Executive Summary
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.
Key Performance Indicators
Key Insights
Revenue Performance: QQ3 2025 revenue of $4.720B, up 21.92% YoY and 7.86% QoQ. Gross Profit: $2.313B, gross margin 49.02% (YoY +25.07%, QoQ +11.61%). Operating Income: $1.561B, operating margin 33.09% (YoY +37.44%, QoQ +17.08%). Net Income: $1.331B, net margin 28.19% (YoY +30.42%, QoQ +11.73%). EPS (Diluted): $1.03 (reported $1.04 per share) with diluted EPS $1.033. Balance Sheet Health: Total assets ~$19.97B; cash and cash equivalents ~$5.45B; total debt ~$4.48B; net debt approx. -$0.97B indica...
Financial Highlights
Revenue Performance: QQ3 2025 revenue of $4.720B, up 21.92% YoY and 7.86% QoQ. Gross Profit: $2.313B, gross margin 49.02% (YoY +25.07%, QoQ +11.61%). Operating Income: $1.561B, operating margin 33.09% (YoY +37.44%, QoQ +17.08%). Net Income: $1.331B, net margin 28.19% (YoY +30.42%, QoQ +11.73%). EPS (Diluted): $1.03 (reported $1.04 per share) with diluted EPS $1.033. Balance Sheet Health: Total assets ~$19.97B; cash and cash equivalents ~$5.45B; total debt ~$4.48B; net debt approx. -$0.97B indicating a net cash position. Liquidity: Current ratio 2.45, quick ratio 1.64, cash ratio ~0.99. Efficiency and Cash Flow: Operating cash flow $1.309B; capex $0.288B; free cash flow $1.021B; cash at end of period $5.462B; cash flow returns to shareholders through common stock repurchases of $435.3M and dividends of $295.7M in the period. Valuation Snapshot: P/E ~17.5x, P/B ~9.8x, P/S ~19.8x, EV/EBITDA ~55.0x, dividend yield ~0.32%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.72B |
21.92% |
7.86% |
| Gross Profit |
2.31B |
25.07% |
11.61% |
| Operating Income |
1.56B |
37.44% |
17.08% |
| Net Income |
1.33B |
30.42% |
11.73% |
| EPS |
1.04 |
32.89% |
11.45% |
Key Financial Ratios
operatingProfitMargin
33.1%
operatingCashFlowPerShare
$1.02
freeCashFlowPerShare
$0.8
dividendPayoutRatio
22.2%
Management Commentary
Transcript highlights unavailable. The earnings transcript field is empty in the provided data, so no management quotes or thematic highlights can be included. If you can provide the QQ3 2025 call transcript, I will synthesize management commentary by theme (strategy, operations, market conditions) and include direct quotes with context.
Transcript not provided in the dataset.
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Transcript not provided in the dataset.
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Forward Guidance
Management guidance for QQ4 2025 and full-year 2025 is not included in the supplied data. Given the ongoing semiconductor equipment upcycle and Lam’s diversified product portfolio across polishing, deposition, etch, and metrology, the core thesis is constructive: demand should remain tied to fab capex cycles driven by AI, data-center expansion, and node transitions. Risks include cyclical volatility in semiconductor investments, potential MACRO shocks, and supply-chain constraints. Investors should monitor: (1) fabs’ timing for next-generation node deployments, (2) equipment utilization and backlog trends, (3) commentary on capital allocation pace (capex vs. buybacks), and (4) changes in inventory levels and working capital needs as lead times and project ramps evolve.