Lam Research (LRCX)
Information Technology · $276B market cap · SEC CIK 0000707549
ahead of 66% of the S&P 500 · #28 of 73 in Information Technology
Next reports on Jan 26, 2027, with analysts expecting $2.39 in earnings per share.
52-week range $135.50 to $438.50. 49% below its 52-week high and 64% above its low.
The case for LRCX
- Revenue up 33.4% on the year.
- Generated $4.9B of free cash flow in FY2026, 21% of revenue.
- Earns 72% on shareholder equity.
- 32% of revenue drops through to net profit.
- Holds more cash ($5.6B) than long-term debt ($3.7B).
- Earnings per share up 48.1%.
The case against
- Priced at 28× book value. Very little hard asset backing here.
- Swings harder than the market (beta 2.03).
- The price trend is weak (41/100): +38.9% over a year, −27.8% over three months, 49% below its 52-week high.
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. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 51 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 74 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 77 |
| Momentumhow the price has behaved lately | 41 |
| Stabilityhow violently it moves, what it owes and what it pays you | 49 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +33.4% |
|---|---|
| Over 5 years | +9.7% a year |
| FY2026 revenue | $23.2B (+26%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2026 free cash flow | $4.9B |
|---|---|
| Of revenue | 21% |
| Of profit | 67% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 51% |
|---|---|
| Operating margin | 37% |
| Net margin, FY25 → FY26 → now | 29.1% → 31.3% → 32.3% |
Debt vs. cash
Is the balance sheet healthy? Yes, more cash than debt
| Cash | $5.6B |
|---|---|
| Long-term debt | $3.7B |
| Net cash | $1.9B |
| Years to repay | 0.6 yrs |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 32.7× |
|---|---|
| Fair P/E for its growth | 39× |
| P/FCF | 56.5× |
| Forward P/E | 22.6× |
| EV / EBITDA | 27.0× |
At 32.7× earnings it trades below the 39× that 20% a year of growth plus a 1.1% dividend would justify. At 56.5× free cash flow it trades above that same mark.
The financials, five years deep
Pulled from Lam Research's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $23.2B | $18.4B | $14.9B | $17.4B | $17.2B |
| Change on the year | +26% | +24% | −14% | +1% | — |
| Free cash flow | |||||
| Free cash flow | $4.9B | $5.4B | $4.3B | $4.7B | $2.6B |
| Of revenue | 21% | 29% | 29% | 27% | 15% |
| Profit margins | |||||
| Gross margin | 50.5% | 48.7% | 47.3% | 44.6% | 45.7% |
| Operating margin | 35.3% | 32.0% | 28.6% | 29.7% | 31.2% |
| Net margin | 31.3% | 29.1% | 25.7% | 25.9% | 26.7% |
| Debt vs. cash | |||||
| Cash | $5.6B | $6.4B | $5.8B | $5.3B | $3.5B |
| Long-term debt | $3.7B | $3.7B | $4.5B | $5.0B | $5.0B |
| Net cash (debt) | $1.9B | $2.7B | $1.4B | $372M | −$1.4B |
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…