LR

Lam Research Corporation stock research

Jun 30, 2024

FY2024 Q4

Lam Research (LRCX) Gross Margin — Quarter Ended Jun 30, 2024

For the quarter, revenue exceeded cost of revenue, yielding a gross profit and a gross margin that remained stable compared to the prior quarter. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q4

For the quarter, revenue exceeded cost of revenue, yielding a gross profit and a gross margin that remained stable compared to the prior quarter. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.

  • The strongest observable margin driver was the year-over-year improvement, where revenue increased more than cost of revenue, leading to a higher gross margin.
  • Sequentially, revenue was higher while gross profit, cost of revenue, and gross margin were unchanged. Year-over-year, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.

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

$3.9B

Cost of revenue

$2.0B

Quarter-over-quarter change

+0.1 pts

Year-over-year change

+2.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 24, 2023$3.5B$1.7B$1.8B47.5%
Dec 24, 2023$3.8B$1.8B$2.0B46.8%
Mar 31, 2024$3.8B$1.8B$2.0B47.5%
Jun 30, 2024$3.9B$1.8B$2.0B47.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+0.1 pts

Year-over-year change

Jun 25, 2023

+2.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver was the year-over-year improvement, where revenue increased more than cost of revenue, leading to a higher gross margin.

Sequentially, revenue was higher while gross profit, cost of revenue, and gross margin were unchanged. Year-over-year, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.

Monitor the relationship between revenue and cost of revenue changes, as gross margin remained stable despite higher revenue sequentially.