Lam Research profit jumps 38% in third quarter, eyes revenue growth

24th April 2025 00:52

(Alliance News) - Lam Research Corp on Wednesday said it expects to maintain strong performance despite tariff uncertainty, following a third quarter marked by robust double-digit profit and revenue growth.

Lam Research is a Fremont, California-based designer and manufacturer of semiconductor processing equipment.

The company said net income increased 38% to USD1.33 billion in the third quarter ended March 30 from USD965.8 million a year earlier.

Diluted earnings per share were USD1.03, up 41% from USD0.73.

Revenue grew 24% to USD4.72 billion from USD3.79 billion as the cost of goods sold rose 22% to USD2.41 billion from USD1.98 billion.

Lam Research previously lifted its dividend for the quarter by 15% to USD0.23 per share from USD0.20 previously.

Total operating expenses edged up 1.1% to USD751.9 million from USD743.4 million.

Research and development costs increased by 2.7% to USD525.9 million as selling, general, and administrative expenses rose 4.7% to USD226.0 million.

"Lam's portfolio is the most compelling it's ever been, driving opportunities to expand our addressable market, gain share, and deliver innovative services as deposition and etch intensity increases in the production of advanced semiconductors," said Chief Executive Officer Tim Archer. "Our outlook remains strong even as we address near-term tariff-related uncertainty, and we are highly confident in our ability to outperform semiconductor industry growth in the years to come."

Looking ahead, the company expects to generate revenue of USD5.0 billion in the fourth quarter ending June 29, plus or minus USD300 million. This would represent an increase of 29% at the midpoint from USD3.87 billion last year.

Meanwhile, diluted EPS is forecast to decline 85% to a midpoint of USD1.20, plus or minus USD0.10, from USD7.78.

Lam Research shares closed 5.1% higher at USD66.73 each in New York on Wednesday before rising 2.4% after hours.

By Elijah Dale, Alliance News reporter

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