LRCX - Earnings call transcript Q1 2025 | Lam Research Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Lam Research September Q1 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Ram Ganesh, Vice President of Investor Relations. Please go ahead, sir.

Ram Ganesh

afternoon, good and you, everyone. Thank Lam Welcome earnings call. quarterly to the conference Research Archer, today Chief Vice and me are President Bettinger, President Officer. Financial With Tim Chief Executive Doug and and Executive Officer;

X:XX review our call, today's the and our for our quarter we detailing September share outlook Investor p.m. December be financial section our Pacific The During results little was The overview website, for press results also financial the release distributed release the presentation accompany will company's found the business after on the slides on Relations environment, XXXX a and the of can with we'll today's Time. XXXX along that call. quarter.

risk and that information. SEC forward-looking basis, statements our results unless otherwise Q&A accompanying risks public a are filings. presentation A presented Please and of financial in discussion include will additional disclosed in for factors be the presentation on see in to Today's financial the our slides Today's subject uncertainties specified. reflected non-GAAP detailed scheduled made reconciliation in on call call replay be can this This be this the later with X:XX presentation. GAAP call accompanying is results in of the to our the found Tim. last Pacific Time. website. over slides until will p.m. A I'll and afternoon And that, available to between non-GAAP hand

Timothy Archer

in profitability the and strong with revenues ranges. quarter, midpoint September for and the guided recover. points results the Lam's company. Ram, has you, where a with of revenue marked the solid When share to an everyone. outlook good the and higher per quarter NAND posted environment Thank performance These of to spending high the than Lam afternoon, consecutive fifth quarter, earnings industry end above yet combined growth strong execution for December our

$XX XXXX mostly remains range. in to expected be year Spending the on view unchanged. is billion calendar mid Our WFE

bandwidth including advanced well We leading-edge in memory logic continue as segments, driving AI see packaging nodes or high to as HBM. strong investments

with of We relative WFE overall December share range normalizing China's revenue in be second the first will China XX% domestic down the Lam's in half quarter. the expect half. to the to

cadence, call. will our on of details outlook earnings our For provide the we January XXXX our normal full WFE

point, view mid-$XX at range. is for from However, early next growth for our WFE year billion this XXXXs

we importantly, for More etch Lam outperform the critical is outstanding that to in see WFE XXXX. performance to an device and fundamental growth as opportunity deposition more architectures. due overall semiconductor of scalable play higher role enablers This

customer from investment past power to these is we foundry, these set logic growing several distribution, gate inflections. position RECIST positioned about and more by spending strongly favorable backside be packaging is DRAM, highly deposition all-around benefit increased areas and benefit and and In improvement In progress in talked advanced our we multiple Lam Each dry in given across from a man and critical our we to industry-leading Lam expect NAND, technology is upgrades, NAND which advancements processes. driven investments intensive, etch have of both for EUV the over technology spending quarters. primarily are the in in dynamic to recovery processing.

see to increase expect across in inflections all We XXXX. in adoption X

still meeting NAND. well as downturn, to as will the SSDs technologies. segment XXXX. client demand cyclical conversions this advanced more layer capacity older and devices. manufactured on over bits We enterprise sub-XXX continue prolonged need in the Currently, for has low-cost high-capacity are to advanced critical technology nodes using customers a converting high-speed, First, but will believe X/X be of more This nodes for to satisfying seen high-capacity storage increased

occur. disproportionately these manned Lam upgrades equipment, largest as benefit the installed industry's XD With base of should

resistivity simplifies moly, growing must from or with the in on tungsten which embedded deposition Lam our ALD an and metal atomic up leakage thin applications of and moly sets than process yields materials important layer across Worldline challenge learning or manufacturers has more of of decade to engagements logic. the address customer resistance. film a foundry NAND DRAM minimizing This molybdenum Furthermore, lowest also migration the offers resistance. superior NAND,

wins that the production moly including for of a etch transition nodes large to have customer. to ramps and foundry will We logic our logic with in tools, in follow. gate scale NAND foundry and all-around wins recent in with Outside we continue NAND, DRAM selective momentum XXXX build

is foundry tool the with logic, and In In ground advanced key patterning, in power served our adoption of distribution the see expansion market latest EUV in share we technology broader and our with gaining direct etch etch customers. conductor drive copper evolution, Advanced advanced across backside packaging plating technological and advanced needs layers. by this the highlight XXXX metal devices. introduction the due to additional has steps for packaging. Lam of performance new of early driven dielectric formation deposition in leadership a AI year, established in been via

best-in-class and deliver strong technology process defectivity uniformity significant Our XD high as we into enabling unmatched gains and share This [ translated design XXXX copper to ahead in hardware at look SABRE is plating XXXX. experience has coplanarity market throughput. momentum and in ] into

grown. doubled Our the as number packages both than XD has X.XD of revenue this layer per Sabre and count the year. package metal and XD more has

complexity requirements time, strengths. packaging the performance play over more of Lam's should stringent continues advanced As to increase to

are through extendability equipment better seeing Finally, enhancement, Customer XXX alternatives NAND, installed by focus on there productivity we build and our CSG, Similarly, of driving customers' pull reuse base of new Lam's has strong base lowering competitors. upgrades or offered additional is base. installed recent focus chambers past and for is base reuse productivity customer the of intense on greater intelligence quarter. our adoption In value of market Business tools. of in cost the DRAM bid share efficient wins to systems provided This subscribed both Lam's Support installed Group, Lam with an in were installed the than services. existing led process

more at for opportunity AI ahead Lam. the changes package, every look for we and every we more in as The here. device up, era wrap to leading-edge So see is advanced

We expanded growth. our product of business semiconductor have transformed our industry for to prepare this generation and portfolio next

off. the the stages early at February York I'm forward is of about Day New paying sharing more in are we our XX to Lam in best for investments Investor City. Our come yet on believe to why looking

Now here's Doug.

Douglas Bettinger

Excellent. season. Thank everyone, Tim. Good you, afternoon, know and today for you call a I thank earnings what during our busy joining is

stock which we a XXXX. share been XXXX October the Before XX, I that or start, All in effective stock adjusted amounts announced results per X, my the everyone We have delivered strong now to references was May September made I want in for share on to remind remarks XX split, X XXXX, split. quarter. to reflect

percentage Our midpoint came as well our margin guided or generation range, cash revenue. I'm of earnings while as flows the pleased $X.XX company's in our continued which share of revenue and solid per quarter, of came gross the free operating above income both XX% profitability and guidance range. exceeded with billion strong the for revenue execution at our and in

at quarter. our for $X.XX billion, September the results. the prior Revenue of of an from details Let's quarter which the September X% increase financial look was quarter was

fluctuation I This will line trend our quarter of the in revenue grew September of $XXX but Our balance in quarter increase payments. believe balance a was prior of lower XXXX, see memory quarter. from deferred customer an billion, year advanced the the June into the systems mainly million end XX%, quarter-to-quarter. revenue quarter deferred continue due to at $X.XX From XX%. perspective, you roughly with segment calendar was will likely level to revenue

in versus increased, XX% Within at XX% the of June systems DRAM the Memory revenue in coming segment, quarter. though,

by a ramp has DRAM one of DRAM we investment timing in spending which device. decline of to sequentially from customer's the was prior DDRX alpha, nonvolatile driven on prolonged focused experienced historical and XX% the cycle it in and nodes some X-gamma in lower The nonvolatile segment to This a enable is NAND component upgrades as the has high-bandwidth quarter. The investment that to memory memory. represented norms. One compared characterized XX% a was technology segment on nonvolatile systems of down revenue, specialty down initial our beta, because

in increase calendar improved and in layer will utilization class our normal rates spending XXX devices. invest XXXX, more to and levels that anticipate to as conversions we and customers begin However, to XXX

revenue systems our was driven of spending segment specialty logic of decrease up and concentration XX%. from quarter quarter the level represented of in the dollar node XX% from September in edge June prior the devices. The and XX%. in percentage uptick The was Foundry slight both relatively leading terms, was unchanged quarter, XX% by increase Other of revenue, Logic a an segment in In the systems The quarter-to-quarter.

revenue China slightly we Chinese to bit quarter our XX%, regional discuss the customers. China expected. and XX% for I'll accounted Now little contribution from total region than revenue. from come stronger down of in Most the our prior The a domestic of continued

this quarter. mentioned, the region from decline will we And as Tim expect in spending December

revenue. think I perhaps December's approximately to XX% of

was geographic top the of concentration was remainder X XX% next the rounded Our which Korea Taiwan September United up the the regions. and finally, quarter. flat of June largest the And with quarter, revenue at States in

Reliant in piece for between in unit's spare continues parts to Systems of XX% The the Support Customer same approximately September and $X.X up June from period revenue the sequential X% than generated Our higher Business XXXX. Group billion quarter. the evenly The the other business individual split of was this growth of component largest all CSPG. dollar be CSBG and revenue. components quarter

higher Operating we utilization prior Gross increase came in from decreased factors continue offset growth at The company's operational profitability as of as which margin. increase were outlook. increased initiatives. compensation little improved margin reflecting spending our were $XXX decline quarter well partially program sequentially, gross by to range. amount a an incentive on a factory progress mix tied partly September compensation. turn The up in quarter XX.X%, million. $XXX due in Let's incentive to as to however, guided in the September expenses for was well make as customer These as our exceeded to million, the

the XX.X%, spending. of the above of and slightly current strong XX.X% of for guidance of our was June R&D range, accounted end primarily performance. for margin because level above Operating the quarter the the gross quarter and margin total continued revenue, high higher XX%

Our quarter within generally for the of non-GAAP the our XX.X%, range was tax expectations. rate

Other Our the quarter. could to June to due volatility in the near September million came for be of to for to The cause at in in exchange compared to continue the expense tax the in in rate continue with market-related low in and variations million OI&E quarter some estimate income income range mid-teens $XX will susceptible is term. foreign to income primarily was the fluctuations. quarter-to-quarter. be decrease OI&E level $XX that in

to and I'd quarter. September approximately side just $X a return $XXX announced an deliver our years. of billion to XX% pivot repurchases, the growth August, plan Let open dividend, paid mentioned, in that just to the highlight line XX I the raised capital We growth dividend. we since we the market in dividends million me things. in in share allocated in first paying now in XXXX, the annual dividend dividend our consecutive with And have we in in

have XXX% returning XX% track of on long-term cash plan. We repurchase And remaining $X.X Board-authorized our share our capital towards we our continue plans to return flow. billion to of free

quarter, X.X a billion shares, share The our $X.XX, the per June range. For midpoint the count diluted was diluted which the was of from guided approximately September share reduction quarter. earnings above was

was of capital up On to quarter. and by cash the quarter, was billion that increase XX September offset increase due outstanding the The cash in activities, quarter. end totaled end cash at expenditures. days buyback, quarter, operating payments and June we to This days the September $X.X balance sales June the $X.X of an billion from from our cash sheet, at share equivalents largely the dividend from the saw XX allocated in the

September the totaled the improved turns Inventory billion. X.X. quarter of quarter end the at from prior to $X.X of X.Xx Inventory level

manage We will with ability to customer align the to of demand. best inventory continue to our levels

million from close global September $XX quarter well quarter $XX manufacturing for depreciation equity our the in compensation, were Our on lab as noncash as locations. million $XXX investments the in expenditures as the and up million for June to the for well $XX and expenses approximately centered $XX amortization. million September Capital million, Asia both be States quarter. as development customers' to manufacturing was facilitization spending United strategy mainly supporting in included Capital

approximately predominantly growth quarter. XX,XXX to field which increased with support We increase as an the levels. was well tool personnel prior approximately quarter September installation growing XXX manufacturing people the as employees, is of full-time in and Headcount from regular factory ended activity

in December customer XX%, reflective the or guidance plus expecting for guidance non-GAAP headwind gross is quarter-to-quarter our or billion, to turn XX%, now $XXX margin We're Let's revenue point. mix. X $X.X of of a X quarter. plus Gross minus percentage minus plus million. margin XXXX percentage operating or The point. minus of of margins

a earnings level our areas. our of This And managing investment or to count $X.XX, on critical prioritize minus of share R&D expense commitment plus finally, shares. continued billion X.XX $X.XX, share as we reflects per based approximately

me let up. So wrap

XXXX. to December the in guidance continue to well our for I operating quarter. investments overall making levels. in prioritize see as position while on results spending execute inflections September We to to track we architectural for extend from achieve the modest investments believe in full improvement technology reflected carefully critical as materials as well the differentiation our that's We're we're managing year Lam calendar we The well benefit and ahead. our leverage

XXXX. the in traction continue gain We believe in overall will and that outperform we calendar to growth year WFE

top a would the like that line. see continue as for call XXXX both importantly, up open prepared to remarks. We growth questions. and WFE in Lam's to our concludes now Operator, year We more

Operator

comes our Instructions]. with UBS. first [Operator Tim And question from Arcuri today

Timothy Arcuri

list, Tim these ultimately legacy and be want factor I to there's lot WFE, number, bigger can around us and like fabs connected might huge that a guess, additions been you or like be of of a takes. obviously, I just consolidation have I BYD. China, some some stuff. puts to there's of seems the that consolidation not but don't going a It to even know Huawei you are it of built this a the either but that about to entity seems node particularly XXXX the and project mean, you asking to Doug, give I'm talk

I of you So talk points conceptually takes sort it's about just about about puts XX China? and and the of mean revenue? particularly down can your

Timothy Archer

not Sure. guide. us and Tim, Thanks, thanks pressing for an on XXXX early

be said we some -- of to WFE -- year. we there's We color to believe year-on-year a trying overall that we give realize can. where additional we next lot are up and would are are we We questions, trying

is view for Specifically, lower. year would next our WFE China that be it

would variety -- all than pick you year. have Lam's can China may percent the you a percentage a just lower represent that of that this year all listed and For of next revenue, reasons as total

the January, all And can so color about I right that's Obviously, now. on full give lot more say we'll a we think market. in

Douglas Bettinger

robust the trailing outside memory. node inventory Tim, I continues logic think DDRX everything high-bandwidth just I'd they'll outside and on China, think an to we'll, good. industry, way foundry we're DRAM add does to going a as be China, positions quite bit. little of else continues leading-edge stuff pretty about in. specialty work with be of our What the edge through

good. I'd that, in So know you that. trends pretty remind of industries. are most of you know just I actually the and

Timothy Archer

is mean, of I talked prepared the that's about none gets tremendous investments in of my result And think talk Tim, a number during China occurring -- when of maybe either actually for domestic lost us, again, think, inflections Nodes restrictions of upgrades remarks, -- technology I China. or Yes. all domestic percentages would we which I a already gate are be be would as outside we the of and about obviously, or they're [ around, for outside that NAND, those technology that in fact occurring China. nodes generally place like at ] the instance,

for Right. you percent when so total And revenue. why percentages, think industry, China for a Lam like trends of that's stronger Doug, lower about just trend are those you. to and then quick, the as continuing naturally, our for super we And see the then

So related? CSBG that up being was up. lot. It was deferred a like better Is Reliant

Douglas Bettinger

growth a heard and then CSBG else. Yes, What everything was say growth bit. Reliant a is me combination the of little in you in

again last So Reliant strong quarter. was pretty

Tim, it. yes, So of part that's

Operator

comes JPMorgan. Harlan question from Sur our And with next

Harlan Sur

outlook Is to that? Did talked starting the growth September And relative in on continue get for spares. the say, NAND call, guys year. about growth quarter. let's And strong on trend NAND forecast level XX support utilizations are Last see growth confidence order confidence that into as you've you visibility days next WFE ago? to some moving about higher, talked you driving you WFE to spending and outlook

Timothy Archer

Yes, Harlan.

sell being be quality needs enterprise SSDs what and sort itself, even point capacity it, of is consider of we when in you're if drive we a advantage was to capacity market that higher meet the going be things the out of tied talked an this about manufacturer for I are in talking the what we under do applications add to to the that those that see for for things. all on shift technologies my need shift lot seeing performance would But things what strong manufactured to strength. are move a and transition the utilization in continue the is that about you're place. to about, lot competitive I so moly nodes it's that bits, allow industry QLC, in higher a a going not to to to bit X/X to Xxx-layer was like array more of of to think and or prepared lot remarks taking I'd going think that NAND looking now of you're parts other able that's this want is like of combination AI, be -- as this to still to we are more to

we those upgrades. that a so we very reason for percentage capture really important a is Lam the all so role of is And play high and critical of

fleet the spot. still those and right directed things Lam's of industry if portfolio really And so in be most product our where in anticipation It's upgrades the all just technology our But I towards that's of mode spending year. recovery is a that plays. about, will is talked next pulling it's

on itself spending rises be regardless And It's like whether will favor. tremendous why a amount. that's really WFE in so our almost NAND of we're optimistic

Harlan Sur

Obviously, talked continuing right? for higher maybe then pulling strong, mentioned $X quantify accelerated even the Is compute revenues this And call, outlook year. year. the and need if now? you driving dynamics this that. in memory, can billion HBM HBM appreciate about you I more wondering HBM as you than very for more And that's AI I'm last number that Yes.

your As we to bit XX%, HBM that look bid it's of account in wafer next only X% year of something the for is itself into next of are this you capacity, pathline sort XX% the and over represent to year, even going XX% ] DRAM and of total And next [ about several total is of like versus supply years. business up How and right? going although XX%, year. trajectory advanced growth thinking X%, supply HPM

Timothy Archer

Yes. Harlan. Sure,

think billion outsized strong copper benefit it, to seeing packaging the the now. right And that performance. business we'll $X like enabling It's companies we are probably the part my strength advanced with a I I the are What an deposition would think call, just I I we're the exposure don't highlighted from XD, any talk going to good of that not -- strengthen which my last our new but down driven commentary achievement beyond advanced AI. in that and allowing companies give time packaging plating. did my to think milestone in that's from primarily companies trend. our system-level has originally of have since from technology business had say a view in thought. really this very business, It's conversations that around part and about by of is the right what etch I even continued number, we now SABRE slows some customers.

achieve this very And it requires through mean themselves. to hard I architectural really change. It's chips

new what next on segment. about get year. terms probably we'll positive January, very highlight And little we're packaging advanced see when to for numbers So we in that of a more bit we

Operator

from Toshiya with Hari our Sachs. comes question And Goldman next

Toshiya Hari

as well. had I X

was not and specific NAND, talked help grow and in you? an DRAM business of could that, First, mentioned about gain and the leading the of maybe but already Tim, of that the the the hoping numbers, a translate years. Is some about you us Moly we beyond. offset Molly you're and foundry I thinking adoption for follow Or ability there net you in how sort also because in you space, opportunity 'XX edge should XD to of logic and to moly? introduction be with is strong quite it your out to

Timothy Archer

there's we're as selling benefit is technology basically it us to quite is there NAND, as in if already net especially additional upgrades that strong and value-add new it Tungsten, you're you for out area Again, our customers. Yes, point an in certain a a high in moving for the be still comes technologies gain benefit and where but from out, turns forward,

resolve think us terms that forward sort for issues it the so migration we of of a that. the a future that of into well the as materials same and helps again, a transitions years. us some And kind wordline up logic several in DRAM, exist for can gain transition. that represents see there foundry carry nodes industry And then that really occur and fact of is as resistance major business those after It's it step out in then I through opportunity for

Toshiya Hari

some on dynamics And is foundry both going it. both week, and based that kind of an think I A then on -- last peer in you 'XX lowered my logic. strength. on their as characterize competitive they the of Doug of outlook area space. follow-up yours Got that of area I leading-edge

others and there's relative view doing of to customer maybe kind in when that's in 'XX XX unchanged have not so the outlook, think ago? any you that two overall the your it outlook seen doing foundry well, about leading-edge the logic? is as that one are well. is you net-net Or I days really to think shifts pertains

Timothy Archer

generally, I as little much about a because inflections. driving perspective last do Well, technology it's days, what's our but from if as think I volume business, has less really the it's don't to think changed our XX in that's with

Lam that's previously, somewhat But similar at we think forward wasn't all see new And actually to etch opportunity. penetrate so ALD for had that us. that able creates much might Lam some around companies for we around, like all opportunity. we because as node opportunities be a that for of may changed one a tools why be rates that to you move been as positive from as that a selective hasn't gate not it gate it and that, now can that we

have we We we etch exact in also see leading-edge have start the -- of put to depth see believe on would you power said to be we the XXXX, again, intensive distribution in backside like further packaging and use advanced timing and an but what it, consider quite we inflections introduction logic foundry.

And so those primarily companies is are portfolios position land that think things that with sat strong. I like benefited look that

so everybody's speak but they're look quite And I I know our can't technology favorable I know, setup. way transitions, don't to for outlook, the these that at portfolio we

Operator

comes question next Arya America of our Vivek with Securities. Bank And from

Vivek Arya

For one, China. going back the first to

So think, in suggested call, what be has changed, broad that it's And a markets, and are of 'XX of million you seems in is at view levels but 'XX? versus China, December to then these levels several So the what Does Does curious calendar sort decent $XXX What what view changed so. next just China decline? off what I I China And changed have or had China earnings the quarters? signals? could it I'm the for assumption. overall it? indicated Can last think, somewhat. kind down in Tim, for year about, QX. the build for stay it the of

Douglas Bettinger

the we but very things at That's overall lower is we lower going our due me -- Doug. trending here not partly very, to percent little a China at is This of is a the Yes, But as China are clear. WP fact It's now, next as I'll we year. that, It's be down right away. Yes, just sit revenue. Vivek, take time. let look trending other maybe bit yes, strengthening same today, it.

away. So bit at going little trending the total the of be when But lower. me It's clear. percent it's revenue, let you very look a not

Timothy Archer

Doug strongly these made, that now to business our Yes, NAND. I expected really as markets comment even I I some the strongest it new think just basically, being -- normalize year it's it's was areas packaging which made more have China next And XXXX. is think we advanced comment Lam's on a decent year, of the about like like if emerging come in always in

would of revenues, we've expected, as percentage And so our down. it trend always a total

And has so changed in the dramatically I don't know if last the outlook months. few

Vivek Arya

for gross then one And maybe my Okay. follow-up, on margins.

And beat QX, you think think to that? up coming So drove calendar what quite XX%. nicely I for I -- so it's QX,

So as we given should over of assume conceptually year. leverage look will margin we XX% margins 'XX get calendar on gross we think it? keep there Doug, next and you calendar baseline the out, how be just you lower. mix that then scenario Or gross several the quarters, is Should China some where flattish calendar top about can versus Is 'XX. a that year-on-year

Douglas Bettinger

that, guide. term operational to to seeing that We've in December for signal as to while stuff you're China a the here, so can headwind bit. Yes. been percent bit the Vivek, trying around mix, a going product customer a begins little efficiencies forth. hey, And margin thanks mix the near things of that mix, move be gross many is in customer for a question. this Yes, total little of many, listen, soften there's and

footprint of remember Asia described when initiatives, those back in you efficiency we if embarked the that business down turned However, in operational grow company, as pivot 'XX, 'XX at from factories trying business benefit to as efficiencies. which end will the operational region, on the into we grows, what the

beginning some, of to some that to up. show more you're see than or see maybe So beginning you're

remember roughly you now of revenue, before a XX%, as ticked If percent you kind see and our we it China of don't at know, up were I at, XX%.

way guiding it from actually gross as the that specifically. still you'll of not that But go some in to going beneficial a around. see move you I'm of lot we've and company into -- more thinking So that's a pivoted cost things steps of be there's a about. But forward. get we margin standpoint, should the

Operator

from next question Fitzgerald. today C.J. Muse our with And Cantor comes

Christopher Muse

on question, hoping the I to Reliant. first and was guess focus for CSBG I

down, that decline? is slowing about my in part -- As better for that or just we is for you at as China least of terms China, as think about about CSBG you slower guys? a that that be And worse world should thinking you think would is intensity revenue piece CSBG a where of education,

Douglas Bettinger

components when mean, what nodes nodes, in other Yes, of there's trailing there's the flow. But decent or will of region sit for restrictions unit. C.J. investment the Reliant a China, the specialty the WFE know yes, bit business you've obviously, a as the as Reliance of a bit that's profile and in of where that's standpoint, China. a China, think will China in on got you going perhaps from there. edge it headwind a investment mainly, in And you about Reliant that maybe outside reduces But be right, where little ebb I well,

components of in globally spare lot every a other capacity will to upgrades it, the The service on overall of process have with done. going though, do what's

Timothy Archer

just and talked Yes. I And of mean, previous our intelligence I leading-edge I that I We've would around couple the think, calls. add. a things well. activity a these as CJ, a think of cobot troubleshooting mentioned and need about become complex, revenue automated -- couple of I tool and more of part CSBG for matching maintenance capabilities continue become devices as bigger even of to grow the will our these stream data-driven sort and also equipment types

moving And an where area can so to continue as that forward. look we keep we to

Christopher Muse

then And OpEx. on guess Very helpful. maybe I

how to you for invest And OpEx about real funding year, where 'XX? about stage calendar the need of the leverage year. to line you at growth. projects started top outgrow operating sight what narrowly will that talking are fund? into think Curious, this have you should line And for are You we need the Doug,

Douglas Bettinger

December you were operating year, of we've have was you leverage from fact, over remember, as a year. we began us guide. actually this wouldn't the And at suggesting, full the leverage fact, see suggesting margin point Yes, midpoint we of question. as fund, to we more, right? maybe the stronger. expected funded year, out that for little in turned And bit but came to pretty in little needed we thanks into bit a we a everything, even percentage we the delivered that I the C.J., probably fact, much Revenue in be Yes,

pretty what been So all we and to able I think pretty good. about we've Tim, good I do. feel feel

WP into able on next to leverage get some well. continue I deliver grows, we to hope year, top into how year be grows, line next our we'll depending As how as

Operator

Cowen. Krish TD Our comes from with next question Sankar

Sreekrishnan Sankarnarayanan

First view grow. just and trying in figure years, thanks the NAND 'XX you wondering, out for be WFE. XXXX. the what XXXX driver, for you one, follow-up. maybe calendar outperformance with WFP, a and just this noise outgrow even WFE during going then still 'XX. should on to or Tim, said around especially early to NAND expect But for NAND Lam cryoed, I'm to I'm calendar all strong drivers Lam I that is are to outgrow understand, to revenue the outperformance happened I do Historically, continue not And have

Timothy Archer

you from probably I Cryo Well, Lam the did too think Yes. announcement not see X.X technology long in our ago.

that systems. own technology think is And is the of Lam of new what our so that upgrades creating to some I noise around benefits

important get those that thing your the a and already to most the efficient installed the is so from count higher most I the to of new a go certain count think layer fab. is have NAND think way benefits to in upgrade to technologies about layer you And base with

upgrades we're this has customers. talking both how and that's why so NAND for us And high Lam and around rate for that's capture our beneficial about

the the WFE XXXX, both the is by to is our NAND, economic it in will technology those think deliver be And the and so position whatever spend customers. dominated best Lam by far and upgrades to value technology I in

So year. a bids, being quality in to those talked exactly think, higher new that's playing market discussed what requirements the it's for I And applications early the next us will I and NAND again, see light the for are spending little publicly. say about these kind be. But of the way AI pretty too out of

Douglas Bettinger

script think we're photo all it's also -- we've packaging, been this his going to while, backside about else power, gate areas, right? dry been right, I about because a in for that too. advanced Krish, resist, outperform everything talking those talks every we've Tim in time around,

our So confidence together, is two that when you layer comes these from. where things

Timothy Archer

Yes.

the the technology are assume I in coming. depth picking but intensity which the it's the on, people think inflections the I this -- that up mentioned of etch script, are and comment, I

power whether the X.XD architecture help is a deposition these to and changing is and the of which of somewhat, packaging, those get backside distribution, technology or that in are the exist, the think positioned well backside I it's it's beneficial to building on landscape advanced effectively X-dimension that architectures packages, companies the XD X-dimensional by wafer and etch equipment. built

what those high terms because what high power multichip actually WFE would those depth would to enabling market of are technology of I etching devices, computation consumption trends. the the and expect underlying as do with they're of these for they power, the kind -- doing in so outperform parts And packages. continue as outperformers of

Sreekrishnan Sankarnarayanan

follow-up been -- level you've And Doug. helpful. it well. pretty managing has inventory a for then quick like just really The Very been

You're much more year. of is has before. is of you maybe more shape changed or just a gotten the Kind kind kind talking X the of year? next building curious, up recovery efficient an -- Or cycle is and of time. it more of unclear Historically, the more than about inventory like in management it's next it start quarter has inventory

Douglas Bettinger

mean, I actually understand what's the onion the level beneath peel you total Yes. this. just on inventory to got back one number to

to when So a specifically lot you the of a business turned in and memory inventory, think when NAND. was of lot back in it down,

of build the lot a so segment. And we NAND just inventory have, to the go that into tools

this NAND to business lower up, when able you'll only ticks year. so obviously And be happen that think that will inventory we which move really

got at for -- saw So X.X. little wait you other that. the are to Obviously, you've bit that's a strengthening. Offsetting guide that, of a things though,

tools go have ready build have you to so segments. into components that to And those

relative to that So about X think have those balance. the the total are things you to

Operator

from with our Srvinas And today question James. next comes Raymond Pajari

Srinivas Pajjuri

point. WFE visibility? by A growing there? some couple say is think segment where where about out uncertainty you I'm by segment, on either And Tim, at there have or product follow-ups comment the you you your would of still this best next do just curious, year, market

Timothy Archer

if getting close prolonged go NAND very cycle. we'd all our I Well, we that, very down been Okay. comments outlook, start I some to But believe through giving that in a think of has a One full detail. obviously, is XXXX

and that too it's that. upgrades driven see would to NAND I And say higher. we that a to higher WFE quantify of so going much talked a about. just stretch lot We're technology by not these But not again,

I strong. that quite we think to we see said that leading logic, edge for continue

And advance technology investments with those towards and think many pull-ins that help finally, with then of package. And performance consumption. new power we targeted

I through to say a higher it's stronger made to comment, prevent believe as I I advanced then would And that to we we move we XXXX. the so just in the don't stretch said China what that lower. packaging from not days, gotten think XX it's last and see trend continuing

and like that in fed And us, so of think a there's a things higher. key third kind of we lot the puts general, you're But to takes. are

Srinivas Pajjuri

like That's guess that used there foundry Tim. mix, logic today -- Great. quite questions And on revenue of XX% and your your look you helpful. be. then the NAND, what I follow-up, but tech I to are at product lot different I your it another mix is transitions et talked a about, -- mean, from on of cetera,

intensity I'm you. you competitors hear your of a Power GA, lot market market you about outperform like cetera, the we next So about these is I'm just for market you're how you assumption to outside deposition about the say going implied intensity share year? share? How are as backside curious, share? like you some curious of going transitions looks but about your just you WFE as up. of think etch to increasing It et What tech just the Because things and think well. when your talked do benefiting, from

Timothy Archer

think logic, logic what is like pulling you I it is doing Well, in in foundry foundry of nodes areas, I these talked leading-edge really all some think is that around. about about gate specifically when

gain us, compete. expand share SAM that gain didn't previously where to in For we -- markets allows and us

So is ALD is new every basically market for market. selective etch share new expanding win for us. us in

have our address product product portfolio, we've talked do again, we've markets. and opportunities expanded portfolio I we those to the -- So where, transforming about

markets are share they're been participating at wins nodes gain. replacement in lot and And those only for versus more so gain. share actual new who've already not many -- for of those you'd revenue And prior a their prior us, see probably technologies, and those

you There's you is backside a I to more uses, the backside coming like strong I exposure very historically in that particular wafer that think cases terms of Packaging, product thing coming a portfolio So more power, WFE of think see layers of the our gain share that. we're that. distinguishes lot segment. Advanced from plating. positioning lower strong metal when again, add on represents overall we're everybody in to that Lam one knows extremely copper for

and think has position that lot gain think equipment intensity overall. to right therefore, faster I increases technology increases people benefit share. going land and So opportunity are to from do you're an other to of say a segments, net the of But advancements continued many that then general we than

Operator

Stacy today question next Bernstein Rasgon Our from with Research. comes

Stacy Rasgon

margin gross I a trade-off. the wanted into China again bit drill First, more to

So other should to about down, trend enough offset margins, guide wondering from the have thinking from some mix like other worse. other is down How to do margin the XX% drivers on I'm clearly, next just trough the you you do does of drivers? don't gross around have if the your try know China year, year. think I is want with margins your to floor drivers there I is gross enough revenue if I'm And that and WSC next be there you is mix to that? we growing that? the but Like, about can gross is negative growing then offset mix China and went of your be as -- to get but share the going you think

Douglas Bettinger

top levels. of not Yes. the mean line. are be part to holistically. growing to some closer of whole listen, we But the I'm as year. have some obviously, cost to where of into things structure, shorter by fabs revenue footprint depend to And mix. offset we Stacy, a it think relative next beneficial And freight the of the company pivoting done a specificity affordable through to, get into things it chain, have more pointed on to that those going I customer are you be to going lower distances. supply customers' will bunch I guide

revenue of I'm of on feel because drive yet to now. the specifics right the pretty year one be But the enough you next will improvement. not mix give exactly I you get ability to then working year, operational things I'm is next certainly, what our sure continue the going we'll side customer going as gross But about into do that to want but you overcome. to to we not specificity And that not call. give we're next I'm margin good

Stacy Rasgon

should minimum, I at Okay. revenues that positive. so a see guess, you up do be And a least, at

Douglas Bettinger

Yes. Yes, it be, should Stacy.

Stacy Rasgon

it. Got

little I you idea my think and -- the agnostic, to transition share understand don't are follow-up, you, just don't For market? installed know but said lower is WFE, this that for a I big better or higher. From a want capacity. what dollar drill be in is basis, of you're And but transition tech that true. technology see market a capacity-driven can I a I you've have how I tech I base your NAND a versus transitions

what missing? am I like So

Timothy Archer

when about WFE, transition I then mean, market that better tech I we us. talk there's is no guess, outperformance doubt for Well, of

I think a there's that lot of been questions.

about to in the I significant invest now the what think for and market additional is we've desire of skepticism the right to capacity. address been some trying need perhaps

saying or forward so to be to both why is within that, nodes. that and that's need bit move we We our we're but to is believe gave decision, what those whether economically sub-XXX layers. customer's it advanced that X/X a of not, will And true more technically this regardless fill a there that's

Stacy Rasgon

to driven your a upgrade capacity-driven I'm or market. trying in market be understand. dollars That's NAND asking an if would higher I'm what just

Douglas Bettinger

when on relative depends but obviously a of an in it's to situation a transition Then to straightforward not upgrade or we're level which higher going not specific the we like a investment, more. the year. it's see spend It right Stacy, less. the of outperform a largely the did decently it, share overall our outperformance which you into do get going to year, spends of rest numbers, But we're is next what We industry have that, obviously now. question.

Operator

Malik question And Atif comes next today with our from Citi.

Atif Malik

or week, is come last expecting It question come your China XX% Edge but expecting your WFE to parts that lithography coming next China explain do down between faster dynamics WFE. something year. and Depth Are will sales with first to anything. sounds down, that My the peer as not maybe be they're China star business why help reported the could or as to lithography down you're like alliance on much or

have you that? on If any thoughts

Douglas Bettinger

not different for what compare would someone what think don't extremely if right? we sure, numbers know between thinking because if they're you times impossible, observe, obviously, the be I did, look to grew geography else types. to different If, us we it's is at different, what lead hard, thinking very tool how versus in much though, very perfectly versus perhaps honest. some what for we are that are growth peers' specific the of our And

shipped something than others. sooner so And

have have kind And don't factor But in. to can't this a in know because, direct you Tim, so else and add region of stuff make don't what lot I a exactly we want you I seen. you that to somebody so grown all frankly, have, others comparison than has anything? know, more if

Timothy Archer

No, no.

terms in at make hard just -- of I think at times very much people point and can for all lead to we mentioned so rate this just more Doug comparisons those and especially have say. that it's not it's the reasons shipping been which the the

Atif Malik

one see adoption in XC Dry follow-up, process in And there Korea under any changes of in when happens Resist? generation was I X the their Dry adopting then for high the terms DRAM drive this come positively Tim, Resist to is makers impression NA memory Have that large been your for out. surprised that to maybe my of curve

Timothy Archer

we've there we got to dry clearly, been all to when there's working in is on benefits talked terms we dry benefits able is choice. the based benefits likely NA, had resist, no what to the EUV of benefits. we've We've steps. Dry It's UV Well, those dry don't I intricately hard. There Pattern versus defectivity. using exposure. There's believed it's economic to it's the underlayer, which develop. in talked know shorten is general, you earlier, get a And be ever answer that from and Fidelity the multiple high developer other NA to said than tied Resist wet high But about in cases, of how having the other with we've -- processing from process about Dry are --

each change. enough over I reach point you just they benefits make where those with of a customer, to so And that see where the think they tipping you

And particular any necessarily tied to so not node. it's

that And time, different technology so I adopted think that over I see, think nodes. customers we'll

Operator

question comes Moore with Stanley. from Joe Our next Morgan

Joseph Moore

these of have have of Or you make sense you December us? Sorry next And may are how China guessing decision rest the had thinking are the of if controls? about how comments about But you and -- you about you conversations But general Have the to be? what ask guesses. of are think had restrictions like as year, you Commerce Department where guessing again. you those the asking you and export kind making I'm what will you're be. some kind

Timothy Archer

Yes.

given contemplates our we've you and will our that happen. the best view think best I what of estimate understanding think we

information. guessing are call all know an have if guess. guess, educated don't I of And just a mean, doubt so I you I you you guys of sources that

right the next as quarter we've China is we the so through just our that's now -- year. WFE view. And can what well we next said that -- both think as how our best see I that's say about into And

Joseph Moore

And down gives mean And I ex you've as China, about are drops Okay. growth And you going you precise going x grow of double-digit first kind am helpful. China all, confidence literal if to and you about China. -- to around then of what I XX%, to digits the but think -- That's that. December, if got double that.

Douglas Bettinger

in But order thing with what understand we time every think much and customers world is numbers. just it's -- we only Joe, the done. normally our incrementally what a so from customer, there's I to we've here give do don't We you and so any you the mean, put same about The single we do we stuff. we geographic going the support do gone together process they're which same put do through single every every to the expect it going that's been we guided to single single ability forth, $X.X every every quarter same the guide that. done you every region single the just to number quarter, we've us, we've chatter what on is to thing together to, China of data fab million China, we because what best

Operator

question next Curtis comes Blayne today Our Jefferies. from with

Blayne Curtis

seen. to bad I to you you've out feel $XXX DRAM would just China guess that of one December. I kind expectation oe million Chinese into front-end math loaded. back that in I the is in on that beginning the said the that Joe And more come was guess going had I'm China. I more the because like curious, I this, think But come be

I think that's you recognize nonvolatile, is come down. that

of that's So a I'm headwind. assuming less

roundabout down the comes like So of that I bulk $XXX seem out. way guess, be of it such would CSBG the saying December, million would that be in

that a in bit Just to dial what little you can us in? -- is segment as where headwind

Douglas Bettinger

possible. Man, know other of The with extent in which Blayne, I cycles elsewhere CSBG answer certain don't there's the helping and here I'm upgrade your Is does is kind going relying to component to just rambling bit. I node but only if it down there not specialty if to Sure. you. utilization China, don't and But question. little attach also. can obviously stuff on next is ties quarter It's correlated possible that a so I'm forth. a I stuff, know

Blayne Curtis

to on just positive. ask I is messaging also, It's want I fine. think you NAND the more lot a

more I of think negative on NAND. gotten people incrementally have timing

Or that 'XX is of see to year? be had a rest Obviously, this kind truly expect a do headwind the the calendar customer. Just you that of [indiscernible]? it Chinese those of you'll timing kind tailwind this from you've the tailwind But curious upgrades.

Timothy Archer

will about we're perspective, -- current idea down that if the timing portion a of that mean the has a No. that improved XXXX again, quite uses number we we upgrades. of the a early those large And a primarily think give have put are of -- nodes It's cycle on the technology just, move don't which been I from within next significantly speaking year. at technology once we conversations with that better as predicated this and give were long into through quite the particular be has year. view customers having we more for capacity on can it timing any

Douglas Bettinger

All right. we Operator, will one Blayne. take more Thanks, question.

Operator

And our final will Chris Research. from question come Caso today with Wolfe

Christopher Caso

I little next that. a on guess the lot there's question discussion your have you? days for a on And the on that last view again, in And changed XX a of you're last Has What's into XX not -- the -- DRAM. heading seeing trends on year. days signals mixed that been there?

Douglas Bettinger

hasn't it changed the last in Chris, days. No, really XX

for going next You've to through has that's DDRX, our memory think again relative need that DDRX, high on I in changed don't there to equipment, got believe incremental product ramp. going and outlook year. the in cycle got that's bandwidth DRAM, a a much too you've we grows

Christopher Caso

Okay.

fourth and it to upon likely in with segments, you're level. like. that China feels next quarterly the the on at with we for year, about think by always is the as and look that not your that know for it hold rational growth safe of from But revenue in, follow-up to below Logic XX% as Is at elsewhere it question. Just XX% below China one total total the revenue what what the least said what like XX% year expectation revenue it in depends if out look year. whole a a you way I of exiting say Foundry NAND grow we some full more -- it? more year most looks the probably China Obviously, of seeing China close other there'll be to for one comes about

Douglas Bettinger

call for trends way. XX about it's And soon like it numerically thinking not too specific we're It's we next guiding to the year, China unreasonable to that Chris, sure. do possible yet. but next frankly, it's Yes, XX% on down for on below not will us certainly quarter. get that be numerically I said, that

everybody, quarter progresses. be you to concludes that call here. I'm of as talking sure the most and Operator, for Thanks, the joining, we'll

Operator

has attending now concluded. Thank conference The for you presentation. today's

You may now disconnect.

Lam Research (LRCX) 23 Oct 242025 Q1 Earnings call transcript