01—Abstract
Summary
Summary of the 10-Q filed October 24, 2025. Cited figures are marked; the original filing is the authoritative source.
Lam Research Corporation (LRCX) reported strong financial performance for the quarter ended September 28, 2025.
Revenue saw a significant increase of 3% sequentially, driven by robust demand in the Foundry market segment and a rise in customer support revenue. This top-line growth translated into a substantial increase in profitability, with Net Income growing by approximately 40% year-over-year to $1.57 billion, and Diluted EPS rising to $1.24a. The company maintained a healthy gross margin of 50.4%, reflecting favorable customer mix and effective cost management.
Operating cash flow remained strong, providing ample liquidity, with cash, cash equivalents, and restricted cash increasing to $6.7 billionb. The company continued its commitment to returning capital to shareholders through significant share repurchases and dividend payments.
Despite ongoing industry volatility and potential macroeconomic headwinds, Lam Research remains optimistic about the long-term demand for semiconductors, driven by trends in cloud computing, AI, and advanced device architectures. The company's strategic focus on R&D and customer collaboration positions it well to navigate future technological inflections.
02—Key points
Key Highlights
- Revenue increased by 3% sequentially to $5.32 billion, driven by strong Foundry segment performance and customer support revenue.
- Net income grew significantly year-over-year by approximately 40% to $1.57 billion.
- Diluted earnings per share (EPS) improved to $1.24, up from $0.86 in the prior year period.
- Gross margin remained strong at 50.4%, indicating effective pricing and cost management.
- Operating cash flow was robust at $1.78 billion.
- The company ended the quarter with a healthy cash balance of $6.7 billion.
- Significant capital returns to shareholders through share repurchases ($975.8 million) and dividends ($292.0 million).
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Lam Research Corp kept $0.29.
- Revenue$5.32B100.0%
- Cost of revenue−$2.64B49.6%
- Gross profit$2.68B50.4%
- Operating costs−$855.8M16.1%
- Operating income$1.83B34.4%
- Interest, other & tax−$260.4M4.9%
- Net income$1.57B29.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed October 24, 2025Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $5.32B$4.17B | +27.7% |
| Gross Profit | $2.68B$2.00B | +34.1% |
| R&D Expenses | $576.45M$495.36M | +16.4% |
| SG&A Expenses | $279.35M$243.13M | +14.9% |
| Operating Expenses | $855.79M$738.49M | +15.9% |
| Operating Income | $1.83B$1.26B | +44.7% |
| Net Income | $1.57B$1.12B | +40.5% |
| EPS (Basic) | $1.24$0.86 | +44.2% |
| EPS (Diluted) | $1.24$0.86 | +44.2% |
| Shares Outstanding (Basic) | 1.26B1.30B | −2.7% |
| Shares Outstanding (Diluted) | 1.27B1.30B | −2.7% |
05—Questions
Frequently Asked Questions
What drove the increase in revenue for Lam Research in this quarter?
Revenue increased primarily due to a rise in systems revenue, fueled by sustained investments in the Foundry market segment, and an increase in customer support-related revenue.
How did the company's profitability change compared to the prior year?
Profitability saw a substantial improvement, with Net Income increasing by approximately 40% year-over-year to $1.57 billion, and Diluted EPS rising to $1.24 from $0.86 in the same period last year.
What is the company's current financial position regarding liquidity?
Lam Research maintains a strong liquidity position, with cash, cash equivalents, and restricted cash increasing to $6.7 billion at the end of the quarter, supported by robust operating cash flow.
How is the company returning capital to shareholders?
The company continues to actively return capital through substantial share repurchases, amounting to $975.8 million in the quarter, and dividend payments of $292.0 million.
06—Continue