Lam Research (LRCX)
Information Technology · $378B market cap · SEC CIK 0000707549
fundamentals score out of 100
Next reports on Oct 20, 2026, with analysts expecting $2.22 in earnings per share.
The case for LRCX
- Revenue up 26.0% on the year.
- Generated $4.9B of free cash flow in FY2025, 21% of revenue.
- Earns 67% on shareholder equity.
- 31% of revenue drops through to net profit.
- Earnings per share up 38.6%.
- Barely leveraged. Debt is 0.30× equity.
The case against
- Pricey at 52.0× earnings, against a long-run market average nearer 20×.
- Priced at 16.3× sales, which leaves no room for a stumble.
- Swings harder than the market (beta 1.95).
- Priced at 41× book value. Very little hard asset backing here.
- Free cash flow is only 1.3% of its market value, a thin cash return for the price.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 21 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 69 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 77 |
| Momentumhow the price has behaved lately | 56 |
| Stabilityhow violently it moves, what it owes and what it pays you | 36 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 52.0× |
|---|---|
| Price / book | 41.21× |
| Price / sales | 16.3× |
| Revenue growth (YoY) | +26.0% |
| EPS growth (YoY) | +38.6% |
| Gross margin | 50% |
| Operating margin | 35% |
| Net margin | 31% |
| Return on equity | 67% |
| Debt / equity | 0.30× |
| Current ratio | 2.63 |
| Dividend yield | 1.11% |
| Beta | 1.95 |
| 52-week range | $125.00 – $438.50 |
| Position in that range | 59% of the way up |
| 3-month return | -22.3% |
| 1-year return | +138.2% |
Five years of financials, as filed
Pulled from Lam Research's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $23.2B | $18.4B | — | $17.4B | $17.2B |
| Gross profit | $11.7B | $9.0B | — | $7.8B | $7.9B |
| Operating income | $8.2B | $5.9B | — | $5.2B | $5.4B |
| Net income | $7.3B | $5.4B | — | $4.5B | $4.6B |
| Operating cash flow | $5.9B | $6.2B | — | $5.2B | $3.1B |
| Capital expenditure | $966M | $759M | — | $502M | $546M |
| Total assets | $21.4B | $19.8B | $18.8B | $19.2B | $16.7B |
| Total liabilities | $11.2B | $11.0B | $10.6B | $10.9B | $10.2B |
| Shareholder equity | $10.1B | $8.8B | $8.2B | $8.3B | $6.5B |
| Cash | $6.2B | $5.7B | $5.6B | $4.5B | $5.1B |
| Long-term debt | — | — | — | — | $5.0B |
| Free cash flow | $4.9B | $5.4B | — | $4.7B | $2.6B |
| Gross margin | 50.5% | 48.7% | — | 44.6% | 45.7% |
| Operating margin | 35.3% | 32.0% | — | 29.7% | 31.2% |
| Net margin | 31.3% | 29.1% | — | 25.9% | 26.7% |
| Diluted shares | 1.3B | 1.3B | — | 1.4B | 141M |
What Lam Research says it does
Incorporated in 1980, Lam Research Corporation ("Lam Research," "Lam," "we," "our," "us," or the "Company") is a Delaware corporation, headquartered in Fremont, California. We maintain a network of facilities throughout Asia, Europe, and the United States in order to meet the needs of our dynamic customer base. Additional information about Lam Research is available on our website at www.lamresearch.com. The content on any website referred to in this Form 10-K is not a part of or incorporated by reference in this Form 10-K unless expressly noted. Our Annual Report on Form 10-K, Quarterly Reports on Forms 10-Q, Current Reports on Forms 8-K, Proxy Statements and all other filings we make with the SEC are available on our website, free of charge, as soon as reasonably practical after we file them with or furnish them to the SEC and are also available online at the SEC’s website at www.sec.gov. The Lam Research logo, Lam Research, and all…
Risk factors LRCX lists in its 10-K
- Employment, Recruitment and Development
- Information about our Executive Officers
- We Depend on Creating New Products and Processes and Enhancing Existing Products and Processes for Our Success; Consequently, We Are Subject to Risks Associated with Rapid Technological Change
- We Face a Challenging and Complex Competitive Environment
- The Semiconductor Capital Equipment Industry Is Subject to Variability and Periods of Rapid Growth or Decline; We Therefore Face Risks Related to Our Strategic Resource Allocation Decisions
- Future Declines in the Semiconductor Industry, and the Overall World Economic Conditions on Which It Is Significantly Dependent, Could Have a Material Adverse Impact on Our Results of Operations and Financial Condition
- We Have a Limited Number of Key Customers
- Strategic Alliances and Customer Consolidation May Have Negative Effects on Our Business
- Our Revenues and Results of Operations Are Variable
- Our Business Relies on Technology, Data, Intellectual Property and Other Sensitive Information That is Susceptible to Cybersecurity and Other Threats or Incidents
- We Use Artificial Intelligence in Our Business, and Challenges with Properly Managing Its Use Could Result in Reputational Harm, Competitive Harm, and Legal Liability, and Materially and Adversely Affect Our Results of Operations
- Our Future Success Depends Heavily on International Sales and the Management of Global Operations
- Disruptions to Our Supply Chain and Outsource Providers Could Impact Our Ability to Meet Demand, Increase Our Costs, and Adversely Impact Our Revenue and Results of Operations
- We Face Risks Related to the Disruption of Our Primary Manufacturing and R&D Facilities