#United States #Fremont #Lam Research #semiconductor equipment #Q2 2025

Lam Research Corporation's Financial Results Overview

On July 30, 2025, Lam Research Corporation released its financial results for the second quarter ending June 29, 2025. This report highlights a remarkable performance for the quarter with solid revenue growth and strong profitability metrics.

Key Financial Highlights

• - Revenue: The company reported a revenue of $5.17 billion, a notable increase of 9.6% from $4.72 billion in the previous quarter ending March 30, 2025.
• - Gross Margin: The gross margin for the quarter stands at 50.1%, compared to 49.0% in the previous quarter, reflecting an improvement of 110 basis points.
• - Operating Income: Operating income as a percentage of revenue was reported at 33.7%, slightly up from 33.1% in Q1 2025.
• - Earnings per Share (EPS): Lam's diluted EPS rose significantly to $1.35, marking a 31.1% increase from $1.03 in the previous quarter.

Non-GAAP Financial Results

In addition to its U.S. GAAP results, Lam Research also provided non-GAAP figures which further underscore its operational strength:

• - Non-GAAP gross margin was 50.3%, and operating income as a percentage of revenue was 34.4%. Non-GAAP diluted EPS was reported at $1.33, reflecting a 27.9% uptick from the prior quarter.

Balance Sheet and Cash Flow

By the end of Q2 2025, Lam Research had cash, cash equivalents, and restricted cash totaling $6.4 billion, an increase from $5.5 billion at the end of Q1 2025, driven by operating activities. Additionally, deferred revenue rose significantly to $2.681 billion compared to $2.011 billion in March 2025.

Geographic Distribution of Revenue

Lam Research's revenue saw diverse geographic contributions:

• - China: 35%
• - Korea: 22%
• - Taiwan: 19%
• - Japan: 14%
• - United States: 6%
• - Southeast Asia: 2%
• - Europe: 2%

Outlook for Q3 2025

Looking forward, Lam Research has provided guidance for the upcoming quarter ending September 28, 2025. They forecast revenue to be around $5.20 billion, with gross margin expected to hover around 49.9%. EPS is anticipated to be $1.20.

Strategic Initiatives in the AI Era

Tim Archer, President and CEO of Lam Research, commented on their performance, emphasizing the critical importance of deposition and etch technologies in the age of AI, and how Lam's commitment to long-term strategic initiatives and a strong product portfolio positions the company for future success.

Conclusion

The impressive results for Lam Research in Q2 2025 highlight not only its robust financial position but also its strategic foresight in navigating the semiconductor industry’s evolving landscape. With continued innovation and responsiveness to market demand, Lam Research is poised for sustained growth in the quarters ahead. Investors and industry stakeholders alike will be keenly observing how Lam leverages its strengths to adapt to new challenges and opportunities in the semiconductor sector.