Lam Research Corporation stock research
FY2025 Q4
Lam Research (LRCX) Gross Margin — Quarter Ended Jun 29, 2025
Revenue and gross profit both increased, while cost of revenue rose at a slower pace, resulting in a higher gross margin. The relationship among these metrics shows that gross profit growth outpaced cost of revenue growth, driving margin expansion.
Gross margin takeaway
Quarter ended Jun 29, 2025 · FY2025 Q4
Revenue and gross profit both increased, while cost of revenue rose at a slower pace, resulting in a higher gross margin. The relationship among these metrics shows that gross profit growth outpaced cost of revenue growth, driving margin expansion.
- The strongest observable margin driver is the favorable relationship between revenue and cost of revenue, where revenue increased more than cost of revenue, lifting gross margin.
- Compared with the immediately preceding quarter, gross margin improved, as revenue and gross profit were higher while cost of revenue was lower relative to revenue. Versus the same quarter one year earlier, gross margin also strengthened, with revenue and gross profit significantly higher and cost of revenue increasing less proportionally.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.1%
Gross profit
$2.6B
Revenue
$5.2B
Cost of revenue
$2.6B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+2.5 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 |
|---|---|---|---|---|
| Sep 29, 2024 | $4.2B | $2.0B | $2.2B | 48.0% |
| Dec 29, 2024 | $4.4B | $2.1B | $2.3B | 47.4% |
| Mar 30, 2025 | $4.7B | $2.3B | $2.4B | 49.0% |
| Jun 29, 2025 | $5.2B | $2.6B | $2.6B | 50.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2025
+1.1 pts
Year-over-year change
Jun 30, 2024
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the favorable relationship between revenue and cost of revenue, where revenue increased more than cost of revenue, lifting gross margin.
Compared with the immediately preceding quarter, gross margin improved, as revenue and gross profit were higher while cost of revenue was lower relative to revenue. Versus the same quarter one year earlier, gross margin also strengthened, with revenue and gross profit significantly higher and cost of revenue increasing less proportionally.
Monitor the trend in cost of revenue relative to revenue, as its growth rate directly influences gross margin direction.