Lam Research's Q4 Earnings Beat Expectations, Revenues Rise Y/Y

Core Insights - Lam Research (LRCX) reported strong fourth-quarter fiscal 2025 results, with both revenue and earnings exceeding expectations [1][2][9] Financial Performance - LRCX's fourth-quarter non-GAAP earnings were $1.33 per share, beating the Zacks Consensus Estimate by 10.8% and reflecting a 64.2% year-over-year increase [1] - The company reported revenues of $5.17 billion, surpassing the consensus estimate by 3.6% and increasing 34% from $3.87 billion in the same quarter last year [2][9] - Systems revenues reached $3.44 billion, accounting for 66.5% of total revenues, marking a 58% year-over-year increase [3] - Customer Support Business Group revenues were $1.73 billion, representing 33.5% of total revenues, with a 1.9% year-over-year increase [4] Operating Metrics - Non-GAAP gross margin improved to 50.3%, up 130 basis points from the previous quarter [5] - Non-GAAP operating expenses rose to $822.4 million, a 7.7% increase from the prior quarter, but as a percentage of revenues, they decreased to 15.9% [5] - The non-GAAP operating margin improved to 34.4%, reflecting a 160 basis point sequential increase [5] Cash Flow and Shareholder Returns - As of June 29, 2025, Lam Research held $6.39 billion in cash and cash equivalents, up from $5.45 billion in the previous quarter [6] - Cash flow from operating activities increased significantly to $2.55 billion, compared to $1.31 billion in the prior quarter [6] - The company paid dividends totaling $295.2 million and repurchased shares worth $1.29 billion during the quarter [7] Future Guidance - For the first quarter of fiscal 2026, Lam Research projects revenues of $5.2 billion (+/- $300 million), indicating year-over-year growth of 11.2% [8][10] - The projected non-GAAP earnings per share for the first quarter is $1.20 (+/- $0.10), which is above the current consensus estimate of $1.00 per share [10]