Lam Research 2025 Q4 Earnings Beats Expectations with 68.6% Net Income Growth

Lam Research (LRCX) reported its fiscal 2025 Q4 earnings on July 30th, 2025. The company surpassed market expectations with a revenue of $5.17 billion, exceeding analyst estimates of $5.01 billion. Lam Research also raised its guidance for the next quarter, projecting revenue of $5.2 billion at the midpoint, 10.8% above what analysts anticipated. This performance underscores Lam's strategic positioning in the semiconductor industry, particularly amid rising demand for AI-driven technologies.

Revenue

Lam Research's total revenue for 2025 Q4 increased by 33.6% to $5.17 billion, compared to $3.87 billion in the same quarter last year.

Earnings/Net Income

The company's EPS grew 73.1% to $1.35 in 2025 Q4 from $0.78 in 2024 Q4, showcasing impressive earnings growth. Net income rose 68.6% to $1.72 billion, reflecting robust profitability. The EPS indicates strong financial health and strategic execution.

Price Action

The stock price of Lam Research edged down 0.43% during the latest trading day, rose 2.05% over the most recent full trading week, and increased 1.94% month-to-date.

Post-Earnings Price Action Review

The investment strategy of buying Lam Research shares 30 days after its earnings release and selling 30 days before the next earnings release has proven successful over the past three years. It achieved a total return of 167.97%, significantly outperforming the benchmark return of 77.91%. This excess return of 90.06% highlights the strategy's effectiveness in leveraging earnings-driven momentum. With a CAGR of 23.10% and a maximum drawdown of 0.00%, the strategy demonstrated strong risk-adjusted returns and minimal downside risk, making it an appealing choice for investors seeking to capitalize on earnings events.

CEO Commentary

Timothy M. Archer, President, CEO & Director, highlighted Lam Research's strong performance, noting record foundry revenues and mid-teens percent growth in the upgrades business. Archer emphasized advancements in etch and deposition intensity, driving the company's served market expansion and share growth. New products like the Halo ALD Moly tool and SABRE 3D system contribute to Lam's strategic focus on technology inflections.

Guidance

For the September 2025 quarter, Lam Research anticipates revenue of $5.2 billion, plus or minus $300 million, with a gross margin of 50%, plus or minus 1 percentage point. The projected operating margin is 34%, plus or minus 1 percentage point, with expected EPS of $1.20, plus or minus $0.10, based on approximately 1.27 billion shares.

Additional News

Lam Research has recently made strategic moves to expand its product offerings and strengthen its market position. The company unveiled its Akara® conductor etch tool, a significant innovation relevant for investors tracking technology shifts in deposition and etch requirements. Additionally, Lam Research plans to return over 85% of its free cash flow to investors, primarily through stock buybacks and dividends, signaling confidence in its financial stability. Furthermore, Stifel Research raised its price target for Lam Research from $92 to $110 per share, maintaining a 'Buy' rating and identifying AI infrastructure acceleration as a key growth catalyst for the company.