Lam Research Corporation Q1 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Lam Research September 2025 Quarter Earnings Summary

Overall Performance: Lam delivered record results in the September 2025 quarter, reflecting strong execution amid AI-driven demand. Revenue reached an all-time high of $5.3 billion (up 3% sequentially from $5.15 billion implied in June quarter). Gross margin hit a post-Novellus record of 50.6% (vs. 50.3% in June quarter). Operating margin achieved a company record of 35%. Combined spares and services (CSBG) revenue hit a record ~$1.8 billion (slightly higher both sequentially and year-over-year). The company expects to close calendar 2025 with three consecutive quarters above $5 billion in revenue.

Key Financial Metrics vs. Prior Periods

  • Revenue: $5.3B (record; +3% vs. June quarter; on track for record calendar 2025).
  • Gross Margin: 50.6% (record; +0.3 pts vs. June quarter 50.3%; at high end of guidance; impacted by tariffs and mix).
  • Operating Margin: 35% (record in both $ and % terms; at high end of guidance).
  • Operating Expenses: $832M (up from $822M in June quarter, due to headcount and incentives).
  • EPS: $1.26 (above midpoint of guidance; diluted shares 1.27B, down sequentially).
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Operator: Good day, and welcome to the Lam Research Corporation September Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Ram Ganesh of Investor Relations. Please go ahead. Ram Ganesh: Thank you, and good afternoon, everyone. Welcome to the Lam Research quarterly earnings conference call. With me today are Tim Archer, President and CEO, and Doug Bettinger, Executive Vice President and Chief Financial Officer. During today's call, we will share our overview on the business environment, and we'll review our financial results for the September quarter and our outlook for the December quarter. The press release detailing our financial results was distributed a little after 1 PM Pacific Time. The release can also be found on the Investor Relations section of the company's website along with the presentation slides that accompany today's call. Today's presentation and Q&A include forward-looking statements that are subject to risks and uncertainties reflected in the risk factors disclosed in our SEC public filings. Please see accompanying slides in the presentation for additional information. Today's discussion of our financial results will be presented
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