Lam Research

LRCX · Nasdaq · Information Technology · Financials, fiscal 2017 to 2026

LRCX · Last close · October 26, 2026

$237.50

Lam Research's revenue rose 26.0% to $23.2 billion in fiscal 2026. Its operating margin was 35.3%, up from 32.0% a year earlier. Free cash flow was $4.9 billion, down 9.7%. It paid out $5.1 billion in dividends and buybacks, 105% of free cash flow. The diluted share count fell 2.2%.

LAM RESEARCH CORPORATION Latest fiscal year ended June 28, 2026 10-K filed August 7, 2026 · 0000707549-26-000037 Updated October 22, 2026

Revenue

$23.2B

26.0%

Operating margin

35.3%

3.3 pts

Net income

$7.3B

35.6%

Free cash flow

$4.9B

9.7%

Return on capital

77.7%

9.8 pts

Market cap

$298.3B

Oct 26 close

P/E

35.4x

On $6.71 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Share counts and per-share figures for earlier years are restated for a stock split (10-for-1), so every year is on today's share basis.

What Lam Research does

Lam Research, based in Fremont, California, makes the machines that chipmakers use to build semiconductors on silicon wafers, and sells service for them. Its customers are memory, foundry and other chip manufacturers, which make chips for phones, computers, servers, cars and data storage. Its most significant customers in recent years have been Micron, Samsung, SK hynix and TSMC.

Its equipment covers three main steps. Deposition tools lay down thin layers of metal and insulating material. Etch tools cut patterns into those layers. Clean tools remove particles and residue between steps. It also sells tools for advanced chip packaging and for a newer dry process for the photoresist (the light-sensitive layer used to print circuit patterns). Its Customer Support Business Group sells services, spare parts, upgrades, and new and refurbished older-generation tools to keep customers' installed equipment running.

Lam says chipmakers are moving to three-dimensional chip designs, which makes manufacturing more complex and drives demand for its tools. A large share of its sales and operations is outside the United States. It assembles and tests systems mostly in cleanrooms and outsources parts of manufacturing, warehousing and logistics to other companies.

Its biggest risks, as it describes them

Chipmakers' spending on equipment that rises and falls sharply, so its sales are variable.
Relying on a limited number of key customers.
US export license rules and trade actions that affect its sales in China.
Rapid technology change that requires it to keep creating new products and processes.
Customers that tend to keep buying from the equipment maker they first chose, which makes new sales harder.

From Lam Research's annual report on Form 10-K, filed August 7, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2017 to 2026, earnings per share grew 22.6% a year and net income 17.5% a year, as buybacks cut the share count by 31%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, billions

Valuation

Two ways to value Lam Research yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Lam Research's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Lam Research's cash from operations minus depreciation in fiscal 2026 (free cash flow before spending to grow: capital spending was 2.2 times depreciation, which holds its free cash flow down) of $5.4B, net cash of $1.9B at June 28, 2026 and 1,261 million diluted shares, from its filings. The scenarios are fitted to Lam Research: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 10.1% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 11% for a cyclical or higher-risk business (Semiconductor Materials & Equipment); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus depreciation in fiscal 2026: a rough guide to cash flow before spending to grow, for a company building heavily.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at June 28, 2026. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2026.

Your assumptions

Start from

Fitted to Lam Research's own revenue growth, as above. Cautious: growth of 5% then 3.5% a year, 2% after year 10, a 12% discount rate. Base: growth of 10% then 6% a year, 2.5% after year 10, a 11% discount rate. Optimistic: growth of 15% then 9% a year, 3% after year 10, a 10% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $237.50
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Lam Research's earnings per share of $6.71 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 34.6×, the middle of Lam Research's own P/E today, its peers' median and its sector's median (its peers' median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 12%, 11% and 10%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to September 27, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Applied Materials, KLA, Qnity Electronics.

Earnings growth in the years ahead (% a year) Starts at Lam Research's revenue growth over the last 3 years, 10.1% a year, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $237.50
Value at this multiple, against the last close: —
Lam Research's P/E at the last close: 35.4×

Company	Last close	Earnings per share	P/E today
KLAKLAC	$149.21	$3.66	40.8×
Lam ResearchLRCX	$237.50	$6.71	35.4×
Qnity ElectronicsQ	$114.07	$3.30	34.6×
Applied MaterialsAMAT	$387.59	$11.59	33.4×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY22	FY23	FY24	FY25	FY26
Cash and short-term investments	3.5	5.3	5.8	6.4	5.6
Debt incl. finance leases	5.0	5.0	5.0	4.5	3.7
Net debt (negative means net cash)	1.5	−0.3	−0.9	−1.9	−1.9
Net debt to EBITDA	0.3x	−0.1x	−0.2x	−0.3x	−0.2x
Debt to equity	0.8x	0.6x	0.6x	0.5x	0.3x
Interest coverage	29.1x	27.8x	23.0x	33.1x	52.3x
Current ratio	2.7x	3.2x	3.0x	2.2x	2.6x
Quick ratio	1.8x	2.0x	2.0x	1.6x	1.9x

US$ billions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Lam Research shares on the open market, and 8 insiders sold $177.2 million, $135.6 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Oct 23, 2026	Timothy ArcherPresident and CEO	Sold plan	31,400	$227.02	$7.1 million	Form 4
Sep 9, 2026	Timothy ArcherPresident and CEO	Sold plan	30,000	$319.26	$9.6 million	Form 4
Sep 9, 2026	Bethany MayerDirector	Sold	9,557	$314.74	$3.0 million	Form 4
Sep 2, 2026	Seshasayee VaradarajanSenior Vice President	Sold plan	59,750	$291.32	$17.4 million	Form 4
Aug 31, 2026	Ava HarterChief Legal Officer	Sold plan	5,000	$302.46	$1.5 million	Form 4
Aug 6, 2026	Timothy ArcherPresident and CEO	Sold plan	30,000	$300.00	$9.0 million	Form 4
Jul 13, 2026	Abhijit Y TalwalkarDirector	Sold plan	18,282	$335.00	$6.1 million	Form 4
Jul 2, 2026	Timothy ArcherPresident and CEO	Sold plan	30,000	$390.01	$11.7 million	Form 4
Jun 12, 2026	Eric BrandtDirector	Sold plan	54,500	$367.18	$20.0 million	Form 4
Jun 11, 2026	Eric BrandtDirector	Sold plan	54,500	$350.80	$19.1 million	Form 4
Jun 1, 2026	Neil J FernandesSenior Vice President	Sold plan	7,659	$309.60	$2.4 million	Form 4
May 1, 2026	Neil J FernandesSenior Vice President	Sold plan	18,170	$255.14	$4.6 million	Form 4

The latest 12 of 23 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY24	FY25	FY26
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Pass	Pass
Cash from operations exceeds net income	Pass	Pass	Fail
Debt fell relative to assets	Pass	Pass	Pass
Current ratio rose	Fail	Fail	Pass
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	Pass	Pass	Pass
Revenue rose relative to assets	Fail	Pass	Pass
F-score	6 of 9	8 of 9	8 of 9
Accruals ratio	−4.4%	−4.1%	6.3%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Lam Research side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Lam Research	FY26	26.0%	35.3%	21.1%	77.7%	−0.2x	8
Applied Materials	FY25	4.4%	29.2%	20.1%	35.9%	−0.2x	7	Compare
ASML	FY25	15.6%	34.6%	33.9%	88.1%	−0.7x	7	Compare
KLA	FY26	11.7%	—	27.7%	75.3%	0.2x	8	Compare
Qnity Electronics	FY25	9.7%	—	20.8%	7.3%	2.3x	—	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Income statement
Revenue	8.0	11.1	9.7	10.0	14.6	17.2	17.4	14.9	18.4	23.2
Revenue growth	36.1%	38.2%	−12.8%	4.0%	45.6%	17.8%	1.2%	−14.5%	23.7%	26.0%
Gross profit	3.6	5.2	4.4	4.6	6.8	7.9	7.8	7.1	9.0	11.7
Research and development	1.0	1.2	1.2	1.3	1.5	1.6	1.7	1.9	2.1	2.4
Operating income	1.9	3.2	2.5	2.7	4.5	5.4	5.2	4.3	5.9	8.2
Net income	1.7	2.4	2.2	2.3	3.9	4.6	4.5	3.8	5.4	7.3
Diluted EPS (US$)	0.92	1.32	1.37	1.51	2.69	3.27	3.32	2.90	4.15	5.76
Diluted shares (millions)	1,838	1,808	1,599	1,491	1,453	1,406	1,358	1,320	1,290	1,261
Cash flow
Cash from operations	2.0	2.7	3.2	2.1	3.6	3.1	5.2	4.7	6.2	5.9
Capital expenditure	0.2	0.3	0.3	0.2	0.3	0.5	0.5	0.4	0.8	1.0
Free cash flow	1.9	2.4	2.9	1.9	3.2	2.6	4.7	4.3	5.4	4.9
Dividends paid	0.2	0.3	0.7	0.7	0.7	0.8	0.9	1.0	1.1	1.3
Share buybacks	0.8	2.7	3.8	1.4	2.7	3.9	2.0	2.8	3.4	3.9
Acquisitions	0.0	0.1	0.0	0.0	0.0	0.0	0.1	0.0	0.0	0.0
Stock-based compensation	0.1	0.2	0.2	0.2	0.2	0.3	0.3	0.3	0.3	0.4
Balance sheet at fiscal year end
Cash and short-term investments	2.4	4.5	3.7	4.9	4.4	3.5	5.3	5.8	6.4	5.6
Debt incl. finance leases	2.7	2.4	4.4	5.8	5.0	5.0	5.0	5.0	4.5	3.7
Total assets	12.1	12.5	12.0	14.6	15.9	17.2	18.8	18.7	21.3	23.5
Total liabilities	5.1	5.9	7.3	9.4	9.9	10.9	10.6	10.2	11.5	11.1
Shareholders' equity	6.8	6.5	4.7	5.2	6.0	6.3	8.2	8.5	9.9	12.5
Margins and ratios
Gross margin	45.0%	46.6%	45.1%	45.9%	46.5%	45.7%	44.6%	47.3%	48.7%	50.5%
Operating margin	23.7%	29.0%	25.5%	26.6%	30.6%	31.2%	29.7%	28.6%	32.0%	35.3%
Net margin	21.2%	21.5%	22.7%	22.4%	26.7%	26.7%	25.9%	25.7%	29.1%	31.3%
Free cash flow margin	23.4%	21.5%	29.8%	19.1%	22.1%	14.8%	26.8%	28.6%	29.4%	21.1%
Return on capital	—	42.3%	45.0%	40.6%	63.2%	66.4%	58.4%	48.1%	68.0%	77.7%
Return on equity	26.7%	35.8%	39.2%	45.7%	69.8%	74.8%	62.3%	45.7%	58.2%	65.1%
Return on assets	13.9%	19.4%	17.9%	17.0%	25.7%	27.8%	25.1%	20.4%	26.7%	32.4%
Net debt to EBITDA	0.1x	−0.6x	0.3x	0.3x	0.1x	0.3x	−0.1x	−0.2x	−0.3x	−0.2x

US$ billions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Lam Research's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Lam Research.