Highlights for the September 2025 quarter were as follows:
Revenue of $5.32 billion.
U.S. GAAP gross margin of 50.4%, U.S. GAAP operating income as a percentage of revenue of 34.4%, and U.S. GAAP diluted EPS of $1.24.
Non-GAAP gross margin of 50.6%, non-GAAP operating income as a percentage of revenue of 35.0%, and non-GAAP diluted EPS of $1.26.
Key Financial Data for the Quarters Ended
September 28, 2025 and June 29, 2025
(in thousands, except per-share data, percentages, and basis points)
U.S. GAAP
September 2025
June 2025
Change Q/Q
Revenue
$ 5,324,173
$ 5,171,393
+ 3 %
Gross margin as percentage of revenue
50.4 %
50.1 %
+ 30 bps
Operating income as percentage of revenue
34.4 %
33.7 %
+ 70 bps
Diluted EPS
$ 1.24
$ 1.35
- 8 %
Non-GAAP
September 2025
June 2025
Change Q/Q
Revenue
$ 5,324,173
$ 5,171,393
+ 3 %
Gross margin as percentage of revenue
50.6 %
50.3 %
+ 30 bps
Operating income as percentage of revenue
35.0 %
34.4 %
+ 60 bps
Diluted EPS
$ 1.26
$ 1.33
- 5 %
U.S. GAAP Financial Results
For the September 2025 quarter, revenue was $5,324 million, gross margin was $2,685 million, or 50.4% of revenue, operating expenses were $856 million, operating income was 34.4% of revenue, and net income was $1,569 million, or $1.24 per diluted share on a U.S. GAAP basis. This compares to revenue of $5,171 million, gross margin of $2,590 million, or 50.1% of revenue, operating expenses of $849 million, operating income of 33.7% of revenue, and net income of $1,720 million, or $1.35 per diluted share, for the quarter ended June 29, 2025 (the "June 2025 quarter").
Non-GAAP Financial Results
For the September 2025 quarter, non-GAAP gross margin was $2,694 million, or 50.6% of revenue, non-GAAP operating expenses were $832 million, non-GAAP operating income was 35.0% of revenue, and non-GAAP net income was $1,605 million, or $1.26 per diluted share. This compares to non-GAAP gross margin of $2,601 million, or 50.3% of revenue, non-GAAP operating expenses of $822 million, non-GAAP operating income of 34.4% of revenue, and non-GAAP net income of $1,698 million, or $1.33 per diluted share, for the June 2025 quarter.
"Lam's innovations are helping our customers address major AI-driven semiconductor manufacturing inflections," said Tim Archer, Lam Research's President and Chief Executive Officer. "We are executing well in an environment of tremendous opportunity, and with our expanding portfolio of products and solutions across critical device segments, we are strongly positioned for continued growth."
Balance Sheet and Cash Flow Results
Cash, cash equivalents, and restricted cash balances increased to $6.7 billion at the end of the September 2025 quarter compared to $6.4 billion at the end of the June 2025 quarter. The increase was primarily the result of cash generated from operating activities, partially offset by cash deployed for capital return activities, and capital expenditures during the quarter.
Deferred revenue at the end of the September 2025 quarter increased to $2.77 billion compared to $2.68 billion as of the end of the June 2025 quarter. Lam's deferred revenue balance does not include shipments to customers in Japan, to whom control does not transfer until customer acceptance. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $131 million as of September 28, 2025 and $342 million as of June 29, 2025.
Revenue
The geographic distribution of revenue during the September 2025 quarter is shown in the following table:
Region
Revenue
China
43 %
Taiwan
19 %
Korea
15 %
Japan
10 %
United States
6 %
Southeast Asia
5 %
Europe
2 %
The following table presents revenue disaggregated between systems and customer support-related revenue:
Three Months Ended
September 28,2025
June 29,2025
September 29,2024
(In thousands)
Systems revenue
$ 3,547,565
$ 3,437,625
$ 2,392,730
Customer support-related revenue and other
1,776,608
1,733,768
1,775,246
$ 5,324,173
$ 5,171,393
$ 4,167,976
Systems revenue includes sales of new leading-edge equipment in deposition, etch, and other wafer fabrication markets.
Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from our Reliant® product line.
Outlook
For the quarter ended December 28, 2025, Lam is providing the following guidance:
U.S. GAAP
ReconcilingItems
Non-GAAP
Revenue
$5.20 Billion
+/-
$300 Million
—
$5.20 Billion
+/-
$300 Million
Gross margin as a percentage of revenue
48.4 %
+/-
1 %
$ 2.7
Million
48.5 %
+/-
1 %
Operating income as a percentage of revenue
32.9 %
+/-
1 %
$ 3.0
Million
33.0 %
+/-
1 %
Net income per diluted share
$1.15
+/-
$0.10
$ 3.5
Million
$1.15
+/-
$0.10
Diluted share count
1.26 Billion
—
1.26 Billion
The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other significant arrangements that may be completed or realized after the date of this release, except as described below. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material. Reconciling items included above are as follows:
Gross margin as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $2.7 million.
Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $3.0 million.
Net income per diluted share - amortization related to intangible assets acquired though business combinations, $3.0 million; amortization of debt discounts, $0.7 million; and associated tax benefit for non-GAAP items ($0.2 million); totaling $3.5 million.
Use of Non-GAAP Financial Results
In addition to U.S. GAAP results, this press release also contains non-GAAP financial results. The Company's non-GAAP results for both the September 2025 and June 2025 quarters exclude amortization related to intangible assets acquired through business combinations, the effects of elective deferred compensation-related assets and liabilities, amortization of note discounts, and the net income tax effect of non-GAAP items. In addition, the September 2025 quarter excludes the impairment of long-lived assets and income tax expense from a change in tax law and the June 2025 quarter excludes the income tax benefit on conclusion of certain tax matters related to a prior business combination.
Management uses non-GAAP gross margin, operating expense, operating income, operating income as a percentage of revenue, net income, and net income per diluted share to evaluate the Company's operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for ...
