LAM RESEARCH CORP 10-Q

ITEM 1. Financial Statements LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended September 28, 2025 September 29, 2024 Revenue $ 5,324,173 $ 4,167,976 Cost of goods sold 2,639,294 2,165,293 Gross margin 2,684,879 2,002,683 Research and development 576,446 495,358 Selling, general, and administrative 279,345 243,128 Total operating expenses 855,791 738,486 Operating income 1,829,088 1,264,197 Other income (expense), net 30,074 30,081 Income before income taxes 1,859,162 1,294,278 Income tax expense ( 290,502 ) ( 177,834 ) Net income $ 1,568,660 $ 1,116,444 Net income per share: Basic $ 1.24 $ 0.86 Diluted $ 1.24 $ 0.86 Number of shares used in per share calculations: Basic 1,264,446 1,299,236 Diluted 1,269,313 1,304,066 See Notes to Condensed Consolidated Financial Statements Lam Research Corporation 2025 Q3 10-Q 3 Table of Contents LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) (unaudited) Three Months Ended September 28, 2025 September 29, 2024 Net income $ 1,568,660 $ 1,116,444 Other comprehensive income (loss), net of tax: Foreign currency translation adjustment ( 12,726 ) 45,126 Cash flow hedges: Net unrealized gains (losses) during the period 8,570 ( 2,436 ) Net gains reclassified into net income ( 7,095 ) ( 104 ) 1,475 ( 2,540 ) Defined benefit plans, net change in unrealized component 83 39 Other comprehensive income (loss), net of tax ( 11,168 ) 42,625 Comprehensive income $ 1,557,492 $ 1,159,069 See Notes to Condensed Consolidated Financial Statements Lam Research Corporation 2025 Q3 10-Q 4 Table of Contents LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) September 28, 2025 June 29, 2025 (unaudited) (1) ASSETS Cash and cash equivalents $ 6,693,046 $ 6,390,659 Accounts receivable, less allowance of $ 6,541 as of September 28, 2025, and $ 6,496 as of June 29, 2025 3,633,034 3,378,071 Inventories 4,095,054 4,307,991 Prepaid expenses and other current assets 385,580 440,274 Total current assets 14,806,714 14,516,995 Property and equipment, net 2,510,531 2,428,744 Goodwill and intangible assets, net 1,826,950 1,808,685 Other assets 2,756,016 2,590,836 Total assets $ 21,900,211 $ 21,345,260 LIABILITIES AND STOCKHOLDERS’ EQUITY Trade accounts payable $ 863,160 $ 854,208 Accrued expenses and other current liabilities 2,443,943 2,394,366 Deferred profit 2,646,444 2,565,540 Current portion of long-term debt and finance lease obligations 754,363 754,311 Total current liabilities 6,707,910 6,568,425 Long-term debt and finance lease obligations 3,729,580 3,730,194 Income taxes payable 646,044 603,412 Other long-term liabilities 623,925 581,610 Total liabilities 11,707,459 11,483,641 Commitments and contingencies (refer to Note 11) Stockholders’ equity: Preferred stock, at par value of $ 0.001 per share; authorized, 5,000 shares, none outstanding — — Common stock, at par value of $ 0.001 per share; authorized, 4,000,000 shares as of September 28, 2025 and June 29, 2025; issued and outstanding, 1,259,176 shares as of September 28, 2025, and 1,268,740 shares as of June 29, 2025 1,258 1,268 Additional paid-in capital 8,794,531 8,697,290 Treasury stock, at cost; 1,697,324 shares as of September 28, 2025, and 1,687,582 shares as of June 29, 2025 ( 28,759,513 ) ( 27,763,430 ) Accumulated other comprehensive loss ( 73,591 ) ( 62,423 ) Retained earnings 30,230,067 28,988,914 Total stockholders’ equity 10,192,752 9,861,619 Total liabilities and stockholders’ equity $ 21,900,211 $ 21,345,260 (1) Derived from audited financial statements See Notes to Condensed Consolidated Financial Statements Lam Research Corporation 2025 Q3 10-Q 5 Table of Contents LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended September 28, 2025 September 29, 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,568,660 $ 1,116,444 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 101,644 94,295 Deferred income taxes ( 62,875 ) ( 108,722 ) Equity-based compensation expense 97,241 80,011 Other, net ( 1,890 ) ( 457 ) Changes in operating assets and liabilities 76,184 386,900 Net cash provided by operating activities 1,778,964 1,568,471 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures and intangible assets ( 185,121 ) ( 110,588 ) Other, net ( 927 ) 37 Net cash used for investing activities ( 186,048 ) ( 110,551 ) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on debt, including finance lease obligations and payments for debt issuance costs ( 1,417 ) ( 934 ) Treasury stock purchases, including excise tax payments ( 975,791 ) ( 997,035 ) Dividends paid ( 291,981 ) ( 260,985 ) Proceeds from issuance of common stock, net issuance costs — ( 43 ) Other, net ( 12,449 ) ( 324 ) Net cash used for financing activities ( 1,281,638 ) ( 1,259,321 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash ( 7,059 ) 22,682 Net change in cash, cash equivalents, and restricted cash 304,219 221,281 Cash, cash equivalents, and restricted cash at beginning of period (1) 6,407,656 5,850,803 Cash, cash equivalents, and restricted cash at end of period (1) $ 6,711,875 $ 6,072,084 Schedule of non-cash transactions: Accrued payables for stock repurchases, including applicable excise tax $ 58,827 $ 63,322 Accrued payables for capital expenditures 95,745 52,203 Dividends payable 327,507 297,634 Transfers of finished goods inventory to property and equipment 22,897 32,985 Reconciliation of cash, cash equivalents, and restricted cash September 28, 2025 September 29, 2024 Cash and cash equivalents $ 6,693,046 $ 6,067,471 Restricted cash and cash equivalents (1) 18,829 4,613 Total cash, cash equivalents, and restricted cash $ 6,711,875 $ 6,072,084 (1) Restricted cash is reported within Other assets in the Condensed Consolidated Balance Sheets See Notes to Condensed Consolidated Financial Statements Lam Research Corporation 2025 Q3 10-Q 6 Table of Contents LAM RESEARCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (in thousands) (unaudited) Three Months Ended September 28, 2025 Common Stock Shares Common Stock Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Loss Retained Earnings Total Balance at June 29, 2025 1,268,740 $ 1,268 $ 8,697,290 $ ( 27,763,430 ) $ ( 62,423 ) $ 28,988,914 $ 9,861,619 Issuance of common stock 178 — — — — — — Purchase of treasury stock ( 9,742 ) ( 10 ) — ( 996,083 ) — — ( 996,093 ) Equity-based compensation expense — — 97,241 — — — 97,241 Net income — — — — — 1,568,660 1,568,660 Other comprehensive loss — — — — ( 11,168 ) — ( 11,168 ) Cash dividends declared ($ 0.26 per common share) — — — — — ( 327,507 ) ( 327,507 ) Balance at September 28, 2025 1,259,176 $ 1,258 $ 8,794,531 $ ( 28,759,513 ) $ ( 73,591 ) $ 30,230,067 $ 10,192,752 Three Months Ended September 29, 2024 Common Stock Shares Common Stock Additional Paid-in Capital Treasury Stock Accumulated Other Comprehensive Loss Retained Earnings Total Balance at June 30, 2024 1,303,769 $ 1,304 $ 8,223,046 $ ( 24,365,783 ) $ ( 130,428 ) $ 24,811,315 $ 8,539,454 Issuance of common stock 200 — ( 43 ) — — — ( 43 ) Purchase of treasury stock ( 12,011 ) ( 12 ) — ( 1,008,874 ) — — ( 1,008,886 ) Equity-based compensation expense — — 80,011 — — — 80,011 Net income — — — — — 1,116,444 1,116,444 Other comprehensive income — — — — 42,625 — 42,625 Cash dividends declared ($ 0.23 per common share) — — — — — ( 297,714 ) ( 297,714 ) Balance at September 29, 2024 1,291,958 $ 1,292 $ 8,303,014 $ ( 25,374,657 ) $ ( 87,803 ) $ 25,630,045 $ 8,471,891 See Notes to Condensed Consolidated Financial Statements Lam Research Corporation 2025 Q3 10-Q 7 Table of Contents LAM RESEARCH CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS September 28, 2025 (Unaudited) NOTE 1 — BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of Lam Research Corporation (“Lam Research” or the “Company”) for the fiscal year ended June 29, 2025, which are included in the Company’s Annual Report on Form 10-K as of and for the year ended June 29, 2025 (the “2025 Form 10-K”). The condensed consolidated financial statements include the accounts of Lam Research and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s reporting period is a 52/53-week fiscal year. The Company’s current fiscal year will end June 28, 2026 and includes 52 weeks. The quarters ended September 28, 2025 (the “September 2025 quarter”) and September 29, 2024 included 13 weeks. NOTE 2 — RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted or Effective The Company has not adopted any new accounting standards during the three months ended September 28, 2025 that have a material impact on the Company’s Condensed Consolidated Financial Statements. Updates Not Yet Effective In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires public entities to disclose consistent categories and greater disaggregation of information in the rate reconciliation and for income taxes paid. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is required to adopt this standard prospectively in fiscal year 2026 for the annual reporting period ending June 28, 2026. The Company does not expect the adoption of ASU 2023-09 to have an impact on its Consolidated Financial Statements other than additional footnote disclosures. In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires disaggregation of certain expenses in the notes to the financial statements to provide enhanced transparency into the expense captions presented on the face of the income statement. In January 2025, the FASB issued ASU 2025-01 which clarified the effective date for entities that do not have an annual reporting period that ends on December 31st. The guidance is effective for annual periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is required to adopt this standard in fiscal year 2028 for the annual reporting period ending June 25, 2028 either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented in the financial statements. The Company will apply the guidance prospectively and is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements. Lam Research Corporation 2025 Q3 10-Q 8 Table of Contents NOTE 3 — REVENUE Disaggregation of Revenue The Company operates in seven geographic regions: United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan. For geographical reporting, revenue is attributed to the geographic location in which the customers’ facilities are located. The Company serves three primary markets: memory, foundry, and logic/integrated device manufacturing. The following table presents the Company’s revenues disaggregated between systems and customer support-related revenue: Three Months Ended September 28, 2025 September 29, 2024 (In thousands) Systems revenue $ 3,547,565 $ 2,392,730 Customer support-related revenue and other 1,776,608 1,775,246 $ 5,324,173 $ 4,167,976 Systems revenue includes sales of new leading-edge equipment in deposition, etch, clean and other wafer fabrication markets. Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from the Company’s Reliant® product line. The following table presents the Company’s revenues disaggregated by geographic region: Three Months Ended September 28, 2025 September 29, 2024 Revenue: (In thousands) China $ 2,282,573 $ 1,558,404 Taiwan 1,027,214 615,368 Korea 776,301 762,081 Japan 529,297 301,386 United States 304,716 488,381 Southeast Asia 302,254 244,789 Europe 101,818 197,567 $ 5,324,173 $ 4,167,976 The following table presents the percentages of leading- and non-leading-edge equipment and upgrade revenue to each of the primary markets the Company serves: Three Months Ended September 28, 2025 September 29, 2024 Foundry 60 % 41 % Memory 34 % 35 % Logic/integrated device manufacturing 6 % 24 % Deferred Revenue Revenue of $ 996.6 million included in deferred profit at June 29, 2025 was recognized during the three months ended September 28, 2025, representing 37 % of the $ 2,681.1 million of deferred revenue as of June 29, 2025. Lam Research Corporation 2025 Q3 10-Q 9 Table of Contents The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of September 28, 2025 and when the Company expects to recognize the amounts as revenue: Less than 1 Year 1-3 Years More than 3 Years Total (In thousands) Deferred revenue $ 2,187,323 $ 515,473 (1) $ 66,407 (1) $ 2,769,203 (1) This amount is reported in Deferred profit on the Company's Condensed Consolidated Balance Sheets as the customers can demand the performance to be satisfied at any time. NOTE 4 — EQUITY-BASED COMPENSATION PLANS The Lam Research Corporation 2015 Stock Incentive Plan, as amended, provides for the grant of non-qualified equity-based awards of the Company’s Common Stock to eligible employees and non-employee directors, including stock options, restricted stock units (“RSUs”), and market-based performance RSUs (“market-based PRSUs”). An option is a right to purchase Common Stock at a set price. An RSU award is an agreement to issue a set number of shares of Common Stock at the time of vesting. The Company’s market-based PRSUs contain both a market condition and a service condition. The Company’s option, RSU, and market-based PRSU awards typically vest over a period of three years . The Company also has an employee stock purchase plan that allows eligible employees to purchase its Common Stock at a discount through payroll deductions. The Company recognized the following equity-based compensation expense (including expense related to the employee stock purchase plan) in the Condensed Consolidated Statements of Operations: Three Months Ended September 28, 2025 September 29, 2024 (in thousands) Equity-based compensation expense $ 97,241 $ 80,011 NOTE 5 — OTHER INCOME (EXPENSE), NET The significant components of other income (expense), net, are as follows: Three Months Ended September 28, 2025 September 29, 2024 (in thousands) Interest income $ 63,930 $ 68,449 Interest expense ( 42,472 ) ( 44,946 ) Gains on deferred compensation plan-related assets, net 23,088 17,420 Foreign exchange losses, net ( 5,534 ) ( 9,686 ) Other, net ( 8,938 ) ( 1,156 ) $ 30,074 $ 30,081 NOTE 6 — INCOME TAX EXPENSE The Company’s provision for income taxes and effective tax rate are as follows: Three Months Ended September 28, 2025 September 29, 2024 (in thousands, except percentages) Income tax expense $ 290,502 $ 177,834 Effective tax rate 15.6 % 13.7 % The difference between the U.S. federal statutory tax rate of 21% and the Company’s effective tax rate for the three months ended September 28, 2025, and September 29, 2024, was primarily due to income in lower tax jurisdictions. Lam Research Corporation 2025 Q3 10-Q 10 Table of Contents The Internal Revenue Service (“IRS”) is examining the Company’s U.S. federal income tax returns for the fiscal years ended June 30, 2019, June 28, 2020, and June 27, 2021. To date, no significant adjustments have been proposed by the IRS. The Company is unable to make a reasonable estimate as to when cash settlements, if any, with the IRS will occur. The Organization for Economic Co-operation and Development’s Base Erosion and Profit Shifting 2.0 (“BEPS 2.0”) Pillar Two Global Minimum Tax (“GMT”) is fully effective for the Company this fiscal year. The Company assessed its exposure to GMT under currently enacted legislation and determined that it expects to meet transitional safe harbor requirements in most jurisdictions, with limited jurisdictions subject to GMT. The Company assessed the impact and concluded that it was not material. The impact has been included within income tax expense for the three months ended September 28, 2025. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law by U.S. President Donald Trump. The impact on income taxes due to change in legislation is required, under Accounting Standards Codification (“ASC”) 740, Income Taxes, to be recognized in the period in which the law is enacted, which is this fiscal year. In general, the OBBBA introduces changes to U.S. taxation, including changes in the taxation of non-U.S. income. The Company assessed the changes and concluded that they were not material. The impact has been included within income tax expense for the three months ended September 28, 2025. NOTE 7 — NET INCOME PER SHARE Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the treasury stock method, for dilutive stock options, and restricted stock units. The following table reconciles the inputs to the basic and diluted computations for net income per share. Three Months Ended September 28, 2025 September 29, 2024 (in thousands, except per share data) Numerator: Net income $ 1,568,660 $ 1,116,444 Denominator: Basic average shares outstanding 1,264,446 1,299,236 Effect of potential dilutive securities: Employee stock plans 4,867 4,830 Diluted average shares outstanding 1,269,313 1,304,066 Net income per share - basic $ 1.24 $ 0.86 Net income per share - diluted $ 1.24 $ 0.86 For purposes of computing diluted net income per share, weighted-average common shares do not include potentially dilutive securities that are anti-dilutive under the treasury stock method. These anti-dilutive securities, including options and RSUs, were not material for the three months ended September 28, 2025 and September 29, 2024. NOTE 8 — FINANCIAL INSTRUMENTS The Company’s investment strategies and investment and fair value policies are unchanged from those disclosed in Note 9, “Financial Instruments,” to the Consolidated Financial Statements in Part II, Item 8 of its 2025 Form 10-K. As of September 28, 2025 and June 29, 2025, the fair value of mutual funds and equity investments were not material. The Company had no debt security investments as of September 28, 2025 and June 29, 2025. The financial statement impacts to the Condensed Consolidated Statement of Operations from debt and equity investments were not material as of and for the three months ended September 28, 2025 and September 29, 2024. Lam Research Corporation 2025 Q3 10-Q 11 Table of Contents The financial instruments reported within Cash and Cash Equivalents in the Company’s Condensed Consolidated Balance Sheets as of September 28, 2025, and June 29, 2025 consisted of the following: September 28, 2025 June 29, 2025 (in thousands) Money market funds (fair value measured on a recurring basis, level 1) $ 2,577,964 $ 3,151,084 Cash 2,080,697 1,662,236 Time deposits 2,034,385 1,577,339 Total $ 6,693,046 $ 6,390,659 Derivative Instruments and Hedging The Company’s hedging strategies and policies are unchanged from those disclosed in Note 9, “Financial Instruments,” to the Consolidated Financial Statements in Part II, Item 8 of its 2025 Form 10-K. As of September 28, 2025 and June 29, 2025, the fair value of outstanding cash flow and balance sheet hedges were not material. The financial statement impacts to the Condensed Consolidated Statement of Operations from derivative instruments and hedging activities were not material as of and for the three months ended September 28, 2025 and September 29, 2024. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk and the Company’s mitigation strategies are unchanged from those disclosed in Note 9, “Financial Instruments,” to the Consolidated Financial Statements in Part II, Item 8 of its 2025 Form 10-K. NOTE 9 — INVENTORIES Inventories are stated at the lower of cost or net realizable value using standard costs that approximate actual costs on a first-in, first-out basis. Inventories consist of the following: September 28, 2025 June 29, 2025 (in thousands) Raw materials $ 2,582,346 $ 2,662,248 Work-in-process 315,926 282,885 Finished goods 1,196,782 1,362,858 $ 4,095,054 $ 4,307,991 NOTE 10 — ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: September 28, 2025 June 29, 2025 (in thousands) Accrued compensation $ 726,450 $ 618,370 Warranty reserves 243,681 248,783 Income and other taxes payable 460,962 541,426 Dividend payable 327,507 291,981 Other 685,343 693,806 $ 2,443,943 $ 2,394,366 NOTE 11 — COMMITMENTS AND CONTINGENCIES Guarantees The Company has issued certain indemnifications to its lessors for taxes and general liability under some of its agreements. The Company has entered into insurance contracts that are intended to limit its exposure to such indemnifications. As of September 28, Lam Research Corporation 2025 Q3 10-Q 12 Table of Contents 2025, the Company had not recorded any liability on its Condensed Consolidated Financial Statements in connection with these indemnifications, as it does not believe that it is probable that any material amounts will be paid under these guarantees. Generally, the Company indemnifies, under pre-determined conditions and limitations, its customers for infringement of third-party intellectual property rights by the Company’s products or services. The Company seeks to limit its liability for such indemnity to an amount not to exceed the sales price of the products or services subject to its indemnification obligations. The Company does not believe that it is probable that any material amounts will be paid under these guarantees. The Company provides guarantees and standby letters of credit to certain parties as required for certain transactions initiated during the ordinary course of business. As of September 28, 2025, the maximum potential amount of future payments that the Company could be required to make under these arrangements and letters of credit was $ 230.1 million. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid. In addition, the Company has entered into indemnification agreements with its directors, officers, and certain other employees, consistent with its Bylaws and Certificate of Incorporation; and under local law, the Company may be required to provide indemnification to its employees for actions within the scope of their employment. Although the Company maintains insurance contracts that cover some of the potential liability associated with these indemnification agreements, there is no guarantee that all such liabilities will be covered. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under such indemnification agreements or statutory obligations. Warranties The Company provides standard warranties on its systems. The liability amount is based on actual historical warranty spending activity by type of system, customer, and geographic region, modified for any known differences such as the impact of system reliability improvements. As of September 28, 2025, warranty reserves totaling $ 14.2 million were reported in Other long-term liabilities, and the remainder were included in Accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheets. Changes in the Company’s product warranty reserves were as follows: Three Months Ended September 28, 2025 September 29, 2024 (in thousands) Balance at beginning of period $ 265,466 $ 250,404 Warranties issued during the period 65,584 62,730 Settlements made during the period ( 64,525 ) ( 44,968 ) Changes in liability for pre-existing warranties ( 8,659 ) ( 17,791 ) Balance at end of period $ 257,866 $ 250,375 Legal Proceedings While the Company is not currently a party to any legal proceedings that it believes material, the Company is either a defendant or plaintiff in various actions that have arisen from time to time in the normal course of business, including intellectual property claims. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. Based on current information, the Company does not believe that a material loss from known matters is probable and therefore has not recorded an accrual of any material amount for litigation or other contingencies related to existing legal proceedings. NOTE 12 — STOCK REPURCHASE PROGRAM In May 2024, the Board of Directors authorized the Company to repurchase up to an additional $ 10.0 billion of Common Stock; this authorization supplements the remaining balances from any prior authorizations. These repurchases can be conducted on the open market or as private purchases and may include the use of derivative contracts with large financial institutions, in all cases subject to compliance with applicable law. This repurchase program has no termination date and may be suspended or discontinued at any time. Lam Research Corporation 2025 Q3 10-Q 13 Table of Contents Repurchases under the repurchase program were as follows during the periods indicated. Period Total Number of Shares Repurchased Total Cost of Repurchase (3) Average Price Paid per Share (1,3) Amount Available Under Repurchase Program (in thousands, except per share data) Available balance as of June 29, 2025 $ 7,517,184 Quarter ended September 28, 2025 9,686 (2) $ 990,046 $ 105.67 $ 6,527,138 (1) Average price paid per share excludes the effect of accelerated share repurchase activities. See additional disclosure below regarding the Company’s accelerated share repurchase activity during the fiscal year. (2) Includes shares received at final settlement of accelerated share repurchase agreements. See additional disclosure below regarding the Company’s accelerated share repurchase activity during the fiscal year. (3) The Company’s net share repurchases are subject to a 1% excise tax under the Inflation Reduction Act. Excise tax incurred reduces the amount available under the repurchase program, as applicable, and is included in the cost of shares repurchased in the Condensed Consolidated Statement of Stockholders’ Equity and the calculation of the average price paid per share. Accelerated Share Repurchase Agreements On April 30, 2025, the Company entered into accelerated share repurchase agreements (the "April 2025 ASRs") with two financial institutions to repurchase a total of $ 500 million of Common Stock. The Company took an initial delivery of approximately 5.2 million shares, which represented 75 % of the prepayment amount divided by our closing stock price on April 30, 2025. The total number of shares received under the April 2025 ASRs was based upon the average daily volume weighted average price of the Company’s Common Stock during the repurchase period, less an agreed upon discount. Final settlement of the April 2025 ASRs occurred in September 2025, resulting in the receipt of approximately 317 thousand additional shares, which yielded a weighted-average share price of $ 93.98 for the transaction period, including the effects of a 1% excise tax under the Inflation Reduction Act. The Company recorded the April 2025 ASRs as equity transactions; as such, at the time of receipt, shares were included in treasury stock at fair market value as of the corresponding trade date. The Company reflects shares received as a repurchase of common stock in the weighted average common shares outstanding calculation for basic and diluted earnings per share. NOTE 13 — SEGMENT REPORTING The Company operates in one reportable business segment: manufacturing and servicing of wafer processing semiconductor manufacturing equipment. The Company’s material operating segments qualify for aggregation due to their customer base and similarities in economic characteristics, nature of products and services, and processes for procurement, manufacturing, and distribution. Segment information is prepared and managed on the same basis as described in Note 19, “Segment, Geographic Information, and Major Customers,” to the Consolidated Financial Statements in Part II, Item 8 of the Company’s 2025 Form 10-K. The Company's centralized manufacturing and support organizations, including global operations and certain administrative functions, provide support to its operating segments. Costs incurred by these organizations, as well as depreciation and amortization and equity-based compensation expense are allocated to cost of goods sold as overhead. Consequently, depreciation and amortization and equity-based compensation expense are not independently identifiable components within the segment’s results, and, therefore are not provided. With the exception of goodwill, the Company does not identify assets by operating segment. Consequently, the chief operating decision maker does not regularly review or receive discrete asset information by operating segment. Lam Research Corporation 2025 Q3 10-Q 14 Table of Contents The table below reconciles the Company's reportable segment to income before income taxes: Three Months Ended September 28, 2025 September 29, 2024 (In thousands) Revenue $ 5,324,173 $ 4,167,976 Installation and warranty expense 141,475 124,663 Other cost of goods sold (COGS) (1) 2,410,985 1,968,895 Segment COGS 2,552,460 2,093,558 Segment gross margin 2,771,713 2,074,418 Reconciliation to consolidated gross margin All other COGS 86,834 71,735 Gross margin 2,684,879 2,002,683 Research and development 576,446 495,358 Selling, general, and administrative 279,345 243,128 Other income (expense), net 30,074 30,081 Income before income taxes $ 1,859,162 $ 1,294,278 (1) Other COGS is primarily comprised of the capitalized cost of inventory sold, including both direct and indirect costs, but excludes installation and warranty expense and those items not allocated to the segment. Lam Research Corporation 2025 Q3 10-Q 15 Table of Contents