Want to see LRCX full AI Analyst Report?
Top Page
Lam Research
(NASDAQ:LRCX)
Select Model
Select Model
Rating:73Outperform
Price Target:
$257.00
▼(-18.32% Downside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by very strong financial performance (best-in-class margins and solid free cash flow) and a highly positive earnings outlook and sentiment from the latest call (record results and strong guidance/WFE outlook). These strengths are meaningfully offset by weak technical momentum (trading well below major moving averages with negative MACD) and a relatively expensive valuation (high P/E with a low dividend yield).
Positive Factors
Revenue and profit growth
Lam has demonstrated a strong revenue recovery alongside consistently high profitability, showing that its equipment portfolio can capture semiconductor investment while preserving earnings power. This combination supports internal funding for innovation, capacity and customer support across the next several quarters.
Negative Factors
Semiconductor spending cyclicality
Lam’s results remain tied to customers’ capital spending and technology-transition timing, creating meaningful exposure to semiconductor cycles. Even with strong margins and recovery, a future investment pause could reduce system demand and make revenue and cash generation more volatile.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and profit growth
Lam has demonstrated a strong revenue recovery alongside consistently high profitability, showing that its equipment portfolio can capture semiconductor investment while preserving earnings power. This combination supports internal funding for innovation, capacity and customer support across the next several quarters.
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
$329.69B
Dividend Yield0.43%
Average Volume (3M)9.18M
Price to Earnings (P/E)38.6
Beta (1Y)2.05
Revenue Growth26.02%
EPS Growth38.85%
CountryUS
Employees23,300
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)6.75
Shares Outstanding1,251,424,300
10 Day Avg. Volume8,777,834
30 Day Avg. Volume9,179,536
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 Cap1.19
Enterprise Value/Revenue15.01
Enterprise Value/Gross Profit29.40
Enterprise Value/Ebitda38.53
Forecast
1Y Price Target
$378.17Price Target Upside20.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering25
EPS Forecast (FY)9.54
Revenue Forecast (FY)$35.04B
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 makes money primarily by selling semiconductor manufacturing equipment and by providing ongoing customer support and services tied to its installed base. (1) System sales (capital equipment): A significant portion of revenue comes fro...
Lam Research Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Positive
The call was strongly positive, marked by record revenue, margins, EPS, cash flow and CSBG performance, strong AI-driven demand, expanding deposition and etch opportunities, multiple product wins, and an improved 2027 WFE outlook. The main challenges were supply chain and clean room constraints, a significantly lower expected China revenue mix in December, a higher tax rate, and customer mix pressure on gross margin. Management remained confident that these constraints can be managed and that Lam is positioned for continued outperformance.Positive Updates
Record September Quarter Revenue and Profitability
Lam reported its fifth consecutive quarter of record revenue, with September quarter revenue of $8.22 billion, up 22% sequentially and 54% from the same period in 2025. Gross margin reached a record 52.4%, operating margin reached a record 40.2% and exceeded 40% for the first time, and diluted EPS reached a record $2.20.
Negative Updates
Near-Term Supply Chain Constraints
Lam said the December revenue guide would have been a bit higher without near-term supply chain constraints. Management said supply was a little tight in the quarter and that clean room availability and supply chain constraints are expected to continue limiting the industry's ability to fully meet end demand in 2027.
Read all updates
Q1-2027 Updates
Positive
Negative
Record September Quarter Revenue and Profitability
Lam reported its fifth consecutive quarter of record revenue, with September quarter revenue of $8.22 billion, up 22% sequentially and 54% from the same period in 2025. Gross margin reached a record 52.4%, operating margin reached a record 40.2% and exceeded 40% for the first time, and diluted EPS reached a record $2.20.
Read all positive updates
Company Guidance
For the December 2026 quarter, Lam expects revenue of $8.6 billion ± $400 million, gross margin of 52.5% ± 1% point, operating margin of 40.5% ± 1% point, and earnings per share of $2.33 ± $0.15 based on a share count of approximately 1.253 billion shares; the tax rate is expected to remain in the 16.5% range for the December quarter and likely beyond. Including the midpoint of December quarter guidance, calendar year 2026 systems revenue is expected to grow well over 40% year-on-year, WFE is expected to be in the mid $150 billion range, and preliminary 2027 WFE outlook is for more than $200 billion of spending, with percentage growth led by DRAM, followed by leading-edge foundry logic and NAND. Calendar year 2026 CSBG revenue is expected to grow more than 30% year-over-year, with calendar year 2027 revenue growing over 15% year-over-year; cumulative Aether-related revenue is expected to reach approximately $2.5 billion by the end of the decade, roughly $1 billion above prior expectations, and advanced packaging is expected to grow 70% for this year.Lam Research Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.13B | 23.23B | 18.44B | 14.91B | 17.43B | 17.23B |
| Gross Profit | 13.34B | 11.73B | 8.98B | 7.05B | 7.78B | 7.87B |
| EBITDA | 10.18B | 8.70B | 6.34B | 4.91B | 5.64B | 5.71B |
| Net Income | 8.45B | 7.27B | 5.36B | 3.83B | 4.51B | 4.61B |
Balance Sheet | ||||||
| Total Assets | 26.35B | 23.53B | 21.35B | 18.74B | 18.78B | 17.20B |
| Cash, Cash Equivalents and Short-Term Investments | 7.44B | 5.58B | 6.39B | 5.85B | 5.37B | 3.66B |
| Total Debt | 3.74B | 4.12B | 4.76B | 4.98B | 5.01B | 5.01B |
| Total Liabilities | 12.44B | 11.06B | 11.48B | 10.21B | 10.57B | 10.92B |
| Stockholders Equity | 13.91B | 12.47B | 9.86B | 8.54B | 8.21B | 6.28B |
Cash Flow | ||||||
| Free Cash Flow | 6.54B | 4.89B | 5.41B | 4.26B | 4.68B | 2.55B |
| Operating Cash Flow | 7.58B | 5.86B | 6.17B | 4.65B | 5.18B | 3.10B |
| Investing Cash Flow | -1.00B | -922.15M | -708.09M | -370.61M | -534.56M | 612.27M |
| Financing Cash Flow | -5.82B | -5.72B | -4.94B | -4.00B | -2.83B | -4.58B |
Lam Research Technical Analysis
Negative
314.66
Price Trends
304.35
Negative
320.79
Negative
282.88
Negative
Market Momentum
-15.11
Positive
24.57
Positive
3.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LRCX, the sentiment is Negative. The current price of 314.66 is above the 20-day moving average (MA) of 304.19, above the 50-day MA of 304.35, and above the 200-day MA of 282.88, indicating a bearish trend. The MACD of -15.11 indicates Positive momentum. The RSI at 24.57 is Positive, neither overbought nor oversold. The STOCH value of 3.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $640.88B | 42.66 | 63.91% | 0.54% | 28.99% | 52.09% | |
73 Outperform | $329.69B | 38.64 | 71.75% | 0.43% | 26.02% | 38.85% | |
71 Outperform | $321.39B | 35.04 | 40.44% | 0.48% | 7.77% | 38.45% | |
69 Neutral | $211.07B | 44.36 | 85.38% | 0.51% | 11.72% | 20.58% | |
62 Neutral | $89.34B | 49.17 | 17.32% | 0.95% | 18.30% | 82.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $41.08B | 89.74 | 2.66% | 0.76% | 10.06% | -27.68% |
* Technology Sector Average
LRCX
Lam Research
230.15
83.29
56.71%
ASX
ASE Technology Holding Co
37.74
25.02
196.58%
AMAT
Applied Materials
375.58
148.37
65.30%
ASML
ASML Holding
1,560.54
529.91
51.42%
KLAC
KLA
147.83
32.55
28.24%
STM
STMicroelectronics
44.09
19.03
75.91%
Lam Research Corporate Events
Executive/Board Changes
Lam Research Announces Planned Board Governance Transition
Neutral
Aug 27, 2026
On August 24, 2026, Lam Research announced that directors Sohail U. Ahmed and Michael R. Cannon will retire from its Board, effective November 2, 2026, reducing the Board’s size from 12 to 10 members. The company highlighted Ahmed’s se...
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.