Lam Research Corporation

Strong June quarter performance (records across the P&L) - Revenue: $6.72B, +15% sequential and +30% YoY (above guidance midpoint). - Profitability: Gross margin 52% (above high end; up from 49.9% in March), Operating margin 38.4% (above high end; up from 35%). - EPS: $1.82 (record). - Shareholder returns: $246M buybacks (quarter) + $325M dividends; returned 45% of free cash flow in the quarter (81% YTD), reaffirmed plan to return ≥85% of free cash flow over time.

September quarter outlook: rapid growth with broadly steady margin expectations - Guidance: Revenue $8.1B ± $400M (implies >20% QoQ growth). - Gross margin 52% ± 1pp and Operating margin 39.5% ± 1pp (stays in the “mid-50s gross margin” track, but nearly flat vs. June at the midpoint). - EPS $2.15 ± $0.15 (share count ~1.255B). - Spending: management expects revenue growth faster than spending; i.e., margin should hold up due to revenue scale and execution.

Business drivers & mix: AI demand flowing through NAND/Memory and services - Memory mix improved sharply: Systems revenue in Memory = 46% (up from 39%). - NAND: doubled sequentially, tied to customer conversions to 256-layer and above (enterprise SSDs; also linked to expanding AI context/persistent memory needs). - DRAM: 23% of systems revenue (down from 27% by mix); dollar revenue flattish vs March—capex directed to DDR5/LPDDR5/HBM upgrades across nodes. - CSBG (customer support) was very strong: nearly $2.5B, +17% sequential, +43% YoY, driven mainly by record upgrades; spares supported by high utilization.