Lam Research (LRCX)
NASDAQ:LRCX
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Lam Research
(NASDAQ:LRCX)
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Rating:80Outperform
Price Target:
$303.00
â–²(14.92% Upside)
Action:ReiteratedDate:02/03/26
The score is driven by strong financial performance (robust margins, free cash flow, and improving leverage) and bullish technical momentum (price above key moving averages with positive MACD). Offsetting factors are a demanding valuation (high P/E and low yield) and, to a lesser extent, cyclical and mix/capacity risks highlighted in the latest guidance.
Positive Factors
High margins and profitability
Sustained high gross (~49%) and net (~30%) margins signal durable pricing power and operational efficiency in deposition/etch/clean systems. Strong margins support ongoing R&D, cushion cyclical downturns, and enable reinvestment in tech and service footprints that underpin long‑term earnings quality.
Negative Factors
Cyclical industry demand
Lam operates in a highly cyclical WFE market where multi-year revenue swings compress visibility. Durable capital-spend volatility can lead to abrupt changes in orders, utilization and margins, making multi-quarter forecasting and capacity planning intrinsically uncertain for at least the next 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and profitability
Sustained high gross (~49%) and net (~30%) margins signal durable pricing power and operational efficiency in deposition/etch/clean systems. Strong margins support ongoing R&D, cushion cyclical downturns, and enable reinvestment in tech and service footprints that underpin long‑term earnings quality.
Read all positive factors
Lam Research (LRCX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$329.25B
Dividend Yield0.56%
Average Volume (3M)10.05M
Price to Earnings (P/E)34.7
Beta (1Y)2.09
Revenue Growth25.66%
EPS Growth46.68%
CountryUS
Employees18,600
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.27
Shares Outstanding1,248,771,000
10 Day Avg. Volume8,189,290
30 Day Avg. Volume10,053,605
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 Cap1.01
Enterprise Value/Revenue16.15
Enterprise Value/Gross Profit32.44
Enterprise Value/Ebitda44.28
Forecast
1Y Price Target
$286.93Price Target Upside8.83% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering27
EPS Forecast (FY)5.34
Revenue Forecast (FY)$22.43B
Lam Research Business Overview & Revenue Model
Company Description
Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metalliz...
How the Company Makes Money
Lam Research primarily makes money by selling semiconductor manufacturing equipment (capital tools) to wafer fabrication customers such as foundries, logic manufacturers, and memory producers. A major portion of revenue comes from system sales—cus...
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 Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based execution and material financial outperformance in 2025 — record revenue, margins, profit and EPS, meaningful product wins (Aqara), SAM/share gains, and significant CSBG momentum. Management is optimistic about AI-driven demand, advanced packaging growth (>40% in 2026), and NAND inflection. Key risks and headwinds include clean-room capacity constraints that may limit near-term WFE, regional mix variability (China), some sequential margin/mix pressure, and the need to build inventory and continue supply-chain ramps. On balance, the positive operational and financial momentum substantially outweighs the noted challenges.Positive Updates
Record Annual Revenue and Strong YoY Growth
Fiscal 2025 revenue of $20.6B, up 27% year-over-year, marking a record year for the company.
Negative Updates
Clean-Room Capacity Constraints Limiting Industry WFE
Management cites sold-out clean-room capacity as a constraining factor on WFE growth in 2026; they expect industry WFE ~$135B (vs. ~$110B in 2025) but cannot fully quantify demand lost to space constraints — risk of undersupply persists and shapes timing of growth (second half weighted).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Annual Revenue and Strong YoY Growth
Fiscal 2025 revenue of $20.6B, up 27% year-over-year, marking a record year for the company.
Read all positive updates
Company Guidance
Lam guided March 2026 non‑GAAP revenue of $5.7B ±$300M (range $5.4B–$6.0B), gross margin 49% ±1pp (48%–50%), operating margin 34% ±1pp (33%–35%), and diluted EPS $1.35 ±$0.10 ($1.25–$1.45) on an assumed share count of ~1.26B; management expects a non‑GAAP tax rate in the low‑to‑mid‑teens (13.2% in the December quarter), foresees slight customer‑mix headwinds to gross margin in March, and continues to plan capital expenditures of ~4%–5% of revenue. They reiterated a strong balance sheet (cash $6.2B at quarter end), $5.1B remaining on the buyback authorization, intent to return ≥85% of free cash flow, potential to repay $750M March 2026 notes, and operational metrics including DSO ~59 days and inventory turns ~2.7x, while noting an industry WFE view of ~$135B for 2026 (second‑half weighted) and expecting >40% growth in advanced packaging.Lam Research Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.56B | 18.44B | 14.91B | 17.43B | 17.23B | 14.63B |
| Gross Profit | 10.24B | 8.98B | 7.05B | 7.78B | 7.87B | 6.81B |
| EBITDA | 7.50B | 6.34B | 4.91B | 5.64B | 5.71B | 4.89B |
| Net Income | 6.21B | 5.36B | 3.83B | 4.51B | 4.61B | 3.91B |
Balance Sheet | ||||||
| Total Assets | 21.39B | 21.35B | 18.74B | 18.78B | 17.20B | 15.89B |
| Cash, Cash Equivalents and Short-Term Investments | 6.18B | 6.39B | 5.85B | 5.37B | 3.66B | 5.73B |
| Total Debt | 4.48B | 4.76B | 4.98B | 5.01B | 5.01B | 5.00B |
| Total Liabilities | 11.25B | 11.48B | 10.21B | 10.57B | 10.92B | 9.86B |
| Stockholders Equity | 10.15B | 9.86B | 8.54B | 8.21B | 6.28B | 6.03B |
Cash Flow | ||||||
| Free Cash Flow | 6.66B | 5.41B | 4.26B | 4.68B | 2.55B | 3.24B |
| Operating Cash Flow | 7.12B | 6.17B | 4.65B | 5.18B | 3.10B | 3.59B |
| Investing Cash Flow | -866.00M | -708.09M | -370.61M | -534.56M | 612.27M | 73.27M |
| Financing Cash Flow | -5.75B | -4.94B | -4.00B | -2.83B | -4.58B | -4.17B |
Lam Research Technical Analysis
Positive
263.66
Price Trends
228.07
Positive
204.17
Positive
161.72
Positive
Market Momentum
6.05
Negative
66.93
Neutral
95.90
Negative
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 263.66 is above the 20-day moving average (MA) of 227.09, above the 50-day MA of 228.07, and above the 200-day MA of 161.72, indicating a bullish trend. The MACD of 6.05 indicates Negative momentum. The RSI at 66.93 is Neutral, neither overbought nor oversold. The STOCH value of 95.90 is Negative, 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 30 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 | $329.25B | 34.75 | 62.59% | 0.56% | 25.66% | 46.68% | |
78 Outperform | $566.94B | 36.81 | 52.14% | 0.63% | 24.91% | 39.95% | |
75 Outperform | $227.72B | 34.87 | 95.22% | 0.58% | 22.27% | 45.32% | |
72 Outperform | $317.04B | 31.26 | 38.90% | 0.69% | 4.47% | 0.48% | |
63 Neutral | $54.09B | 26.78 | 12.81% | 2.29% | 8.01% | 10.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $35.34B | 136.11 | 0.97% | 1.28% | -17.33% | -76.71% |
* Technology Sector Average
LRCX
Lam Research
263.66
196.29
291.38%
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Lam Research Corporate Events
Business Operations and StrategyExecutive/Board Changes
Lam Research Announces Board Addition and COO Transition
Positive
Feb 3, 2026
On February 3, 2026, Lam Research appointed Cadence Design Systems CEO Anirudh Devgan to its board of directors and to the board’s Innovation and Technology Committee, expanding the board by one seat. Devgan, a prominent figure in electronic...
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.