Lam Research Corporation
LRCXFinancial 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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