Lam Research Corporation (LRCX.BA) Q2 2025 Earnings Report

Lam Research delivered a solid QQ2 2025 performance, underscoring its resilience in a cyclical semiconductor equipment market. Revenue of $4.376B rose 15.35% year over year (YoY) with gross margin of 47.37% and operating margin of 30.48%, leading to a net income of $1.191B and diluted EPS of $9.13. The quarter benefited from favorable product mix, robust demand for wafer fabrication equipment, and disciplined cost management. Cash flow remained a key strength, with operating cash flow of $742M and free cash flow of $554M, supporting a net cash position and continued capital return activity.

From a balance sheet perspective, Lam maintains a strong liquidity profile: cash and cash equivalents of $5.666B, total assets of $19.8399B, total liabilities of $11.0319B, and stockholders’ equity of $8.8080B. The company ended the quarter with a net debt position of approximately $683M in net cash terms and a mature capital structure (current ratio 2.54, cash ratio 1.06, debt-to-capitalization 0.361; interest coverage ~29.5x). Lam also executed meaningful shareholder returns, with roughly $697.9M in stock repurchases and $297.6M in dividends during the period.

Overall, QQ2 2025 reinforces Lam’s position as a leading WFE supplier with strong profitability, substantial cash generation, and a favorable balance sheet, albeit within a cyclical industry. Investors should monitor WFE demand drivers (foundry and memory capex cycles, AI/data center buildouts) and competitive dynamics as catalysts for the next leg of growth.