Lam Research Stock Earnings Reports

Lam Research reported a strong finish to calendar 2025, beating guidance in the December quarter and delivering record full-year results. Key financials: FY2025 revenue $20.6B (up 27% YoY), gross margin ~49.9%, operating margin ~34.1%, diluted EPS $4.89 (up 49% YoY). December quarter revenue was $5.34B and EPS $1.27, both above guidance. Management cites accelerating AI-driven semiconductor demand and clean-room capacity constraints; they estimate industry WFE of roughly $135B in 2026 with spending weighted to the second half. Lam expects to outperform WFE through SAM expansion and share gains driven by technology transitions (gate-all-around, backside power, advanced packaging, ALD Moly) and new products (Aqara etch, Dextro cobots, deposition platforms). CSBG / service revenue and installed-base chamber counts continue to grow (installed base >100k chambers), supporting recurring revenue and margin expansion. Regional notes: China revenue is expected to be roughly flattish year-over-year and therefore a smaller percentage of total revenue in 2026; Taiwan and Korea showed sequential increases. Capital allocation: Lam repurchased $1.4B of stock in the quarter ($5.1B remaining authorization), paid $328M in dividends, plans to return at least 85% of free cash flow over time, and expects CapEx of roughly 4–5% of revenue. Guidance for March 2026 quarter: revenue $5.7B ± $300M, gross margin ~49% ± 1pp, operating margin ~34% ± 1pp, non-GAAP EPS $1.35 ± $0.10 (share count ~1.26B). Management emphasized supply-chain and manufacturing capacity investments (expanded global footprint, automated warehouses) to increase operational velocity and support customer pull-ins, while noting that industry clean-room constraints likely push meaningful capacity additions into 2027–2028.