Lam Research Corporation stock research
FY2025 Q2
Lam Research (LRCX) Gross Margin — Quarter Ended Dec 29, 2024
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but cost of revenue grew at a faster pace than revenue sequentially, resulting in a slightly lower gross margin than the prior quarter, though still higher than a year ago.
Gross margin takeaway
Quarter ended Dec 29, 2024 · FY2025 Q2
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but cost of revenue grew at a faster pace than revenue sequentially, resulting in a slightly lower gross margin than the prior quarter, though still higher than a year ago.
- The sequential decline in gross margin was driven by cost of revenue rising more quickly than revenue, while the year-over-year improvement reflected revenue growth outpacing cost of revenue growth.
- Sequentially, gross margin was slightly lower despite higher revenue. Year-over-year, gross margin improved as revenue growth exceeded cost of revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.4%
Gross profit
$2.1B
Revenue
$4.4B
Cost of revenue
$2.3B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+0.6 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 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% |
| Dec 29, 2024 | $4.4B | $2.1B | $2.3B | 47.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 29, 2024
-0.7 pts
Year-over-year change
Dec 24, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in gross margin was driven by cost of revenue rising more quickly than revenue, while the year-over-year improvement reflected revenue growth outpacing cost of revenue growth.
Sequentially, gross margin was slightly lower despite higher revenue. Year-over-year, gross margin improved as revenue growth exceeded cost of revenue growth.
Monitor changes in inventory levels, as the filing notes increases in inventory within operating asset changes.