|LRCX Overview
LRCX

LAM RESEARCH CORP

Industrials • CIK: 0000707549

Loading...

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%

LATEST EARNINGS

Q1 FY2026
16 days ago
View source
Revenue
Net Income
EPS
  • U.S. GAAP diluted EPS increased 2% quarter-over-quarter to $1.26.
  • Non-GAAP diluted EPS increased 1% quarter-over-quarter to $1.27.
  • Revenue of $5.345 billion for the December 2025 quarter.
  • The company is enabling the market's transition to smaller, more complex three-dimensional devices and packages.

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: 7.3%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

MetricTTMQ1 2026Q4 2026Q3 2025Q2 2025Q1 2025Q4 2025Q3 2024Q2 2024
Revenue
$19.6B
$5.3B3.0%
$5.2B9.6%
$4.7B7.9%
$4.4B5.0%
$4.2B7.7%
$3.9B2.1%
$3.8B0.9%
$3.8B
Operating Income
$6.5B
$1.8B5.1%
$1.7B11.5%
$1.6B17.1%
$1.3B5.5%
$1.3B12.2%
$1.1B6.6%
$1.1B0.0%
$1.1B
Net Income
$5.8B
$1.6B8.8%
$1.7B29.3%
$1.3B11.7%
$1.2B6.7%
$1.1B9.4%
$1.0B5.6%
$965.8M1.2%
$954.3M
Operating Cash Flow
$6.4B
$1.8B30.4%
$2.6B95.2%
$1.3B76.4%
$741.9M52.7%
$1.6B81.9%
$862.4M37.7%
$1.4B4.7%
$1.5B
Free Cash Flow
$5.6B
$1.6B33.1%
$2.4B133.4%
$1.0B84.4%
$553.6M62.0%
$1.5B91.4%
$761.7M40.5%
$1.3B4.3%
$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
Leverage Metrics
Debt-to-Equity
0.37x
Balance sheet risk & solvency analysis