Global Finance News
29 Jan 2026, 09:10
Lam Research Corporation reported solid financial results for the quarter ended December 28, 2025, capping what management described as a record year for the company. Quarterly revenue reached $5.34 billion. On a U.S. GAAP basis, gross margin was 49.6% and operating income accounted for 33.9% of revenue, while diluted earnings per share came in at $1.26. On a non-GAAP basis, gross margin was slightly higher at 49.7%, operating margin was 34.3%, and diluted EPS was $1.27.
Compared with the September 2025 quarter, revenue was broadly stable, while profitability metrics edged modestly lower quarter over quarter. GAAP net income increased to $1.59 billion from $1.57 billion in the prior quarter, and diluted EPS improved slightly. Non-GAAP results showed similar trends, with disciplined cost control supporting margins despite a small sequential decline.
CEO Tim Archer said Lam delivered another strong quarter as demand continues to be driven by the industry’s transition to smaller, more complex three-dimensional devices and advanced packaging, with AI acting as an accelerating force. Entering 2026, the company is focused on ramping execution and leveraging its expanding product and services portfolio to support customers’ growth.
On the balance sheet, cash, cash equivalents, and restricted cash declined to $6.2 billion from $6.7 billion in the prior quarter, mainly reflecting capital returns and capital expenditures. Deferred revenue fell to $2.25 billion, while estimated future revenue from shipments to customers in Japan rose to approximately $226 million.
Compared with the September 2025 quarter, revenue was broadly stable, while profitability metrics edged modestly lower quarter over quarter. GAAP net income increased to $1.59 billion from $1.57 billion in the prior quarter, and diluted EPS improved slightly. Non-GAAP results showed similar trends, with disciplined cost control supporting margins despite a small sequential decline.
CEO Tim Archer said Lam delivered another strong quarter as demand continues to be driven by the industry’s transition to smaller, more complex three-dimensional devices and advanced packaging, with AI acting as an accelerating force. Entering 2026, the company is focused on ramping execution and leveraging its expanding product and services portfolio to support customers’ growth.
On the balance sheet, cash, cash equivalents, and restricted cash declined to $6.2 billion from $6.7 billion in the prior quarter, mainly reflecting capital returns and capital expenditures. Deferred revenue fell to $2.25 billion, while estimated future revenue from shipments to customers in Japan rose to approximately $226 million.