- Lam Research (LRCX, Financial) reported a robust 8% increase in revenue for Q1 2025, totaling $4.72 billion.
- The company achieved a gross margin of 49.0% and an operating income margin of 33.1%.
- Revenue guidance for Q2 2025 is projected at $5.0 billion (± $300 million) with a stable gross margin expectation.
Lam Research Corporation (LRCX) announced its financial results for the first quarter of 2025, with revenue reaching $4.72 billion. This represents an 8% increase from the previous quarter's $4.38 billion. The company's gross margin improved to 49.0%, up from 47.4%, showcasing significant profitability advancements.
Operating income was strong, accounting for 33.1% of revenue, a notable increase compared to the prior quarter. This rise in operating income translated into a 12% boost in diluted earnings per share (EPS), which stood at $1.03 by the end of the quarter.
Geographically, China was the leading revenue generator, contributing 31%, followed closely by Korea and Taiwan, each with 24%. Systems revenue contributed $3.04 billion, while customer support-related activities added $1.68 billion to the total revenue.
Looking ahead, Lam Research has provided optimistic guidance for the second quarter of 2025, with expected revenues of $5.0 billion (± $300 million). The gross margin is anticipated to continue at a steady rate of 49.4% (± 1%).
Despite a minor decrease in cash position from $5.7 billion to $5.5 billion over the quarter, Lam Research remains financially robust. The company is navigating through some tariff-related challenges but remains confident in outperforming industry growth, as stated by CEO Tim Archer.
