Lam Research Corporation stock research
FY2026 Q2
Lam Research (LRCX) Gross Margin — Quarter Ended Dec 28, 2025
Revenue was unchanged from the prior quarter, while cost of revenue increased slightly, causing gross profit to remain flat and gross margin to weaken. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
Gross margin takeaway
Quarter ended Dec 28, 2025 · FY2026 Q2
Revenue was unchanged from the prior quarter, while cost of revenue increased slightly, causing gross profit to remain flat and gross margin to weaken. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
- Gross margin weakened sequentially as cost of revenue grew faster than revenue, compressing the spread between revenue and cost of revenue. The year-over-year improvement in gross margin was driven by a larger increase in revenue relative to cost of revenue.
- Compared to the immediately preceding quarter, gross margin was lower, with revenue unchanged and cost of revenue higher. Compared to the same quarter one year earlier, gross margin was higher, with both revenue and cost of revenue higher, but revenue increased more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.6%
Gross profit
$2.7B
Revenue
$5.3B
Cost of revenue
$2.7B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+2.2 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 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% |
| Dec 28, 2025 | $5.3B | $2.7B | $2.7B | 49.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 28, 2025
-0.8 pts
Year-over-year change
Dec 29, 2024
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin weakened sequentially as cost of revenue grew faster than revenue, compressing the spread between revenue and cost of revenue. The year-over-year improvement in gross margin was driven by a larger increase in revenue relative to cost of revenue.
Compared to the immediately preceding quarter, gross margin was lower, with revenue unchanged and cost of revenue higher. Compared to the same quarter one year earlier, gross margin was higher, with both revenue and cost of revenue higher, but revenue increased more than cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as a slight increase in cost of revenue with flat revenue led to a sequential gross margin decline.