I've been long Lam Research (NASDAQ: LRCX ) since 2022, but never gotten around to cover it, so about time that I take the opportunity as the company just released its Q4-2025 performance as of July 30 Analyst's Disclosure:I/we have a beneficial long position in the shares of LRCX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship ...

Group 1: Industry Overview - The semiconductor industry is experiencing a moderate recovery, with Q1 2025 global sales reaching $167.7 billion, a year-on-year increase of 18.8% [66] - In May 2025, global semiconductor sales were $59 billion, showing a year-on-year growth of 19.8% [66] - The recovery is driven by strong demand in the Americas and Asia-Pacific regions, particularly in high-end computing and storage due to AI [66] Group 2: Company Performance - Texas Instruments reported Q2 revenue of $4.45 billion, a 9% quarter-on-quarter increase and a 16% year-on-year increase, driven by a broad recovery in the industrial market [6] - STMicroelectronics experienced a 14.4% year-on-year decline in Q2 revenue to $2.76 billion, resulting in a net loss of $133 million due to restructuring costs [7] - NXP's Q2 revenue was $2.93 billion, a 6% year-on-year decline but a 3% quarter-on-quarter increase, with all key end markets performing better than expected [9] Group 3: Specific Company Highlights - Qualcomm's Q3 revenue increased by 10% year-on-year to $10.365 billion, with automotive chip revenue growing by 21% [11] - MediaTek's Q2 revenue was NT$150.37 billion, a 1.9% quarter-on-quarter decline but a 4.3% year-on-year increase, driven by demand for AI and automotive chips [13] - Samsung's Q2 operating profit fell by 55.2% year-on-year to 4.7 trillion KRW, marking a six-quarter low due to AI chip sales issues [14][15] Group 4: Market Trends - The industrial market is showing signs of recovery, while the automotive market is lagging behind by about a year [6] - AI-related demand continues to be strong, particularly in high-performance computing and storage sectors [66] - The overall semiconductor market is expected to see varied recovery rates across different sectors, with traditional markets like industrial applications rebounding first [66] Group 5: Financial Performance of Key Players - SK Hynix reported record high Q2 revenue of 22.232 trillion KRW, driven by strong demand for AI-related memory products [16] - Micron Technology's Q3 revenue reached $9.3 billion, a 37% year-on-year increase, attributed to record DRAM revenue [19] - TSMC's Q2 revenue was approximately NT$933.8 billion, with a net profit increase of 60.7% year-on-year [43]

Company Overview - Lam Research Corporation (NASDAQ: LRCX) is a semiconductor company that provides advanced equipment to manufacturers for chip production [1] Equipment and Technology - The company's equipment is sophisticated and primarily used in wafer construction processes such as etching, deposition, and cleaning [1] Investment Philosophy - The company emphasizes diversification across different portfolios, focusing on income plays, growth stocks, and options strategies to meet various investment goals [1] Options Strategies - The company employs various options strategies including covered calls, iron condors, butterflies, calendar spreads, and call-put spreads, indicating a strong interest in options trading [1]

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]