Lam Research Corporation (the “Company,” “Lam,” “Lam Research”) today announced financial results for the quarter ended June 29, 2025 (the “June 2025 quarter”).
Highlights for the June 2025 quarter were as follows:
— Revenue of $5.17 billion.
— U.S. GAAP gross margin of 50.1%, U.S. GAAP operating income as a percentage of revenue of 33.7%, and U.S. GAAP diluted EPS of $1.35.
— Non-GAAP gross margin of 50.3%, non-GAAP operating income as a percentage of revenue of 34.4%, and non-GAAP diluted EPS of $1.33.
Key Financial Data for the Quarters EndedJune29, 2025 and March 30, 2025(in thousands, except per-share data, percentages, and basis points)U.S. GAAP June 2025 March 2025 Change Q/QRevenue $ 5,171,393 $ 4,720,175 +9.6%Gross margin as percentage of revenue 50.1% 49.0% + 110 bpsOperating income as percentage of revenue 33.7% 33.1% + 60 bpsDiluted EPS $ 1.35 $ 1.03 +31.1%Non-GAAP June 2025 March 2025 Change Q/QRevenue $ 5,171,393 $ 4,720,175 +9.6%Gross margin as percentage of revenue 50.3% 49.0% + 130 bpsOperating income as percentage of revenue 34.4% 32.8% + 160 bpsDiluted EPS $ 1.33 $ 1.04 +27.9%
U.S. GAAP Financial Results
For the June 2025 quarter, revenue was $5,171 million, gross margin was $2,590 million, or 50.1% of revenue, operating expenses were $849 million, operating income was 33.7% of revenue, and net income was $1,720 million, or $1.35 per diluted share on a U.S. GAAP basis. This compares to revenue of $4,720 million, gross margin of $2,314 million, or 49.0% of revenue, operating expenses of $752 million, operating income of 33.1% of revenue, and net income of $1,331 million, or $1.03 per diluted share, for the quarter ended March 30, 2025 (the “March 2025 quarter”).
Non-GAAP Financial Results
For the June 2025 quarter, non-GAAP gross margin was $2,601 million, or 50.3% of revenue, non-GAAP operating expenses were $822 million, non-GAAP operating income was 34.4% of revenue, and non-GAAP net income was $1,698 million, or $1.33 per diluted share. This compares to non-GAAP gross margin of $2,312 million, or 49.0% of revenue, non-GAAP operating expenses of $763 million, non-GAAP operating income of 32.8% of revenue, and non-GAAP net income of $1,336 million, or $1.04 per diluted share, for the March 2025 quarter.
“Lam delivered another solid quarter, highlighted by strong gross margins and record EPS,” said Tim Archer, Lam Research's President and Chief Executive Officer. “With deposition and etch criticality intensifying in the AI era, we are executing on our long-term strategic initiatives and leveraging our differentiated product portfolio to position Lam for outperformance.”
Balance Sheet and Cash Flow Results
Cash, cash equivalents, and restricted cash balances increased to $6.4 billion at the end of the June 2025 quarter compared to $5.5 billion at the end of the March 2025 quarter. The increase was primarily driven by 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 June 2025 quarter increased to $2,681 million compared to $2,011 million as of the end of the March 2025 quarter. Lam's deferred revenue balance does not include shipments to customers in Japan, to whom title 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 $342 million as of June29, 2025 and $587 million as of March 30, 2025.
Revenue
The geographic distribution of revenue during the June 2025 quarter is shown in the following table:
Region RevenueChina 35%Korea 22%Taiwan 19%Japan 14%United States 6%Southeast Asia 2%Europe 2%
The following table presents revenue disaggregated between systems and customer support-related revenue:
Three Months Ended June 29, March 30, June 30, 2025 2025 2024 (In thousands)Systems revenue $ 3,437,625 $ 3,035,276 $ 2,169,885Customer support-related revenue and other 1,733,768 1,684,899 1,701,622 $ 5,171,393 $ 4,720,175 $ 3,871,507
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 September28, 2025, Lam is providing the following guidance:
U.S. GAAP Reconciling Non-GAAP ItemsRevenue $5.20 Billion +/- $300 Million – $5.20 Billion +/- $300 MillionGross margin as a percentage of revenue 49.9% +/- 1% $ 2.7 Million 50.0% +/- 1%Operating income as a percentage of revenue 33.9% +/- 1% $ 3.2 Million 34.0% +/- 1%Net income per diluted share $1.20 +/- $0.10 $ 3.7 Million $1.20 +/- $0.10Diluted share count 1.27 Billion – 1.27 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, $3.2 million.
— Net income per diluted share – amortization related to intangible assets acquired though business combinations, $3.2 million; amortization of debt discounts, $0.7 million; and associated tax benefit for non-GAAP items ($0.2 million); totaling $3.7 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 June 2025 and March 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 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 significance of deposition and etch in the AI era; our execution on our long-term strategic initiatives; the competitive positioning of our product portfolio and overall business; and our prospects for outperformance. 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 and other inflationary pressures have impacted and may continue to impact our profitability; supply chain disruptions 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 30, 2024, and our quarterly report on Form 10-Q for the fiscal quarter ended March 30, 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 CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share data and percentages) Three Months Ended Twelve Months Ended June 29, March 30, June 30, June 29, June 30, 2025 2025 2024 2025 2024 (unaudited) (unaudited) (unaudited) (unaudited) (1)Revenue $ 5,171,393 $ 4,720,175 $ 3,871,507 $ 18,435,591 $ 14,905,386Cost of goods sold 2,581,684 2,406,489 2,026,133 9,456,532 7,809,220Restructuring charges, net – cost of goods sold – – 5,276 – 43,375Total cost of goods sold 2,581,684 2,406,489 2,031,409 9,456,532 7,852,595Gross margin 2,589,709 2,313,686 1,840,098 8,979,059 7,052,791Gross margin as a percent of revenue 50.1% 49.0% 47.5% 48.7% 47.3%Research and development 580,178 525,904 497,829 2,096,387 1,902,444Selling, general and administrative 268,403 226,023 216,477 981,704 868,247Restructuring charges, net – operating expenses – – (768) – 18,187Total operating expenses 848,581 751,927 713,538 3,078,091 2,788,878Operating income 1,741,128 1,561,759 1,126,560 5,900,968 4,263,913Operating income as a percent of revenue 33.7% 33.1% 29.1% 32.0% 28.6%Other income (expense), net 37,853 (25,035) 27,796 57,161 96,309Income before income taxes 1,778,981 1,536,724 1,154,356 5,958,129 4,360,222Income tax expense (58,893) (206,057) (134,074) (599,912) (532,450)Net income $ 1,720,088 $ 1,330,667 $ 1,020,282 $ 5,358,217 $ 3,827,772Net income per share:Basic $ 1.35 $ 1.04 $ 0.78 $ 4.17 $ 2.91Diluted $ 1.35 $ 1.03 $ 0.78 $ 4.15 $ 2.90Number of shares used in per share calculations:Basic 1,274,279 1,283,779 1,306,333 1,286,101 1,314,102Diluted 1,276,933 1,288,100 1,311,118 1,290,142 1,319,949Cash dividend declared per common share $ 0.23 $ 0.23 $ 0.20 $ 0.92 $ 0.80
(1) Derived from audited financial statements
LAM RESEARCH CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands) June 29, March 30, June 30, 2025 2025 2024 (unaudited) (unaudited) (1)ASSETSCash and cash equivalents $ 6,390,659 $ 5,450,718 $ 5,847,856Accounts receivable, net 3,378,071 3,228,182 2,519,250Inventories 4,307,991 4,463,275 4,217,924Prepaid expenses and other current assets 440,274 318,147 298,190Total current assets 14,516,995 13,460,322 12,883,220Property and equipment, net 2,428,744 2,372,203 2,154,518Goodwill and intangible assets 1,808,685 1,795,248 1,765,073Other assets 2,590,836 2,340,537 1,941,917Total assets $ 21,345,260 $ 19,968,310 $ 18,744,728LIABILITIES AND STOCKHOLDERS' EQUITYCurrent portion of long-term debt and finance lease obligations $ 754,311 $ 754,306 $ 504,814Other current liabilities 5,814,114 4,735,539 3,833,624Total current liabilities 6,568,425 5,489,845 4,338,438Long-term debt and finance lease obligations 3,730,194 3,730,034 4,478,520Income taxes payable 603,412 690,660 813,304Other long-term liabilities 581,610 546,666 575,012Total liabilities 11,483,641 10,457,205 10,205,274Stockholders' equity (2) 9,861,619 9,511,105 8,539,454Total liabilities and stockholders' equity $ 21,345,260 $ 19,968,310 $ 18,744,728
(1) Derived from audited financial statements(2) Common shares issued and outstanding were 1,268,740 as of June29, 2025, 1,282,957 as of March 30, 2025, and 1,303,769 as of June30, 2024
LAM RESEARCH CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands) Three Months Ended Twelve Months Ended June 29, March 30, June 30, June 29, June 30, 2025 2025 2024 2025 2024 (unaudited) (unaudited) (unaudited) (unaudited) (1)CASH FLOWS FROM OPERATING ACTIVITIES:Net income $ 1,720,088 $ 1,330,667 $ 1,020,282 $ 5,358,217 $ 3,827,772Adjustments to reconcile net income to net cash provided byoperating activities:Depreciation and amortization 98,439 97,343 88,357 386,277 359,699Deferred income taxes (151,679) (19,992) (61,375) (363,247) (198,981)Equity-based compensation expense 94,286 87,115 79,092 343,371 293,058Other, net 14,240 1,654 (3,999) 6,845 10,243Changes in operating assets and liabilities 778,814 (188,124) (259,927) 441,801 360,478Net cash provided by operating activities 2,554,188 1,308,663 862,430 6,173,264 4,652,269CASH FLOWS FROM INVESTING ACTIVITIES:Capital expenditures and intangible assets (172,191) (288,058) (100,748) (759,186) (396,670)Net maturities and sale of available-for-sale securities – – – – 37,766Other, net 42,940 (4,857) (865) 51,094 (11,710)Net cash used for investing activities (129,251) (292,915) (101,613) (708,092) (370,614)CASH FLOWS FROM FINANCING ACTIVITIES:Principal payments on debt, including finance lease (1,485) (504,037) (949) (507,488) (256,104)obligations and payments for debt issuance costsTreasury stock purchases, including excise tax payments (1,292,277) (435,321) (373,550) (3,422,321) (2,842,807)Dividends paid (295,207) (295,716) (261,462) (1,149,542) (1,018,915)Reissuance of treasury stock related to employee stock 79,556 – 66,885 140,113 119,966purchase planProceeds from issuance of common stock 696 1,993 2,796 2,452 15,553Other, net (820) 526 (7,871) 143 (13,543)Net cash used for financing activities (1,509,537) (1,232,555) (574,151) (4,936,643) (3,995,850)Effect of exchange rate changes on cash, cash equivalents, 29,284 2,380 (9,616) 28,324 (22,374)and restricted cashNet change in cash, cash equivalents, and restricted cash 944,684 (214,427) 177,050 556,853 263,431Cash, cash equivalents, and restricted cash at beginning of 5,462,972 5,677,399 5,673,753 5,850,803 5,587,372period (2)Cash, cash equivalents, and restricted cash at end of period $ 6,407,656 $ 5,462,972 $ 5,850,803 $ 6,407,656 $ 5,850,803(2)
(1) Derived from audited financial statements(2) 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 June 29, March 30, 2025 2025Revenue $ 5,171,393 $ 4,720,175Gross margin $ 2,600,952 $ 2,312,391Gross margin as percentage of revenue 50.3% 49.0%Operating expenses $ 822,375 $ 763,336Operating income $ 1,778,577 $ 1,549,055Operating income as a percentage of revenue 34.4% 32.8%Net income $ 1,697,716 $ 1,336,006Net income per diluted share $ 1.33 $ 1.04Shares used in per share calculation – diluted 1,276,933 1,288,100
Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income(in thousands, except per share data)(unaudited) Three Months Ended June 29, March 30, 2025 2025U.S. GAAP net income $ 1,720,088 $ 1,330,667Pre-tax non-GAAP items:Amortization related to intangible assets acquired through certain business combinations – cost of goods sold 2,687 2,687Elective deferred compensation (“EDC”) related liability valuation increase (decrease) – cost of goods sold 8,556 (3,982)EDC related liability valuation increase (decrease) – research and development 15,401 (7,168)Amortization related to intangible assets acquired through certain business combinations – selling, general and 538 538administrativeEDC related liability valuation increase (decrease) – selling, general and administrative 10,267 (4,779)Amortization of note discounts – other income (expense), net 689 759(Gain) loss on EDC related asset – other income (expense), net (34,102) 16,903Net income tax (benefit) expense on non-GAAP items (1,668) 381Income tax benefit on the conclusion of certain tax matters (24,740) -Non-GAAP net income $ 1,697,716 $ 1,336,006Non-GAAP net income per diluted share $ 1.33 $ 1.04U.S. GAAP net income per diluted share $ 1.35 $ 1.03U.S. GAAP and non-GAAP number of shares used for per diluted share calculation 1,276,933 1,288,100
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 June 29, March 30, 2025 2025U.S. GAAP gross margin $ 2,589,709 $ 2,313,686Pre-tax non-GAAP items:Amortization related to intangible assets acquired through certain business combinations 2,687 2,687EDC related liability valuation increase (decrease) 8,556 (3,982)Non-GAAP gross margin $ 2,600,952 $ 2,312,391U.S. GAAP gross margin as a percentage of revenue 50.1% 49.0%Non-GAAP gross margin as a percentage of revenue 50.3% 49.0%U.S. GAAP operating expenses $ 848,581 $ 751,927Pre-tax non-GAAP items:Amortization related to intangible assets acquired through certain business combinations (538) (538)EDC related liability valuation (increase) decrease (25,668) 11,947Non-GAAP operating expenses $ 822,375 $ 763,336U.S. GAAP operating income $ 1,741,128 $ 1,561,759Non-GAAP operating income $ 1,778,577 $ 1,549,055U.S. GAAP operating income as percent of revenue 33.7% 33.1%Non-GAAP operating income as a percent of revenue 34.4% 32.8%
Lam Research Corporation Contact:Ram Ganesh, Investor Relations, phone: 510-572-1615, e-mail: investor.relations@lamresearch.com
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