Lam Research Corp
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +8.13%.
Did LRCX Beat Earnings? Q3 2025 Results
Lam Research closed out its fiscal third quarter on a high note, posting revenue of $4.72 billion, a 24.4% year-over-year increase that cleared the $4.64 billion consensus estimate by 1.72%, while non-GAAP diluted EPS of $1.04 came in 4.05% above the $1.00 consensus. The primary engine behind the quarter's strength was a surge in systems revenue to $3.04 billion, reflecting intensifying demand for deposition and etch equipment as customers push deeper into advanced memory and foundry logic production. Gross margins reached 49.0% on both a GAAP and non-GAAP basis, with operating leverage driving meaningful sequential margin expansion across the board. The company, widely viewed as a compelling pick among <a href="https://247wallst.com/investing/2025/03/20/2-stellar-stock-split-stocks-you-should-be-buying-now/">leading semiconductor equipment stocks</a>, generated $1.31 billion in operating cash flow during the quarter. Looking ahead, Lam guided June quarter revenue to approximately $5.00 billion, with non-GAAP EPS of $1.20 and non-GAAP gross margin of 49.5%, signaling continued sequential acceleration despite acknowledged near-term tariff-related uncertainty.
- Systems revenue growth of 16% sequentially driven by leading-edge equipment demand
- Gross margin expansion of 160 bps QoQ to 49.0% reflecting favorable product mix
- Increasing deposition and etch intensity in production of advanced semiconductors
- Strong demand across major geographies including Korea, Taiwan, and China
“Lam's portfolio is the most compelling it's ever been, driving opportunities to expand our addressable market, gain share, and deliver innovative services as deposition and etch intensity increases in the production of advanced semiconductors.”
Lam Research CEO, on the earnings call
Forward Guidance & Outlook
For the quarter ending June 29, 2025, Lam Research guided revenue of approximately $5.00 billion +/- $300 million. U.S. GAAP gross margin is expected at 49.4% +/- 1%, with non-GAAP gross margin of 49.5% +/- 1%. U.S. GAAP operating income as a percentage of revenue is guided at 33.4% +/- 1%, and non-GAAP at 33.5% +/- 1%. Both GAAP and non-GAAP diluted EPS are guided at $1.20 +/- $0.10, based on a diluted share count of approximately 1.28 billion. The CEO noted the outlook remains strong even amid near-term tariff-related uncertainty, expressing high confidence in outperforming semiconductor industry growth in coming years.
LRCX YoY Financials
LRCX Revenue by Segment
LRCX Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.