Lam Research Corporation LRCX
NasdaqSemiconductor equipment and materialsFinancials to Sep 27, 2026 · Updated Nov 11, 2026
Moat ranks
Balance sheet
| $B | Jun 28 | Sep 27 |
|---|---|---|
| Cash | 5.6 | 7.4 |
| Securities | 0.0 | 0.0 |
| Debt | 3.7 | 3.7 |
| Net cash | 1.9 | 3.7 |
| Equity | 12.5 | 13.9 |
- Debt / EBITDA
- 0.37×
- Debt / equity
- 0.27×
- Leases (6/30/24)
- $304M
- 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
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 54.4% | +26.6 pts | |
| Operating margin | 40.0% | +5.6 pts | |
| FCF margin | 39.4% | +9.5 pts | |
| Capex / revenue | 3.1% | -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 margin | 52.3% | +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%.
- 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.
- 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
- 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.
- 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.
- Aug 24, 2026
Directors Sohail Ahmed and Michael Cannon announced retirement effective November 2, 2026; the board will shrink from twelve to ten members.
- Aug 13, 2026
Lam announced more than $3 billion of lab investment over five years, aiming to expand experiment capacity by more than 50% and shorten customer development cycles.
Ownership
Go deeper on LRCX
- Compare stock research toolsFundamentals, valuation and screening platforms for LRCX.19 tools
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On this page
Financial record
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | TTM | Trend | Change 2017–26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | |||||||||||||
| Revenue | 4.36 | 6.13 | 6.04 | 6.74 | 10.06 | 12.25 | 12.83 | 11.29 | 14.29 | 18.42 | 20.81 | +17.4%/yr | |
| Cash flow | 1.10 | 1.47 | 1.99 | 1.43 | 2.47 | 2.20 | 3.81 | 3.52 | 4.78 | 4.64 | 6.03 | +17.3%/yr | |
| Earnings | 0.92 | 1.32 | 1.37 | 1.51 | 2.69 | 3.27 | 3.32 | 2.90 | 4.15 | 5.76 | 6.73 | +22.6%/yr | |
| Free cash flow | 1.02 | 1.32 | 1.80 | 1.29 | 2.23 | 1.82 | 3.44 | 3.22 | 4.20 | 3.88 | 5.21 | +16.0%/yr | |
| Capex | 0.09 | 0.15 | 0.19 | 0.14 | 0.24 | 0.39 | 0.37 | 0.30 | 0.59 | 0.77 | 0.83 | +27.6%/yr | |
| Dividends | 0.13 | 0.17 | 0.42 | 0.44 | 0.50 | 0.58 | 0.67 | 0.77 | 0.89 | 1.01 | 1.04 | +25.3%/yr | |
| Book value | 3.71 | 3.60 | 2.92 | 3.47 | 4.15 | 4.46 | 6.04 | 6.47 | 7.64 | 9.89 | 11.08 | +11.5%/yr | |
| Diluted shares (M) | 1,838 | 1,808 | 1,599 | 1,491 | 1,453 | 1,406 | 1,358 | 1,320 | 1,290 | 1,261 | 1,256 | -4.1%/yr | |
| Totals ($B) | |||||||||||||
| Revenue | 8.0 | 11.1 | 9.7 | 10.0 | 14.6 | 17.2 | 17.4 | 14.9 | 18.4 | 23.2 | 26.1 | +12.6%/yr | |
| Operating income | 1.9 | 3.2 | 2.5 | 2.7 | 4.5 | 5.4 | 5.2 | 4.3 | 5.9 | 8.2 | 9.7 | +17.6%/yr | |
| Net income | 1.7 | 2.4 | 2.2 | 2.3 | 3.9 | 4.6 | 4.5 | 3.8 | 5.4 | 7.3 | 8.4 | +17.5%/yr | |
| Free cash flow | 1.9 | 2.4 | 2.9 | 1.9 | 3.2 | 2.6 | 4.7 | 4.3 | 5.4 | 4.9 | 6.5 | +11.3%/yr | |
| Buybacks | 0.7 | 2.5 | 3.7 | 1.3 | 2.5 | 3.7 | 1.9 | 2.7 | – | – | – | – | |
| Dividends | 0.2 | 0.3 | 0.7 | 0.7 | 0.7 | 0.8 | 0.9 | 1.0 | 1.1 | 1.3 | 1.3 | +20.2%/yr | |
| Net cash | 3.4 | 2.6 | 1.0 | 0.9 | 0.8 | -1.3 | 0.4 | 0.9 | 1.9 | 1.9 | 3.7 | −$1.5B | |
| Margins & returns (%) | |||||||||||||
| Gross margin | 45.0 | 46.6 | 45.1 | 45.9 | 46.5 | 45.7 | 44.6 | 47.3 | 48.7 | 50.5 | 51.1 | +5.5 pts | |
| Operating margin | 23.7 | 29.0 | 25.5 | 26.6 | 30.6 | 31.2 | 29.7 | 28.6 | 32.0 | 35.3 | 37.0 | +11.6 pts | |
| Net margin | 21.2 | 21.5 | 22.7 | 22.4 | 26.7 | 26.7 | 25.9 | 25.7 | 29.1 | 31.3 | 32.3 | +10.1 pts | |
| FCF margin | 23.4 | 21.5 | 29.8 | 19.1 | 22.1 | 14.8 | 26.8 | 28.6 | 29.4 | 21.1 | 25.0 | -2.3 pts | |
| ROIC | 48.6 | 72.6 | 59.4 | 55.6 | 75.5 | 62.8 | 58.7 | 49.3 | 65.8 | 68.4 | 83.8 | +19.8 pts | |
| Return on equity | 24.9 | 36.6 | 46.9 | 43.5 | 64.8 | 73.4 | 54.9 | 44.8 | 54.3 | 58.3 | 60.8 | +33.4 pts | |
| R&D % of revenue | 12.9 | 10.7 | 12.3 | 12.5 | 10.2 | 9.3 | 9.9 | 12.8 | 11.4 | 10.2 | 9.4 | -2.7 pts | |
| Stock pay % of revenue | 1.9 | 1.6 | 1.9 | 1.9 | 1.5 | 1.5 | 1.6 | 2.0 | 1.9 | 1.7 | 1.5 | -0.2 pts | |
| Capex % of revenue | 2.0 | 2.5 | 3.1 | 2.0 | 2.4 | 3.2 | 2.9 | 2.7 | 4.1 | 4.2 | 4.0 | +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.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Oligopoly
- Durability
- medium
- Trajectory
- stable
- Pricing power
- moderate
- 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
Fabs must qualify and integrate production equipment. They tend to keep an approved supplier for the same application or process node unless performance slips.
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.
- Systems revenue$5.7B+62%
- Conductor etch installed chambers≥40,000
- 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
- Applies to
- Systems
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 7, 2026
Sustaining leadership in etch/deposition/clean requires large, ongoing R&D and deep process know-how (hardware + process + software integration).
FY2026 research spending reached $2.38 billion, while Lam plans more than $3 billion of lab investment; the planned capacity increase strengthens research capability but is not yet proof of share gains.
- Systems revenue$5.7B+62%
- Conductor etch installed chambers≥40,000
- R&D productivity declines (spend without competitive outcomes)
- Technology shifts that reduce etch/deposition intensity
- Talent retention challenges in highly specialized engineering roles
- Applies to
- Customer Support Business Group (CSBG)
- Confidence
- Durability
- durable
- Trajectory
- wideningas of Oct 7, 2026
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.
Lam reported more than 100,000 installed chambers and FY2026 support-related revenue of $8.35 billion, up 20.2%; a larger fleet expands spares and upgrades demand, although Reliant equipment also contributes to growth.
- Customer support-related revenue$2.5B+40%
- Installed chambers≥100,000
- Third-party spare parts and independent service organizations (ISOs)
- Customer insourcing of maintenance and refurbishment
- Reliability improvements reduce spares intensity
- Regulatory 'right-to-repair' or documentation mandates
Profile change log
- 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
- 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.
- 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.
- 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.
- 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.
- 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
Wafer fabrication equipment
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.
- ASML
- Applied Materials
- Lam Research
- Tokyo Electron
- KLA
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| LRCX | 83 | 51.1% | 37.0% | |
| Industry median | 9 | 82 | 54.3% | 37.0% |
| Sector median | 77 | 75 | 64.7% | 23.8% |
| All stocks median | 398 | 76 | 53.1% | 20.0% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- 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.
- 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
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
What to watch
- 1Systems revenue and comparable etch/deposition process wins
- 2Installed chambers and support revenue, separating Reliant when disclosed
- 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.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 83/100 by <a href="https://www.findmymoat.com/stocks/XNAS:LRCX">Find My Moat</a> (as of September 2026)Curation & Accuracy
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