Lam Research Corporation Reports 16.4% Revenue Growth to $4.376 Billion in Q2 FY2025

Lam Research Corporation reported significant financial performance for the second quarter of fiscal year 2025, ending December 29, 2024. The company achieved revenues of $4.376 billion, a 16.4% increase from $3.758 billion in the same quarter of the previous year. For the first half of the fiscal year, revenues reached $8.544 billion, up from $7.240 billion year-over-year. Net income for the quarter was $1.191 billion, translating to a diluted earnings per share of $0.92, compared to $0.72 in the prior year’s quarter. The gross margin for the quarter was reported at $2.073 billion, representing 47.4% of total revenue, slightly down from 48.0% in the previous quarter.

The company noted several strategic developments during this period, including a focus on enhancing its product offerings in the semiconductor manufacturing sector. Systems revenue, which includes sales of new equipment, rose to $2.626 billion, driven by increased investments in memory technologies, particularly in NAND and DRAM markets. Customer support-related revenue also saw growth, totaling $1.750 billion. Geographically, revenue from Korea surged significantly, increasing to $1.090 billion from $712 million, while revenue from China decreased to $1.343 billion from $1.493 billion.

Operationally, Lam Research's employee headcount stood at approximately 18,300 as of December 29, 2024, reflecting ongoing investments in talent to support its growth initiatives. The company’s deferred revenue balance was $2.032 billion, a slight decrease from $2.047 billion at the end of the previous quarter. The company continues to prioritize research and development, with R&D expenses amounting to $495 million for the quarter, representing 11.3% of total revenue. This investment is aimed at maintaining its competitive edge in advanced semiconductor manufacturing technologies.

The filing also highlighted the impact of market conditions on the company's performance. The decrease in gross margin percentage was attributed to an unfavorable customer mix, despite overall revenue growth. Lam Research's management expressed optimism about the long-term outlook, citing sustained demand for semiconductors driven by advancements in cloud computing, artificial intelligence, and 5G technologies. The company anticipates that these trends will continue to support growth in its served available market for wafer fabrication equipment.

Looking ahead, Lam Research remains focused on balancing customer requirements with operational capabilities, which may influence the timing of revenue recognition. The company is committed to leveraging its strong cash position, which totaled $5.677 billion at the end of the quarter, to support ongoing investments in R&D and capital expenditures while navigating the competitive landscape of the semiconductor industry.