Lam Research Corporation stock research
FY2025 Q1
Lam Research (LRCX) Gross Margin — Quarter Ended Sep 29, 2024
Revenue and cost of revenue both increased from the prior quarter and the year-ago quarter. Gross profit grew more than cost of revenue, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Sep 29, 2024 · FY2025 Q1
Revenue and cost of revenue both increased from the prior quarter and the year-ago quarter. Gross profit grew more than cost of revenue, leading to an improved gross margin.
- The strongest observable driver was the proportionally larger increase in gross profit relative to the increase in cost of revenue.
- Compared to the immediately preceding quarter, gross margin improved slightly from a lower level. Compared to the same quarter one year earlier, gross margin also improved from the same lower level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.0%
Gross profit
$2.0B
Revenue
$4.2B
Cost of revenue
$2.2B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| Dec 24, 2023 | $3.8B | $1.8B | $2.0B | 46.8% |
| Mar 31, 2024 | $3.8B | $1.8B | $2.0B | 47.5% |
| Jun 30, 2024 | $3.9B | $1.8B | $2.0B | 47.5% |
| Sep 29, 2024 | $4.2B | $2.0B | $2.2B | 48.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.5 pts
Year-over-year change
Sep 24, 2023
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the proportionally larger increase in gross profit relative to the increase in cost of revenue.
Compared to the immediately preceding quarter, gross margin improved slightly from a lower level. Compared to the same quarter one year earlier, gross margin also improved from the same lower level.
Monitor the change in deferred gross profit, which increased significantly during the quarter as noted in the liquidity discussion.