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Mar 30

Lam Research Q3 2025 Earnings Report

Lam Research reported strong financial performance with higher revenue, earnings, and profitability in Q1 2025.

Key Takeaways

Lam Research delivered a solid quarter with $4.72B in revenue and $1.33B in net income. EPS exceeded $1, and margins improved QoQ, reflecting robust demand for semiconductor equipment.

Revenue increased to $4.72B, reflecting strong market demand.

Net income reached $1.33B with EPS of $1.03 (Non-GAAP: $1.04).

Operating and gross margins improved significantly QoQ.

Customer support revenue remained robust alongside system sales.

Total Revenue
$4.72B
Previous year: $3.79B
+24.4%
EPS
$1.04
Previous year: $0.779
+33.5%
Gross Margin
49%
Operating Margin
33.1%
Diluted Share Count
1.29B
Gross Profit
$2.31B
Previous year: $1.8B
+28.5%
Cash and Equivalents
$5.45B
Previous year: $5.67B
-3.9%
Free Cash Flow
$1.02B
Previous year: $1.28B
-20.3%
Total Assets
$20B
Previous year: $18.3B
+9.2%

Lam Research

Lam Research

Lam Research Revenue by Segment

Lam Research Revenue by Geographic Location

Forward Guidance

Lam projects continued growth for Q2 2025 with revenue of $5.0B ± $300M and stable margins.

Positive Outlook

  • Revenue expected to rise to around $5.0B.
  • Gross margin guidance at 49.5% ± 1%.
  • Operating margin forecasted at 33.5% ± 1%.
  • EPS expected at $1.20 ± $0.10.
  • Strong confidence in outperforming industry growth.

Challenges Ahead

  • Tariff-related uncertainty remains a concern.
  • No projected changes in major business arrangements factored in.
  • Cash balance declined due to capital returns and debt payments.
  • Deferred revenue slightly decreased compared to last quarter.
  • Geopolitical risks and supply chain pressures may persist.

Revenue & Expenses

Visualization of income flow from segment revenue to net income