Lam Research (LRCX) Q2 2026 earnings summary

Executive summary

• December 2025 quarter revenue reached $5.34 billion, with gross margin, operating margin, and EPS all above guidance, reflecting strong execution amid robust semiconductor demand.

• Record 2025 revenue of $20.6 billion, up 27% year-over-year, and non-GAAP EPS of $4.89, supported by AI-driven demand and technology transitions.

• Progressed on Investor Day commitments, targeting more than 2x revenue and profit growth over five years through vertical scaling and strategic investments.

• Strong position in deposition, etch, and clean markets, with a focus on R&D and multi-product solutions.

• Management emphasized the company's role in enabling advanced semiconductor device manufacturing.

Financial highlights

• 2025 revenue: $20.6 billion (+27% YoY); gross margin: 49.9%; operating margin: 34.1%; EPS: $4.89 (+49% YoY).

• December 2025 quarter revenue: $5.34 billion (record, 10th consecutive quarter of growth); gross margin: 49.7%; operating margin: 34.3%; EPS: $1.27.

• Net income for Q4 2025: $1.59 billion; free cash flow for 2025: $6.2 billion.

• Deferred revenue at quarter end: $2.25 billion, down sequentially due to reduced customer advance payments.

• Cash and cash equivalents: $6.2 billion; inventory turns: 2.7x; DSO: 59 days.

Outlook and guidance

• March 2026 quarter guidance: revenue $5.7B ±$300M, gross margin 49% ±1pp, operating margin 34% ±1pp, EPS $1.35 ±$0.10.

• 2026 expected to be a second half-weighted year, with robust growth across all device segments, especially DRAM and leading-edge foundry logic.

• WFE for 2026 projected at $135 billion, with growth constrained by clean room space.

• Liquidity and cash flow expected to support operations, investments, and capital returns for at least the next twelve months.