#LamResearch Q2 FY25 #EarningsReport Summary

In Q2 FY25, Lam Research continued to capitalize on growing demand for advanced semiconductor manufacturing equipment. The company's etch and deposition technologies are driving a larger share of wafer fabrication equipment (WFE) spending, contributing to double-digit revenue growth YoY.

📊 Income Statement Highlights (YoY and QoQ Comparisons)

▫️ Revenue: $4.38B (vs. $4.17B in Q1 FY25, $3.76B in Q2 FY24) (+5% QoQ, +16% YoY)
▫️ GAAP Gross Margin: 47.4% (vs. 48.0% in Q1 FY25, 46.8% in Q2 FY24) (-0.6pp QoQ, +0.6pp YoY)
▫️ Non-GAAP Gross Margin: 47.5% (vs. 48.2% in Q1 FY25)
▫️ Operating Income: $1.33B (vs. $1.26B in Q1 FY25, $1.06B in Q2 FY24) (+5.5% QoQ, +26% YoY)
▫️ GAAP Operating Margin: 30.5% (vs. 30.3% in Q1 FY25, 28.1% in Q2 FY24) (+0.2pp QoQ, +2.4pp YoY)
▫️ Non-GAAP Operating Margin: 30.7% (vs. 30.9% in Q1 FY25)
▫️ GAAP Net Income: $1.19B (vs. $1.12B in Q1 FY25, $954M in Q2 FY24) (+7% QoQ, +25% YoY)
▫️ Non-GAAP Net Income: $1.18B (vs. $1.12B in Q1 FY25)
▫️ GAAP EPS: $0.91 (vs. $0.86 in Q1 FY25, $0.75 in Q2 FY24) (+6% QoQ, +21% YoY)
▫️ Non-GAAP EPS: $0.91 (vs. $0.86 in Q1 FY25)

🔹 Revenue Breakdown
- Systems Revenue: $2.63B (vs. $2.39B in Q1 FY25, $2.30B in Q2 FY24) (+10% QoQ, +14% YoY)
- Customer Support & Other Revenue: $1.75B (vs. $1.77B in Q1 FY25, $1.46B in Q2 FY24) (-1% QoQ, +20% YoY)

💼 Balance Sheet Highlights (QoQ Comparison)

▫️ Total Assets: $19.84B (vs. $19.53B in Q1 FY25)
▫️ Cash & Equivalents: $5.67B (vs. $6.07B in Q1 FY25)
▫️ Accounts Receivable: $3.30B (vs. $2.94B in Q1 FY25)
▫️ Inventories: $4.36B (vs. $4.21B in Q1 FY25)
▫️ Total Liabilities: $11.03B (vs. $11.06B in Q1 FY25)
▫️ Total Equity: $8.81B (vs. $8.47B in Q1 FY25)

🔹 Cash Flow Highlights
- Operating Cash Flow: $741.94M (vs. $1.57B in Q1 FY25)
- Capital Expenditures: $188.35M (vs. $110.59M in Q1 FY25)
Stock Buybacks: $697.69M (vs. $997.03M in Q1 FY25)

🔮 Future Outlook (Q3 FY25 Guidance)

Lam Research expects continued strength in WFE spending, driven by advanced chip technology adoption. The company provided the following guidance for Q3 FY25:

🔹 Revenue: $4.65B (±$300M)
🔹 Gross Margin: 47.9% (±1%)
🔹 Operating Income Margin: 31.9% (±1%)
🔹 Net Income per Share: $1.00 (±$0.10)

💡 Key Growth Drivers:
Increased demand for advanced deposition & etch technologies
Expansion in semiconductor manufacturing investments
Growing WFE market share

📉 Potential Risks:
Supply chain disruptions
Geopolitical tensions impacting chip supply chains
Inflationary pressures on manufacturing costs
#LamResearch #EarningsReport