Lam Research Corp. (NASDAQ:LRCX)

Gross Profit Margin

The gross profit margin demonstrated relative stability starting from the period ending in June 2020, fluctuating between approximately 44.6% and 48.7% through June 2025. Initially, the margin slightly declined from around 46.6% in early 2020 to a low near 44.6% by late 2022, followed by a consistent upward trend reaching the highest observed values above 48% towards mid-2025. This indicates an improvement in core production profitability over the latter periods.

Operating Profit Margin

Operating profit margin showed a gradual increase from about 26.6% in June 2020 to a peak above 31.7% in late 2021 and early 2022. Thereafter, the margin declined steadily, reaching a low near 27.1% by late 2023. Starting from early 2024, it resumed growth, rising back above 32% by mid-2025. These movements suggest phases of operational efficiency gains followed by some cost or expense pressures, and then renewed operational improvements.

Net Profit Margin

The net profit margin consistently increased from 22.4% in June 2020 up to nearly 29.1% by mid-2025. There was a steady upward trajectory with minor fluctuations, suggesting effective control over both operating and non-operating expenses, leading to enhanced profitability available to shareholders over the term.

Return on Equity (ROE)

Return on equity exhibited a strong growth from 43.5% in June 2020 to a peak near 75.3% in early 2022. Following this, ROE showed a pronounced decline down to about 42.1% by late 2023. From the start of 2024 onward, the return steadily improved again to above 54% by mid-2025. This pattern reflects cycles of capital utilization effectiveness, with periods of high profitability and equity efficiency, descending into a phase of reduced performance, and subsequently recovery.

Return on Assets (ROA)

The return on assets rose sharply from approximately 15.5% in June 2020 to a peak around 27.5% in early 2021, then slowly declined to about 18.4% by late 2023. Beginning in early 2024, a clear recovery trend was observable, with ROA increasing to approximately 25.1% by mid-2025. This trend points to improved asset utilization and operational effectiveness followed by some asset-related efficiency challenges and subsequent improvement.

Revenue Trends

Revenue demonstrated a consistent upward trajectory from September 2019 through December 2022, peaking at approximately 5.28 billion US dollars. This growth reflects steady expansion over this period. However, from the first quarter of 2023, there was a marked decline in revenue, reaching a low point in December 2023 at about 3.21 billion US dollars. Subsequent quarters saw a recovery trend with revenue increasing again, reaching over 5.17 billion US dollars by June 2025, indicating resilience and a positive return to growth.

Gross Margin Behavior

Gross margin values also showed a generally upward movement between September 2019 and December 2022, rising from around 981 million to over 2.37 billion US dollars. Post-December 2022, gross margin dropped notably through mid-2023, with the lowest value just below 1.46 billion US dollars in June 2023. Thereafter, gross margin improved progressively, reaching close to 2.59 billion US dollars by June 2025, mirroring the recovery pattern seen in revenue.

Gross Profit Margin Percentage

The gross profit margin percentage, available from June 2020 onwards, showed relative stability with minor fluctuations. It initially hovered around 45.88% to 46.59%, then experienced a gradual decline, reaching approximately 44.62% in December 2023. From the start of 2024, a steady increase was observed, culminating at around 48.71% in June 2025. This increase suggests improving cost efficiency or pricing power over the most recent periods.

Overall Insights

The data reveals a phase of growth until late 2022 followed by a significant downturn in both revenue and gross margin throughout 2023. This negative trend was reversed in 2024 and continued into 2025, with both financial metrics showing strong recovery and growth. The improvement in gross profit margin percentage during the recovery period points to potential enhancements in operational efficiency or favorable market conditions. The cyclical pattern observed suggests sensitivity to external factors but with an ability to adapt and regain growth momentum.

Revenue Trends

The revenue displays a general upward trend from September 2019 through December 2023, increasing from approximately 2.17 billion to over 5.17 billion US dollars. Notable growth occurs especially between mid-2021 and late 2023, when revenue more than doubles. However, there is a marked decline from the peak in December 2022 of about 5.28 billion to around 3.21 billion in June 2023, suggesting a temporary contraction. Following this dip, revenue recovers steadily, reaching a new high by the latest reported period in June 2025.

Operating Income Patterns

Operating income exhibits a strong growth trajectory in line with revenue increases, rising from roughly 537 million to over 1.74 billion US dollars by December 2023. A pronounced decrease occurs in the first half of 2023, with operating income falling sharply from approximately 1.69 billion in December 2022 to about 854 million in June 2023. Similar to revenue, operating income rebounds subsequently, climbing back to over 1.74 billion by June 2025, indicating recovery and improved profitability.

Operating Profit Margin Analysis

The operating profit margin begins its available measurement from June 2020, exhibiting an upward trend from approximately 26.6% to above 32% by June 2024. This steadily increasing margin suggests improving operational efficiency or pricing power during the periods of growth. Despite the revenue and operating income dip observed in early 2023, margins remain relatively robust and continue to rise, reaching a peak margin of 32.01%, indicating strong cost control or product mix benefits contributing to profitability.

Correlations and Insights

The synchronized movements between revenue and operating income reflect the company's sensitivity to market conditions, with a significant contraction in early 2023 likely due to external factors. The subsequent recovery shows resilience and effective management response. The increasing operating profit margin, even amid fluctuating revenue and income, highlights enhanced operational effectiveness and resilience in profitability, pointing to improved cost management or favorable business dynamics during growth phases.

Net Income

The net income exhibited a general upward trend from September 2019 through December 2021, increasing from approximately $466 million to nearly $1.2 billion. Although it experienced a notable decline in the first three quarters of 2023, dropping to around $814 million in March 2023, it subsequently recovered and trended upward again through June 2025, reaching over $1.7 billion. This pattern suggests resilience and recovery after an interim period of lower profitability.

Revenue

Revenue demonstrated steady growth starting from about $2.2 billion in September 2019 to a peak exceeding $5.2 billion by June 2025. Despite a decline observed in the early to mid-2023 period, where revenue dropped to approximately $3.2 billion, the overall trajectory shows strong recovery and continued expansion beyond this dip. This rebound is consistent with the net income trend and reflects cyclical or external factors impacting performance temporarily.

Net Profit Margin

The net profit margin, available from mid-2020 onward, exhibits stable and strong margins predominantly in the mid-20% range. Starting at 22.42% in June 2020, it increased gradually to peak at over 29% by September 2024. The margin did show slight fluctuations but maintained a generally positive trend, indicating improving efficiency or favorable cost structures relative to revenue over time.

Overall Analysis

The period captured reveals a cyclical impact on financial results around 2023, marked by declines in both revenue and net income. However, these declines were temporary, and a strong recovery ensued afterward. The consistent increase in net profit margin during the same timeframe points to effective management of expenses or enhanced profitability of operations despite revenue fluctuations. The data suggests a robust growth trajectory with resilience to downturns, supported by improving profitability ratios that reinforce the positive outlook on earnings quality.

The financial data reveals several noteworthy trends in the company’s performance over the reported periods.

Net Income

Net income shows a general upward trajectory from September 2019 through December 2021, peaking at over 1.19 billion US dollars. This growth trend indicates improving profitability during this period. However, beginning in March 2022, net income experiences a noticeable decline, dropping significantly in the subsequent two quarters, reaching approximately 814 million US dollars by March 2023, followed by a modest recovery trend through December 2023. From March 2024 onwards, net income again rises sharply, culminating in a peak of about 1.72 billion US dollars by June 2025, the highest value recorded across the entire timeline.

Stockholders’ Equity

Stockholders’ equity exhibits fluctuations but an overall increasing trend from September 2019 to June 2025. Initial values show a decline from approximately 4.94 billion US dollars in September 2019 to a low near 4.38 billion US dollars in December 2019. Subsequently, equity rises steadily, surpassing 6.47 billion US dollars by December 2021. From early 2022 onwards, there is continued growth with some volatility, reaching close to 9.86 billion US dollars by June 2025. This long-term upward trend reflects an accumulation of retained earnings and possibly other equity enhancements over time.

Return on Equity (ROE)

ROE values are partially missing for the earliest quarters but begin at a high 43.53% in June 2020, rising to a peak of roughly 75.35% by June 2021. Following this peak, ROE declines steadily, dropping to about 42.06% by June 2023. After this low, ROE trends upwards again, stabilizing around the mid-to-high 40% range for subsequent quarters, and reaching approximately 54.33% by June 2025. This indicates a cycle where profitability relative to shareholder equity improved markedly, then eased, followed by a recovery phase.

In summary, the data reflects a company that experienced robust growth in net income and ROE through mid-2021, followed by a period of contraction or normalization until early 2023, and then a strong resurgence toward 2025. Stockholders’ equity steadily climbed over the entire timeline, underscoring a solid equity base that supports the company's profitability dynamics. The fluctuations in net income and ROE suggest responsiveness to business cycles or operational factors that influenced profitability metrics distinctly from the more stable equity growth.

Net Income Trends

The net income generally shows an upward trajectory over the periods analyzed. Starting from around $465.8 million in the last quarter of 2019, it increased steadily, reaching peaks above $1.4 billion in the second quarter of 2022. A noticeable dip occurs in early 2023, with net income declining to approximately $802.5 million, but subsequently it recovers and continues to rise, culminating in a significant increase to over $1.7 billion by mid-2025.

Total Assets Trends

Total assets exhibit consistent growth with fluctuations throughout the timeline. The assets rose from approximately $12.3 billion at the end of 2019 to a peak close to $19.2 billion during the first quarter of 2023. Although there is some variation in asset values in successive quarters, the overall pattern indicates expansion, with assets ultimately reaching over $21.3 billion by mid-2025.

Return on Assets (ROA) Patterns

Return on Assets (ROA) data begins to appear starting in mid-2020. Initially, ROA increased from 15.47% and peaked at 27.51% toward the end of 2021, indicating improving efficiency in generating income from assets during that period. After this peak, ROA gradually declined, reaching lows near 18.41% in late 2023, signaling reduced profitability relative to asset base. However, subsequent quarters show a recovery trend, with ROA rising back above 25% by mid-2025, suggesting renewed operational effectiveness.

Summary of Financial Performance

The overall financial results reflect sustained growth, particularly in net income and asset base. Notwithstanding short-term volatility in earnings and profitability ratios, the company demonstrates expanding scale and improved asset utilization over the longer term. The fluctuations in ROA indicate some variability in operational efficiency, but the general upward movement in key financial metrics points to a positive performance trajectory across the periods reviewed.