Lam Research Corporation (LRCX) Q4 2025 Financial Results Summary
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Lam Research Corporation (LRCX) Q4 2025 Financial Results Summary
Lam Research Corporation released its financial results for the quarter ended September 28, 2025, on October 22, 2025.
Summary of Financial Results:
- Revenue: $5.32 billion, up 3% from $5.17 billion in the previous quarter (June 29, 2025).
- Gross Margin:
- U.S. GAAP: 50.4%, an increase of 30 basis points from 50.1% in Q3 2025.
- Non-GAAP: 50.6%, an increase of 30 basis points from 50.3% in Q3 2025.
- Operating Income:
- U.S. GAAP: 34.4% of revenue, up 70 basis points from 33.7% in the previous quarter.
- Non-GAAP: 35.0% of revenue, up 60 basis points from 34.4% in Q3 2025.
- Diluted Earnings Per Share (EPS):
- U.S. GAAP: $1.24, down 8% from $1.35 in Q3 2025.
- Non-GAAP: $1.26, down 5% from $1.33 in Q3 2025.
- Net Income:
- U.S. GAAP: $1.57 billion, down from $1.72 billion for the previous quarter.
- Non-GAAP: $1.61 billion, down from $1.70 billion for the previous quarter.
Key Financial Metrics:
- Cash and Cash Equivalents: Increased to $6.7 billion from $6.4 billion in the previous quarter.
- Deferred Revenue: Increased to $2.77 billion, up from $2.68 billion in the previous quarter.
- Total Revenue by Region:
- China: 43%
- Taiwan: 19%
- Korea: 15%
- Japan: 10%
- United States: 6%
- Southeast Asia: 5%
- Europe: 2%
Revenue Breakdown:
- Total Systems Revenue: $3.55 billion, an increase from $3.44 billion in Q3 2025 and significantly up from $2.39 billion in Q4 2024.
- Customer Support Revenue: $1.78 billion, slightly increased from $1.73 billion in Q3 2025 and down from $1.78 billion in Q4 2024.
Balance Sheet and Cash Flow Highlights:
- Operating Expenses: $856 million compared to $849 million in the previous quarter.
- Capital Expenditures: $185 million for Q4 2025.
Shareholder Returns:
- Quarterly Dividend Declared: $0.26, up from $0.23 in the previous quarter.
- Treasury Stock Purchases: Approximately $975.79 million in share repurchases reported in the quarter.
Outlook:
- For the next quarter ending December 28, 2025, Lam is guiding:
- Revenue: Estimated at $5.20 billion +/- $300 million.
- Gross Margin: Expected at 48.4% +/- 1%.
- Operating Income: Expected at 32.9% +/- 1%.
- Diluted EPS: Estimated at $1.15 +/- $0.10.
Use of Non-GAAP Earnings:
Lam Research included a reconciliation of its non-GAAP results, emphasizing that these figures exclude certain costs related to business combinations and provide a clearer view of operational performance.
This summary outlines Lam Research’s continued performance in a growing semiconductor industry, contributing to positive expectations for future quarters.
| 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 |
| September 28, 2025 | June 29, 2025 | September 29, 2024 | |
|---|---|---|---|
| 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 | $10,192,752 | $9,861,619 | $8,471,891 |
| Total liabilities and stockholders’ equity | $21,900,211 | $21,345,260 | $19,532,489 |