Lam Research Corporation stock research
FY2024 Q3
Lam Research (LRCX) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was stable sequentially, with gross profit and cost of revenue also unchanged, leading to a slightly higher gross margin. Year over year, revenue decreased while gross profit increased and cost of revenue decreased, resulting in a notably higher gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q3
Revenue was stable sequentially, with gross profit and cost of revenue also unchanged, leading to a slightly higher gross margin. Year over year, revenue decreased while gross profit increased and cost of revenue decreased, resulting in a notably higher gross margin.
- The strongest observable driver of the gross margin improvement is the favorable shift in the relationship between cost of revenue and revenue, as gross profit increased despite lower revenue compared to the prior year.
- Sequentially, gross margin improved modestly from the prior quarter. Year over year, gross margin improved substantially from the same quarter last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.5%
Gross profit
$1.8B
Revenue
$3.8B
Cost of revenue
$2.0B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+6.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $3.8B | $1.8B | $2.0B | 47.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 24, 2023
+0.7 pts
Year-over-year change
Mar 26, 2023
+6.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin improvement is the favorable shift in the relationship between cost of revenue and revenue, as gross profit increased despite lower revenue compared to the prior year.
Sequentially, gross margin improved modestly from the prior quarter. Year over year, gross margin improved substantially from the same quarter last year.
Monitor restructuring charges included in cost of goods sold, as they have varied significantly between periods.