Lam Research reported revenue of $5.34 billion for the quarter ended December 28, 2025, representing a modest sequential increase from $5.32 billion in the prior quarter. On a U.S. GAAP basis, gross margin was 49.6%, operating income was 33.9% of revenue, and diluted EPS reached $1.26, up 2% from $1.24 in the September quarter. Excluding specified non-recurring items, non-GAAP gross margin was 49.7%, non-GAAP operating income was 34.3% of revenue, and non-GAAP diluted EPS was $1.27, a 1% sequential rise.

Systems revenue totaled $3.36 billion, down from $3.55 billion in the prior quarter, while customer support-related revenue grew to $1.99 billion from $1.78 billion. Regionally, China accounted for 35% of total revenue, Taiwan and Korea each contributed 20%, Japan represented 10%, Southeast Asia 8%, the United States 5% and Europe 2%. This mix underscores strong memory and foundry demand in Northeast Asia alongside continued service and spare-parts growth globally.

Cash, cash equivalents and restricted cash declined by $500 million to $6.2 billion, primarily due to capital return activities and capital expenditures, partially offset by operating-cash inflows. Deferred revenue decreased by $520 million to $2.25 billion, driven by timing of shipments outside Japan. Notably, shipments to Japanese customers pending acceptance represented approximately $226 million at quarter end, up from $131 million in the prior quarter.

For the quarter ending March 29, 2026, the company expects revenue of $5.70 billion, plus or minus $300 million, and U.S. GAAP operating income margin of 33.9% ±1%. Gross margin is forecast at 49.0% ±1%, and diluted EPS is guided to $1.35 ±$0.10 on both U.S. GAAP and non-GAAP bases, assuming 1.26 billion shares outstanding. Reconciling items include approximately $2.7 million of intangible amortization and $3.0 million of related amortization for non-GAAP operating income.