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Lam Research
(NASDAQ:LRCX)
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Rating:78Outperform
Price Target:
$494.00
â–²(84.60% Upside)
Action:Reiterated
Date:06/04/26
The score is driven primarily by strong financial performance (resilient margins, very strong returns, and robust free cash flow) and a constructive earnings outlook with upbeat guidance and an improving industry spend backdrop. These positives are tempered by overbought technical conditions and a demanding valuation (high P/E and low yield), which increase downside sensitivity if the cycle or execution cools.
Positive Factors
High profitability and margins
Sustained gross margins near 50% and net margins around 30% indicate durable pricing power and process advantage in etch/deposition. High margins support reinvestment, R&D and shareholder return through cycles, insulating core profitability from short-term revenue swings.
Negative Factors
Cyclicality and uneven revenue trends
Semiconductor capital spending is inherently cyclical; prior year revenue declines underline demand volatility. Equipment order sensitivity can quickly compress tool sales and services, making near-term revenue and utilization cycles a recurring headwind for durability of growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and margins
Sustained gross margins near 50% and net margins around 30% indicate durable pricing power and process advantage in etch/deposition. High margins support reinvestment, R&D and shareholder return through cycles, insulating core profitability from short-term revenue swings.
Read all positive factors
Lam Research Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating where the company might focus future investments or face challenges.
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating where the company might focus future investments or face challenges.
Data provided by:
The Fly
The FlyLam Research (LRCX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$439.46B
Dividend Yield0.56%
Average Volume (3M)10.07M
Price to Earnings (P/E)66.1
Beta (1Y)2.03
Revenue Growth26.53%
EPS Growth47.73%
CountryUS
Employees18,600
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)5.32
Shares Outstanding1,250,571,000
10 Day Avg. Volume13,606,989
30 Day Avg. Volume10,072,324
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)12.69
Price to Sales (P/S)6.79
P/FCF Ratio23.12
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue21.54
Enterprise Value/Gross Profit43.09
Enterprise Value/Ebitda58.44
Forecast
1Y Price Target
$363.46Price Target Upside35.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering25
EPS Forecast (FY)8.08
Revenue Forecast (FY)$30.79B
Lam Research Business Overview & Revenue Model
Company Description
Lam Research Corporation is a prominent supplier of equipment vital for semiconductor processing, encompassing its design, production, sales, repair, and ongoing maintenance. These sophisticated systems are fundamental for the creation of integrat...
How the Company Makes Money
Lam Research primarily makes money by selling semiconductor manufacturing equipment and by generating recurring revenue from services and support tied to its installed base.
1) System sales (capital equipment): A significant portion of revenue co...
Lam Research Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial tone: record revenue, record EPS, expanded WFE outlook, significant CSBG milestone, improving margins, and robust guidance. These positives were tempered by manageable risks including regional mix shifts (China), lower customer down payments, cash decline due to aggressive capital returns, supply/clean-room constraints, and higher operating spending. Overall, the company emphasized durable technology-led positioning and capacity expansions to capture accelerated AI-driven demand.Positive Updates
Record Revenue Quarter
March quarter revenue of $5.84B, up 9% sequentially and up 24% year-over-year; third consecutive record revenue quarter.
Negative Updates
China Revenue and Down Payment Dynamics
China represented 34% of revenue (down slightly from 35%); company expects China revenue to decline in the June quarter. Customer down payments fell by roughly $300M and are at the lowest level in nearly four years, reducing upfront visibility from smaller customers.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue Quarter
March quarter revenue of $5.84B, up 9% sequentially and up 24% year-over-year; third consecutive record revenue quarter.
Read all positive updates
Company Guidance
Lam guided June-quarter non‑GAAP revenue of $6.6 billion ± $400 million (implying $6.2B–$7.0B), gross margin of 50.5% ±1 ppt (49.5%–51.5%), operating margin of 36.5% ±1 ppt (35.5%–37.5%) and record EPS of $1.65 ± $0.15 on roughly 1.255 billion shares (i.e., $1.50–$1.80), while reiterating capital expenditures around 4%–5% of revenue and a non‑GAAP tax rate expected below the mid‑teens for calendar 2026; management also said they expect second‑half 2026 revenues to exceed the first half, raised 2026 WFE to $140 billion with a bias to the upside, see Lam’s SAM expanding to slightly above the mid‑30s percent (targeting the high‑30s over time), and highlighted CSBG strength (March quarter CSBG revenue $2.1B) alongside cash‑return activity (~$800M buybacks in the quarter, $326M dividends, $750M notes retired and ~$4.3B remaining repurchase authorization).Lam Research Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
83
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.68B | 18.44B | 14.91B | 17.43B | 17.23B | 14.63B |
| Gross Profit | 10.84B | 8.98B | 7.05B | 7.78B | 7.87B | 6.81B |
| EBITDA | 7.99B | 6.34B | 4.91B | 5.64B | 5.71B | 4.89B |
| Net Income | 6.71B | 5.36B | 3.83B | 4.51B | 4.61B | 3.91B |
Balance Sheet | ||||||
| Total Assets | 20.79B | 21.35B | 18.74B | 18.78B | 17.20B | 15.89B |
| Cash, Cash Equivalents and Short-Term Investments | 4.75B | 6.39B | 5.85B | 5.37B | 3.66B | 5.73B |
| Total Debt | 3.73B | 4.76B | 4.98B | 5.01B | 5.01B | 5.00B |
| Total Liabilities | 10.21B | 11.48B | 10.21B | 10.57B | 10.92B | 9.86B |
| Stockholders Equity | 10.58B | 9.86B | 8.54B | 8.21B | 6.28B | 6.03B |
Cash Flow | ||||||
| Free Cash Flow | 6.45B | 5.41B | 4.26B | 4.68B | 2.55B | 3.24B |
| Operating Cash Flow | 6.95B | 6.17B | 4.65B | 5.18B | 3.10B | 3.59B |
| Investing Cash Flow | -907.66M | -708.09M | -370.61M | -534.56M | 612.27M | 73.27M |
| Financing Cash Flow | -6.75B | -4.94B | -4.00B | -2.83B | -4.58B | -4.17B |
Lam Research Technical Analysis
Neutral
267.60
Price Trends
320.92
Positive
276.94
Positive
222.49
Positive
Market Momentum
21.10
Positive
48.42
Neutral
47.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRCX, the sentiment is Neutral. The current price of 267.6 is below the 20-day moving average (MA) of 369.26, below the 50-day MA of 320.92, and above the 200-day MA of 222.49, indicating a neutral trend. The MACD of 21.10 indicates Positive momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 47.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LRCX.
Lam Research Risk Analysis
Lam Research disclosed 29 risk factors in its most recent earnings report. Lam Research reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lam Research Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $726.46B | 64.52 | 51.97% | 0.63% | 18.56% | 26.42% | |
80 Outperform | $489.96B | 57.59 | 39.78% | 0.69% | 3.35% | 29.52% | |
78 Outperform | $439.46B | 66.05 | 65.79% | 0.56% | 26.53% | 47.73% | |
78 Outperform | $307.69B | 66.26 | 89.07% | 0.58% | 13.43% | 28.40% | |
62 Neutral | $93.70B | 67.00 | 14.45% | 2.29% | 15.55% | 43.35% | |
62 Neutral | $64.09B | 415.80 | 0.86% | 1.28% | 0.79% | -86.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
LRCX
Lam Research
351.41
253.81
260.05%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.