One-glance verdict
Overvalued
$81.64 our estimate vs market $307.65
Wall Street consensus: $370.87 (354.3% higher than our fair-value estimate)
277% above our estimate, beyond the bull case
Fundamentals snapshot
Lam Research Corporation
LRCX · NMS · Technology · Semiconductor Equipment & Materials
Current price
$307.65
52-week range
$104.46 - $438.50
Market cap
$384.97B
Balance sheet
Healthy
52.27x Strong cushion
Net cash $1.46B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 26.0% last year.
- Reward Returns 65.1% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 38.3% above its 5-year average P/E.
What this company does
Lam Research Corporation
Lam Research builds and sells the complex, high-tech machinery that other companies use to manufacture the tiny computer chips found in phones, computers, and cars. The company makes its money primarily from selling these essential machines and providing services for them. This is important because as the world demands more and more powerful electronics, the need for Lam's specialized chip-making tools grows, making it a critical supplier in the global technology supply chain (the network of businesses that get a product from idea to customer).
How the company got here
Founded in 1980 by David K. Lam, the company first made a name for itself by creating machines that perform a crucial step in chipmaking called plasma etching. Over the years, it expanded by acquiring other companies, which added new capabilities like wafer cleaning and another key process called deposition. A major turning point was the 2012 purchase of Novellus Systems, which significantly broadened its product offerings and helped it become a more diversified supplier to the semiconductor industry. Today, Lam Research is a key player that provides essential equipment to nearly every major chipmaker in the world.
What it actually does
You can think of Lam Research as a company that builds the incredibly complex and precise tools that other companies, like Intel or Samsung, use to manufacture microchips. These chips are the 'brains' in all of our electronic devices, from smartphones and computers to cars and AI servers. Lam's machines perform some of the most critical steps in the chipmaking process, working at a microscopic level to carve intricate patterns and deposit ultra-thin layers of materials onto silicon wafers (the round discs that chips are made from). So, while you won't buy a Lam Research product at the store, their technology is fundamental to creating the advanced electronics we use every day.
Systems
This is Lam's largest business area, making up well over half of its total revenue. It involves the design, manufacturing, and sale of the highly sophisticated equipment that chipmakers use to build semiconductors. This machinery performs three main tasks: deposition (adding thin layers of material), etch (removing material to create circuits), and cleaning (removing microscopic particles). Companies that are building new factories (often called 'fabs') or upgrading their technology are the primary customers for this segment.
Customer Support Business Group (CSBG)
This part of the business generates a significant and steady stream of income, representing a little less than half of the company's revenue. It focuses on servicing the massive number of Lam machines already installed in factories around the world. This includes providing spare parts, performing maintenance and upgrades, and refurbishing older equipment to extend its life. Think of it like the service, parts, and upgrades department for a high-end car; it's a crucial business that supports customers long after the initial sale.
What management is betting on now
Lam's leadership is focused on creating even more advanced tools to help chipmakers build the next generation of complex, 3D chips for technologies like artificial intelligence. A key priority is growing its Customer Support Business Group, which provides a more stable source of revenue by servicing the equipment already in use. The company is also investing in digital tools, like virtual models of the manufacturing process, to help its customers innovate faster and at a lower cost. Finally, management is working to make its supply chain (the network of companies that provide parts and materials) more resilient to global disruptions.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$1.46B
FY2025 Q2
$553.59M
FY2025 Q3
$1.02B
FY2025 Q4
$2.38B
FY2026 Q1
$1.59B
FY2026 Q2
$1.22B
FY2026 Q3
$809.82M
FY2026 Q4
$1.27B
Revenue
$6.72B
Net income
$2.28B
Diluted EPS
1.81
Operating cash flow
$1.46B
Free cash flow
$1.27B
Fetching…
Sources
Revenue
$5.84B
Net income
$1.83B
Diluted EPS
1.45
Operating cash flow
$1.14B
Free cash flow
$809.82M
Fetching…
Sources
Revenue
$5.34B
Net income
$1.59B
Diluted EPS
1.26
Operating cash flow
$1.48B
Free cash flow
$1.22B
Fetching…
Sources
Revenue
$5.32B
Net income
$1.57B
Diluted EPS
1.24
Operating cash flow
$1.78B
Free cash flow
$1.59B
Fetching…
Sources
Revenue
$5.17B
Net income
$1.72B
Diluted EPS
1.34
Operating cash flow
$2.55B
Free cash flow
$2.38B
Fetching…
Sources
Revenue
$4.72B
Net income
$1.33B
Diluted EPS
1.03
Operating cash flow
$1.31B
Free cash flow
$1.02B
Fetching…
Sources
Revenue
$4.38B
Net income
$1.19B
Diluted EPS
0.92
Operating cash flow
$741.94M
Free cash flow
$553.59M
Fetching…
Sources
Revenue
$4.17B
Net income
$1.12B
Diluted EPS
0.86
Operating cash flow
$1.57B
Free cash flow
$1.46B
Fetching…
Sources
Is it cheap or expensive?
Fair value $81.64 vs current price $307.65
Wall Street consensus is the average analyst price target: $370.87 (354.3% higher than our fair-value estimate).
Our most-likely fair value is $81.64 a share — about 73.5% below today's price of $307.65, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $1.5B - more cash than debt. Interest coverage 52.3x.
Net debt
$-1.46B
Interest coverage
52.27x
Lam Research Corporation's profit covers its interest bill about 52.3 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
LRCX
BASELINE
Lam Research Corporation
Total debt $4.12B Interest coverage 52.27x This is the baseline the peer rows are being compared against.
Total debt $7.35B Interest coverage 31.49x -40% vs LRCX Carries about 1.7x less debt cushion than LRCX.
Total debt $2.31B Interest coverage 95.53x +83% vs LRCX Carries about 1.8x more debt cushion than LRCX.
Total debt $6.15B Interest coverage 19.90x -62% vs LRCX Carries about 2.6x less debt cushion than LRCX.
Total debt $0.00 Interest coverage 313.72x +500% vs LRCX Carries about 6.0x more debt cushion than LRCX.
Total debt $81.92M Interest coverage 1,042.33x +1,894% vs LRCX Carries about 19.9x more debt cushion than LRCX.
What you should know
The case for and against LRCX
3 Rewards
1 Risk
Rewards
-
Revenue grew 26.0% last year.
-
Returns 65.1% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 38.3% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
53.50x
Forward P/E
26.58x
P/B
30.87x
P/S
16.57x
EV/EBITDA
44.38x
PEG ratio
1.43x
Profitability
How much profit each dollar creates
Gross margin
50.5%
Operating margin
37.4%
Net margin
31.3%
ROE
65.1%
ROA
22.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.33x
Current ratio
2.63x
Quick ratio
1.84x
Total debt
$4.12B
Total cash
$5.58B
Growth
How the business has been compounding
Revenue TTM
$23.23B
Revenue 5Y CAGR
7.8%
EPS TTM
5.75
EPS 5Y CAGR
20.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$5.86B
Free CF TTM
$4.89B
FCF margin
21.1%
Dividend
Shareholder payout
Yield
0.4%
Payout ratio
18.1%
Last ex-div date
2026-09-23