On October 22, 2025, Lam Research Corporation, a leading supplier of innovative wafer fabrication equipment and services to the semiconductor industry, announced its financial results for the quarter ending September 28, 2025. The company reported robust revenue growth and maintained strong margins, despite a slight decline in diluted earnings per share (EPS).

1. Key Financial Highlights

For the September 2025 quarter, Lam Research reported the following key financial metrics:

Revenue: $5.32 billion, a 3% increase from the previous quarter.

U.S. GAAP Gross Margin: 50.4%, up from 50.1% in the June 2025 quarter.

U.S. GAAP Operating Income: 34.4% of revenue, compared to 33.7% in the prior quarter.

U.S. GAAP Diluted EPS: $1.24, down 8% from $1.35 in the previous quarter.

Non-GAAP Diluted EPS: $1.26, a decrease of 5% from $1.33 in the June 2025 quarter.

These results reflect Lam's strategic focus on innovation and customer support, which is crucial in a rapidly evolving semiconductor landscape driven by artificial intelligence (AI).

2. Detailed Financial Results

U.S. GAAP Financial Overview

In the September 2025 quarter, Lam Research's financials showed:

Total revenue reached $5.32 billion, with a gross margin of $2.68 billion (50.4%).

Operating expenses were recorded at $856 million, leading to an operating income of $1.83 billion, which is 34.4% of revenue.

Net income for the quarter stood at $1.57 billion, resulting in a diluted EPS of $1.24.

In comparison, the June 2025 quarter reported revenue of $5.17 billion with a gross margin of $2.59 billion (50.1%), and net income of $1.72 billion with a diluted EPS of $1.35.

Non-GAAP Financial Overview

The non-GAAP results for the September quarter were equally robust:

Non-GAAP revenue was $5.32 billion, with a gross margin of $2.69 billion (50.6%).

Non-GAAP operating income was $1.86 billion, or 35.0% of revenue.

Non-GAAP net income was $1.61 billion, leading to a diluted EPS of $1.26.

These figures indicate a solid operational performance, although they also reflected a decline in EPS compared to the previous quarter.

3. Geographic Revenue Distribution

The geographic breakdown of revenue for the September quarter highlighted the company's strong global presence:

China: 43%

Taiwan: 19%

Korea: 15%

Japan: 10%

United States: 6%

Southeast Asia: 5%

Europe: 2%

Lam's significant revenue from China underscores the country's critical role in the semiconductor supply chain.

4. CEO's Commentary

Tim Archer, President and CEO of Lam Research, expressed optimism regarding the company’s position in the market: “Lam's innovations are helping our customers address major AI-driven semiconductor manufacturing inflections. We are executing well in an environment of tremendous opportunity, and with our expanding portfolio of products and solutions across critical device segments, we are strongly positioned for continued growth.”

5. Balance Sheet and Cash Flow

As of September 28, 2025, Lam Research reported cash, cash equivalents, and restricted cash of $6.7 billion, an increase from $6.4 billion at the end of the previous quarter. This growth was primarily driven by cash generated from operating activities, despite capital expenditures and cash used for capital return activities.

The deferred revenue balance also saw an increase to $2.77 billion, reflecting ongoing demand in the semiconductor sector.

6. Outlook

Looking ahead, Lam Research provided guidance for the December 2025 quarter, with expected revenue of $5.20 billion (±$300 million), a gross margin of 48.4% (±1%), and a diluted EPS of $1.15 (±$0.10). This outlook reflects the company's confidence in navigating the challenges of the semiconductor industry's evolving landscape.

7. Conclusion

Lam Research Corporation's latest results demonstrate its strong market position and operational efficiency in the semiconductor equipment sector. The company continues to leverage its innovations to meet the demands of an increasingly AI-driven market, setting the stage for sustained growth in the upcoming quarters.

Original press release