LRCX

LAM RESEARCH CORP

IndustrialsCIK 0000707549

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Market Cap
$266.55B
P/E (TTM)
39.7x
Rev Growth (TTM)
+26.5%
Net Margin (TTM)
30.9%
FCF Yield (TTM)
2.3%
FCF Margin (TTM)
27.7%

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Factsheet

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LATEST EARNINGS

Q3 FY2026
2 months ago
View source
Revenue
$5.84B
+23.8%
Net Income
$1.83B
+37.2%
EPS
$1.45
+40.8%
Gross
49.8% +0.8%
Operating
35.0% +1.9%
Net
31.3% +3.1%
  • Record revenue of $5.84 billion, a 9% increase quarter-over-quarter.
  • U.S. GAAP diluted EPS of $1.45, a 15% increase quarter-over-quarter.
  • U.S. GAAP operating margin expanded 110 basis points quarter-over-quarter to 35.0%.
  • Non-GAAP operating margin expanded 70 basis points quarter-over-quarter to 35.0%.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$6.0B
Q3 '26
$810M-34%
Q2 '26
$1.2B-24%
FCF Margin
TTM27.7%
Q3 '2613.9%-39%
Sector: 4.8%Top 10%
OCF Margin32.1%
OCF/NI1.04x
CapEx Coverage7.3x
FCF Yield2.3%
FCF Growth (2Y)+15%
Cash Conversion Cycle
169 days
DSO: 60+DIO: 140DPO: 31

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.3%
Div Yield0.5%
+
Buyback (TTM)1.8%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)0.5%
FCF Payout Ratio20.7%
Free Cash Flow (TTM)$6.0B
Stock Repurchases (TTM)$4.9B
Capital Return / FCF102.2%
Est. Dividends Paid (TTM)$1.2B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
46.1%
Moderate
+0.1% YoY+19.5%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
30.7%
8Q: 28.8%
Asset Turnover
1.02x
8Q: 0.97x
Leverage (1+D/E)
1.35x
D/E: 0.35x
DuPont: 42.4%46.1% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
8.50x
8Q:8.14x
+125.8%
Invested Cap Turn
1.96x
8Q:1.81x
+90.0%
CapEx Intensity
8.6%
8Q:6.6%
CapEx/Depreciation
2.26x
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
39.7x
Volatile
8Q: 87.6x+224937%
Valuation Lenses
Earnings
39.7x
vs sector
Cash Flow
44.1x
EV/FCF vs
Growth-Adj
1.5xPEG
Fair for growth
Quality-Adj
0.9P/E per %ROIC
ROIC: 46.1%
Shareholder Returns
Dividend
0.5%
Buyback
1.8%
Total Yield
2.3%
Market Cap$266.55B
EV$264.85B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
89/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
66.7%
8Q:
Return on Invested Capital (ROIC)Top 25%
46.1%
8Q:
+19.5%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 30.7%
Asset Turnover: 1.02x

Earnings Quality

Cash Conversion

1.04x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin50.0%

Capital Efficiency

Invested Capital Turnover1.96x

Working Capital

Cash Conversion Cycle169 days

Growth Quality & Momentum

Quality Growth
Growth Quality Score
77/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
26.5%
OpInc Growth YoY
31.1%
EPS Growth YoY
N/A
FCF 3Y CAGR
15.0%

Growth Quality Analysis

Working Capital Drag: FCF growth lagging revenue by 11.6%
Sustainability Index: 7.5/10 - Highly sustainable growth

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
50.0%
Operating
34.3%
Top 25% in sector
Net
30.9%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-3.2 pts
FCF: 27.7% | Net: 30.9%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $1.02B
Interest Coverage
+Net cash position: $1.02B
Leverage Metrics
Debt-to-Equity
0.35x
Balance sheet risk & solvency analysis