Lam Research Corporation, a global supplier of wafer fabrication equipment and services to the semiconductor industry, recently released its 10-Q report for the three months ended September 28, 2025. The company reported revenue of $5.32 billion for the quarter, representing a 3% increase from the previous quarter. The gross margin as a percentage of total revenue was 50.4%, up from 50.1% in the previous quarter and 48.0% in the same period the prior year.
The revenue breakdown by region for the quarter was as follows: China 43%, Taiwan 19%, Korea 15%, Japan 10%, the United States 6%, Southeast Asia 5%, and Europe 2%. The increase in revenue was attributed to higher customer support-related revenue and sustained investments in the Foundry market segment.
The company's systems revenue for the quarter was $3.55 billion, while customer support-related revenue and other amounted to $1.78 billion. The percentage of leading* and non-leading-edge equipment and upgrade revenue from each market segment was as follows: Foundry 60%, Memory 34%, and Logic/Integrated Device Manufacturing 6%.
Lam Research's gross margin for the quarter was $2.68 billion, representing a 50.4% margin of revenue. The increase in gross margin as a percentage of revenue was attributed to favorable changes in customer mix, partially offset by reduced factory efficiencies, higher tariff-related spend, and increased material costs.
The company's research and development (R&D) expenses for the quarter were $576.45 million, accounting for 10.8% of revenue. The R&D investment was focused on leading-edge deposition, etch, clean, and other semiconductor manufacturing processes. Selling, general, and administrative (SG&A) expenses for the quarter were $279.35 million, representing 5.2% of revenue.
Lam Research Corporation reported a net income of $1.57 billion for the quarter, with diluted net income per share at $1.24. The company's cash, cash equivalents, and restricted cash balances increased to $6.7 billion at the end of the quarter, primarily due to $1.78 billion of cash generated from operating activities.
The company's employee headcount as of September 28, 2025, was approximately 19,400. Lam Research Corporation continues to make significant R&D investments and remains focused on sustaining engineering, product and process development, and concept and feasibility, among other initiatives, to drive sustainable growth and innovation in the semiconductor industry. The market has reacted to these announcements by moving the company's shares 4.45% to a price of $147.54. For more information, read the company's full 10-Q submission here.
