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
Margin Profile
Gross 48.7%
Operating 32%
FCF 29.4%
FY2025
Net Cash
$1.0B
Cash $6.0B · Debt $5.0B · FY2025

Business Overview

ticker: LRCX step: 01 generated: 2026-05-12 source: quick-research

Lam Research Corporation (LRCX) — Business Overview

Business Description

Lam Research is the global leader in etch + deposition semiconductor manufacturing equipment, with dominant share in 3D NAND, DRAM, and advanced packaging. The company is positioned as a key beneficiary of the AI memory supercycle: HBM4 stacking (TSV etch + electroplating), Gate-All-Around (GAA) transistors, backside power delivery, and 3D advanced packaging. FY25 record revenue $20B+. CEO Tim Archer (since 2018). Q3 FY26 (Apr 2026): revenue $5.84B record + raised WFE forecast to $140B.

Revenue Model

  • Semiconductor Systems (~85% of revenue): Etch + deposition + clean + electroplating equipment
  • Customer Support Business Group (CSBG, ~15%): Service + parts + refurbished equipment + advanced packaging tools
  • Memory dominant (NAND + DRAM ~50% historically), foundry/logic balance

Products & Services

Etch (Core franchise — ~50%+ of revenue)
  • Cryo 3.0 etch: Critical for HAR (High Aspect Ratio) etch in HBM TSVs + 3D NAND
  • Selective etch: GAA + advanced node selectivity
  • Conductor etch + Dielectric etch: Multiple platforms
  • VECTOR series: PVD/CVD + ALD deposition
Deposition
  • VECTOR Express: ALD + CVD for advanced logic
  • ALTUS: Tungsten + barrier metal deposition
  • SABRE 3D: TSV deposition
  • EOS reactive ion etch + ALE
Advanced Packaging (Growth driver — 40%+ growth 2026 target)
  • SABRE electroplating: Industry leader; critical for HBM TSV fill
  • Carbon Gapfill + Molybdenum (Moly) processes for NAND
  • Hybrid bonding tools for HBM stacking
CSBG
  • Spare parts + service contracts
  • Refurbished tools
  • Reliant 200mm/lagging-edge tools (China demand)

Customer Base & Go-to-Market

  • Memory: Samsung Memory, SK Hynix, Micron, Kioxia, YMTC
  • Foundry: TSMC, Samsung Foundry, Intel Foundry, GlobalFoundries
  • IDMs: Intel, Texas Instruments, etc.
  • Geographic mix: China dropping from 43% → ~30% (US export controls); Korea, Taiwan, Japan, US rest
  • Customer concentration: Top 3 customers ~50%+ of revenue

Competitive Position

Lam is the global #3 WFE supplier by revenue (~18% market share) and dominant #1 in etch equipment (~50%+ share). Moats: (1) etch tech leadership at GAA + HBM (Cryo 3.0, HAR TSV), (2) advanced packaging leadership in electroplating + TSV etch (industry view = essential), (3) NAND tool market dominance through layer-count transitions (256-layer, 384-layer roadmap), (4) CSBG recurring service revenue. Competitors: Applied Materials (broader), Tokyo Electron (etch competition), ASML (lithography monopoly).

Key Facts

  • Founded: 1980 (David Lam)
  • Headquarters: Fremont, CA
  • Employees: ~17,500
  • Exchange: NASDAQ
  • Sector / Industry: Technology / Semiconductor Equipment
  • Market Cap: ~$130B (May 2026)
  • CEO: Tim Archer (since December 2018)
  • Dividend: $3.20 annual ($0.80 quarterly)
  • 8+ consecutive years of dividend growth
  • 10 consecutive quarters of growth as of Q3 FY26
  • FY end: late June

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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