Stock Analysis on Net
Stock Analysis on Net

Lam Research Corp. (NASDAQ:LRCX)

Common-Size Income Statement 

Lam Research Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Jun 29, 2025 Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021 Jun 28, 2020
Revenue 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -51.29 -52.39 -54.93 -54.31 -53.47 -54.12
Restructuring charges, net, cost of goods sold 0.00 -0.29 -0.45 0.00 0.00 0.00
Cost of goods sold -51.29% -52.68% -55.38% -54.31% -53.47% -54.12%
Gross margin 48.71% 47.32% 44.62% 45.69% 46.53% 45.88%
Research and development -11.37 -12.76 -9.91 -9.31 -10.21 -12.47
Selling, general, and administrative -5.33 -5.83 -4.78 -5.14 -5.67 -6.79
Restructuring charges, net, operating expenses 0.00 -0.12 -0.24 0.00 0.00 0.00
Operating expenses -16.70% -18.71% -14.93% -14.45% -15.88% -19.26%
Operating income 32.01% 28.61% 29.69% 31.24% 30.64% 26.62%
Interest income 1.25 1.69 0.80 0.09 0.13 0.85
Interest expense -0.97 -1.24 -1.07 -1.07 -1.43 -1.77
Gains (losses) on deferred compensation plan related assets, net 0.21 0.39 0.12 -0.22 0.42 0.06
Foreign exchange gains (losses), net -0.14 -0.03 -0.04 0.00 -0.05 -0.03
Other, net -0.05 -0.16 -0.18 0.11 0.16 -0.09
Other income (expense), net 0.31% 0.65% -0.38% -1.10% -0.76% -0.98%
Income before income taxes 32.32% 29.25% 29.32% 30.15% 29.88% 25.64%
Income tax expense -3.25 -3.57 -3.43 -3.41 -3.16 -3.22
Net income 29.06% 25.68% 25.88% 26.73% 26.72% 22.42%

Based on: 10-K (reporting date: 2025-06-29), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28).

Revenue Composition
The revenue baseline remains consistent at 100% throughout the periods, serving as the reference point for all subsequent cost and income metrics expressed as percentages of revenue.
Cost of Goods Sold (COGS)

COGS as a percentage of revenue shows a general downward trend from -54.12% in 2020 to -51.29% in 2025, suggesting improved cost efficiency or favorable input costs over time.

Notably, there is a slight increase in COGS in 2023 (-55.38%), partly influenced by restructuring charges of -0.45% in 2023 and -0.29% in 2024. Once adjusted for these charges, the effective COGS still shows improvement in the most recent years.

Gross Margin

Gross margin demonstrated some fluctuation, declining from 45.88% in 2020 to 44.62% in 2023 but rebounding strongly to 48.71% by 2025. This improvement towards the end of the period indicates enhanced profitability at the gross level, likely due to reduced COGS relative to revenue.

Operating Expenses

Research and development (R&D) expenses decrease from -12.47% in 2020 to -9.31% in 2022, signaling reduced relative investment in R&D. However, R&D expenses rise again to -12.76% in 2024 before improving slightly to -11.37% in 2025.

Selling, general, and administrative (SG&A) expenses consistently decrease from -6.79% in 2020 to a low of -4.78% in 2023, indicating effective expense control, before slightly increasing in subsequent years.

Total operating expenses follow a downward trend from -19.26% in 2020 to -14.45% in 2022 and maintain near that level before rising again to -18.71% in 2024 and reducing to -16.7% in 2025. Restructuring charges related to operating expenses appear in 2023 (-0.24%) and 2024 (-0.12%), contributing to the expense variability.

Operating Income

Operating income improves from 26.62% in 2020 to 31.24% in 2022, indicating enhanced operational efficiency. It temporarily dips in 2023 and 2024 to around 28-29%, likely impacted by restructuring and increased operating expenses, before rising again to 32.01% in 2025.

Interest Income and Expense

Interest income is generally low but shows an increase from 0.09% in 2022 to 1.69% in 2024, indicating possibly higher cash balances or investment returns, before slightly decreasing to 1.25% in 2025.

Interest expense decreases steadily from -1.77% in 2020 to -0.97% in 2025, reflecting potentially reduced debt costs or debt levels over the period.

Other Income and Expenses

Net effects from gains or losses on deferred compensation plans, foreign exchange, and other income/expense items show minor fluctuations, often close to zero, and have a limited impact on overall profitability.

Other income (expense) net improves notably in 2024 to positive 0.65%, compared to prior negative values, possibly contributing to income before taxes gains.

Income Before Income Taxes and Net Income

Income before income taxes rises from 25.64% in 2020 to about 30% in 2022 and remains near that level through 2024, reaching 32.32% in 2025, consistent with operational profitability trends.

Income tax expense relative to revenue remains stable around -3.2% to -3.6% throughout the years.

Net income follows the upward trend, increasing from 22.42% in 2020 to 29.06% in 2025, indicative of overall profitability enhancement during the analyzed timeframe.