Lam Research Corporation stock research
FY2026 Q1
Lam Research (LRCX) Gross Margin — Quarter Ended Sep 28, 2025
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose at a faster rate than cost of revenue, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Sep 28, 2025 · FY2026 Q1
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose at a faster rate than cost of revenue, resulting in an improved gross margin.
- The gross margin strengthened sequentially and year over year, with the year-over-year improvement being more pronounced.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue remained stable, leading to a slightly higher gross margin. Versus the same quarter one year ago, revenue, gross profit, and gross margin were all higher, with cost of revenue also higher but to a lesser extent.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.4%
Gross profit
$2.7B
Revenue
$5.3B
Cost of revenue
$2.6B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+2.4 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 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% |
| Sep 28, 2025 | $5.3B | $2.7B | $2.6B | 50.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2025
+0.4 pts
Year-over-year change
Sep 29, 2024
+2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened sequentially and year over year, with the year-over-year improvement being more pronounced.
Compared to the immediately preceding quarter, revenue and gross profit were higher, while cost of revenue remained stable, leading to a slightly higher gross margin. Versus the same quarter one year ago, revenue, gross profit, and gross margin were all higher, with cost of revenue also higher but to a lesser extent.
Monitor inventory levels, which decreased during the quarter as noted in the filing, as changes in inventory can influence future cost of revenue.