📊 LRCX Key Takeaways
Is Lam Research Corp. (LRCX) a Good Investment?
Lam Research demonstrates exceptional financial health with industry-leading profitability metrics, robust cash generation, and a fortress balance sheet. The company's 50% gross margin, 34.1% operating margin, and 29.6% net margin reflect pricing power and operational excellence in semiconductor equipment manufacturing. Strong free cash flow of $2.8B and conservative leverage position the company well for continued shareholder returns and strategic investments.
Lam Research shows excellent fundamental quality with very high gross, operating, and net margins, strong free cash flow generation, and returns on capital that indicate an efficient and defensible business model. The balance sheet is healthy, with ample cash, solid liquidity, moderate leverage, and strong interest coverage, which supports resilience through industry cycles. The main limitation is that growth trend data is not provided here, so the business looks fundamentally strong but should still be monitored for semiconductor equipment cyclicality and order volatility.
Why Buy Lam Research Corp. Stock? LRCX Key Strengths
- Exceptional profitability with 50% gross margin and 34.1% operating margin indicating pricing power and operational efficiency
- Strong cash generation with $2.8B free cash flow and 26.4% FCF margin demonstrating high-quality earnings
- Fortress balance sheet with $6.2B cash, 0.37x debt-to-equity ratio, and 20.5x interest coverage providing financial flexibility
- Outstanding returns on equity (31.2%) and assets (14.8%) indicating efficient capital allocation
- Solid liquidity with 2.26x current ratio and 1.61x quick ratio providing operational flexibility
- Exceptional profitability, including 50.0% gross margin, 34.1% operating margin, and 29.6% net margin
- Strong financial health with $6.18B in cash, 2.26x current ratio, and only 0.37x debt-to-equity
- High cash conversion, with $3.26B operating cash flow and $2.81B free cash flow supporting flexibility and durability
LRCX Stock Risks: Lam Research Corp. Investment Risks
- Semiconductor industry cyclicality and customer concentration risks that could impact revenue stability and demand volatility
- Significant insider activity with 24 Form 4 filings in 90 days warrants monitoring for potential sentiment shifts or strategic changes
- Capital intensity with $446M capex requirements and exposure to technological disruption in semiconductor equipment manufacturing
- Semiconductor equipment demand is cyclical, which can pressure revenue and margins during customer capex slowdowns
- Growth quality is harder to judge because YoY revenue, earnings, and EPS trends are not provided
- Profitability is strong now, but any mix shift, competitive pressure, or customer concentration could compress margins
Key Metrics to Watch
- Operating margin sustainability and gross margin trends amid competitive pressures
- Free cash flow generation and capital allocation decisions including M&A and shareholder returns
- Customer order backlog and demand indicators for semiconductor capital equipment
- Revenue and EPS growth trend across the next few reporting periods
- Free cash flow margin and operating margin sustainability
Lam Research Corp. (LRCX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 26.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 2.26x current ratio provides a solid financial cushion.
LRCX Profit Margin, ROE & Profitability Analysis
LRCX vs Industrial Sector: How Lam Research Corp. Compares
How Lam Research Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Lam Research Corp. Stock Overvalued? LRCX Valuation Analysis 2026
Based on fundamental analysis, Lam Research Corp. appears fundamentally strong relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Lam Research Corp. Balance Sheet: LRCX Debt, Cash & Liquidity
LRCX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Lam Research Corp.'s revenue has grown significantly by 26% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.32 reflects profitable operations.
LRCX Revenue Growth, EPS Growth & YoY Performance
LRCX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $4.4B | $1.2B | $0.92 |
| Q1 2026 | $4.2B | $1.1B | $0.86 |
| Q3 2025 | $3.8B | $965.8M | $0.73 |
| Q2 2025 | $3.8B | $954.3M | $0.72 |
| Q1 2025 | $3.5B | $887.4M | $0.67 |
| Q3 2024 | $3.8B | $814.0M | $6.01 |
| Q2 2024 | $3.8B | $954.3M | $7.22 |
| Q1 2024 | $3.5B | $887.4M | $6.66 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Lam Research Corp. Dividends, Buybacks & Capital Allocation
LRCX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Lam Research Corp. (CIK: 0000707549)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 11, 2026 | 4 | xslF345X05/wk-form4_1773258849.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772736581.xml | View → |
| Mar 5, 2026 | 4 | xslF345X05/wk-form4_1772736532.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772568980.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772568899.xml | View → |
❓ Frequently Asked Questions about LRCX
What is the AI rating for LRCX?
Lam Research Corp. (LRCX) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 89% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LRCX's key strengths?
Claude: Exceptional profitability with 50% gross margin and 34.1% operating margin indicating pricing power and operational efficiency. Strong cash generation with $2.8B free cash flow and 26.4% FCF margin demonstrating high-quality earnings. ChatGPT: Exceptional profitability, including 50.0% gross margin, 34.1% operating margin, and 29.6% net margin. Strong financial health with $6.18B in cash, 2.26x current ratio, and only 0.37x debt-to-equity.
What are the risks of investing in LRCX?
Claude: Semiconductor industry cyclicality and customer concentration risks that could impact revenue stability and demand volatility. Significant insider activity with 24 Form 4 filings in 90 days warrants monitoring for potential sentiment shifts or strategic changes. ChatGPT: Semiconductor equipment demand is cyclical, which can pressure revenue and margins during customer capex slowdowns. Growth quality is harder to judge because YoY revenue, earnings, and EPS trends are not provided.
What is LRCX's revenue and growth?
Lam Research Corp. reported revenue of $10.7B.
Does LRCX pay dividends?
Lam Research Corp. pays dividends, with $619.5M distributed to shareholders in the trailing twelve months.
Where can I find LRCX SEC filings?
Official SEC filings for Lam Research Corp. (CIK: 0000707549) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LRCX's EPS?
Lam Research Corp. has a diluted EPS of $2.50.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LRCX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Lam Research Corp. has a BUY rating with 89% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is LRCX stock overvalued or undervalued?
Valuation metrics for LRCX: ROE of 31.2% (sector avg: 15%), net margin of 29.6% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy LRCX stock in 2026?
Our dual AI analysis gives Lam Research Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is LRCX's free cash flow?
Lam Research Corp.'s operating cash flow is $3.3B, with capital expenditures of $446.0M. FCF margin is 26.4%.
How does LRCX compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 29.6% (avg: 10%), ROE 31.2% (avg: 15%), current ratio 2.26 (avg: 1.8).
Why is LRCX's return on equity (ROE) so high?
Lam Research Corp. has a return on equity of 31.2%, significantly above the Industrial sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 29.6% net margin.