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

Rhea-AI Summary

Lam Research (Nasdaq: LRCX) reported results for the quarter ended September 28, 2025: revenue $5.32B, U.S. GAAP gross margin 50.4%, U.S. GAAP operating income 34.4% of revenue, and U.S. GAAP diluted EPS $1.24. Non-GAAP diluted EPS was $1.26. Cash and cash equivalents rose to $6.7B and deferred revenue was $2.77B. Geographic mix: China 43%, Taiwan 19%, Korea 15%, Japan 10%.

Outlook for quarter ending December 28, 2025: revenue $5.20B ± $300M, gross margin ~48.4% ± 1%, and diluted EPS ~$1.15 ± $0.10. Diluted share count ~1.26B.

Positive

• Revenue +28% year-over-year to $5.32B
• Gross margin +240 bps year-over-year to 50.4%
• Net income +41% year-over-year to $1.57B
• Cash and equivalents increased to $6.7B
• Declared cash dividend raised to $0.26 per share

Negative

• Diluted EPS down 8% sequentially to $1.24
• Net cash provided by operations down 30% sequentially to $1.78B
• Non-GAAP diluted EPS down 5% sequentially to $1.26

Insights

Equity Research Analyst

Lam posted modest sequential revenue and margin expansion, mixed by lower EPS and guidance that implies slight near-term deceleration.

Revenue rose to $5.32 billion (+3% sequential) while U.S. GAAP gross margin improved to 50.4% and operating margin to 34.4%, showing continued operational leverage in systems and support revenue. Cash and equivalents increased to $6.7 billion, deferred revenue ticked up to $2.77 billion, and systems revenue remains the larger component at $3.55 billion, indicating the core equipment business drives growth.

EPS fell from $1.35 to $1.24 on a U.S. GAAP basis and management guided Q1 FY2026 revenue to $5.2 billion +/- $300 million with gross margin near 48.4%, which signals a modest near-term margin contraction versus the September quarter. Key risks include the sequential EPS decline and the guidance midpoint below the reported quarter, which could temper near-term sentiment despite healthy margins and cash generation.

Watch quarterly cash conversion and any change in geographic mix (China was 43% of revenue) over the next 12 weeks and monitor whether December quarter results meet the provided revenue and margin ranges; these items will clarify whether the company sustains margin expansion or enters a softer period.

FREMONT, Calif., Oct. 22, 2025 /PRNewswire/ -- Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended September 28, 2025 (the "September 2025 quarter").

Highlights for the September 2025 quarter were as follows:

• Revenue of $5.32 billion.
• U.S. GAAP gross margin of 50.4%, U.S. GAAP operating income as a percentage of revenue of 34.4%, and U.S. GAAP diluted EPS of $1.24.
• Non-GAAP gross margin of 50.6%, non-GAAP operating income as a percentage of revenue of 35.0%, and non-GAAP diluted EPS of $1.26.

Key Financial Data for the Quarters Ended  September 28, 2025 and June 29, 2025 (in thousands, except per-share data, percentages, and basis points)
U.S. GAAP
		September 2025		June 2025		Change Q/Q
Revenue		$                5,324,173		$                5,171,393		+ 3 %
Gross margin as percentage of revenue		50.4 %		50.1 %		+ 30 bps
Operating income as percentage of revenue		34.4 %		33.7 %		+ 70 bps
Diluted EPS		$                         1.24		$                         1.35		- 8 %
Non-GAAP
		September 2025		June 2025		Change Q/Q
Revenue		$                5,324,173		$                5,171,393		+ 3 %
Gross margin as percentage of revenue		50.6 %		50.3 %		+ 30 bps
Operating income as percentage of revenue		35.0 %		34.4 %		+ 60 bps
Diluted EPS		$                         1.26		$                         1.33		- 5 %

U.S. GAAP Financial Results

For the September 2025 quarter, revenue was $5,324 million, gross margin was $2,685 million, or 50.4% of revenue, operating expenses were $856 million, operating income was 34.4% of revenue, and net income was $1,569 million, or $1.24 per diluted share on a U.S. GAAP basis. This compares to revenue of $5,171 million, gross margin of $2,590 million, or 50.1% of revenue, operating expenses of $849 million, operating income of 33.7% of revenue, and net income of $1,720 million, or $1.35 per diluted share, for the quarter ended June 29, 2025 (the "June 2025 quarter").

Non-GAAP Financial Results

For the September 2025 quarter, non-GAAP gross margin was $2,694 million, or 50.6% of revenue, non-GAAP operating expenses were $832 million, non-GAAP operating income was 35.0% of revenue, and non-GAAP net income was $1,605 million, or $1.26 per diluted share. This compares to non-GAAP gross margin of $2,601 million, or 50.3% of revenue, non-GAAP operating expenses of $822 million, non-GAAP operating income of 34.4% of revenue, and non-GAAP net income of $1,698 million, or $1.33 per diluted share, for the June 2025 quarter.

"Lam's innovations are helping our customers address major AI-driven semiconductor manufacturing inflections," said Tim Archer, Lam Research's President and Chief Executive Officer. "We are executing well in an environment of tremendous opportunity, and with our expanding portfolio of products and solutions across critical device segments, we are strongly positioned for continued growth."

Balance Sheet and Cash Flow Results

Cash, cash equivalents, and restricted cash balances increased to $6.7 billion at the end of the September 2025 quarter compared to $6.4 billion at the end of the June 2025 quarter. The increase was primarily the result of cash generated from operating activities, partially offset by cash deployed for capital return activities, and capital expenditures during the quarter.

Deferred revenue at the end of the September 2025 quarter increased to $2.77 billion compared to $2.68 billion as of the end of the June 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 $131 million as of September 28, 2025 and $342 million as of June 29, 2025.

Revenue

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

Region	Revenue
China	43 %
Taiwan	19 %
Korea	15 %
Japan	10 %
United States	6 %
Southeast Asia	5 %
Europe	2 %

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

	Three Months Ended
	September 28, 2025		June 29, 2025		September 29, 2024
	(In thousands)
Systems revenue	$              3,547,565		$              3,437,625		$              2,392,730
Customer support-related revenue and other	1,776,608		1,733,768		1,775,246
	$              5,324,173		$              5,171,393		$              4,167,976

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 ended December 28, 2025, Lam is providing the following guidance: 

	U.S. GAAP				Reconciling Items			Non-GAAP
Revenue	$5.20 Billion	+/-	$300 Million		—			$5.20 Billion	+/-	$300 Million
Gross margin as a percentage of revenue	48.4 %	+/-	1 %		$   2.7	Million		48.5 %	+/-	1 %
Operating income as a percentage of revenue	32.9 %	+/-	1 %		$   3.0	Million		33.0 %	+/-	1 %
Net income per diluted share	$1.15	+/-	$0.10		$   3.5	Million		$1.15	+/-	$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 significant arrangements 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 September 2025 and June 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 income tax expense from a change in tax law and the June 2025 quarter excludes the income tax benefit on conclusion of certain tax matters related to a prior business combination.

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 benefits of our products; industry opportunities; our execution; our competitive positioning; and our prospects for growth. 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. 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
	September 28, 2025		June 29, 2025		September 29, 2024
Revenue	$   5,324,173		$   5,171,393		$   4,167,976
Cost of goods sold	2,639,294		2,581,684		2,165,293
Gross margin	2,684,879		2,589,709		2,002,683
Gross margin as a percent of revenue	50.4 %		50.1 %		48.0 %
Research and development	576,446		580,178		495,358
Selling, general and administrative	279,345		268,403		243,128
Total operating expenses	855,791		848,581		738,486
Operating income	1,829,088		1,741,128		1,264,197
Operating income as a percent of revenue	34.4 %		33.7 %		30.3 %
Other income (expense), net	30,074		37,853		30,081
Income before income taxes	1,859,162		1,778,981		1,294,278
Income tax expense	(290,502)		(58,893)		(177,834)
Net income	$   1,568,660		$   1,720,088		$   1,116,444
Net income per share:
Basic	$             1.24		$             1.35		$             0.86
Diluted	$             1.24		$             1.35		$             0.86
Number of shares used in per share calculations:
Basic	1,264,446		1,274,279		1,299,236
Diluted	1,269,313		1,276,933		1,304,066
Cash dividend declared per common share	$             0.26		$             0.23		$             0.23

 

LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
	September 28, 2025		June 29, 2025		September 29, 2024
	(unaudited)		(1)		(unaudited)
ASSETS
Cash and cash equivalents	$         6,693,046		$         6,390,659		$         6,067,471
Accounts receivable, net	3,633,034		3,378,071		2,937,217
Inventories	4,095,054		4,307,991		4,209,878
Prepaid expenses and other current assets	385,580		440,274		277,802
Total current assets	14,806,714		14,516,995		13,492,368
Property and equipment, net	2,510,531		2,428,744		2,214,269
Goodwill and intangible assets	1,826,950		1,808,685		1,758,344
Other assets	2,756,016		2,590,836		2,067,508
Total assets	$       21,900,211		$       21,345,260		$       19,532,489
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt and finance lease obligations	$            754,363		$            754,311		$            504,682
Other current liabilities	5,953,547		5,814,114		4,837,986
Total current liabilities	6,707,910		6,568,425		5,342,668
Long-term debt and finance lease obligations	3,729,580		3,730,194		4,479,087
Income taxes payable	646,044		603,412		664,717
Other long-term liabilities	623,925		581,610		574,126
Total liabilities	11,707,459		11,483,641		11,060,598
Stockholders' equity (2)	10,192,752		9,861,619		8,471,891
Total liabilities and stockholders' equity	$       21,900,211		$       21,345,260		$       19,532,489

(1)	Derived from audited financial statements.
(2)	Common shares issued and outstanding were 1,259,176 as of September 28, 2025, 1,268,740 as of June 29, 2025, and 1,291,958 as of September 29, 2024.

 

LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, unaudited)
	Three Months Ended
	September 28, 2025		June 29, 2025		September 29, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$         1,568,660		$         1,720,088		$         1,116,444
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	101,644		98,439		94,295
Deferred income taxes	(62,875)		(151,679)		(108,722)
Equity-based compensation expense	97,241		94,286		80,011
Other, net	(1,890)		14,240		(457)
Changes in operating assets and liabilities	76,184		778,814		386,900
Net cash provided by operating activities	1,778,964		2,554,188		1,568,471
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures and intangible assets	(185,121)		(172,191)		(110,588)
Other, net	(927)		42,940		37
Net cash used for investing activities	(186,048)		(129,251)		(110,551)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on debt, including finance lease obligations and payments for debt issuance costs	(1,417)		(1,485)		(934)
Treasury stock purchases, including excise tax payments	(975,791)		(1,292,277)		(997,035)
Dividends paid	(291,981)		(295,207)		(260,985)
Reissuance of treasury stock related to employee stock purchase plan	—		79,556		—
Proceeds from issuance of common stock, net issuance costs	—		696		(43)
Other, net	(12,449)		(820)		(324)
Net cash used for financing activities	(1,281,638)		(1,509,537)		(1,259,321)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(7,059)		29,284		22,682
Net change in cash, cash equivalents, and restricted cash	304,219		944,684		221,281
Cash, cash equivalents, and restricted cash at beginning of period (1)	6,407,656		5,462,972		5,850,803
Cash, cash equivalents, and restricted cash at end of period (1)	$         6,711,875		$         6,407,656		$         6,072,084

(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
	September 28, 2025		June 29, 2025
Revenue	$        5,324,173		$        5,171,393
Gross margin	$        2,693,582		$        2,600,952
Gross margin as percentage of revenue	50.6 %		50.3 %
Operating expenses	$           831,916		$           822,375
Operating income	$        1,861,666		$        1,778,577
Operating income as a percentage of revenue	35.0 %		34.4 %
Net income	$        1,604,597		$        1,697,716
Net income per diluted share	$                 1.26		$                 1.33
Shares used in per share calculation - diluted	1,269,313		1,276,933

 

Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data)  (unaudited)
	Three Months Ended
	September 28, 2025		June 29, 2025
U.S. GAAP net income	$           1,568,660		$           1,720,088
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations - cost of goods sold	2,687		2,687
Elective deferred compensation ("EDC") related liability valuation increase - cost of goods sold	6,016		8,556
EDC related liability valuation increase - research and development	10,828		15,401
Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative	538		538
EDC related liability valuation increase - selling, general and administrative	7,219		10,267
Impairment of long-lived assets - selling, general and administrative	5,290		—
Amortization of note discounts - other income (expense), net	695		689
Gain on EDC related asset - other income (expense), net	(23,088)		(34,102)
Net income tax benefit on non-GAAP items	(1,698)		(1,668)
Income tax expense from a change in tax law	27,450		—
Income tax benefit on the conclusion of certain tax matters	—		(24,740)
Non-GAAP net income	$           1,604,597		$           1,697,716
Non-GAAP net income per diluted share	$                    1.26		$                    1.33
U.S. GAAP net income per diluted share	$                    1.24		$                    1.35
U.S. GAAP and non-GAAP number of shares used for per diluted share calculation	1,269,313		1,276,933

 

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
	September 28, 2025		June 29, 2025
U.S. GAAP gross margin	$        2,684,879		$        2,589,709
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations	2,687		2,687
EDC related liability valuation increase	6,016		8,556
Non-GAAP gross margin	$        2,693,582		$        2,600,952
U.S. GAAP gross margin as a percentage of revenue	50.4 %		50.1 %
Non-GAAP gross margin as a percentage of revenue	50.6 %		50.3 %
U.S. GAAP operating expenses	$           855,791		$           848,581
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through certain business combinations	(538)		(538)
EDC related liability valuation increase	(18,047)		(25,668)
Impairment of long-lived assets	(5,290)		—
Non-GAAP operating expenses	$           831,916		$           822,375
U.S. GAAP operating income	$        1,829,088		$        1,741,128
Non-GAAP operating income	$        1,861,666		$        1,778,577
U.S. GAAP operating income as percent of revenue	34.4 %		33.7 %
Non-GAAP operating income as a percent of revenue	35.0 %		34.4 %

Lam Research Corporation Contacts:

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

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SOURCE Lam Research Corporation

FAQ

What were Lam Research (LRCX) revenue and GAAP EPS for Q1 FY2026 (quarter ended Sept 28, 2025)?

Revenue was $5.32 billion and U.S. GAAP diluted EPS was $1.24.

How did Lam Research's gross margin and operating margin perform in the September 2025 quarter?

U.S. GAAP gross margin was 50.4% and operating income was 34.4% of revenue.

What guidance did Lam Research (LRCX) give for the quarter ending Dec 28, 2025?

Guidance: revenue $5.20B ± $300M, gross margin ~48.4% ± 1%, diluted EPS ~$1.15 ± $0.10.

What is Lam Research's geographic revenue mix for the September 2025 quarter?

Regional split: China 43%, Taiwan 19%, Korea 15%, Japan 10%, U.S. 6%, Southeast Asia 5%, Europe 2%.

How much cash did Lam Research hold at the end of the September 2025 quarter?

Cash, cash equivalents, and restricted cash totaled $6.7 billion.

Did Lam Research return capital to shareholders in the September 2025 quarter?

Yes. The company declared a quarterly cash dividend of $0.26 per share and continued treasury stock purchases.