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Lam Research
(NASDAQ:LRCX)
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Rating:66Neutral
Price Target:
$273.00
â–¼(-10.55% Downside)
Action:Reiterated
Date:07/30/26
The score is primarily supported by strong financial performance (high profitability, improving leverage, and substantial operating cash flow), but is held back by weak technical trends (price below key moving averages) and a demanding valuation (high P/E with low yield). Earnings-call information was not applied due to apparent ticker mismatch, and no corporate events were provided.
Positive Factors
Revenue recovery and growth
Lam’s multi-year revenue rebound demonstrates durable demand for its etch/deposition systems as customers ramp advanced nodes. Sustained top-line growth expands the installed base, strengthening recurring parts/services revenue and supporting long-term cash flows and scale economies.
Negative Factors
Cyclicality tied to semiconductor capex
Lam’s revenues remain materially exposed to semiconductor capital spending cycles. Significant downturns in fab investments can quickly reduce new system orders, slow installed‑base growth and compress future parts/services revenue, making earnings streams less predictable over cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery and growth
Lam’s multi-year revenue rebound demonstrates durable demand for its etch/deposition systems as customers ramp advanced nodes. Sustained top-line growth expands the installed base, strengthening recurring parts/services revenue and supporting long-term cash flows and scale economies.
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
$366.44B
Dividend Yield0.35%
Average Volume (3M)12.31M
Price to Earnings (P/E)50.6
Beta (1Y)2.00
Revenue Growth26.02%
EPS Growth38.85%
CountryUS
Employees19,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)5.79
Shares Outstanding1,250,571,000
10 Day Avg. Volume9,783,938
30 Day Avg. Volume12,314,339
Financial Highlights & Ratios
PEG Ratio1.83
Price to Book (P/B)41.35
Price to Sales (P/S)22.20
P/FCF Ratio105.44
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$374.50Price Target Upside22.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering25
EPS Forecast (FY)9.43
Revenue Forecast (FY)$34.61B
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:Jul 29, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line growth, record deposits and profitability, rapid product and international expansion (Robinhood Chain, Trump Accounts, banking, credit card, prediction markets), and disciplined expense management. Several notable execution risks and open items remain — most importantly regulatory uncertainty for on‑chain tokenization and U.S. perps, early-stage friction for Agentic Trading, and month-to-month variability in net deposits and crypto activity. On balance, the positive operational and financial momentum along with sizable product and geographic expansion opportunities outweigh the listed challenges.Positive Updates
Record Revenue and Strong Top-Line Growth
Q2 revenue of $1.3 billion, a 32% year-over-year increase, driven by record volumes across equities, options, prediction markets and margin.
Negative Updates
Crypto Momentum Softening in July
Management noted crypto activity was slower in July versus Q2, with July ADVs for crypto lagging compared to equities, options and prediction markets.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Q2 revenue of $1.3 billion, a 32% year-over-year increase, driven by record volumes across equities, options, prediction markets and margin.
Read all positive updates
Company Guidance
Management lowered and tightened 2026 adjusted OpEx & SBC to $2.675–$2.775 billion (from the prior range), saying efficiency gains allow them to self‑fund new investments (including Rothera and WonderFi); Q2 adjusted OpEx & SBC was $641 million. They reiterated a >20% annual net deposit growth goal (Q2 net deposits were a record $22 billion, ~28% annualized) and said July net deposits are tracking toward roughly $4 billion (excluding Trump Accounts), with July ADVs for equities, options and event contracts in a similar range to Q2. Q2 results that underpin the outlook included revenue of $1.3 billion (+32% YoY), adjusted EBITDA $741 million (+35% YoY) at a 57% margin, and EPS $0.62 (+48% YoY); capital moves cited were a $2.2 billion raise (0% coupon, no dilution until share price >$300) and YTD repurchases of 7.5 million shares for $664 million.Lam Research Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.23B | 18.44B | 14.91B | 17.43B | 17.23B |
| Gross Profit | 11.73B | 8.98B | 7.05B | 7.78B | 7.87B |
| EBITDA | 8.70B | 6.34B | 4.91B | 5.64B | 5.71B |
| Net Income | 7.27B | 5.36B | 3.83B | 4.51B | 4.61B |
Balance Sheet | |||||
| Total Assets | 23.53B | 21.35B | 18.74B | 18.78B | 17.20B |
| Cash, Cash Equivalents and Short-Term Investments | 5.58B | 6.39B | 5.85B | 5.37B | 3.66B |
| Total Debt | 3.73B | 4.76B | 4.98B | 5.01B | 5.01B |
| Total Liabilities | 11.06B | 11.48B | 10.21B | 10.57B | 10.92B |
| Stockholders Equity | 12.47B | 9.86B | 8.54B | 8.21B | 6.28B |
Cash Flow | |||||
| Free Cash Flow | 4.89B | 5.41B | 4.26B | 4.68B | 2.55B |
| Operating Cash Flow | 5.86B | 6.17B | 4.65B | 5.18B | 3.10B |
| Investing Cash Flow | -922.15M | -708.09M | -370.61M | -534.56M | 612.27M |
| Financing Cash Flow | -5.72B | -4.94B | -4.00B | -2.83B | -4.58B |
Lam Research Technical Analysis
Positive
305.21
Price Trends
338.25
Negative
296.94
Positive
243.27
Positive
Market Momentum
-12.79
Negative
47.56
Neutral
75.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRCX, the sentiment is Positive. The current price of 305.21 is below the 20-day moving average (MA) of 312.32, below the 50-day MA of 338.25, and above the 200-day MA of 243.27, indicating a neutral trend. The MACD of -12.79 indicates Negative momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 75.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $403.07B | 47.49 | 39.78% | 0.36% | 3.35% | 29.52% | |
77 Outperform | $631.80B | 52.04 | 52.37% | 0.50% | 17.87% | 23.14% | |
70 Outperform | $238.81B | 49.63 | 85.38% | 0.38% | 11.74% | 20.58% | |
66 Neutral | $366.44B | 50.61 | 66.97% | 0.34% | 26.02% | 38.85% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $47.01B | 99.45 | 2.66% | 0.70% | 10.06% | -27.68% | |
53 Neutral | $75.50B | 39.90 | 14.45% | 1.13% | 18.30% | 82.12% |
* Technology Sector Average
LRCX
Lam Research
307.42
208.82
211.77%
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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.