Lam Research’s fourth quarter was defined by robust revenue growth and strong operational execution, with management crediting the company’s advanced etch and deposition technologies as primary contributors. CEO Tim Archer emphasized that rapid adoption of AI workloads drove customer investment in leading-edge foundry and memory capacity, while recent product launches like the Aqara etch system and major service upgrades expanded Lam’s footprint across DRAM, NAND, and logic segments. Archer noted, “Our performance demonstrates continued strong execution in an accelerating semiconductor demand environment.”
Is now the time to buy LRCX? Find out in our full research report (it’s free for active Edge members).
Lam Research (LRCX) Q4 CY2025 Highlights:
- Revenue: $5.34 billion vs analyst estimates of $5.25 billion (22.1% year-on-year growth, 1.8% beat)
- Adjusted EPS: $1.27 vs analyst estimates of $1.17 (8.7% beat)
- Adjusted EBITDA: $1.93 billion vs analyst estimates of $1.85 billion (36.2% margin, 4.7% beat)
- Revenue Guidance for Q1 CY2026 is $5.7 billion at the midpoint, above analyst estimates of $5.37 billion
- Adjusted EPS guidance for Q1 CY2026 is $1.35 at the midpoint, above analyst estimates of $1.20
- Operating Margin: 33.9%, up from 30.5% in the same quarter last year
- Inventory Days Outstanding: 136, down from 141 in the previous quarter
- Market Capitalization: $287.3 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Lam Research’s Q4 Earnings Call
- Tim Arcuri (UBS) asked about the financial impact of industry-wide clean room space constraints on wafer fab equipment spending. CFO Doug Bettinger declined to quantify the impact, citing fluid customer plans, but confirmed strong demand and ongoing capacity challenges.
- C.J. Muse (Cantor Fitzgerald) inquired about the sustainability of Customer Support Business Group growth. CEO Tim Archer explained that growth is supported by predictive maintenance and automation, with continued high-single to low-double-digit expansion expected.
- Atif Malik (Citi) questioned timing for DRAM technology transitions and the market share potential for Lam’s Aqara system. Archer responded that full volume transitions are likely toward the decade’s end, with near-term gains expected from current node migrations.
- Srini Pajjuri (RBC Capital) asked about the drivers behind recent market share gains and whether top-line growth will outpace the industry. Archer noted that share gains came from both NAND and foundry logic, with technology transitions as key enablers.
- Stacy Rasgon (Bernstein Research) pressed for clarity on the quarterly growth shape and China’s revenue share. Bettinger stated that growth should be steady and sequential, with China’s share expected to decline as other regions expand faster.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will monitor (1) the pace of adoption for Lam’s new product platforms, especially in advanced packaging and AI-intensive nodes, (2) the company’s ability to further scale manufacturing and supply chain capacity to meet customer pull-ins, and (3) shifts in regional and customer mix as foundry and DRAM investments accelerate outside China. Ongoing execution on digital services and R&D innovation will also be critical to sustaining momentum.
Lam Research currently trades at $229.54, down from $239.58 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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