

Procter & Gamble ($PG) reported net sales of $23.3 billion, up 4%, and core earnings per share of $2.00, up 1%. Reuters said that beat estimates of $1.88 and that P&G kept its annual forecasts for 1% to 3% organic sales growth and core earnings of roughly $7 a share, even as it now expects higher costs to cut fiscal 2027 profit by about $1.4 billion, up from $1 billion. Shares were up 5.58% as of Oct 22, 4:00 PM ET.

Honeywell Technologies ($HON), in what it called its first quarter as a standalone company, reported sales of $5.0 billion, up 1% reported and 7% organic. It is raising its full-year organic revenue, adjusted earnings per share and free cash flow guidance.

Union Pacific ($UNP) reported net income of $2.1 billion and diluted earnings per share of $3.49, both up 16%. Chief executive Jim Vena credited the railroad's ability to handle "six percent volume growth." Shares were up 3.55% as of Oct 22, 4:00 PM ET.

Comcast ($CMCSA) lost 144,000 domestic broadband residential customers while adding 368,000 wireless lines, and it lost 274,000 video customers. Ars Technica noted the broadband loss compares with a 91,000-customer loss a year earlier. Co-CEO Mike Cavanagh said, "Fixed wireless remains aggressive and continues to take share." Shares still rose 3.44% as of Oct 22, 4:00 PM ET.

PulteGroup ($PHM) earned $476 million, or $2.53 a share, down from $2.96 a year earlier, and net new orders fell 6% to 6,208 homes. The AP reported that both earnings and revenue of $3.97 billion missed Zacks estimates of $2.63 a share and $4.13 billion. Management pointed to demand "increasingly pressured by rising mortgage rates, widespread inflation, and global unrest." The stock rose 5.84% as of Oct 22, 4:00 PM ET anyway, a reminder that a miss and a selloff aren't always the same thing.

Tags: earnings · guidance · semiconductors · ev-autos · markets-moves