Lam Research (LRCX) came out with quarterly earnings of $1.33 per share, beating the Zacks Consensus Estimate of $1.2 per share. This compares to earnings of $0.81 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +10.83%. A quarter ago, it was expected that this semiconductor equipment maker would post earnings of $1 per share when it actually produced earnings of $1.04, delivering a surprise of +4%.Over the last four quarters, ...

Financial Data and Key Metrics Changes - The company reported record revenue of $18.4 billion for the fiscal year 2025, with a gross margin of 48.8% [19] - For the June quarter, revenue was $5.17 billion, a 10% increase from the prior quarter, and gross margin reached 50.3%, the highest since the merger with Novelis [18][19] - Diluted earnings per share for the June quarter were $1.33, exceeding the high end of guidance [29] Business Line Data and Key Metrics Changes - Foundry segment revenue represented 52% of systems revenue in June, up from 48% in March, marking a record quarter [20] - Memory accounted for 41% of systems revenue, down from 43% in the prior quarter, while non-volatile memory increased to 27% from 20% [21] - The Logic and Other segment decreased to 7% of systems revenue from 9% in the previous quarter [23] Market Data and Key Metrics Changes - Revenue from the China region increased to 35% from 31% in the prior quarter, driven by investments from global multinationals [24] - Korea and Taiwan revenues decreased to 22% and 19% respectively, down from 24% in March [24] - Japan revenue reached a record level in dollar terms at 14% of total revenue [24] Company Strategy and Development Direction - The company aims to expand its served available market (SAM) to the high 30% range of wafer fabrication equipment (WFE) by delivering critical solutions for atomic-level device scaling and advanced packaging integration [10] - Investments in R&D have created a competitive product portfolio, positioning the company to capture over 50% of incremental SAM over time [10] - The company is focusing on advanced packaging and etch intensity, which are expected to drive future growth [16] Management's Comments on Operating Environment and Future Outlook - Management expects WFE spending in 2025 to be around $105 billion, up from a previous estimate of $100 billion, primarily due to increased spending in China [8] - The company anticipates a balanced WFE environment in the second half of the year, with a strong position in key technology areas [9] - Management expressed confidence in outperforming the market due to strong demand drivers such as AI and advanced packaging [50] Other Important Information - The company generated free cash flow of approximately $5.4 billion, representing 29% of revenue, a record in dollar terms [19] - Capital expenditures for the June quarter were $172 million, down from $288 million in March, focused on lab investments and manufacturing facilities [31] - The company has $7.5 billion remaining on its share repurchase program [29] Q&A Session Summary Question: What are the key drivers of outperformance in the tool business? - Management highlighted foundry logic, selective etch, and ALD as key drivers, with advanced packaging also contributing significantly [37] Question: Will gross margins continue to benefit from China? - Management indicated that while there are favorable mix benefits, they expect gross margins to normalize around 48% in December due to various headwinds [40][41] Question: Is revenue expected to decline in December? - Management confirmed that December revenue is expected to mirror the flat WFE outlook, indicating a likely decline [46] Question: What is the outlook for NAND spending? - Management reiterated that NAND investments will require approximately $40 billion over several years for technology upgrades [87] Question: How is the company positioned for 2026? - Management expressed confidence in gaining share and expanding SAM, driven by strong product portfolio and technology advancements [85] Question: What is the impact of China on future revenue? - Management noted that while there was a strong uptick in China spending, they expect some normalization in the December quarter [115]

Financial Data and Key Metrics Changes - The company reported record revenue of $18.4 billion for the fiscal year 2025, with a gross margin of 48.8% and a record free cash flow generation of approximately $5.4 billion, representing 29% of revenue [19][29] - For the June quarter, revenue was $5.17 billion, a 10% increase from the prior quarter, with a gross margin of 50.3%, marking the highest since the merger with Novelis [18][25] - Diluted earnings per share for the June quarter were $1.33, exceeding the high end of guidance, driven by higher revenue and stronger gross margin performance [29] Business Line Data and Key Metrics Changes - Foundry segment revenue represented 52% of systems revenue in June, up from 48% in March, indicating strong performance in this area [20] - Memory accounted for 41% of systems revenue, a slight decrease from 43% in the prior quarter, with non-volatile memory increasing to 27% from 20% [21] - The Customer Support Business Group revenue remained consistent at approximately $1.7 billion, with a record quarter for upgrade revenue driven by NAND technology convergence [24] Market Data and Key Metrics Changes - The China region accounted for 35% of total revenue, up from 31% in the prior quarter, driven by increased investment from global multinational customers [23] - Korea and Taiwan represented 22% and 19% of revenue, respectively, both down from 24% in March, while Japan revenue reached a record level at 14% [23] - The company expects wafer fabrication equipment (WFE) spending to be in the $105 billion range for 2025, up from a prior estimate of $100 billion, primarily due to increased spending in China [7][8] Company Strategy and Development Direction - The company aims to expand its served available market (SAM) to the mid-30% range of WFE by delivering critical solutions for atomic level device scaling and advanced packaging integration [10] - Investments in R&D have enabled the company to create a competitive product portfolio, positioning it to capture over 50% of the incremental SAM over time [10] - The company is focusing on advanced packaging and gate all around device architectures, which are critical for scaling system performance to meet next-generation AI requirements [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform in the WFE market, driven by strong positions in key technology areas such as gate all around and advanced packaging [8][9] - The company anticipates a balanced WFE environment for the second half of 2025, with expectations for modest growth in the Customer Support Business Group [32] - Management noted that while there are headwinds from tariffs and a potential normalization in China spending, the overall outlook remains positive due to strong demand drivers [39][75] Other Important Information - The company allocated approximately $1.3 billion to share buybacks and paid $295 million in dividends during the June quarter [28] - Capital expenditures for the June quarter were $172 million, down from $288 million in March, focused on lab investments and manufacturing facilities [31] - The company ended the June quarter with approximately 19,000 full-time employees, an increase of about 400 from the prior quarter, primarily in R&D [31] Q&A Session Summary Question: What are the key drivers of outperformance in the tool business? - Management highlighted foundry logic, selective etch, and ALD as key areas for growth, with advanced packaging becoming increasingly important [36][38] Question: Will gross margins continue to benefit from China? - Management indicated that while there are favorable mix benefits, they expect gross margins to normalize around 48% in December due to various headwinds [39][40] Question: Is NAND strength expected to sustain? - Management reiterated that NAND spending will require approximately $40 billion over several years for technology upgrades, indicating a long-term positive outlook [85][88] Question: How is the company positioned for 2026? - Management refrained from providing specific guidance but expressed confidence in the company's ability to gain share and expand SAM despite potential industry-wide CapEx challenges [82][84] Question: What is the outlook for the advanced packaging business? - Management noted that advanced packaging is performing slightly better than expected, driven by strong demand for HBM and complex packaging schemes [58][60]

Financial Performance & Outlook - June quarter revenue reached $5.17 billion, exceeding the previous quarter's $4.72 billion[34] - Fiscal Year 2025 revenue totaled $18.44 billion, a significant increase from $14.91 billion in Fiscal Year 2024[38] - The company projects September 2025 quarter revenue to be $5.20 billion, with a variance of plus or minus $300 million[49] - Non-GAAP gross margin for the September 2025 quarter is guided at 50%, plus or minus 1%[49] - Non-GAAP earnings per share for the September 2025 quarter are projected at $1.20, with a variance of plus or minus $0.10, based on approximately 1.27 billion diluted shares[50] Market & Technology - The company estimates its served market to be approximately mid-30% of Wafer Fabrication Equipment (WFE) in 2025, driven by investments in GAA, advanced packaging, HBM, and NAND layer conversions[12] - The company increased CY 2025 WFE outlook to ~$105 billion[12] - SABRE® 3D market share in advanced packaging is expected to grow nearly 5 points in calendar year 2025[21] Business Segments - Customer Support Business Group (CSBG) revenue for June quarter 2025 was $1.73 billion, compared to $1.68 billion in the previous quarter and $1.70 billion in June quarter 2024[44] - Memory accounted for 41% of the June quarter revenue mix[40]

Revenue Performance - Revenue for the June 2025 quarter was $5,171 million, representing a 9.6% increase from $4,720 million in the March 2025 quarter[2] - Revenue for the three months ended June 29, 2025, was $5,171,393, an increase of 9.5% from $4,720,175 in the previous quarter and up 33.4% from $3,871,507 in the same quarter last year[17] - Systems revenue for the June 2025 quarter was $3,437 million, compared to $3,035 million in the March 2025 quarter[8] - The geographic distribution of revenue showed China contributing 35%, Korea 22%, and Taiwan 19% in the June 2025 quarter[8] Profitability Metrics - U.S. GAAP gross margin was 50.1%, up from 49.0% in the previous quarter, while non-GAAP gross margin increased to 50.3%[2][4] - Gross margin for the same period was $2,589,709, representing 50.1% of revenue, compared to 49.0% in the previous quarter and 47.5% a year ago[17] - Diluted EPS on a U.S. GAAP basis was $1.35, a 31.1% increase compared to $1.03 in the March 2025 quarter[2][5] - Non-GAAP net income for the June 2025 quarter was $1,698 million, or $1.33 per diluted share, compared to $1,336 million, or $1.04 per diluted share in the March 2025 quarter[4][11] - U.S. GAAP net income for the three months ended June 29, 2025, was $1,720,088 thousand, an increase from $1,330,667 thousand in the previous quarter[25] - Non-GAAP net income for the same period was $1,697,716 thousand, compared to $1,336,006 thousand in the prior quarter, reflecting strong performance[25] Cash and Assets - Cash, cash equivalents, and restricted cash increased to $6.4 billion at the end of the June 2025 quarter, up from $5.5 billion at the end of the March 2025 quarter[6] - Cash and cash equivalents increased to $6,390,659 as of June 29, 2025, compared to $5,450,718 at the end of the previous quarter and $5,847,856 a year ago[19] - Total assets reached $21,345,260 as of June 29, 2025, up from $19,968,310 in the previous quarter and $18,744,728 a year ago[19] - Net cash provided by operating activities for the three months ended June 29, 2025, was $2,554,188, compared to $1,308,663 in the previous quarter and $862,430 a year ago[21] Operating Expenses - Operating income for the three months ended June 29, 2025, was $1,741,128, or 33.7% of revenue, up from 33.1% in the previous quarter and 29.1% in the same quarter last year[17] - Total operating expenses under U.S. GAAP were $848,581 thousand, up from $751,927 thousand in the previous quarter[26] - Operating expenses totaled $848,581 for the three months ended June 29, 2025, an increase from $751,927 in the previous quarter and $713,538 a year ago[17] - Research and development expenses for the three months ended June 29, 2025, were $580,178, compared to $525,904 in the previous quarter and $497,829 a year ago[17] - Non-GAAP operating expenses decreased to $822,375 thousand from $763,336 thousand, indicating cost management improvements[26] Future Guidance - For the quarter ending September 28, 2025, the company provided guidance of $5.20 billion in revenue, with a gross margin of 49.9%[10] Strategic Initiatives - The company emphasized its strategic initiatives in the AI era, focusing on deposition and etch technologies to enhance performance[5]

FREMONT, Calif., July 30, 2025 /PRNewswire/ -- Lam Research Corporation (the "Company," "Lam," "Lam Research") today announced financial results for the quarter ended June 29, 2025 (the "June 2025 quarter").Highlights for the June 2025 quarter were as follows: Revenue of $5.17 billion. U.S. GAAP gross margin of 50.1%, U.S. GAAP operating income as a percentage of revenue of 33.7%, and U.S. GAAP diluted EPS of $1.35. Non-GAAP gross margin of 50.3%, non-GAAP operating income as a percentage of revenue of 34.4 ...

Group 1 - Multiple companies are scheduled to release their earnings reports throughout the week, indicating a busy earnings season [1] - On Monday, companies like 铿腾电子 are set to report their performance [1] - On Tuesday, Stellantis and AstraZeneca will release their earnings before the European market opens [1] Group 2 - Major U.S. companies such as Boeing, UnitedHealth, and Procter & Gamble are expected to report earnings before the U.S. market opens on Tuesday [1] - Following that, Visa, Booking, and Starbucks will report their earnings after the U.S. market closes on Tuesday [1] - On Wednesday, significant tech companies including Microsoft, Meta Platforms, Qualcomm, and Arm Holdings are scheduled to release their earnings after the U.S. market closes [1] Group 3 - Mastercard is set to report its earnings before the U.S. market opens on Thursday [1] - Apple, Amazon, MicroStrategy, Coinbase, and Coherent will report their earnings after the U.S. market closes on Thursday [1] - On Friday, ExxonMobil, Chevron, and Regeneron Pharmaceuticals are expected to release their earnings before the U.S. market opens [1]

Group 1 - The upcoming report from Lam Research (LRCX) is expected to reveal quarterly earnings of $1.20 per share, indicating an increase of 48.2% compared to the year-ago period [1] - Analysts forecast revenues of $4.99 billion, representing an increase of 28.9% year over year [1] - Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.7% [1] Group 2 - Analysts expect 'Revenue- Customer support-related revenue and other' to come in at $1.76 billion, suggesting a change of +3.4% year over year [4] - The estimate for 'Revenue- Systems' is projected to arrive at $3.22 billion, indicating a change of +48.5% year over year [4] - The consensus estimate for 'Leading- and non-leading-edge equipment and upgrade Revenue - Memory' stands at 43.0%, compared to 36.0% in the same quarter last year [5] Group 3 - The estimated 'Leading- and non-leading-edge equipment and upgrade Revenue - Logic/integrated device manufacturing' is 9.0%, contrasting with the year-ago figure of 21.0% [5] - The average prediction for 'Leading- and non-leading-edge equipment and upgrade Revenue - Foundry' is 48.1%, compared to 43.0% in the same quarter last year [6] - Over the past month, Lam Research shares have recorded returns of +1% versus the Zacks S&P 500 composite's +4.6% change [6]

Industry Overview - The technology sector experienced growth in Q2 2025, driven by the strong adoption of Artificial Intelligence (AI), machine learning, and Generative AI (GenAI) [1] - The ongoing digitalization wave is supporting the rapid adoption of technologies such as AI, cloud computing, 5G, and others [1] Earnings Reports - Several technology companies, including Meta Platforms, Lam Research, Flex, and Seagate Technology, are expected to report earnings soon, with potential to exceed estimates [2] AI and Cloud Computing Investments - The demand for AI is increasing, leading to a need for expanded data center capacity [3] - Major cloud providers like Amazon, Alphabet, Microsoft, and Meta Platforms have significant multi-year investment plans for cloud capacity and AI deployment, with Microsoft planning to invest $80 billion and Meta Platforms $64-$72 billion [3] Semiconductor Market - The advent of GenAI has spurred investments in chips, particularly GPUs, with semiconductor sales reaching $59 billion in May 2024, a 19.8% year-over-year increase [4] PC Market Growth - The PC segment saw growth in Q2 2025, with IDC estimating 68.4 million units sold, a 6.5% year-over-year increase [5] - Gartner estimates shipments at 63.2 million units, up 4.4% year-over-year, driven by an upgrade cycle and demand for AI-enabled PCs [5] Company-Specific Insights - Meta Platforms has an Earnings ESP of +1.83% and is expected to report Q2 2025 ad revenues of $43.94 billion, indicating a 14.6% year-over-year growth [8][9] - Lam Research has an Earnings ESP of +2.71% and is benefiting from shifts in semiconductor demand, with a consensus revenue estimate of $3.22 billion, suggesting 48.5% year-over-year growth [11][12] - Flex Ltd has an Earnings ESP of +2.77% and is expected to report Agility Solutions revenue of $3.52 billion, indicating 4.5% year-over-year growth [14][15] - Seagate Technology has an Earnings ESP of +2.34% and is projected to report Mass Capacity revenues of $2 billion, suggesting a 39.6% year-over-year growth [17][18]

Core Viewpoint - Lam Research Corporation (LRCX) has significantly outperformed the broader semiconductor industry, with a 58.6% increase in stock price over the past three months, compared to 54.7% for the Zacks Electronics – Semiconductors industry [1][10]. Group 1: Performance and Market Confidence - LRCX's stock performance stands out among peers such as Marvell Technology, Applied Materials, and QUALCOMM, which saw increases of 47.5%, 37.7%, and 11.6% respectively [1][10]. - The strong performance indicates high investor confidence in Lam Research's growth outlook, despite external challenges like geopolitical tensions and global trade issues [4]. Group 2: Demand and Technological Advancements - Lam Research is capitalizing on the growing demand for advanced semiconductor technologies, particularly in artificial intelligence (AI) and data center chips, which require complex manufacturing processes [5]. - In 2024, Lam Research shipped over $1 billion worth of products related to next-generation chip technologies, with expectations for this figure to triple in 2025 [6][10]. - The company's innovations, such as Cryo 3.0 technology and the Aether dry-resist system, are setting new industry standards and gaining traction, especially in high-bandwidth DRAM applications [7]. Group 3: Financial Performance - In the third quarter of fiscal 2025, Lam Research reported a 24.5% year-over-year revenue increase to $4.72 billion, with non-GAAP EPS rising by 33.5% [11]. - The non-GAAP operating margin improved to 32.8%, reflecting effective cost control and operational efficiency, particularly due to expanded manufacturing operations in Asia [8][11]. Group 4: Valuation and Investment Outlook - Despite the recent stock rally, LRCX's valuation remains attractive, trading at a forward price-to-earnings (P/E) multiple of 25, lower than the industry average of 33.81 [13]. - The stock is currently trading at a premium compared to major industry players like QUALCOMM, Applied Materials, and Marvell Technology, which have forward P/E multiples of 13.14, 19.13, and 23.66 respectively [15]. - Lam Research's strong financials, reasonable valuation, and focus on AI-related growth position it as a favorable investment choice [16].