Lam Research Corp. (NASDAQ:LRCX)

Gross Profit Margin

The gross profit margin remained relatively stable over the periods shown, fluctuating within a narrow range from approximately 44.6% to 49.3%. The margin showed a slight declining trend from around 46.5% in late 2019 and early 2020 down to lows near 44.6% in 2022 and early 2023. Subsequently, there was a gradual recovery, with the margin rising steadily to peak near 49.3% by the most recent period.

Operating Profit Margin

The operating profit margin exhibited a generally positive trajectory across the time frame. Starting near 26.6% in late 2019, it increased fairly consistently to reach above 31% through 2021 and 2022. Although a gradual decline was visible in late 2022 and early 2023, the margin later improved again, reaching a high of approximately 33% at the end of the observed span. This indicates effective operational efficiency improvements and cost management over time.

Net Profit Margin

Net profit margin followed a similar pattern to the operating margin, commencing at around 22.4% in late 2019 and increasing steadily to highs near 27.8% by the end of 2021. A modest reduction took place in 2022 and early 2023, dipping below 25%, followed by a progressive recovery that pushed the margin to nearly 30% by the latest period. This pattern suggests strengthened bottom-line performance aligned with operational improvements and possibly favorable tax or financing impacts.

Return on Equity (ROE)

Return on equity demonstrated strong growth from approximately 43.5% in late 2019, peaking impressively around 75% in mid-2021. Post this peak, a declining trend was noted through 2022 and 2023, with ROE falling to near 42% by late 2023. However, the more recent quarters show a renewed upward trend, with ROE climbing back to over 57% by mid-2025. The fluctuations point to variable profitability and equity efficiency which may be influenced by leverage, net income changes, or equity capital adjustments.

Return on Assets (ROA)

The return on assets increased steadily from roughly 15.5% in late 2019 to peaks above 27% through 2021. This was followed by a moderate decline throughout 2022 and 2023, bottoming near 18.4%. Thereafter, ROA gradually rebounded, reaching values above 26% by mid-2025. This trend indicates effective asset utilization with some volatility likely connected to fluctuations in net income or asset base size.

Overall Observations

The company displayed strong profitability metrics, with both margins and return ratios showing resilience and capacity to recover after periods of decline. The gross margin remained stable, supporting a generally healthy cost structure. Operating and net margins improved over time, reflecting enhanced operational efficiency and profitability. Return measures were volatile but remained at high levels, suggesting strong returns on invested capital despite cyclical changes. The most recent data conveys an optimistic outlook with margins and returns trending upward.

The financial data over the observed periods reveals notable trends in both gross margin and revenue figures. There is a general upward movement in gross margin values from the initial quarter to the most recent quarters, signifying increased profitability before accounting for operational expenses. The gross margin starts at approximately 981,710 thousand US dollars and escalates to over 2,684,879 thousand US dollars by the end of the timeline, despite some fluctuations, particularly noticeable dips in the middle of the timeline. This indicates a strengthening ability to generate earnings after covering the cost of goods sold.

Revenue follows a broadly similar upward trajectory with significant growth observed over the period. Beginning at approximately 2,165,746 thousand US dollars, revenue peaks to over 5,324,173 thousand US dollars in the last recorded quarter. Revenue does experience occasional decreases during some quarters, which appear more pronounced in the mid-timeline region, suggesting potential cyclicality or market-driven demand changes impacting the sales volume or pricing.

The gross profit margin percentage, available from a certain point onward, shows relatively stable performance within the range of approximately 44.6% to nearly 49.3%. After an initial period of data unavailability for this metric, the margin maintains a narrow band, implying consistent efficiency in managing the production costs relative to revenue. The gradual increase towards the latter quarters suggests an improvement in cost management or pricing strategy.

Gross Margin

Exhibits a consistent upward trend overall, nearly tripling in value from the start to the end of the series, with some intermittent declines indicating possible short-term challenges affecting cost structure or sales mix.

Revenue

Displays significant growth roughly doubling over the monitored periods. The data shows periodic dips, possibly reflecting market volatility, supply chain issues, or other external economic factors influencing sales.

Gross Profit Margin Percentage

Remains relatively steady within a band between 44.6% and 49.3%, with a slight upward trend in the later periods, indicating stable or improving operational efficiency and cost control over time.

Overall, the trends indicate a strengthening financial position characterized by increased revenue generation and gross margin improvement. The stability in gross profit margin percentage supports the inference that the company maintains effective cost management despite fluctuations in revenue and gross margin dollar values. The occasional decreases in revenue and gross margin values warrant further investigation to understand short-term operational challenges or external factors impacting performance in those quarters.

The financial performance exhibits notable cyclical trends and an overall upward trajectory in revenue and operating income across the observed periods. The operating profit margin percentage is missing for the initial quarters but becomes available starting from the quarter ending June 28, 2020, indicating consistently strong profitability thereafter.

Revenue

Revenue shows a general growth trend starting from approximately 2.17 billion USD in late 2019 to over 5.32 billion USD by the third quarter of 2025. Despite some fluctuations, particularly a decline in mid-2023 where revenue dropped below 3.9 billion USD, the overall revenue trajectory remains positive, with several quarters exhibiting considerable gains.

Operating Income

Operating income follows a similar pattern to revenue with increases over time, starting at around 537 million USD and rising to approximately 1.83 billion USD by the third quarter of 2025. There is a noticeable dip during 2023, paralleling the revenue decrease, with operating income dropping to values below 1 billion USD. However, subsequent quarters show recovery and growth in operating income exceeding previous peaks.

Operating Profit Margin

The operating profit margin displays a stable and gradually increasing trend, starting at about 26.62% and climbing to a peak of 33% by the third quarter of 2025. This indicates improving operational efficiency or favorable cost management relative to revenue over time, even during periods of revenue decline.

Overall, the data reflect a company experiencing steady long-term growth in revenue and profitability, punctuated by short-term declines, particularly in 2023. The increase in operating profit margin suggests enhanced operational leverage and profitability despite the revenue volatility observed in certain quarters. The recovery in both revenue and operating income after the dip indicates resilience and potential strengthening of market position or operational execution.

The financial data reflects notable patterns and fluctuations across the observed quarters, particularly focusing on net income, revenue, and net profit margin.

Net Income

Net income demonstrated an overall upward trajectory from late 2019 through 2022, reaching a peak in the September 2022 quarter. Subsequently, a significant decline occurred in early 2023, with net income decreasing sharply and remaining relatively subdued throughout the mid-2023 quarters. However, from late 2023 onwards, net income resumed growth, culminating in a substantial increase by the September 2025 quarter.

Revenue

Revenue exhibited a strong growth trend from 2019 through the end of 2022, culminating in the highest values observed in the September and December 2022 quarters. In contrast to net income's decline in early 2023, revenue experienced a notable decrease, reaching a low in the December 2022 and March 2023 quarters. Following this trough, revenue began to recover gradually, showing consistent growth through to the last reported period in late 2025.

Net Profit Margin

The net profit margin maintained a relatively high level throughout the period, generally ranging between approximately 22% and 30%. Initially, the margins increased steadily from 2020 into late 2022, peaking near 29.66% by September 2025. Despite fluctuations in net income and revenue, the profit margin remained consistently strong, suggesting efficient cost management and profitability resilience throughout the periods analyzed.

Overall Insights

The data reveals a correlation between revenue and net income trends, with both metrics peaking in late 2022 before declining in the subsequent quarters of early 2023. The recovery phase post-2023 is marked by gradual improvements in both revenue and net income, supported by a stable and increasing net profit margin. This indicates a capacity to regain operational efficiency and market performance following the downturn.

Net Income Trends

The net income demonstrated a consistent upward trajectory from late 2019 through 2022, nearly tripling during this period. Peaks were observed around September 2022 with a value exceeding 1.4 million US dollars (in thousands). However, from early 2023 to mid-2023, net income experienced a notable decline, reaching approximately 800,000 US dollars (in thousands). Subsequently, the figure rebounded and showed growth again toward the end of the observed series, peaking above 1.7 million US dollars (in thousands) by late 2025, indicating strong recovery and continued profitability.

Stockholders’ Equity Movements

Stockholders' equity displayed fluctuations over the period but with an overall rising trend. It initially decreased from about 4.9 million US dollars (in thousands) in late 2019 to around 4.4 million before climbing steadily to over 8.3 million by late 2022. After some minor decreases and recoveries in 2023 and early 2024, stockholders’ equity continued to grow, surpassing 10.1 million US dollars (in thousands) by the end of 2025. The general increase in equity suggests expanding company net assets and potentially retained earnings over time.

Return on Equity (ROE) Analysis

Return on equity became available from mid-2020 onward and showed an initially strong and rising trend, peaking near 75% by late 2021. This indicates exceptionally high profitability relative to shareholder equity during that interval. From 2022, ROE experienced a gradual but consistent decline, dropping to around 42% by mid-2024. However, the ratio stabilized and began a recovery trend in late 2024 and into 2025, reaching approximately 57% by late 2025. Despite the decrease from its peak, the ROE values remained substantially high, signaling efficient use of equity capital.

Overall Financial Performance Insights

The company's financial data reveal strong profit growth coupled with expanding equity over the examined periods. Volatility in net income and ROE during the 2023 phase suggests a temporary performance setback, yet recovery in later periods highlights resilience. The high ROE values throughout most of the timeframe imply effective operational efficiency and capital management. The growth in stockholders’ equity aligns with sustained profitability and reinvestment of earnings, supporting future growth potential.

Net Income

The net income exhibits a generally upward trend over the entire period, increasing from approximately 465.8 million US dollars in the third quarter of 2019 to a peak exceeding 1.7 billion US dollars in the third quarter of 2025. Notable growth phases occur between 2019 and late 2021, followed by some fluctuations in 2023 with a temporary decline in income around early 2023, before recovering again in the subsequent quarters. The periods from late 2024 to mid-2025 indicate sustained strong profitability levels, reaching new highs. This pattern suggests overall successful earnings growth with some short-term volatility.

Total Assets

Total assets also show a consistent upward trend, increasing from around 12.3 billion US dollars at the end of September 2019 to over 21.9 billion US dollars by the third quarter of 2025. The asset base expands steadily, with no significant contractions, indicating ongoing investments or asset acquisitions. A steady increase throughout the period reflects an expansion strategy or accumulation of resources aligning with business growth.

Return on Assets (ROA)

Return on Assets data begins from June 2020 and generally demonstrates a high and strong performance. Initially, ROA increases sharply, peaking at approximately 27.51% towards the end of 2021. Following this peak, there is a gradual decline through 2022 and early 2023, bottoming near 18.41% in early 2024. After this, ROA shows signs of recovery and improvement up to 26.53% by the third quarter of 2025. This indicates efficient use of assets to generate profits, with some periods of pressure or reduced efficiency reversing towards the end of the observed timeframe.

Summary Insights

Overall, the data depicts a company experiencing robust growth in net income and asset base over the five-plus years analyzed. Although profitability efficiency as measured by ROA fluctuated, it remained relatively high, suggesting effective asset utilization despite some temporary downturns. The growth in total assets supports the revenue and income expansion, implying continued investment in the business. The fluctuations in net income and ROA during certain quarters should be investigated further to understand underlying causes, but the long-term trajectory is positive and reflects strong financial health and operational performance.