Lam Research CorporationLRCX
NasdaqGS•Technology•Semiconductor Equipment & Materials
Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits in the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe. The company offers ALTUS systems to deposit conformal or selective films for tungsten or molybdenum metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SPEED gapfill high-density plasma chemical vapor deposition (CVD) products; Striker single-wafer atomic layer deposition products for dielectric film solutions; and VECTOR plasma-enhanced CVD products. It also provides Flex for dielectric etch applications; Vantex, a dielectric etch system that provides RF technology and repeatable wafer-to-wafer performance enabled by Equipment Intelligence solutions; Kiyo for conductor etch applications; Syndion for through-silicon via etch applications; and Versys metal products for metal etch processes. In addition, the company offers Coronus bevel clean products to enhance die yield; and Da Vinci, DV-Prime, EOS, and SP series products to address various wafer cleaning applications. Further, it provides Reliant deposition, etch, and clean products; and Sense.i platform products, as well as customer service, spares, and upgrades. Lam Research Corporation was incorporated in 1980 and is headquartered in Fremont, California.
as of March 2026
Are revenues and earnings expanding?
$21.68B in TTM revenue grew 26.5% YoY, reaching $5.84B last quarter. TTM EBITDA of $7.85B on operating income of $2.05B shows growth is flowing through. Net income of $6.71B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 35.0% is up 2.0% YoY — cost efficiency is improving. Net margin at 31.2% and gross margin of 49.8%. ROE of 63.4% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 69.7x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 21.6x and P/B of 44.2x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $20.79B in assets and $3.73B in long-term debt, the D/E of 0.4 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $809.82M on $1.14B in operating cash flow. The FCF / Net Income ratio of 0.1x indicates partial cash conversion — earnings quality needs attention. Cash reserves of $4.75B provide financial flexibility. Shares outstanding declined 2.7% YoY — buybacks are returning capital to shareholders.
Competitive analysis based on 63 quarters of fundamental data
Operating margins are expanding at ~32.5%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 53.3% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~45.5% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 63 quarters
Margins are stable or improving at ~34.2% — no sign of cost or pricing stress.
FCF covers net income by 0.9x on average — earnings are well-supported by cash generation.
D/E ratio is 0.4 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 4.3% — net buybacks are reducing shares outstanding and boosting per-share value.