Slides
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Confidential – Internal Use Only Lam Research Corporation December quarter 2025 financial results January 28, 2026
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LAM R E S E AR C H Cautionary statement regarding forward- looking statements This presentation and the accompanying discussion contain “forward-looking statements” under U.S. securities laws. Forward-looking statements include any statements that are not statements of historical fact. Examples of forward-looking statements include, but are not limited to: (1) anticipated business, balance sheet, cash flow and financial measures and results and related drivers, including guidance, whether on a GAAP or non-GAAP basis; (2) economic, market, industry and industry segment expectations; (3) product performance and changes in market share or customer demands; (4) our ability to successfully execute business, capital allocation, product and growth plans or strategies, or otherwise deliver value for customers and stockholders; and (5) the impact of trade regulations, export controls, tariffs and trade disputes. Forward-looking statements speak only as of the date they are made and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed, including:business, economic, political and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy may deteriorate or change; the actions of our customers and competitors may be inconsistent with our expectations; trade regulations, export controls, tariffs, trade disputes, and other geopolitical tensions may inhibit our ability to sell our products; supply chain cost increases, tariffs and other inflationary pressures have impacted and may continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; and natural andhuman caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other factors discussed in our filings with the Securities and Exchange Commission (“SEC”), including specifically the Risk Factors described in our annual report on Form 10-K for the fiscal year ended June 29, 2025 and our quarterly report on Form 10-Q for the fiscal quarter ended September 28, 2025. You should not place undue reliance on forward-looking statements. Lam undertakes no obligation to update any forward-looking statements.
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LAM R E S E AR C H LAM R E S E AR C H $2.3B R&D* ~19,700 EMPLOYEES As of December 28, 2025 $20.6B REVENUE* AWARDS AND RECOGNITION World’s Best Employers Forbes World’s Greenest Companies Newsweek World’s Most Ethical Companies Ethisphere America’s Best Employers for Company Culture Forbes World’s Most Admired Companies Fortune Equality 100 Award Human Rights Campaign A global leader in wafer fabrication equipment and services since 1980 14 PRIMARY LOCATIONS + Fremont, CA + Livermore, CA + Sherwood, OR + Tualatin, OR + Springfield, OH + Eaton, OH + Villach, Austria + Hwaseong-si, Korea + Osan, Korea + Yongin, Korea + Hsinchu City, Taiwan + Taoyuan City, Taiwan + Bengaluru, India + Batu Kawan, Malaysia *Revenue and R&D expense is presented on a GAAP basis for calendar year 2025.
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LAM R E S E AR C H Business review & industry outlook Tim Archer President and Chief Executive Officer
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LAM R E S E AR C H LAM R E S E AR C H LAM R E S E AR C H *Data on a non-GAAP basis. Reconciliations of U.S. GAAP results to non-GAAP results can be found at the end of this presentation. EPS = Earnings per share Revenues over mid-point of guidance Gross margin, operating margin, and EPS exceeding high end of guidance range* Solid execution in an accelerating semiconductor demand environment Delivered strong December 2025 quarter results
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LAM R E S E AR C H Vertical scaling drives growth Every node expands opportunity Prepared for this moment with key investments Executing our Investor Day commitments One year after Investor Day 2025, we are well on our way to our vision of >2x revenue and profit over 5 years
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LAM R E S E AR C H LAM R E S E AR C H Calendar year 2025 achievements ~75,000 ~84,000 ~90,000 ~96,000 ~102,000 2021 2022 2023 2024 2025 GROWING INSTALLED BASE UNITS WFE = Wafer fabrication equipment SAM = Served available market >$20B revenue SAM mid-30s% of WFE Share of WFE grew over 1 percentage point Y/Y
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LAM R E S E AR C H LAM R E S E AR C H CY 2026 WFE: $135B range CY 2025 WFE: ~$110B WFE: Strong 2025, robust 2026 outlook CY = Calendar year Cleanroom space remains key constraint 2026 WFE is 2H weighted Robust investment growth across all 3 device segments
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LAM R E S E AR C H HBM = High bandwidth memory HBM4E = Next generation variant of high bandwidth memory 4 AI = Artificial Intelligence AI driving advanced packaging growth Advanced packaging critical for: +Foundry-logic customers integrating more functionality with advanced packaging +Transition to HBM4 and HBM4E Lam’s advanced packaging business to grow >40% in CY 2026, outperforming WFE growth in this space
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LAM R E S E AR C H LAM R E S E AR C H Installed base doubled year-over-year, with production wins in advanced DRAM and foundry-logic nodes Shrinking critical dimensions and rising high-aspect ratio etch complexity favors Akara’s precision and profile control Applications adopting Akara in next- generation GAA and DRAM nodes expanding roughly 2x to 3x Akara on Sense.i® platform with DirectDrive® DRAM = Dynamic random-access memory GAA = Gate-all-around Akara®: Key enabler of advanced node scaling
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LAM R E S E AR C H Lam increasing velocity of execution Received nearly 40 supplier awards for fast installation and production ramp Increased manufacturing capacity ~2x over past 4 years, with more coming Launched state-of- the-art automated warehouses in 2025 Expanded Dextro to 6 tool types LAM R E S E AR C H
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Elevating focus on scaling, delivering, and outperforming in the AI era LAM R E S E AR C H
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LAM R E S E AR C H December quarter 2025 financial results & March quarter 2026 outlook Doug Bettinger Executive Vice President and Chief Financial Officer
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LAM R E S E AR C H LAM R E S E AR C H Calendar year highlights CY 2025 revenue CY 2025 earnings per share* $20.6B CY 2024 Revenue: $16.2B $4.89 CY 2024 earnings per share*: $3.36 *Data is presented on a non-GAAP basis. Reconciliations of U.S. GAAP results to non-GAAP results can be found at the end of this presentation. ALTUS® Halo
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LAM R E S E AR C H LAM R E S E AR C H December quarter highlights QDec'25 revenue QDec'25 earnings per share* $5.34B QSep'25 revenue: $5.32B $1.27 QSep'25 earnings per share*: $1.26 *Data is presented on a non-GAAP basis. Reconciliations of U.S. GAAP results to non-GAAP results can be found at the end of this presentation. VECTOR® TEOS 3D
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LAM R E S E AR C H December quarter revenue mix Foundry 59% NVM 11% DRAM 23% Logic/other 7% SYSTEM REVENUE SEGMENTS* China 35% Taiwan 20% Korea 20% Japan 10% SEA 8% US 5% Europe 2% REVENUE BY REGION Memory 34% NVM = Non-volatile memory SEA = Southeast Asia *Systems revenue includes equipment and equipment upgrade sales from etch, deposition, clean, and our Reliant® product line.
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LAM R E S E AR C H LAM R E S E AR C H QDec’25 CSBG revenue $1.99B QSep’25 CSBG revenue: $1.78B QDec'24 CSBG revenue: $1.75B Customer Support Business Group (CSBG)
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LAM R E S E AR C H December quarter financial results and capital return *A reconciliation of U.S. GAAP results to non-GAAP results can be found at the end of this presentation.
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LAM R E S E AR C H Key balance sheet and financial metrics
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LAM R E S E AR C H $5.70B +/- $300M Revenue 34.0% +/- 1% Non-GAAP operating margin* 49.0% +/- 1% Non-GAAP gross margin* $1.35 +/- $0.10 Non-GAAP earnings per share* March 2026 quarter guidance A reconciliation of U.S. GAAP projected results to non-GAAP projected results can be found at the end of this presentation. *Based on a diluted share count of approximately 1.26 Billion shares.
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LAM R E S E AR C H Q&A
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LAM R E S E AR C H Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited) Three Months Ended December 28, 2025 September 28, 2025 U.S. GAAP net income $ 1,593,994 $ 1,568,660 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations - cost of goods sold 2,668 2,687 Elective deferred compensation ("EDC") related liability valuation increase - cost of goods sold 4,426 6,016 EDC related liability valuation increase - research and development 7,968 10,828 Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative 193 538 EDC related liability valuation increase - selling, general and administrative 5,312 7,219 Impairment of long-lived assets - selling, general and administrative — 5,290 Amortization of note discounts - other income (expense), net 701 695 Gain on EDC related asset - other income (expense), net (16,628) (23,088) Net income tax benefit on non-GAAP items (1,008) (1,698) Income tax expense from a change in tax law — 27,450 Non-GAAP net income $ 1,597,626 $ 1,604,597 Non-GAAP net income per diluted share $ 1.27 $ 1.26 U.S. GAAP net income per diluted share $ 1.26 $ 1.24 U.S. GAAP and non-GAAP number of shares used for per diluted share calculation 1,261,739 1,269,313 Appendix – reconciliation
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LAM R E S E AR C H Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income (in thousands, except per share data) (unaudited) Twelve Months Ended December 28, 2025 December 29, 2024 U.S. GAAP net income $ 6,213,409 $ 4,293,570 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations - cost of goods sold 10,729 12,045 EDC related liability valuation increase - cost of goods sold 15,016 14,067 Restructuring charges, net - cost of goods sold — 20,478 Transformational costs - cost of goods sold — 38,677 Impairment of long-lived assets - cost of goods sold — 8,705 EDC related liability valuation increase - research and development 27,029 27,581 Transformational costs - Research and development — 12,892 Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative 1,807 2,770 Impairment of long-lived assets - selling, general and administrative 5,290 — EDC related liability valuation increase - selling, general and administrative 18,019 20,478 Transformational costs - selling, general and administrative — 12,892 Restructuring charges, net - operating expenses — 14,478 Amortization of note discounts - other income (expense), net 2,844 3,049 Gain on EDC related asset - other income (expense), net (56,915) (58,060) Net income tax benefit on non-GAAP items (3,993) (15,241) Income tax benefit on the conclusion of certain tax matters (24,740) — Income tax expense (benefit) from a change in tax law 27,450 (20,778) Non-GAAP net income $ 6,235,945 $ 4,387,603 Non-GAAP net income per diluted share $ 4.89 $ 3.36 U.S. GAAP net income per diluted share $ 4.88 $ 3.29 U.S. GAAP and non-GAAP number of shares used for per diluted share calculation 1,274,021 1,305,641 U.S. GAAP and non-GAAP revenue $ 20,560,532 $ 16,209,088 Appendix – reconciliation
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LAM R E S E AR C H Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin, Operating Expenses and Operating Income (in thousands, except percentages) (unaudited) Three Months Ended December 28, 2025 September 28, 2025 U.S. GAAP gross margin $ 2,651,162 $ 2,684,879 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 2,668 2,687 EDC related liability valuation increase 4,426 6,016 Non-GAAP gross margin $ 2,658,256 $ 2,693,582 U.S. GAAP gross margin as a percentage of revenue 49.6 % 50.4 % Non-GAAP gross margin as a percentage of revenue 49.7 % 50.6 % U.S. GAAP operating expenses $ 840,959 $ 855,791 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (193) (538) EDC related liability valuation increase (13,280) (18,047) Impairment of long-lived assets — (5,290) Non-GAAP operating expenses $ 827,486 $ 831,916 U.S. GAAP operating income $ 1,810,203 $ 1,829,088 Non-GAAP operating income $ 1,830,770 $ 1,861,666 U.S. GAAP operating income as percent of revenue 33.9 % 34.4 % Non-GAAP operating income as a percent of revenue 34.3 % 35.0 % Appendix – reconciliation
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LAM R E S E AR C H Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin, Operating Expenses and Operating Income (in thousands, except percentages) (unaudited) Twelve Months Ended December 28, 2025 December 29, 2024 U.S. GAAP gross margin $ 10,239,436 $ 7,716,298 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations 10,729 12,045 EDC related liability valuation increase 15,016 14,067 Restructuring charges, net — 20,478 Transformational costs — 38,677 Impairment of long-lived assets — 8,705 Non-GAAP gross margin $ 10,265,181 $ 7,810,270 U.S. GAAP gross margin as a percentage of revenue 49.8 % 47.6 % Non-GAAP gross margin as a percentage of revenue 49.9 % 48.2 % U.S. GAAP operating expenses $ 3,297,258 $ 2,934,545 Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations (1,807) (2,770) EDC related liability valuation increase (45,048) (48,059) Restructuring charges, net — (14,478) Transformational costs — (25,784) Impairment of long-lived assets (5,290) — Non-GAAP operating expenses $ 3,245,113 $ 2,843,454 U.S. GAAP operating income $ 6,942,178 $ 4,781,753 Non-GAAP operating income $ 7,020,068 $ 4,966,816 U.S. GAAP operating income as percent of revenue 33.8 % 29.5 % Non-GAAP operating income as a percent of revenue 34.1 % 30.6 % Appendix – reconciliation
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LAM R E S E AR C H Three Months Ended December 28, 2025 September 28, 2025 U.S. GAAP Other income (expense), net $ 26,410 $ 30,074 Pre-tax non-GAAP items: Amortization of note discounts 701 695 Gain on EDC related asset (16,628) (23,088) Non-GAAP Other income (expense), net $ 10,483 $ 7,681 Reconciliation of U.S. GAAP Other Income (Expense), Net to Non-GAAP Other Income (Expense), Net (in thousands) (unaudited) Appendix – reconciliation
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LAM R E S E AR C H Calculation of Free Cash Flows (in thousands) (unaudited) Appendix – reconciliation Twelve Months Ended December 28, 2025 U.S. GAAP net cash provided by operating activities $ 7,121,860 U.S. GAAP cash used for capital expenditures and intangible assets (906,249) Total free cash flow $ 6,215,611
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LAM R E S E AR C H Appendix – reconciliation Reconciliation of U.S. GAAP Income Tax Rate to Non-GAAP Income Tax Rate (in thousands, except percentages) (unaudited) Three Months Ended December 28, 2025 September 28, 2025 U.S. GAAP income before income taxes $ 1,836,613 $ 1,859,162 U.S. GAAP income tax expense $ 242,619 $ 290,502 U.S. GAAP income tax rate 13.2 % 15.6 % Pre-tax non-GAAP items: Amortization related to intangible assets acquired through certain business combinations - cost of goods sold $ 2,668 $ 2,687 EDC related liability valuation increase - cost of goods sold 4,426 6,016 EDC related liability valuation increase - research and development 7,968 10,828 Amortization related to intangible assets acquired through certain business combinations - selling, general and administrative 193 538 EDC related liability valuation increase - selling, general and administrative 5,312 7,219 Impairment of long-lived assets - selling, general and administrative — 5,290 Amortization of note discounts - other income (expense), net 701 695 Gain on EDC related asset - other income (expense), net (16,628) (23,088) Non-GAAP income before taxes $ 1,841,253 $ 1,869,347 Net income tax benefit on non-GAAP items $ 1,008 $ 1,698 Income tax expense from a change in tax law $ — $ (27,450) Non-GAAP income tax expense $ 243,627 $ 264,750 Non-GAAP income tax rate 13.2 % 14.2 %
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LAM R E S E AR C H Reconciliation of U.S. GAAP to Non-GAAP Guidance for the quarter ending March 29, 2026 The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other items that may be completed or realized after the date of this release, except as described below. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this modeland the variations may be material. Reconciling items included above are as follows: • Gross margin as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $2.7 million. • Operating income as a percentage of revenue - amortization related to intangible assets acquired through business combinations, $3.0 million. • Net income per diluted share - amortization related to intangible assets acquired though business combinations, $3.0 million; amortization of debt discounts, $0.7 million; and associated tax benefit for non-GAAP items ($0.2 million); totaling $3.5 million. U.S. GAAP Reconciling Items Non-GAAP Revenue $5.70 Billion +/- $300 Million — $5.70 Billion +/- $300 Million Gross margin as a percentage of revenue 49.0% +/- 1% $ 2.7 Million 49.0% +/- 1% Operating income as a percentage of revenue 33.9% +/- 1% $ 3.0 Million 34.0% +/- 1% Net income per diluted share $1.35 +/- $0.10 $ 3.5 Million $1.35 +/- $0.10 Diluted share count 1.26 Billion — 1.26 Billion Appendix – reconciliation
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LAM R E S E AR C H