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Lam research forecasts $5B Q2 2025 revenue with NAND upgrades leading growth

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Lam research forecasts $5B Q2 2025 revenue with NAND upgrades leading growth
Apr. 23, 2025 9:41 PM ETLam Research Corporation (LRCX) StockAI-Generated Earnings Calls Insights

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Earnings Call Insights: Lam Research Corporation (LRCX) Q3 2025

Management View
CEO Tim Archer highlighted that Q3 2025 results exceeded guidance midpoints in revenue, gross margin, operating margin, and EPS, reflecting strong execution. Foundry revenues reached a record high, driven by advanced technology inflections, while gross margin achieved its highest level since the Novellus merger.
Archer emphasized the critical role of NAND upgrades in driving growth, with strong adoption of the company's HALO system and SPARC ALD tools in leading-edge foundry applications. He also cited momentum in DRAM and 3D NAND with advanced etch and deposition tools like Akara and ALTUS Halo systems.
Archer noted significant progress in the Customer Support Business Group (CSBG), particularly in upgrades for NAND technology conversions and new applications for DRAM and foundry logic customers.
CFO Doug Bettinger reported Q3 2025 revenue of $4.72 billion, an 8% increase from the prior quarter. Foundry represented 48% of systems revenue, a record in dollar terms. Gross margin was 49%, driven by operational efficiencies, while operating margin reached 32.8%.
Bettinger stated, "We achieved the highest quarterly gross margin percentage since our merger with Novellus in 2012," underscoring the benefits of a "close to customer" manufacturing strategy.
Outlook
For Q2 2025, Lam forecasts revenue of $5 billion, plus or minus $300 million. Guidance also includes gross margin of 49.5%, operating margin of 33.5%, and EPS of $1.20, plus or minus $0.10.
Archer reiterated confidence in Lam's ability to outperform overall WFE growth through served market expansion and share gains in advanced technology nodes like gate-all-around, backside power, and advanced packaging.
Financial Results
Q3 2025 revenue increased to $4.72 billion, up 8% sequentially.
Foundry revenue reached 48% of systems revenue, driven by advanced node spending in gate-all-around and advanced packaging.
Gross margin improved to 49%, reflecting better product mix and operational efficiency.
CSBG generated $1.7 billion in revenue, driven by record upgrades, particularly for NAND.
Operating expenses grew to $763 million, with 70% allocated to R&D for ongoing product differentiation.
Capital expenditures rose to $288 million, including investments in lab expansions in India and manufacturing facilities in the United States.
Q&A
C.J. Muse, Cantor Fitzgerald, inquired about the sustainability of NAND upgrades beyond Q2. Archer responded that Lam benefits from both tool upgrades and new tool deployments as customers transition to higher layer counts, with strong adoption of their Halo molybdenum process.
Timothy Arcuri, UBS, asked about measures to mitigate tariff impacts. Archer described Lam's flexible, global manufacturing strategy, positioned close to customers and supply chains, to adapt to changing trade conditions.
Harlan Sur, JPMorgan, probed gross margin sustainability amid potential tariff impacts. Bettinger noted that customer mix and product mix variability will cause fluctuations but highlighted operational improvements as a stabilizing factor.
Sentiment Analysis
Analysts expressed cautious optimism, focusing on NAND upgrade sustainability and tariff impacts. Questions emphasized potential risks to second-half revenue and gross margin sustainability.
Management displayed confidence in long-term growth drivers, reiterating the importance of investments in advanced technologies and operational efficiency for margin expansion.
Compared to Q2 2025, management's tone remained confident, though analysts pressed harder on risks related to macroeconomic conditions and customer spending trends.
Quarter-over-Quarter Comparison
Revenue grew from $4.38 billion in Q2 2025 to $4.72 billion in Q3 2025, with significant contributions from foundry and NAND markets.
Gross margin increased from 47.5% to 49%, driven by operational efficiencies and stronger product mix.
CSBG revenue saw a slight sequential decline but recorded year-over-year growth of 21%, highlighting strength in NAND upgrades.
Management's tone remained consistent, emphasizing strategic investments and long-term growth opportunities.
Risks and Concerns
Management acknowledged macroeconomic uncertainty and tariff-related risks but did not report meaningful changes in customer plans.
Analysts raised concerns about second-half revenue sustainability, particularly in light of potential shifts in customer spending and regional restrictions.
Tariff impacts were cited as a potential headwind for gross margin performance in future quarters.
Final Takeaway
Lam Research demonstrated strong Q3 2025 performance, driven by record foundry revenues and continued momentum in advanced technology markets. Guidance for Q2 2025 reflects confidence in sustained growth, underpinned by NAND upgrades and strategic investments in leading-edge technologies. Management’s focus on operational efficiency and product differentiation positions Lam well for long-term outperformance, though analysts remain watchful of macroeconomic and tariff-related risks.

Read the full Earnings Call Transcript

More on Lam Research
Lam Research Corporation (LRCX) Q3 2025 Earnings Call Transcript
Lam Research Corporation 2025 Q3 - Results - Earnings Call Presentation
Lam Research: Tides Have Turned, Buy This Semiconductor Refurbisher
Lam Research jumps as Q3 results, guidance top Wall Street estimates
Nasdaq-100 gains amid broader market rally; See the top 10 performing names
Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking Alpha website. The insights are generated by an AI tool and have not been curated or reviewed by editors. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of the earnings call insights cannot be guaranteed. Please see full earnings call transcripts here. The earnings call insights are intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.

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Bruce Bohannon
24 Apr. 2025, 8:53 AM

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Comments (6.39K)
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Nice AI Insight Generation.

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More Trending News
About LRCX Stock
Symbol Last Price % Chg
LRCX
71.42 0.73%
Post 71.64 0.31%
Chart
Combination chart with 2 data series.
View as data table, Chart
The chart has 1 X axis displaying Time. Data ranges from 2025-04-21 09:30:00 to 2025-04-25 16:00:00.
The chart has 1 Y axis displaying values. Data ranges from 61.2 to 72.27.
End of interactive chart.
Market Cap
$90.96B
PE (FWD)
17.93
Yield
1.26%
Rev Growth (YoY)
20.33%
Short Interest
1.84%
Prev. Close
$70.90
LRCX Ratings
Source Rating Score
SA Analysts
Buy
Rating: Buy4.12
Wall Street
Buy
Rating: Buy4.33
Quant
Hold
Rating: Hold3.41
Quant Ranking
Sector
Industry
Ranked Overall
Ranked in Sector
Ranked in Industry
Related Stocks
Symbol Last Price % Chg
LRCX 71.42 0.73%
Lam Research Corporation Post. 71.64 0.31%
KLAC 694.61 0.75%
KLA Corporation Post. 696.69 0.30%
AMAT 151.55 0.92%
Applied Materials, Inc. Post. 151.54 -0.01%
ASMIY 492.05 3.10%
ASM International NV Post. 492.05 0.00%
TER 77.12 -0.23%
Teradyne, Inc. Post. 77.25 0.17%

Commodities
SymbolSort by Symbol in descending order Price % Chg
RIO
60.56
-1.83%
UNG
15.70
1.29%
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Home page Seeking Alpha - Power to Investors

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Lam research forecasts $5B Q2 2025 revenue with NAND upgrades leading growth

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Is gold the best safe haven for your money? Get insights from an industry veteran »

Learn More
Lam research forecasts $5B Q2 2025 revenue with NAND upgrades leading growth
Apr. 23, 2025 9:41 PM ETLam Research Corporation (LRCX) StockAI-Generated Earnings Calls Insights

1
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Earnings Call Insights: Lam Research Corporation (LRCX) Q3 2025

Management View
CEO Tim Archer highlighted that Q3 2025 results exceeded guidance midpoints in revenue, gross margin, operating margin, and EPS, reflecting strong execution. Foundry revenues reached a record high, driven by advanced technology inflections, while gross margin achieved its highest level since the Novellus merger.
Archer emphasized the critical role of NAND upgrades in driving growth, with strong adoption of the company's HALO system and SPARC ALD tools in leading-edge foundry applications. He also cited momentum in DRAM and 3D NAND with advanced etch and deposition tools like Akara and ALTUS Halo systems.
Archer noted significant progress in the Customer Support Business Group (CSBG), particularly in upgrades for NAND technology conversions and new applications for DRAM and foundry logic customers.
CFO Doug Bettinger reported Q3 2025 revenue of $4.72 billion, an 8% increase from the prior quarter. Foundry represented 48% of systems revenue, a record in dollar terms. Gross margin was 49%, driven by operational efficiencies, while operating margin reached 32.8%.
Bettinger stated, "We achieved the highest quarterly gross margin percentage since our merger with Novellus in 2012," underscoring the benefits of a "close to customer" manufacturing strategy.
Outlook
For Q2 2025, Lam forecasts revenue of $5 billion, plus or minus $300 million. Guidance also includes gross margin of 49.5%, operating margin of 33.5%, and EPS of $1.20, plus or minus $0.10.
Archer reiterated confidence in Lam's ability to outperform overall WFE growth through served market expansion and share gains in advanced technology nodes like gate-all-around, backside power, and advanced packaging.
Financial Results
Q3 2025 revenue increased to $4.72 billion, up 8% sequentially.
Foundry revenue reached 48% of systems revenue, driven by advanced node spending in gate-all-around and advanced packaging.
Gross margin improved to 49%, reflecting better product mix and operational efficiency.
CSBG generated $1.7 billion in revenue, driven by record upgrades, particularly for NAND.
Operating expenses grew to $763 million, with 70% allocated to R&D for ongoing product differentiation.
Capital expenditures rose to $288 million, including investments in lab expansions in India and manufacturing facilities in the United States.
Q&A
C.J. Muse, Cantor Fitzgerald, inquired about the sustainability of NAND upgrades beyond Q2. Archer responded that Lam benefits from both tool upgrades and new tool deployments as customers transition to higher layer counts, with strong adoption of their Halo molybdenum process.
Timothy Arcuri, UBS, asked about measures to mitigate tariff impacts. Archer described Lam's flexible, global manufacturing strategy, positioned close to customers and supply chains, to adapt to changing trade conditions.
Harlan Sur, JPMorgan, probed gross margin sustainability amid potential tariff impacts. Bettinger noted that customer mix and product mix variability will cause fluctuations but highlighted operational improvements as a stabilizing factor.
Sentiment Analysis
Analysts expressed cautious optimism, focusing on NAND upgrade sustainability and tariff impacts. Questions emphasized potential risks to second-half revenue and gross margin sustainability.
Management displayed confidence in long-term growth drivers, reiterating the importance of investments in advanced technologies and operational efficiency for margin expansion.
Compared to Q2 2025, management's tone remained confident, though analysts pressed harder on risks related to macroeconomic conditions and customer spending trends.
Quarter-over-Quarter Comparison
Revenue grew from $4.38 billion in Q2 2025 to $4.72 billion in Q3 2025, with significant contributions from foundry and NAND markets.
Gross margin increased from 47.5% to 49%, driven by operational efficiencies and stronger product mix.
CSBG revenue saw a slight sequential decline but recorded year-over-year growth of 21%, highlighting strength in NAND upgrades.
Management's tone remained consistent, emphasizing strategic investments and long-term growth opportunities.
Risks and Concerns
Management acknowledged macroeconomic uncertainty and tariff-related risks but did not report meaningful changes in customer plans.
Analysts raised concerns about second-half revenue sustainability, particularly in light of potential shifts in customer spending and regional restrictions.
Tariff impacts were cited as a potential headwind for gross margin performance in future quarters.
Final Takeaway
Lam Research demonstrated strong Q3 2025 performance, driven by record foundry revenues and continued momentum in advanced technology markets. Guidance for Q2 2025 reflects confidence in sustained growth, underpinned by NAND upgrades and strategic investments in leading-edge technologies. Management’s focus on operational efficiency and product differentiation positions Lam well for long-term outperformance, though analysts remain watchful of macroeconomic and tariff-related risks.

Read the full Earnings Call Transcript

More on Lam Research
Lam Research Corporation (LRCX) Q3 2025 Earnings Call Transcript
Lam Research Corporation 2025 Q3 - Results - Earnings Call Presentation
Lam Research: Tides Have Turned, Buy This Semiconductor Refurbisher
Lam Research jumps as Q3 results, guidance top Wall Street estimates
Nasdaq-100 gains amid broader market rally; See the top 10 performing names
Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking Alpha website. The insights are generated by an AI tool and have not been curated or reviewed by editors. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of the earnings call insights cannot be guaranteed. Please see full earnings call transcripts here. The earnings call insights are intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.

1
Share

Save

Print
Comment
(1)
Recommended For You
Comments (1)
Sort by
Newest

Axon Investment Research's avatar
Have a tip? Submit confidentially to our News team. Found a factual error? Report here.

B
Bruce Bohannon
24 Apr. 2025, 8:53 AM

Investing Group
Comments (6.39K)
|
Nice AI Insight Generation.

Reply

Like
More Trending News
About LRCX Stock
Symbol Last Price % Chg
LRCX
71.42 0.73%
Post 71.64 0.31%
Chart
Combination chart with 2 data series.
View as data table, Chart
The chart has 1 X axis displaying Time. Data ranges from 2025-04-21 09:30:00 to 2025-04-25 16:00:00.
The chart has 1 Y axis displaying values. Data ranges from 61.2 to 72.27.
End of interactive chart.
Market Cap
$90.96B
PE (FWD)
17.93
Yield
1.26%
Rev Growth (YoY)
20.33%
Short Interest
1.84%
Prev. Close
$70.90
LRCX Ratings
Source Rating Score
SA Analysts
Buy
Rating: Buy4.12
Wall Street
Buy
Rating: Buy4.33
Quant
Hold
Rating: Hold3.41
Quant Ranking
Sector
Industry
Ranked Overall
Ranked in Sector
Ranked in Industry
Related Stocks
Symbol Last Price % Chg
LRCX 71.42 0.73%
Lam Research Corporation Post. 71.64 0.31%
KLAC 694.61 0.75%
KLA Corporation Post. 696.69 0.30%
AMAT 151.55 0.92%
Applied Materials, Inc. Post. 151.54 -0.01%
ASMIY 492.05 3.10%
ASM International NV Post. 492.05 0.00%
TER 77.12 -0.23%
Teradyne, Inc. Post. 77.25 0.17%

Commodities
SymbolSort by Symbol in descending order Price % Chg
RIO
60.56
-1.83%
UNG
15.70
1.29%
Seeking Alpha - Power to Investors
Power to Investors
Follow us
Download app
Account
Account Settings
Manage My Portfolio
Privacy
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Investing Groups
Learn About Investing Groups
Most Popular
Free Trials
Top Rated
Dividend Investing
Value Investing
Options Trading
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Learn
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Investing Education
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Dividend Quick Picks
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Analysis by Sector
Energy
Communication Services
Real Estate
Consumer Staples
Tech
Basic Materials
Healthcare
Consumer
Utilities
Financials
Industrials
Stock Comparison Tools
FAANG Stocks
Gold ETFs
Cash Equivalents
Big Bank Stocks
Big Pharma Stocks
Retail Stocks
Top Indexes
Dow Jones
S&P 500
Nasdaq
Gold
Bitcoin
Market Outlook
Today's Market
US Economy
Gold & Precious Metals
Commodities
Forex
Editors' Picks
Cryptocurrency
Market Data
Bond ETFs
Commodity ETFs
Country ETFs
Currency ETFs
Dividend ETFs
Emerging Market ETFs
Global and Regional ETFs
Growth vs. Value ETFs
Market Cap ETFs
Real Estate ETFs
Sector ETFs
ETF Strategies
Smart Beta
Themes & Subsectors ETFs
Cryptocurrency
Market News
Top News
Trending News
On the Move
Market Pulse
Global Markets
Notable Calls
Buybacks
Commodities
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Dividends - Funds
Guidance
IPOs
SPACs
Budget & Regulation
Jobs & Employment
Politics
M&A
US Economy
Wall Street Breakfast
News by Sector
Consumer
Energy
Financials
Healthcare
Tech
Earnings
Earnings Calendar
Earnings News
Earnings Analysis
Earnings Calls Transcripts
Subscription Support: 1-347-509-6837
Contact Us
About Us
Group Subscriptions
Affiliate Program
Careers
Sitemap
RSS Feed
Terms Of Use
Privacy
Market Data Sources
© 2025 Seeking Alpha
Go back

Amazon: Ignore The Noise, This Stock Is Ridiculously Cheap (Rating Upgrade)
Audio length
01:09
/
00:00
Change Playback Speed1x





Volume in percent