With the US Q1 reporting season under way, we flag crucial earnings incoming next week from AI infrastructure stock Lam Research (LRCX). We also explain what to look for from Primark-to-Kingsmill owner Associated British Foods (ABF) and Dettol-to-Durex owner Reckitt Benckiser (RKT).
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Lam Research (LRCX)
We’ve been talking quite a bit about how tech infrastructure stocks have so far stolen the AI show on the Sharesify podcast in recent weeks. Names like Nvidia (NVDA), Broadcom (AVGO) and TSMC (TSM) get regularly mentioned.
Lam Research (LRCX) less so yet it too a crucial component of the AI/cloud/chips landscape, so next week’s fiscal Q3 earnings report, after the bell Wednesday 22 April, is well worth watching. Even more so given the stock’s 40%+ rally this year, 10x that of the Nasdaq 100 (of which it is a member).
Lam research designs and makes machines that deposit materials on wafers and carve intricate circuits, enabling smaller, faster, and more efficient chips, crucial equipment for advanced chipmakers if they’re to get better bang for buck.
| Q3 2025 | Q3 2026e | FY 2026e | |
| Revenue ($bn) | 4.72 | 5.76 | 22.46 |
| EPS ($) | 1.04 | 1.36 | 5.34 |
Source: Koyfin
The company has execution momentum, but the stock also reflects very high expectations. This is backed by a strong AI-driven capex cycle boosting wafer equipment demand. Watch for chip kit demand signals, orders (accelerating/decelerating), margin trends and guidance… these are the factors likely to drive stock performance in the short term.
Associated British Foods (ABF)
Conglomerate Associated British Foods (ABF) has faced a wave of analyst downgrades and target price cuts since the start of 2026. Year-to-date, the shares are down 15% and are 25% lower on a five-year view.
Sour sentiment towards the company reflects a growth slowdown at its budget clothing chain Primark as well as weak sugar prices. The FTSE 100 firm’s grocery business, home to brands including Hovis, Kingsmill, Patak’s and Twinings, is also under pressure.
Back in January, Associated British Foods coughed up a disappointing Christmas trading statement and warned group sales would be flat this year. Associated British Foods also said operating profit and adjusted earnings per share will be down on last year.
| FY 2026 | FY 2027 | FY 2028 | |
| Revenue (£bn) | 19.6 | 20.2 | 20.8 |
| Operating profit (£bn) | 1.61 | 1.77 | 1.86 |
| EPS (p) | 156 | 175 | 184 |
Source: Marketscreener
Given this backdrop, expectations are subdued ahead of next week’s (21 April) H1 results. Investors will be hoping trading hasn’t deteriorated any further at Primark, for so long the group’s jewel in the crown, due the uncertainty created by the Iran war.
Management’s comments around Primark’s margins will be in focus, as will the outlook for a food business which had a poor Q1 with grocery and ingredients sales both down.
Reckitt Benckiser (RKT)
Consumer health group Reckitt Benckiser (RKT) has seen its shares slump 20% this year to a new 12-month low. The business is unloved, despite a return to organic growth last year, but we detect a change in the mood music.
First, there is press talk French group Danone is interested in buying the underperforming Mead Johnson infant formula business. Second, the valuation has fallen to 15 times FY26 earnings, which is a discount to peers such as Haleon (HLN).
Third, analysts at Bank of America have turned positive, arguing emerging markets are ‘the key growth engine’ for the firm. They single out China, where after 15% organic growth last year they see 10%-plus growth this year.
We wouldn’t stick our necks out, but if Q1 sales don’t disappoint next Wednesday the shares could jump sharply. As a guide, FY25 LFLs were up 5% comprised of 0.9% volume growth and a 4.1% price/mix improvement.
| FY 2026e | FY 2027e | |
| Revenue (£m) | 12,970 | 13,503 |
| Net profit (£m) | 2,186 | 2,329 |
| EPS (p) | 345 | 370 |
| DPS (p) | 234 | 233 |
Source: Stockopedia
