A Business at a Glance
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LAM RESEARCH CORP
LRCX
$394.1B
Mkt Cap
$305.21
-4.56%
LAM RESEARCH CORP (LRCX) has a current P/E ratio of 73.5, compared to its historical median P/E of 16.5. The stock is currently considered Expensive based on its historical valuation range.
LAM RESEARCH CORP (LRCX) has a 5-year average return on invested capital (ROIC) of 62.4%. This indicates strong capital allocation and a potential competitive advantage.
LAM RESEARCH CORP (LRCX) has a market capitalization of $381.7B. It is classified as a mega-cap stock.
Yes, LAM RESEARCH CORP (LRCX) pays a dividend with a trailing twelve-month yield of 0.33%. The company also returns capital through share buybacks, with a buyback yield of 1.28%.
Based on historical P/E analysis, LAM RESEARCH CORP (LRCX) appears expensive. The current P/E of 73.5 is 346% above its historical median of 16.5. The estimated fair value CAGR (P/E method) is 16.7%.
LAM RESEARCH CORP (LRCX) operates in the Special Industry Machinery, Nec industry, within the Industrials sector.
LAM RESEARCH CORP (LRCX) reported annual revenue of $18.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
Lam Research is a global supplier of wafer fabrication equipment and services to the semiconductor industry, headquartered in Fremont, California with facilities throughout Asia, Europe, and the United States. The company operates through two primary segments: systems (deposition, etch, and clean equipment) and customer support services. In systems, Lam manufactures highly specialized process equipment used by semiconductor manufacturers to fabricate integrated circuits, with core competencies in nanoscale manufacturing enablement, chemistry, plasma and fluidics, and advanced systems engineering; the company's deposition products (SABRE, ALTUS, VECTOR, STRIKER, SPEED families) create layers of dielectric and metal materials, etch products (KIYO, FLEX, VANTEX, SYNDION families) selectively remove materials to form device features, and clean products remove contaminants from wafers. The Customer Support Business Group (CSBG) provides services, spares, upgrades, and refurbished equipment to maximize installed base performance and operational efficiency, including fleet-level Equipment Intelligence solutions and the Reliant product line for non-leading-edge applications. Lam's customers are leading semiconductor memory, foundry, and integrated device manufacturers producing non-volatile memory, DRAM, and logic devices used in mobile phones, personal computers, cloud and enterprise servers, wearables, automotive vehicles, and data storage devices. The company also addresses advanced packaging markets including wafer-level packaging, fan-out panel-level packaging, and high-bandwidth memory solutions, as well as complementary markets such as CMOS image sensors and micro-electromechanical systems. Lam's competitive differentiation stems from sustained research and development investment, leverage of learning cycles from its broad installed base, collaborative partnerships with semiconductor ecosystem partners, breadth of product portfolio to address technology inflections, and multi-product solutions designed to enhance customer value.
【AI-driven capacity expansion accelerating】 Management expects continued robust growth in wafer fabrication equipment spending driven by AI-related semiconductor demand across all device segments (DRAM, foundry logic, and NAND), with clean room space constraints limiting near-term capacity additions and driving upgrade spending through 2026. The company anticipates advanced packaging revenue growth exceeding 50% in calendar 2026, with NAND technology conversions to 256-layer and above devices pulling forward faster than previously expected, and expects greenfield capacity investments to accelerate in 2027 as new clean rooms come online. Lam's Customer Support Business Group is positioned for continued strong growth, having achieved record quarterly revenue of $2.1 billion in the March 2026 quarter with expectations for H2 calendar year revenues to exceed H1, supported by sustained upgrade demand and fleet optimization services. Management believes the company is well-positioned to gain share and expand its served available market at successive technology nodes, with particular strength in leading-edge opportunities where Lam's deposition, etch, and clean capabilities are critical to addressing manufacturing complexity and enabling 3D scaling architectures.
| Metric | Target | Period |
|---|---|---|
| Operating margin | 36.5% ±1 percentage point | June 2026 quarter |
| Earnings per share | $1.65 ±$0.15 | June 2026 quarter |
| Wafer fabrication equipment (WFE) spending | $140 billion with a bias to the upside | Calendar year 2026 |
| Advanced packaging revenue growth | Exceed 50% | Calendar year 2026 |
Operating margin (June 2026 quarter): “We're forecasting operating margins of 36.5%, plus or minus one percentage point.”
Earnings per share (June 2026 quarter): “Finally, we're forecasting record earnings per share of $1.65, plus or minus $0.15, based on a share count of approximately 1.255 billion shares.”
Wafer fabrication equipment (WFE) spending (Calendar year 2026): “We now expect WFE of $140 billion with a bias to the upside as the industry continues to work through various constraints.”
Advanced packaging revenue growth (Calendar year 2026): “Lam's advanced packaging revenue growth is expected to exceed 50% in calendar year 2026.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 21.7B | 18.4B | 14.9B | 17.4B | 17.2B | 14.6B |
| Net Income | 6.7B | 5.4B | 3.8B | 4.5B | 4.6B | 3.9B |
| EPS | $5.34 | $4.15 | $0.29 | $0.33 | $3.28 | $2.69 |
| Free Cash Flow | 6.0B | 5.4B | 4.3B | 4.7B | 2.6B | 3.2B |
| ROIC | 69.6% | 70.3% | 48.3% | 58.7% | 66.8% | 68.0% |
| Gross Margin | 50.0% | 48.7% | 47.3% | 44.6% | 45.7% | 46.5% |
| Debt/Equity | 0.35 | 0.45 | 0.58 | 0.60 | 0.79 | 0.82 |
| Dividends/Share | $0.99 | $0.92 | $0.08 | $0.07 | $0.60 | $0.52 |
| Operating Income | 7.4B | 5.9B | 4.3B | 5.2B | 5.4B | 4.5B |
| Operating Margin | 34.3% | 32.0% | 28.6% | 29.7% | 31.2% | 30.6% |
| ROE | 63.4% | 58.2% | 45.7% | 62.3% | 74.8% | 69.8% |
| Shares Outstanding | 1,251M | 1,291M | 13,199M | 13,587M | 1,406M | 1,453M |
LAM RESEARCH CORP passes 6 of 9 quality checks, suggesting mixed fundamentals.
LAM RESEARCH CORP trades at 73.5x trailing earnings, compared to its 15-year median P/E of 16.5x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 72.8x vs a median of 17.5x. The company's 5-year average ROIC is 62.4% with a gross margin of 46.6%. Total shareholder yield (dividends + buybacks) is 1.6%. At current prices, the estimated annualized return to fair value is +17.7%.
LAM RESEARCH CORP (LRCX) has a net profit margin of 29.1%. This is a strong margin indicating high profitability.
LAM RESEARCH CORP (LRCX) generated $5.4 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
LAM RESEARCH CORP (LRCX) has a debt-to-equity ratio of 0.45. This indicates a conservatively financed balance sheet.
LAM RESEARCH CORP (LRCX) reported earnings per share (EPS) of $4.15 in its most recent fiscal year.
LAM RESEARCH CORP (LRCX) has a return on equity (ROE) of 58.2%. This indicates the company generates strong returns for shareholders.
LAM RESEARCH CORP (LRCX) has a 5-year average gross margin of 46.6%. This indicates decent pricing power.
The Ledger Terminal provides 17 years of financial data for LAM RESEARCH CORP (LRCX), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
LAM RESEARCH CORP (LRCX) has a book value per share of $7.64, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued robust growth in wafer fabrication equipment spending driven by AI-related semiconductor demand across all device segments (DRAM, foundry logic, and NAND), with clean room space constraints limiting near-term capacity additions and driving upgrade spending through 2026. The company anticipates advanced packaging revenue growth exceeding 50% in calendar 2026, with NAND technology conversions to 256-layer and above devices pulling forward faster than previously expected, and expects greenfield capacity investments to accelerate in 2027 as new clean rooms come online. Lam's Customer Support Business Group is positioned for continued strong growth, having achieved record quarterly revenue of $2.1 billion in the March 2026 quarter with expectations for H2 calendar year revenues to exceed H1, supported by sustained upgrade demand and fleet optimization services. Management believes the company is well-positioned to gain share and expand its served available market at successive technology nodes, with particular strength in leading-edge opportunities where Lam's deposition, etch, and clean capabilities are critical to addressing manufacturing complexity and enabling 3D scaling architectures.
Based on recent SEC filings and earnings calls, LAM RESEARCH CORP (LRCX) has provided the following forward guidance: Operating margin: 36.5% ±1 percentage point (June 2026 quarter); Earnings per share: $1.65 ±$0.15 (June 2026 quarter); Wafer fabrication equipment (WFE) spending: $140 billion with a bias to the upside (Calendar year 2026); Advanced packaging revenue growth: Exceed 50% (Calendar year 2026).