Lam Research Corporation Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Performance Highlights (Calendar 2025 Full Year vs. 2024)

  • Record revenue of $20.6 billion, +27% year-over-year (YoY).
  • CSBG revenue reached record $7.2 billion.
  • Gross margin 49.9% (highest since 2012 Novelis merger); gross profit +31% YoY to $10.3 billion.
  • Operating margin 34.1%; operating profit +41% YoY to $7.0 billion.
  • Diluted EPS $4.89, +49% YoY; strong P&L leverage demonstrated.
  • WFE market ~$110 billion in 2025; company gained >1 percentage point WFE ship share YoY and expanded SAM share to mid-30s%.

December 2025 Quarter Results

  • Record revenue $5.34 billion (10th consecutive quarter of growth); exceeded guidance midpoint.
  • Gross margin 49.7% (beat high end of guidance on favorable customer mix); down ~1 pt sequentially due to less favorable mix.
  • Operating margin 34.3% (exceeded high end); operating expenses $827 million (flat sequentially).
  • Diluted EPS $1.27 (above guidance range); share count 1.26 billion.
  • Deferred revenue $2.25 billion (down sequentially due to ~$500M reduction in customer advances).
  • Systems revenue: Foundry 59% (up from 35% in Dec 2024), Memory 34%, Logic/Other 7%.
  • DRAM systems revenue record at 23% of total (up from 16% in Sep 2025); NAND 11% (down from 18%).
  • Regional: China 35% (down from 43% prior quarter), Taiwan 20%, Korea 20%.
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Operator: Good day, and welcome to the Lam Research Corporation December 2025 Earnings Conference Call. All participants will be in listen-only mode. To withdraw your question, please press star then 2. Please note that this event is being recorded. I would now like to turn the conference over to Ram Ganesh, Vice President 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 Chief Executive Officer, and Doug Bettinger, Executive Vice President and Chief Financial Officer. During today's call, we will share our overview on the business environment and review our financial results for the December 2025 quarter and our outlook for the March 2026 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 on a non-GAAP financial basis unless otherwise specified. A detailed reconciliation between GAAP and non-GAAP results can
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