Lam Research delivered a robust QQ3 2025 (Q3) performance underpinned by strong top-line growth, favorable margin dynamics, and strong cash generation. Revenue reached $4.720B, up 21.92% year over year and 7.86% quarter over quarter, with gross profit of $2.313B and a gross margin of 49.02%. Operating income was $1.561B (operating margin ~33.1%), and net income stood at $1.331B, translating to $1.04 per diluted share. The company generated $1.309B in operating cash flow and $1.021B in free cash flow, reinvesting in capacity while returning capital to shareholders through stock repurchases and dividends. Lam entered the period with a solid balance sheet: cash and cash equivalents of roughly $5.451B, total debt around $4.484B, and a net cash position of about $0.966B, implying ample liquidity to fund ongoing capex and R&D investments without heightened leverage.
These results reflect Lam’s continued leadership in semiconductor processing equipment and a favorable capital expenditure cycle across foundry and memory end-markets. Margin expansion was driven by stronger utilization, favorable product mix, and ongoing cost discipline. While the company benefits from a diversified portfolio spanning deposition, etch, cleaning, and metrology, Lam remains exposed to the cyclical nature of the semiconductor equipment cycle and the macro-driven variability in fab ramp timelines. In summary, QQ3 2025 reinforces Lam’s fundamentals: robust profitability, strong cash flow generation, prudent capital allocation, and a constructive long-term growth runway supported by AI/data-center demand and node transitions.