Lam Research Corporation Reports Financial Results for the Quarter Ended December 28, 2025

Rhea-AI Summary

Lam Research (Nasdaq: LRCX) reported results for the quarter ended December 28, 2025: revenue $5.34 billion, U.S. GAAP gross margin 49.6%, U.S. GAAP operating income 33.9% of revenue, and U.S. GAAP diluted EPS $1.26. Non-GAAP diluted EPS was $1.27.

Cash and cash equivalents were $6.18 billion, deferred revenue was $2.25 billion. Geographic mix: China 35%, Taiwan 20%, Korea 20%, Japan 10%. Systems revenue was $3.36 billion; customer support revenue was $1.99 billion. Outlook for March 29, 2026: revenue $5.70 billion +/- $300 million, gross margin ~49.0% +/-1%, EPS $1.35 +/- $0.10.

Positive

• Revenue +22% year-over-year for the December quarter to $5.34B
• Gross margin improved +220 bps year-over-year to 49.6%
• Six-month revenue +25% year-over-year to $10.67B

Negative

• Deferred revenue decreased 18.7% quarter-over-quarter to $2.25B
• Cash and cash equivalents declined $512.6M quarter-over-quarter to $6.18B

News Market Reaction

+0.47%

41 alerts

+0.47% News Effect

+3.4% Peak in 14 hr 9 min

+$1.41B Valuation Impact

$300.92B Market Cap

1.2x Rel. Volume

On the day this news was published, LRCX gained 0.47%, reflecting a mild positive market reaction. Argus tracked a peak move of +3.4% during that session. Our momentum scanner triggered 41 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $1.41B to the company's valuation, bringing the market cap to $300.92B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Quarter revenue: $5.34 billion GAAP diluted EPS: $1.26 Non-GAAP diluted EPS: $1.27 +5 more

8 metrics

Quarter revenue $5.34 billion Quarter ended December 28, 2025 (U.S. GAAP and non-GAAP)

GAAP diluted EPS $1.26 Quarter ended December 28, 2025

Non-GAAP diluted EPS $1.27 Quarter ended December 28, 2025

GAAP gross margin 49.6% Quarter ended December 28, 2025

Guided revenue $5.70 billion ± $300 million Guidance for quarter ending March 29, 2026

Cash & equivalents $6.18 billion Balance sheet at December 28, 2025

Deferred revenue $2.25 billion End of December 2025 quarter

Future Japan revenue $226 million Estimated revenue from shipments awaiting acceptance in Japan as of Dec 28, 2025

Market Reality Check

Price: $209.78 Vol: Volume 11,727,461 is slig...

normal vol

$209.78 Last Close

Volume Volume 11,727,461 is slightly below 20-day average 12,505,768 (relative volume 0.94x). normal

Technical Trading above 200-day MA 124.14 and near 52-week high 239.5, up 323.4% vs 52-week low 56.32.

Peers on Argus

LRCX gained 7% while key peers also traded higher: AMAT +2.55%, KLAC +3.51%, TER...

LRCX gained 7% while key peers also traded higher: AMAT +2.55%, KLAC +3.51%, TER +0.93%, ASML +2.61%, ENTG +2.51%. Direction aligns, but scanner did not flag a sector-wide momentum event.

Common Catalyst Earnings-related headlines in semiconductor equipment, including ASML’s 2025 results, support a broader industry-strength backdrop.

Previous Earnings Reports

5 past events · Latest: Oct 22 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 22	Quarterly earnings	Positive	-2.6%	Reported Q3 2025 results with $5.32B revenue and strong margins, but shares fell.
Jul 30	Quarterly earnings	Positive	-4.3%	Q2 2025 revenue $5.17B with expanding margins and EPS, yet stock declined.
Apr 23	Quarterly earnings	Positive	+6.3%	Q1 2025 revenue $4.72B and higher margins drove a positive price reaction.
Jan 29	Quarterly earnings	Positive	+7.4%	Q4 2024 revenue $4.38B and EPS growth supported a strong next-day gain.
Oct 23	Quarterly earnings	Positive	+5.1%	Q3 2024 results with $4.17B revenue and margin improvement lifted shares.

Pattern Detected

Earnings releases often produce sizable moves for LRCX, with a mix of aligned rallies and occasional sell-the-news reactions despite generally strong results.

Recent Company History

Recent history shows Lam delivering consistent growth: revenue rose from $4.17B in Q3 2024 to $4.38B, $4.72B, $5.17B, and $5.32B ahead of the current $5.34B quarter. Gross margins have generally held near the high-40% to low-50% range, while China has remained the largest regional contributor. Past earnings reactions were mixed, with several strong post-print rallies but also a few negative moves, indicating expectations sensitivity even when reported metrics are solid.

Historical Comparison

earnings

+5.1 %

Average Historical Move

Historical Analysis

In the past 5 earnings releases, LRCX moved an average of 5.13%. Today’s 7% post-earnings move is somewhat larger but still consistent with its usual earnings volatility.

Typical Pattern

Earnings releases reflect a steady revenue climb from $4.17B in Q3 2024 to $5.32B in September 2025 and now $5.34B, with margins generally holding near 49–50% and China remaining the largest regional driver.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-08-11

Lam has an effective S-3ASR shelf registration dated Aug 11, 2025, permitting issuance of various securities (debt, common, preferred, warrants, rights and units) for general corporate purposes. Authorized capital includes 4,000,000,000 common and 5,000,000 preferred shares, with 1,265,620,604 common shares outstanding as of Aug 7, 2025.

Market Pulse Summary

This announcement details another robust quarter, with revenue of $5.34B, GAAP diluted EPS of $1.26,...

Analysis

This announcement details another robust quarter, with revenue of $5.34B, GAAP diluted EPS of $1.26, and guidance for $5.70B next-quarter revenue. Margins remain near 50% and customer support-related revenue continues to grow. Historically, Lam’s earnings reports have triggered meaningful moves, both up and down. Investors may watch upcoming quarters against this guidance, monitor capital allocation under the existing S-3ASR shelf, and track regional demand trends, particularly from China and Korea.

Key Terms

non-gaap, deferred revenue, basis points, rule 10b5-1 trading plan, +3 more

7 terms

non-gaap financial

"This press release also contains non-GAAP financial results."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

deferred revenue financial

"Deferred revenue at the end of the December 2025 quarter decreased to $2.25 billion..."

Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.

basis points financial

"Gross margin as percentage of revenue ... - 80 bps"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

rule 10b5-1 trading plan regulatory

"carried out under a Rule 10b5-1 trading plan adopted on August 19, 2025."

A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.

form 4 regulatory

"filed a Form 4 disclosing the sale of 40,080 shares of common stock..."

Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.

safe harbor regulatory

"subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995."

Safe harbor is a rule that protects companies or individuals from legal trouble if they follow certain guidelines or procedures. It’s like having a safety net that allows them to act without fear of punishment, as long as they stick to the rules. This helps encourage honest behavior and clear standards in financial and legal activities.

amortization of debt discounts financial

"Net income per diluted share - ... amortization of debt discounts, $0.7 million..."

When a company sells bonds or loans for less than their face value, the shortfall is called a discount; amortization of debt discounts is the gradual recognition of that shortfall as extra interest expense over the life of the debt. Think of it like spreading a hidden upfront fee across each payment so you see the true borrowing cost; it changes reported interest expense, net income, and the recorded balance of the debt, so investors use it to judge actual borrowing costs and future cash obligations.

AI-generated analysis. Not financial advice.

FREMONT, Calif., Jan. 28, 2026 /PRNewswire/ -- Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended December 28, 2025 (the "December 2025 quarter").

Highlights for the December 2025 quarter were as follows:

• Revenue of $5.34 billion.
• U.S. GAAP gross margin of 49.6%, U.S. GAAP operating income as a percentage of revenue of 33.9%, and U.S. GAAP diluted EPS of $1.26.
• Non-GAAP gross margin of 49.7%, non-GAAP operating income as a percentage of revenue of 34.3%, and non-GAAP diluted EPS of $1.27.

 

Key Financial Data for the Quarters Ended December 28, 2025 and September 28, 2025 (in thousands, except per-share data, percentages, and basis points)
U.S. GAAP
		December 2025		September 2025		Change Q/Q
Revenue		$                5,344,791		$                5,324,173		—
Gross margin as percentage of revenue		49.6 %		50.4 %		- 80 bps
Operating income as percentage of revenue		33.9 %		34.4 %		- 50 bps
Diluted EPS		$                          1.26		$                          1.24		+ 2 %
Non-GAAP
		December 2025		September 2025		Change Q/Q
Revenue		$                5,344,791		$                5,324,173		—
Gross margin as percentage of revenue		49.7 %		50.6 %		- 90 bps
Operating income as percentage of revenue		34.3 %		35.0 %		- 70 bps
Diluted EPS		$                          1.27		$                          1.26		+ 1 %

U.S. GAAP Financial Results

For the December 2025 quarter, revenue was $5,345 million, gross margin was $2,651 million, or 49.6% of revenue, operating expenses were $841 million, operating income was 33.9% of revenue, and net income was $1,594 million, or $1.26 per diluted share on a U.S. GAAP basis. This compares to revenue of $5,324 million, gross margin of $2,685 million, or 50.4% of revenue, operating expenses of $856 million, operating income of 34.4% of revenue, and net income of $1,569 million, or $1.24 per diluted share, for the quarter ended September 28, 2025 (the "September 2025 quarter").

Non-GAAP Financial Results

For the December 2025 quarter, non-GAAP gross margin was $2,658 million, or 49.7% of revenue, non-GAAP operating expenses were $827 million, non-GAAP operating income was 34.3% of revenue, and non-GAAP net income was $1,598 million, or $1.27 per diluted share. This compares to non-GAAP gross margin of $2,694 million, or 50.6% of revenue, non-GAAP operating expenses of $832 million, non-GAAP operating income of 35.0% of revenue, and non-GAAP net income of $1,605 million, or $1.26 per diluted share, for the September 2025 quarter.

"Lam delivered another strong quarter to cap a record year," said Tim Archer, Lam Research's President and Chief Executive Officer. "Entering 2026, our expanding product and services portfolio is enabling the market's transition to smaller, more complex three-dimensional devices and packages. With AI accelerating, we are ramping execution velocity across the company to support our customers' growth and realize our vision for multi-year outperformance."

Balance Sheet and Cash Flow Results

Cash, cash equivalents, and restricted cash balances decreased to $6.2 billion at the end of the December 2025 quarter compared to $6.7 billion at the end of the September 2025 quarter. The decrease was primarily the result of cash deployed for capital return activities and capital expenditures, partially offset by cash generated from operating activities during the quarter.

Deferred revenue at the end of the December 2025 quarter decreased to $2.25 billion compared to $2.77 billion as of the end of the September 2025 quarter. Lam's deferred revenue balance does not include shipments to customers in Japan, to whom control does not transfer until customer acceptance. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $226 million as of December 28, 2025 and $131 million as of September 28, 2025.

Revenue

The geographic distribution of revenue during the December 2025 quarter is shown in the following table:

Region	Revenue
China	35 %
Taiwan	20 %
Korea	20 %
Japan	10 %
Southeast Asia	8 %
United States	5 %
Europe	2 %

The following table presents revenue disaggregated between systems and customer support-related revenue:

	Three Months Ended
	December 28, 2025		September 28, 2025		December 29, 2024
	(In thousands)
Systems revenue	$              3,357,493		$              3,547,565		$              2,625,649
Customer support-related revenue and other	1,987,298		1,776,608		1,750,398
	$              5,344,791		$              5,324,173		$              4,376,047

Systems revenue includes sales of new leading-edge equipment in deposition, etch, and other wafer fabrication markets.

Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from our Reliant® product line.

Outlook

For the quarter ending March 29, 2026, Lam is providing the following guidance:

	U.S. GAAP				Reconciling Items			Non-GAAP
Revenue	$5.70 Billion	+/-	$300 Million		—			$5.70 Billion	+/-	$300 Million
Gross margin as a percentage of revenue	49.0 %	+/-	1 %		$   2.7	Million		49.0 %	+/-	1 %
Operating income as a percentage of revenue	33.9 %	+/-	1 %		$   3.0	Million		34.0 %	+/-	1 %
Net income per diluted share	$1.35	+/-	$0.10		$   3.5	Million		$1.35	+/-	$0.10
Diluted share count	1.26 Billion				—			1.26 Billion

The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other items that may be completed or realized after the date of this release, except as described below. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material. Reconciling items included above are as follows:

• Gross margin as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $2.7 million.
• Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $3.0 million.
• Net income per diluted share - amortization related to intangible assets acquired though business combinations, $3.0 million; amortization of debt discounts, $0.7 million; and associated tax benefit for non-GAAP items ($0.2 million); totaling $3.5 million.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP results, this press release also contains non-GAAP financial results. The Company's non-GAAP results for both the December 2025 and September 2025 quarters exclude amortization related to intangible assets acquired through business combinations, the effects of elective deferred compensation-related assets and liabilities, amortization of note discounts, and the net income tax effect of non-GAAP items. In addition, the September 2025 quarter excludes the impairment of long-lived assets and its associated income tax effect as well as income tax expense from a change in tax law.

Management uses non-GAAP gross margin, operating expense, operating income, operating income as a percentage of revenue, net income, and net income per diluted share to evaluate the Company's operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors' ability to view the Company's results from management's perspective. Tables presenting reconciliations of non-GAAP results to U.S. GAAP results are included at the end of this press release and on the Company's website at https://investor.lamresearch.com.

Caution Regarding Forward-Looking Statements
Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, but are not limited to: our outlook and guidance for future financial results, including revenue, gross margin, operating income and net income; the size of our product and services portfolio; the extent to which our products and services are enabling our customers; customer and industry trends, including the role of AI as an industry driver; our rate of operational execution; and our long-term performance objectives. Some factors that may affect these forward-looking statements include: business, economic, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; the actions of our customers and competitors may be inconsistent with our expectations; trade regulations, export controls, tariffs, trade disputes, and other geopolitical tensions may inhibit our ability to sell our products; supply chain cost increases, tariffs, export controls and other inflationary pressures have impacted and may continue to impact our profitability; supply chain disruptions, export controls or manufacturing capacity constraints may limit our ability to manufacture and sell our products; and natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the Risk Factors described in our annual report on Form 10-K for the fiscal year ended June 29, 2025 and our quarterly report on Form 10-Q for the fiscal quarter ended September 28, 2025. These uncertainties and changes could materially affect the forward-looking statements and cause actual results to vary from expectations in a material way. The Company undertakes no obligation to update the information or statements made in this release.

Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe. Learn more at www.lamresearch.com. (LRCX)

Consolidated Financial Tables Follow.

 

LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data and percentages) (unaudited)
	Three Months Ended						Six Months Ended
	December 28, 2025		September 28, 2025		December 29, 2024		December 28, 2025		December 29, 2024
Revenue	$   5,344,791		$   5,324,173		$   4,376,047		$ 10,668,964		$  8,544,023
Cost of goods sold	2,693,629		2,639,294		2,303,066		5,332,923		4,468,359
Gross margin	2,651,162		2,684,879		2,072,981		5,336,041		4,075,664
Gross margin as a percent of revenue	49.6 %		50.4 %		47.4 %		50.0 %		47.7 %
Research and development	573,305		576,446		494,947		1,149,751		990,305
Selling, general and administrative	267,654		279,345		244,150		546,999		487,278
Total operating expenses	840,959		855,791		739,097		1,696,750		1,477,583
Operating income	1,810,203		1,829,088		1,333,884		3,639,291		2,598,081
Operating income as a percent of revenue	33.9 %		34.4 %		30.5 %		34.1 %		30.4 %
Other income (expense), net	26,410		30,074		14,262		56,484		44,343
Income before income taxes	1,836,613		1,859,162		1,348,146		3,695,775		2,642,424
Income tax expense	(242,619)		(290,502)		(157,128)		(533,121)		(334,962)
Net income	$   1,593,994		$   1,568,660		$   1,191,018		$   3,162,654		$  2,307,462
Net income per share:
Basic	$             1.27		$             1.24		$             0.93		$             2.51		$            1.78
Diluted	$             1.26		$             1.24		$             0.92		$             2.50		$            1.78
Number of shares used in per share calculations:
Basic	1,254,856		1,264,446		1,287,109		1,259,651		1,293,173
Diluted	1,261,739		1,269,313		1,291,469		1,265,526		1,297,767
Cash dividend declared per common share	$             0.26		$             0.26		$             0.23		$             0.52		$            0.46

 

LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
	December 28, 2025		September 28, 2025		June 29, 2025
	(unaudited)		(unaudited)		(1)
ASSETS
Cash and cash equivalents	$         6,180,440		$         6,693,046		$         6,390,659
Accounts receivable, net	3,491,987		3,633,034		3,378,071
Inventories	4,037,682		4,095,054		4,307,991
Prepaid expenses and other current assets	307,914		385,580		440,274
Total current assets	14,018,023		14,806,714		14,516,995
Property and equipment, net	2,710,989		2,510,531		2,428,744
Goodwill and intangible assets	1,864,037		1,826,950		1,808,685
Other assets	2,798,122		2,756,016		2,590,836
Total assets	$       21,391,171		$       21,900,211		$       21,345,260
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt and finance lease obligations	$            754,006		$            754,363		$            754,311
Other current liabilities	5,459,147		5,953,547		5,814,114
Total current liabilities	6,213,153		6,707,910		6,568,425
Long-term debt and finance lease obligations	3,729,742		3,729,580		3,730,194
Income taxes payable	667,639		646,044		603,412
Other long-term liabilities	635,211		623,925		581,610
Total liabilities	11,245,745		11,707,459		11,483,641
Stockholders' equity (2)	10,145,426		10,192,752		9,861,619
Total liabilities and stockholders' equity	$       21,391,171		$       21,900,211		$       21,345,260

(1)	Derived from audited financial statements.
(2)	Common shares issued and outstanding were 1,251,180 as of December 28, 2025, 1,259,176 as of September 28, 2025, and 1,268,740 as of June 29, 2025.

 

LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited)
	Three Months Ended						Six Months Ended
	December 28, 2025		September 28, 2025		December 29, 2024		December 28, 2025		December 29, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$         1,593,994		$         1,568,660		$         1,191,018		$         3,162,654		$         2,307,462
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	103,925		101,644		96,200		205,569		190,495
Deferred income taxes	(30,957)		(62,875)		(82,854)		(93,832)		(191,576)
Equity-based compensation expense	88,539		97,241		81,959		185,780		161,970
Other, net	(19,961)		(1,890)		(8,592)		(21,851)		(9,049)
Changes in operating assets and liabilities	(255,495)		76,184		(535,789)		(179,311)		(148,889)
Net cash provided by operating activities	1,480,045		1,778,964		741,942		3,259,009		2,310,413
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures and intangible assets	(260,879)		(185,121)		(188,349)		(446,000)		(298,937)
Other, net	3,096		(927)		12,974		2,169		13,011
Net cash used for investing activities	(257,783)		(186,048)		(175,375)		(443,831)		(285,926)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on debt, including finance lease obligations and payments for debt issuance costs	(1,462)		(1,417)		(1,032)		(2,879)		(1,966)
Treasury stock purchases, including excise tax payments	(1,466,155)		(975,791)		(697,688)		(2,441,946)		(1,694,723)
Dividends paid	(327,507)		(291,981)		(297,634)		(619,488)		(558,619)
Reissuance of treasury stock related to employee stock purchase plan	67,185		—		60,557		67,185		60,557
Proceeds from issuance of common stock, net issuance costs	3,854		—		(194)		3,854		(237)
Other, net	(1,117)		(12,449)		761		(13,566)		437
Net cash used for financing activities	(1,725,202)		(1,281,638)		(935,230)		(3,006,840)		(2,194,551)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(13,337)		(7,059)		(26,022)		(20,396)		(3,340)
Net change in cash, cash equivalents, and restricted cash	(516,277)		304,219		(394,685)		(212,058)		(173,404)
Cash, cash equivalents, and restricted cash at beginning of period (1)	6,711,875		6,407,656		6,072,084		6,407,656		5,850,803
Cash, cash equivalents, and restricted cash at end of period (1)	$         6,195,598		$         6,711,875		$         5,677,399		$         6,195,598		$         5,677,399

(1)	Restricted cash is reported within Other assets in the Condensed Consolidated Balance Sheets

 

Non-GAAP Financial Summary (in thousands, except percentages and per share data) (unaudited)
	Three Months Ended
	December 28, 2025		September 28, 2025
Revenue	$        5,344,791		$        5,324,173
Gross margin	$        2,658,256		$        2,693,582
Gross margin as percentage of revenue	49.7 %		50.6 %
Operating expenses	$           827,486		$           831,916
Operating income	$        1,830,770		$        1,861,666
Operating income as a percentage of revenue	34.3 %		35.0 %
Net income	$        1,597,626		$        1,604,597
Net income per diluted share	$                 1.27		$                 1.26
Shares used in per share calculation - diluted	1,261,739		1,269,313

 

Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited)
	Three Months Ended
	December 28, 2025		September 28, 2025
U.S. GAAP net income	$           1,593,994		$           1,568,660
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold	2,668		2,687
Elective deferred compensation ("EDC") related liability valuation increase - cost of goods sold	4,426		6,016
EDC related liability valuation increase - research and development	7,968		10,828
Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative	193		538
EDC related liability valuation increase - selling, general and administrative	5,312		7,219
Impairment of long-lived assets - selling, general and administrative	—		5,290
Amortization of note discounts - other income (expense), net	701		695
Gain on EDC related asset - other income (expense), net	(16,628)		(23,088)
Net income tax benefit on non-GAAP items	(1,008)		(1,698)
Income tax expense from a change in tax law	—		27,450
Non-GAAP net income	$           1,597,626		$           1,604,597
Non-GAAP net income per diluted share	$                    1.27		$                    1.26
U.S. GAAP net income per diluted share	$                    1.26		$                    1.24
U.S. GAAP and non-GAAP number of shares used for per diluted share calculation	1,261,739		1,269,313

 

Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin, Operating Expenses and Operating Income (in thousands, except percentages) (unaudited)
	Three Months Ended
	December 28, 2025		September 28, 2025
U.S. GAAP gross margin	$        2,651,162		$        2,684,879
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations	2,668		2,687
EDC related liability valuation increase	4,426		6,016
Non-GAAP gross margin	$        2,658,256		$        2,693,582
U.S. GAAP gross margin as a percentage of revenue	49.6 %		50.4 %
Non-GAAP gross margin as a percentage of revenue	49.7 %		50.6 %
U.S. GAAP operating expenses	$           840,959		$           855,791
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations	(193)		(538)
EDC related liability valuation increase	(13,280)		(18,047)
Impairment of long-lived assets	—		(5,290)
Non-GAAP operating expenses	$           827,486		$           831,916
U.S. GAAP operating income	$        1,810,203		$        1,829,088
Non-GAAP operating income	$        1,830,770		$        1,861,666
U.S. GAAP operating income as percent of revenue	33.9 %		34.4 %
Non-GAAP operating income as a percent of revenue	34.3 %		35.0 %

Lam Research Corporation Contacts:
Ram Ganesh, Investor Relations, phone: 510-572-1615, e-mail: investor.relations@lamresearch.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/lam-research-corporation-reports-financial-results-for-the-quarter-ended-december-28-2025-302673080.html

SOURCE Lam Research Corporation

FAQ

What were Lam Research (LRCX) revenue and EPS for the quarter ended December 28, 2025?

Lam reported $5.34 billion in revenue and U.S. GAAP diluted EPS of $1.26. According to the company, non-GAAP diluted EPS was $1.27, and GAAP operating income was 33.9% of revenue for the quarter.

How did Lam Research (LRCX) gross margin change year-over-year in the December 2025 quarter?

Gross margin rose to 49.6%, up about 220 basis points year-over-year. According to the company, gross margin was $2,651 million, reflecting stronger mix and higher revenue compared with the prior-year quarter.

What guidance did Lam Research (LRCX) give for the quarter ending March 29, 2026?

Lam guided revenue of $5.70 billion ± $300 million and EPS of $1.35 ± $0.10. According to the company, gross margin is expected near 49.0% ± 1% and diluted shares around 1.26 billion.

How is Lam Research (LRCX) revenue split between systems and customer support in December 2025?

Systems revenue was $3.357 billion and customer support-related revenue was $1.987 billion for the quarter. According to the company, systems reflect leading-edge equipment while support includes service, spares, and upgrades.

What changes occurred in Lam Research's (LRCX) cash and deferred revenue in the December 2025 quarter?

Cash and cash equivalents declined to $6.18 billion, and deferred revenue fell to $2.25 billion quarter-over-quarter. According to the company, cash was deployed for capital return activities and capital expenditures.