Lam Research Corp. reported record third‑quarter revenue of $5.84 billion, up 9 % from the prior quarter and 24 % from the same period a year earlier. GAAP diluted earnings per share rose to $1.45, while non‑GAAP EPS reached $1.47, both beating consensus estimates of $1.33 and $1.35–$1.37 respectively. Gross margin climbed to 49.8 % (GAAP) and 49.9 % (non‑GAAP), and operating margin expanded to 35.0 % in both measures, reflecting strong pricing power and operational leverage.
Systems revenue totaled $3.73 billion, driven by a 54 % share from the Foundry segment, 27 % from DRAM, and 12 % from non‑volatile memory. Customer‑support revenue reached $2.11 billion, marking the first $2 billion quarter for the Customer Support Business Group. The mix shift toward higher‑margin Foundry and DRAM contracts, combined with increased deployment of advanced packaging solutions, underpinned the revenue growth.
Margin expansion was largely attributable to a favorable product mix and scale‑related efficiencies. The higher proportion of Foundry and DRAM sales, which carry higher gross margins, lifted overall gross margin, while improved manufacturing throughput and cost controls in the Customer Support Business Group helped maintain operating margin despite modest increases in support‑service costs.
Management raised fourth‑quarter revenue guidance to $6.6 billion (±$400 million) and projected a non‑GAAP gross margin of 50.5 % and an operating margin of 36.5 %. The guidance reflects confidence in sustained AI‑driven demand for advanced wafer‑fabrication tools and an expectation of continued pricing power as the company scales its high‑margin product mix. The updated outlook signals strong momentum for the remainder of the fiscal year and reinforces Lam’s position as a key supplier to leading chipmakers such as TSMC, Samsung, Intel, and Micron.
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