Q2 2026 Lam Research Corp Earnings Call Transcript
Key Points
- Lam Research Corp (LRCX) ended 2025 with revenues exceeding the midpoint of guidance, with gross margins, operating margins, and EPS all surpassing the high end of the range.
- The company achieved record revenues of over $20 billion in 2025, with a significant expansion in their served available market (SAM) share of wafer fabrication equipment (WFE) into the mid-30% range.
- Lam Research Corp (LRCX) saw strong growth in its Customer Support Business Group (CSBG), with revenue growing faster than the increase in installed base units.
- The company is well-positioned to benefit from the AI transformation, with its deposition and etch capabilities being key enablers in the transition to advanced semiconductor technologies.
- Lam Research Corp (LRCX) has invested in expanding its manufacturing and R&D footprint, doubling its overall manufacturing capacity over the last four years to meet strong customer demand.
- The semiconductor industry is facing constraints due to a shortage of available cleanroom space, which is limiting growth in wafer fabrication equipment (WFE) spending.
- Lam Research Corp (LRCX) expects WFE growth to be weighted in the second half of the year, indicating potential short-term challenges in meeting demand.
- The company's gross margin is expected to face slight headwinds from customer mix in the upcoming quarter.
- China's contribution to Lam Research Corp (LRCX)'s revenue is expected to be flat year-over-year, with its percentage of total revenue likely decreasing as other regions grow.
- The company faces challenges in managing accelerated demand and customer requests for pull-ins, requiring significant effort to meet these demands.
Good day, and welcome to the Lam Research Corporation December 2025 earnings conference call. (Operator Instructions) Please note that this event is being recorded.
I would now like to turn the conference over to Ram Ganesh, Vice President of Investor Relations. Please go ahead.
Thank you, and good afternoon, everyone. Welcome to the Lam Research quarterly earnings conference call. With me today are Tim Archer, President and Chief Executive Officer; and Doug Bettinger, Executive Vice President and Chief Financial Officer.
During today's call, we will share our overview on the business environment and we'll review our financial results for the December 2025 quarter and our outlook for the March 2026 quarter. The press release detailing our financials results was distributed a little after 1:00 PM Pacific Time. The release can also be found on the Investor Relations section of the company's website along with the presentation slide that accompanied today's call.
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