Lam Research Corporation stock research
FY2024 Q2
Lam Research (LRCX) Gross Margin — Quarter Ended Dec 24, 2023
Revenue and gross profit increased from the prior quarter, while cost of revenue also rose, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue and gross profit were lower, but cost of revenue decreased, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Dec 24, 2023 · FY2024 Q2
Revenue and gross profit increased from the prior quarter, while cost of revenue also rose, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue and gross profit were lower, but cost of revenue decreased, leading to an improved gross margin.
- The change in cost of revenue relative to revenue was the primary observable driver of gross margin movement. The company's ability to manage cost of revenue contributed to year-over-year margin improvement.
- Sequentially, gross margin weakened slightly as cost of revenue grew at a pace similar to revenue. Year-over-year, gross margin strengthened as cost of revenue decreased while revenue also declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.8%
Gross profit
$1.8B
Revenue
$3.8B
Cost of revenue
$2.0B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+1.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 26, 2023 | $3.9B | $1.6B | $2.3B | 41.5% |
| Jun 25, 2023 | $3.2B | $1.5B | $1.7B | 45.5% |
| Sep 24, 2023 | $3.5B | $1.7B | $1.8B | 47.5% |
| Dec 24, 2023 | $3.8B | $1.8B | $2.0B | 46.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 24, 2023
-0.8 pts
Year-over-year change
Dec 25, 2022
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in cost of revenue relative to revenue was the primary observable driver of gross margin movement. The company's ability to manage cost of revenue contributed to year-over-year margin improvement.
Sequentially, gross margin weakened slightly as cost of revenue grew at a pace similar to revenue. Year-over-year, gross margin strengthened as cost of revenue decreased while revenue also declined.
Monitor the trajectory of cost of revenue in relation to revenue in upcoming periods.