LRCX
LAM RESEARCH CORP
Industrials • CIK: 0000707549
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Market Cap
$163.93B
P/E (TTM)
28.1x
Rev Growth (TTM)
+25.7%
Net Margin (TTM)
29.7%
FCF Yield (TTM)
3.4%
FCF Margin (TTM)
28.3%
What Changed
10-Q Q2 FY2026 (Dec 28, 2025) vs 10-Q Q1 FY2026 (Sep 28, 2025)
Warranty Reserve$14.2M (Sep 28, 2025)→$247.8M (Dec 28, 2025); Q2 activity: $67.7M issued,...
Critical Liability Disclosures2 items→5 items
Customer Mix — Gross Margin Directionfavorable customer mix; gross margins improved→unfavorable customer mix; gross margin down 80bps...
LLM Triage Positives1 positive identified→0 positives identified
Revenue Driver CompositionFoundry segment spending growth + strong customer...→customer support increase, systems revenue decrease...
Warranty reserve in Q3 FY2026: elevated at $247.8M vs $14.2M prior quarter —...·Gross margin trajectory in Q3 FY2026: current 49.6% (GAAP) driven by unfavorable...·Systems revenue recovery: management cited 'investment timing' for Q2 decline —...
Filing Intelligence
6.0/10
10-Q filed Jan 29, 2026 • FYNone
Executive Summary
Gross margins experienced a sequential decline due to unfavorable changes in customer mix, though favorable mix changes and tariff impacts influenced year-over-year comparisons.. Revenue showed a...
Key Concerns
- ●Gross margins experienced a sequential decline due to unfavorable changes in customer mix, though favorable mix changes and tariff impacts...
- ●The company faces significant risks from cybersecurity threats, including potential disruption of operations, loss of sensitive...
- ●The Company has provided guarantees and standby letters of credit with a maximum potential exposure of $239.4 million, although no material...
Cash Flow Health
Free Cash Flow8/8 positive
TTM$5.6B
Q1 '26
$1.6B-33%
Q4 '26
$2.4B+133%
FCF Margin
TTM28.3%
Q1 '2629.9%-35%
Sector: 4.7%Top 10%
OCF Margin32.6%
OCF/NI1.10x
CapEx Coverage7.7x
FCF Yield3.4%
FCF Growth (2Y)+19%
Cash Conversion Cycle
61 days
DSO: 61+DIO: –−DPO: –
Capital Allocation & Returns
Balanced
Total Shareholder YieldTTM
TTM2.8%
Div Yield0.7%
+Buyback (TTM)2.1%
Balancing returns with reinvestment
Dividend & Payout Metrics
Dividend Yield (TTM)0.7%
FCF Payout Ratio21.9%
Free Cash Flow (TTM)$5.6B
Stock Repurchases (TTM)$3.4B
Capital Return / FCF82.6%
Est. Dividends Paid (TTM)$1.2B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
75.9%
Moderate
+0.6% YoY+24.3%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
29.4%
8Q: 26.5%
Asset Turnover
0.96x
8Q: 0.88x
Leverage (1+D/E)
1.37x
D/E: 0.37x
DuPont: 38.4% ≈ 75.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
8.29x
8Q:7.70x
+160.3%
Invested Cap Turn
2.58x
8Q:2.36x
+87.2%
CapEx Intensity
11.0%
8Q:7.4%
CapEx/Depreciation
2.12x
Depreciation Rate Trend
⚠ Declining -2.7%
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q1 2026 | Q4 2026 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2025 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $19.6B | $5.3B↑3.0% | $5.2B↑9.6% | $4.7B↑7.9% | $4.4B↑5.0% | $4.2B↑7.7% | $3.9B↑2.1% | $3.8B↑0.9% | $3.8B |
Operating Income | $6.5B | $1.8B↑5.1% | $1.7B↑11.5% | $1.6B↑17.1% | $1.3B↑5.5% | $1.3B↑12.2% | $1.1B↑6.6% | $1.1B↓0.0% | $1.1B |
Net Income | $5.8B | $1.6B↓8.8% | $1.7B↑29.3% | $1.3B↑11.7% | $1.2B↑6.7% | $1.1B↑9.4% | $1.0B↑5.6% | $965.8M↑1.2% | $954.3M |
Operating Cash Flow | $6.4B | $1.8B↓30.4% | $2.6B↑95.2% | $1.3B↑76.4% | $741.9M↓52.7% | $1.6B↑81.9% | $862.4M↓37.7% | $1.4B↓4.7% | $1.5B |
Free Cash Flow | $5.6B | $1.6B↓33.1% | $2.4B↑133.4% | $1.0B↑84.4% | $553.6M↓62.0% | $1.5B↑91.4% | $761.7M↓40.5% | $1.3B↓4.3% | $1.3B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
28.1x
Valuation Lenses
Earnings
28.1x
vs – sector
Cash Flow
41.4x
EV/FCF vs –
Growth-Adj
0.6xPEG
Undervalued for growth
Quality-Adj
0.4P/E per %ROIC
ROIC: 75.9%
Shareholder Returns
Dividend
0.7%
Buyback
2.1%
Total Yield
2.8%
Market Cap$163.93B
EV–
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
82/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 10%
62.0%
8Q:–
Return on Invested Capital (ROIC)Top 25%
75.9%
8Q:–
+24.3%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 29.4%
Asset Turnover: 0.96x
Earnings Quality
Cash Conversion
1.10x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin49.3%
Capital Efficiency
Invested Capital Turnover2.58x
Working Capital
Cash Conversion Cycle61 days
Growth Quality & Momentum
Quality Growth
Growth Quality Score
80/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
25.7%
OpInc Growth YoY
44.7%
EPS Growth YoY
46.6%
FCF 3Y CAGR
19.1%
Growth Quality Analysis
✓Sustainability Index: 7.5/10 - Highly sustainable growth
Margin Quality & Sustainability
High Quality
Profitability Cascade
Gross
49.3%
Operating
33.0%
Top 25% in sector
Net
29.7%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-1.3 pts
FCF: 28.3% | Net: 29.7%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $2.98B
Interest Coverage
–
+Net cash position: $2.98B
Balance sheet risk & solvency analysis