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Lam Research Corporation LRCX

NasdaqSemiconductor equipment and materialsFinancials to Sep 27, 2026 · Updated Nov 11, 2026

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LRCX financials
Moat score
83
ROIC
83.8%
P/E
32.9
EV/EBIT
28.4
FCF yield
2.4%
Dividend yield
0.5%
Market cap
$277.9B

Moat ranks

Score rankTied #100 of 396
Durabilitymedium
Market structureOligopoly
Pricing powermoderate

Balance sheet

9/27/26
$BJun 28Sep 27
Cash5.67.4
Securities0.00.0
Debt3.73.7
Net cash1.93.7
Equity12.513.9
Leverage
Debt / EBITDA
0.37×
Debt / equity
0.27×
Leases (6/30/24)
$304M
Capital
Diluted shares
1,256M
Book value / share
$11.08
Price / book
20.0×
Net cash / share
$2.95
Market cap
$277.9B
Enterprise value
$274.2B

Per-share record

Fiscal years and TTM
Scale
$0$10$20$30'17'18'19'20'21'22'23'24'2518.42'2620.81TTM
Revenue per shareCash flow per share

Key indicators

Latest: Q1 '27
IndicatorLatestVs year agoLast 8 quarters
Revenue growth54.4%+26.6 pts
Operating margin40.0%+5.6 pts
FCF margin39.4%+9.5 pts
Capex / revenue3.1%-0.3 pts
Systems revenue$5.7B+62%
Customer support-related revenue$2.5B+40%
Installed chambers≥100,000–
Conductor etch installed chambers · 6/28/26≥40,000––
Gross margin52.3%+1.9 pts

Margins and growth from reported quarters; company KPIs as reported in results releases.

About LRCX

Lam Research makes deposition, etch and clean tools that semiconductor manufacturers use to build chips. It reports one accounting segment; Systems supplied 64.1% of FY2026 revenue and customer support-related revenue and other supplied 35.9%.

Revenue mix
Systems 64.1%Customer Support Business Group (CSBG) 35.9%
  • Design In Qualification

    Fabs must qualify and integrate production equipment.

  • Capex Knowhow Scale

    Sustaining leadership in etch/deposition/clean requires large, ongoing R&D and deep process know-how (hardware + process + software integration).

  • Installed Base Consumables

    A large installed base creates recurring demand for OEM spares, service, and upgrades over the tool lifecycle; upgrades also extend capability without full tool replacement.

Timeline
  1. Nov 5, 2026

    Lam announced a $25 billion share repurchase authorization and declared its quarterly dividend. The authorization gives management more room to return capital. https://www.sec.gov/Archives/edgar/data/707549/000070754926000057/lrcx-20261103.htm

  2. Aug 27, 2026

    Lam raised the quarterly dividend from $0.26 to $0.33 per share, increasing recurring cash returned to shareholders as research and manufacturing investment rises.

  3. Aug 26, 2026

    Lam started construction on its Oregon research lab, the first step of the global lab expansion intended to accelerate collaboration with chip manufacturers.

  4. Aug 24, 2026

    Directors Sohail Ahmed and Michael Cannon announced retirement effective November 2, 2026; the board will shrink from twelve to ten members.

  5. Aug 13, 2026

    Lam announced more than $3 billion of lab investment over five years, aiming to expand experiment capacity by more than 50% and shorten customer development cycles.

Financial record

Fiscal year2017201820192020202120222023202420252026TTMTrendChange 2017–26
Per share ($)
Revenue4.366.136.046.7410.0612.2512.8311.2914.2918.4220.81+17.4%/yr
Cash flow1.101.471.991.432.472.203.813.524.784.646.03+17.3%/yr
Earnings0.921.321.371.512.693.273.322.904.155.766.73+22.6%/yr
Free cash flow1.021.321.801.292.231.823.443.224.203.885.21+16.0%/yr
Capex0.090.150.190.140.240.390.370.300.590.770.83+27.6%/yr
Dividends0.130.170.420.440.500.580.670.770.891.011.04+25.3%/yr
Book value3.713.602.923.474.154.466.046.477.649.8911.08+11.5%/yr
Diluted shares (M)1,8381,8081,5991,4911,4531,4061,3581,3201,2901,2611,256-4.1%/yr
Totals ($B)
Revenue8.011.19.710.014.617.217.414.918.423.226.1+12.6%/yr
Operating income1.93.22.52.74.55.45.24.35.98.29.7+17.6%/yr
Net income1.72.42.22.33.94.64.53.85.47.38.4+17.5%/yr
Free cash flow1.92.42.91.93.22.64.74.35.44.96.5+11.3%/yr
Buybacks0.72.53.71.32.53.71.92.7––––
Dividends0.20.30.70.70.70.80.91.01.11.31.3+20.2%/yr
Net cash3.42.61.00.90.8-1.30.40.91.91.93.7−$1.5B
Margins & returns (%)
Gross margin45.046.645.145.946.545.744.647.348.750.551.1+5.5 pts
Operating margin23.729.025.526.630.631.229.728.632.035.337.0+11.6 pts
Net margin21.221.522.722.426.726.725.925.729.131.332.3+10.1 pts
FCF margin23.421.529.819.122.114.826.828.629.421.125.0-2.3 pts
ROIC48.672.659.455.675.562.858.749.365.868.483.8+19.8 pts
Return on equity24.936.646.943.564.873.454.944.854.358.360.8+33.4 pts
R&D % of revenue12.910.712.312.510.29.39.912.811.410.29.4-2.7 pts
Stock pay % of revenue1.91.61.91.91.51.51.62.01.91.71.5-0.2 pts
Capex % of revenue2.02.53.12.02.43.22.92.74.14.24.0+2.2 pts

Change uses 2017 and 2026 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2017 base. Trend shows the fiscal years.

TTM = four quarters to Sep 27, 2026. Per-share values use diluted weighted shares.ROIC = operating income × (1 − 11.5% tax rate, the company's own over three fiscal years excluding one-offs) ÷ (equity + debt − cash and current securities). Returns show a dash when their base is negative or under 10% of revenue. Free cash flow = operating cash flow − capex. Debt is all borrowings; net cash counts long-term securities and excludes leases.

Moat

Moat scorecard

Moat score83
Strength
Confidence
Structure
Oligopoly
Durability
medium
Trajectory
stable
Pricing power
moderate
Segments
  • Systems64.1%
    2 claims
  • Customer Support Business Group (CSBG)35.9%
    1 claim

Moat claims

Applies to
Systems
Confidence
Durability
medium
Trajectory
stableas of Oct 7, 2026
Why it holds

Fabs must qualify and integrate production equipment. They tend to keep an approved supplier for the same application or process node unless performance slips.

Why stable

Systems revenue reached $14.89 billion in FY2026 and conductor etch had more than 40,000 installed chambers; qualifications protect existing process choices, but Lam does not report comparable win rates or served-market share.

Indicators
  • Systems revenue$5.7B+62%
  • Conductor etch installed chambers≥40,000
Risks
  • Node transitions reopen supplier selection (re-qualification cycles)
  • Competitor process breakthroughs that improve yield/cost-of-ownership
  • Government-backed regional competitors (e.g., China) gaining share
  • Export controls limiting addressable customers/regions

Profile change log

  1. Nov 10, 2026 · business change

    Lam announced a $25 billion share repurchase authorization and declared its quarterly dividend. The authorization gives management more room to return capital. https://www.sec.gov/Archives/edgar/data/707549/000070754926000057/lrcx-20261103.htm

  2. Oct 7, 2026 · business change

    Lam raised the quarterly dividend from $0.26 to $0.33 per share, increasing recurring cash returned to shareholders as research and manufacturing investment rises.

  3. Oct 7, 2026 · business change

    Lam started construction on its Oregon research lab, the first step of the global lab expansion intended to accelerate collaboration with chip manufacturers.

  4. Oct 7, 2026 · business change

    Directors Sohail Ahmed and Michael Cannon announced retirement effective November 2, 2026; the board will shrink from twelve to ten members.

  5. Oct 7, 2026 · business change

    Lam announced more than $3 billion of lab investment over five years, aiming to expand experiment capacity by more than 50% and shorten customer development cycles.

  6. Oct 7, 2026 · analyst revision

    Verified the three moat claims, added their trajectories and linked two end markets. Removed the broad equipment share range because it compared Lam fiscal-year tools with a wider calendar-year forecast and did not establish comparable market share. Corrected the FY2025 filing citation date to August 11, 2025.

Industry & peers

Peer map

0%10%20%30%40%50%60708090100Moat scoreIndustry medianLRCX
No peer numbers yet

Peers appear on the map as their numbers are collected.

Wafer fabrication equipment

As of Oct 7, 2026
OligopolyHigh cyclicalityUSD 200B in 2028

Global sales of equipment used in wafer fabrication, including wafer processing, mask and reticle production, and fab facilities equipment. It excludes semiconductor test and assembly equipment; aftermarket service and spare parts are a separate market.

StocksMoatGross m.Op. m.
LRCX8351.1%37.0%
Industry median98254.3%37.0%
Sector median777564.7%23.8%
All stocks median3987653.1%20.0%

Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.

Drivers & risks

Demand drivers
  • AI accelerators and high-bandwidth memory require additional leading-edge capacity and more demanding process steps; deposition and etch can gain more work per wafer.
  • Migration to gate-all-around logic, advanced DRAM and higher-layer 3D NAND increases process complexity even without equal growth in wafer output.
  • Government incentives and regional fab construction add demand, but tool deliveries depend on completed clean rooms, power and customer qualification.
  • Rates and the economic cycle affect the cost of financing new fabs and customer electronics demand. Strong memory pricing and high fab utilization encourage spending; excess capacity delays it.
Risks
  • China is a leading equipment destination. Export licenses and entity restrictions can remove customers, parts sales and service opportunities, while local suppliers gain supported demand.
  • A few large foundries and memory makers decide much of the spending. Order delays, memory overcapacity or a slower return on AI investment can sharply reduce shipments.
  • Node transitions reopen supplier selection. Applied Materials, Tokyo Electron, ASM International and local suppliers can win new process steps even when incumbents retain installed tools.
  • Tariffs, scarce components, specialty materials and skilled engineers can raise equipment costs or delay delivery. Rare-earth licensing and supply restrictions add further exposure.
  • Supplier sales are largely in U.S. dollars, but manufacturing and operating costs span currencies. Exchange-rate moves change costs, customer spending power and the economics of local production.

Bulls & bears

Key question · as of Oct 7, 2026

Can Lam turn increasingly complex AI, memory and foundry processes into repeat equipment wins and more support revenue per installed chamber, despite customer concentration and export controls?

Arguments

4 forFaded: weakening or settled4 against

What to watch

  1. 1Systems revenue and comparable etch/deposition process wins
  2. 2Installed chambers and support revenue, separating Reliant when disclosed
  3. 3China revenue and cash conversion as receivables and capex rise

Next check: At December-quarter results, compare revenue with guidance of $8.2 billion to $9.0 billion and check China exposure, support mix and cash conversion.

Sources: company filings and dated sources collected for Find My Moat; market cap as of Nov 10, 2026. Not investment advice.

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Moat Score 83/100 by <a href="https://www.findmymoat.com/stocks/XNAS:LRCX">Find My Moat</a> (as of September 2026)

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