Lam Research Corporation

LRCX
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$5.8B
Q3 FY26 · +23.8% YoY
TTM ROIC
37.3%
FY2025 · NOPAT / Invested Capital; NOPAT = EBIT × (1 - effective tax rate); Invested Capital = Total Equity + Total Debt - Cash · WACC ~9% · Moat spread +28.3pp

Financial Snapshot


ticker: LRCX step: 04 generated: 2026-05-12 source: quick-research

Lam Research Corporation (LRCX) — Financial Snapshot

Note: LRCX fiscal year ends late June. "FY2025" = fiscal year ended June 2025.

Income Statement Summary

Metric FY2024 FY2025 FY2026E YoY
Revenue $14.9B $17.5B $20.0B+ +14%+
Non-GAAP Gross Margin 48.5% 50.6% (record post-Novellus) 48.5%+ record
Non-GAAP Operating Margin 30.5% 35% (record) 33%+
Non-GAAP Net Income $4.0B $5.5B ~$6.5B +18%
Non-GAAP EPS $3.05 $4.20 ~$5.00 (consensus) +19%

Quarterly Trajectory

Quarter Revenue
Q1 FY26 (Sep 2025) $5.3B (record) — 50.6% GM
Q2 FY26 (Dec 2025) $5.34B (+22% YoY, 10th consecutive growth Q)
Q3 FY26 (Apr 2026) $5.84B (record)

Segment Mix

Segment Recent %
Foundry/Logic growing (GAA + Foundry capex)
DRAM 26% of systems (DDR5 + HBM)
NAND 11% Q3 26 (vs 18% Sept; 2H 26 weighted)
CSBG (Service + 200mm) ~15% of revenue

Q3 FY2026 Highlights

Metric Q3 FY26 YoY
Revenue $5.84B +22%
WFE Forecast Raised to $140B upward
Advanced Packaging Growth Target +40% in 2026
NAND outlook FY26 vs FY25 +$1.5B incremental

China Trajectory

Period China % of Revenue
FY24 ~43%
FY25 ~35%
FY26 target <30%
US Export Restrictions Impact 2026 -$600M revenue

Advanced Packaging Growth

Metric Value
Advanced packaging 2026 target +40% growth
TSV etch + Electroplating Market leadership
Cryo 3.0 etch HBM4 16-layer beneficiary
GAA + Advanced Packaging shipments 2024 $1B+ each
2025 GAA + Advanced Packaging shipments $3B+ combined

NAND Upgrade Cycle

Metric Value
$40B NAND conversion investment Before end of 2027
Layer count target 256-layer + 384-layer transitions
Molybdenum + Carbon Gapfill Several hundred million $ 2025

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow ~$5B
Capital Expenditures ~$0.5B
Free Cash Flow ~$4.5B
Cash & Investments ~$6B
Total Debt ~$5B
Net Cash Position ~$1B

Key Ratios (approximate, May 2026)

  • P/E (forward): ~42x | EV/Sales: ~6x | FCF Yield: ~3.5%
  • ROIC: ~30%+
  • Gross Margin trajectory: 48% → 50.6% (record)

Growth Profile

10 consecutive quarters of growth. FY25 record revenue $20B+ + record GM 50.6%. WFE forecast raised to $140B. Advanced packaging +40% target. NAND upgrade cycle accelerating ($40B investment by 2027). Combined: AI memory supercycle + advanced packaging dominance.

Forward Estimates

  • FY2026E Revenue: ~$22-24B (+10-15%)
  • FY2026E EPS: ~$5 (+19%)
  • FY2027E Revenue: ~$25B (+10-15%)
  • FY2027E EPS: ~$5.50-6.00

Capital Return

  • Dividend $3.20 annual = ~$1.6B paid — moderate yield
  • 8+ consecutive years of dividend growth
  • Buybacks: $5B+ annual run rate
  • Total return: ~3% dividend + buyback + 15-20% EPS growth

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $LRCX.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/lrcx/financials/md · → thesis · → memo