What drove the significant increase in revenue and net income for Lam Research?

The substantial growth in revenue and net income was primarily driven by robust demand for foundry equipment and a rise in customer support-related revenue. This indicates strong market adoption of Lam Research's solutions and effective service offerings, particularly in the foundry segment and for maintaining installed equipment performance.

How is Lam Research managing its capital, and what is its approach to shareholder returns?

Lam Research maintains a strong liquidity position with $6.2 billion in cash, cash equivalents, and restricted cash as of December 28, 2025. The company is actively returning capital to shareholders through significant share repurchases, totaling $2.44 billion in the first six months of the fiscal year, and dividend payments. This demonstrates a commitment to enhancing shareholder value while supporting ongoing business operations and strategic investments.

What are the key risks or challenges facing Lam Research, as highlighted in the filing?

The company faces several risks, including the inherent cyclicality and rapid technological changes within the semiconductor industry, intense global competition, dependence on a limited number of key customers, and the geopolitical and trade-related uncertainties, particularly concerning sales to China. Supply chain disruptions and evolving regulatory environments also pose ongoing challenges.

How does Lam Research's geographic revenue breakdown look, and are there any significant shifts?

For the six months ended December 28, 2025, China represented the largest portion of revenue at 39%, followed by Taiwan (20%), and Korea (17%). Compared to the prior year, there's a notable increase in the revenue share from Taiwan and a slight decrease from Korea, suggesting a potential geographic shift in demand or customer investment patterns within key semiconductor manufacturing regions.

LRCX 10-Q Quarterly Report Q2 FY2026 — Revenue, Net Income, EPS

Summary

Lam Research Corporation (LRCX) reported strong financial performance for the quarter and six months ended December 28, 2025, demonstrating robust revenue growth and increased profitability. Revenue for the six months surged to $10.67 billion, up from $8.54 billion in the prior year, driven by increased demand for foundry equipment and higher customer support revenue. Net income followed suit, rising to $3.16 billion for the same period. The company's strategic focus on innovation in deposition, etch, and clean markets, coupled with a growing demand for advanced semiconductors from sectors like AI and cloud computing, positions it favorably for continued growth. Investors can take note of the company's significant capital allocation towards share repurchases and dividends, underscoring a commitment to returning value to shareholders while maintaining a healthy liquidity position. Despite the positive financial results, the company operates within a dynamic semiconductor industry susceptible to global economic shifts and trade policy changes. Management's proactive approach to R&D and customer relationships remains crucial. The company's substantial cash reserves provide a buffer against industry cyclicality and unforeseen market challenges. The report highlights Lam Research's continued investment in technological advancements to meet evolving customer needs in areas like 3D device scaling and multiple patterning, reinforcing its leadership position in the wafer fabrication equipment market.

Financial Highlights

50 data points

Beta

Revenue

$5.34B

0.5% Gross Margin

Net Income

$1.59B

0.3% Net Margin

EPS (Diluted)

$1.26

Total Assets

$21.39B

Cash & Equivalents

$6.18B

Free Cash Flow

$1.48B

Financial Statements

Beta

Revenue	$5.34B
Gross Profit	$2.65B
R&D Expenses	$573.30M
SG&A Expenses	$267.65M
Operating Expenses	$840.96M
Operating Income	$1.81B
Net Income	$1.59B
EPS (Basic)	$1.27
EPS (Diluted)	$1.26
Shares Outstanding (Basic)	1.25B
Shares Outstanding (Diluted)	1.26B

Key Highlights

1Revenue for the six months ended December 28, 2025, increased by 24.9% year-over-year to $10.67 billion, driven by strong performance in foundry equipment and customer support.
2Net income for the six months ended December 28, 2025, grew by 37.1% year-over-year to $3.16 billion.
3Diluted earnings per share for the six months increased to $2.50, up from $1.78 in the prior year's comparable period.
4The company significantly increased its share repurchases, spending $2.44 billion on treasury stock purchases during the six months ended December 28, 2025.
5Cash, cash equivalents, and restricted cash stood at $6.2 billion as of December 28, 2025, indicating a strong liquidity position.
6Gross margin as a percentage of revenue improved to 50.0% for the six months ended December 28, 2025, compared to 47.7% in the prior year, benefiting from favorable customer mix.
7Operating income for the six months increased by 40.1% year-over-year to $3.64 billion.

LAM RESEARCH CORP Quarterly Report for Q2 Ended Dec 28, 2025

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions