LRCX Filings — Lam Research Corporation - FilingSpy
LRCX
Lam Research Corporation
A maker of the machinery that fabricates silicon chips—the etch, deposition, and cleaning tools used by manufacturers like Samsung, SK hynix, Micron, and TSMC to build memory and logic semiconductors. Founded in 1980 by Dr. David K. Lam in Santa Clara, California, the company's name isn't an acronym despite jokes about "Let's All Move"—it simply honors its founder's surname. Its product families include Kiyo and Flex etch tools and ALTUS and VECTOR deposition systems.
10-K · Fiscal year ended Jun 28, 2026 · SEC filing ↗
Lam Research revenue rose 26% to $23.2B as foundry spending drove 54% of equipment revenue and gross margin crossed 50% for the first time.
Foundry spending overtook memory as Lam's dominant demand driver, reshaping the base. Revenue rose 26% to $23.2 billion and expanded 1.8 points to 50.5%, the highest annual level in the data shown, as favorable customer mix more than offset tariff-related costs. The company enters FY2027 with a record balance unwinding and China still contributing 34% of revenue under tightening export controls.
Key takeaways
Foundry's share of equipment and upgrade rose 9 percentage points to 54% in FY2026, driven by mature-node and leading-edge investments, while memory fell to 39% as NAND spending remained depressed and DRAM investments strengthened only late in the year.
reached 50.5% for the full year, up from 48.7% in FY2025, as favorable customer mix and factory efficiencies more than offset aluminum and steel tariff-related spend and higher material costs.
Section summaries
Business
Lam Research is a global supplier of wafer fabrication equipment and services, serving semiconductor memory, foundry, and IDM customers.
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The company operates through its core deposition, etch, and clean product families and a providing spares, upgrades, and services.
rose 26% to $23.2 billion, with systems revenue up 29.5% to $14.9 billion and customer support-related revenue up 20.2% to $8.3 billion, reflecting broad-based demand across equipment and installed-base services.
China contributed 34% of FY2026 , unchanged from FY2025, as the region's share rebounded in the first half before declining through the second half under expanded U.S. export license requirements that the company flagged as a material risk.
ended the year at $2.22 billion, down from $2.77 billion at the Q1 FY2026 peak, as customer advance deposits began converting to reported after several quarters of buildup.
The company returned $5.12 billion to shareholders through $3.85 billion in share repurchases and $1.27 billion in dividends, while reducing by $755 million and ending the year with $5.58 billion in cash.
What changed
China share held at 34% for the full year, matching the FY2025 level that earlier filings flagged as a risk under evolving export controls, though the quarterly pattern showed a rebound to 43% in Q1 FY2026 before declining to 37% of nine-month revenue by Q3.
Foundry's equipment share rose to 54% from the 48% level reached in Q3 FY2025, confirming the foundry-led mix sustained and accelerated, while memory's share fell to 39% as NAND spending remained a through most of the year.
declined from the $2.7 billion FY2025 year-end balance to $2.22 billion, as the buildup of customer advance deposits flagged in prior filings began converting to reported , with a $520 million sequential drop in Q2 FY2026 marking the inflection point.
rose to 50.5% from 48.7% in FY2025, exceeding the prior year's level despite tariff-related costs and reduced factory efficiencies in some quarters, as favorable customer mix from the foundry-led demand base proved the dominant factor.
What to watch
China share in Q1 FY2027 under evolving export controls, given the 34% FY2026 level and the company's warning that further license restrictions could reduce sales to the region.
Foundry's equipment share in Q1 FY2027 against the 54% FY2026 level, to see whether the foundry-led mix sustains near this elevated level or memory begins to reclaim share as DRAM investments strengthen.
balance in Q1 FY2027, to confirm whether the decline from $2.77 billion to $2.22 billion represents a sustained conversion of advance deposits to reported or stabilizes at a new level.
trajectory from the 50.5% FY2026 level, as tariff-related spend continues to pressure profitability and the sustainability of the favorable customer mix becomes clearer.
Key deposition products include the , , , and families; etch products include , , Vantex, and Akara families; and clean products include the , , and families.
Lam's customer base includes leading semiconductor manufacturers such as Micron, Samsung, SK hynix, and TSMC, with a significant portion of sales occurring outside the United States.
The company competes primarily with Applied Materials, Tokyo Electron, and others, and believes its R&D focus, installed base , and collaborative ecosystem approach create sustainable differentiation.
Lam is subject to extensive government regulations including export controls, particularly affecting sales to China, and potential PFAS chemical restrictions.
As of August 2026, the company had approximately 23,300 regular full-time employees, with over 26% engaged in research and development.
Lam Research faces material risks from U.S.-China trade restrictions, rapid technological shifts including AI, and customer concentration.
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U.S. export controls on China, which accounted for 34% of FY2026 , require licenses for certain sales and could further limit market access or demand.
Rapid technological change, including the shift to AI and potential limits of lithography scaling, pressures R&D and risks product obsolescence if the company bets on the wrong solutions.
Customer concentration is high, with a limited number of large customers driving significant , making the business vulnerable to a single customer's actions or financial health.
AI adoption is a double-edged sword: it drives capital equipment demand but also introduces new competitive, operational, and cybersecurity risks, including the potential for customers to reduce reliance on Lam's process development.
Supply chain disruptions, including from tariffs on steel and aluminum and Chinese export controls on rare earth elements, have increased costs and could delay product deliveries.
Intense competition from rivals, some state-backed with greater resources, pressures pricing and market share, especially as customers tend to stick with incumbent equipment suppliers.
Our executive offices and principal operating and R&D facilities are located in Fremont and Livermore, California; Tualatin, Oregon; Yongin, Gyeonggi Province, Korea; Bengaluru, India; Salzburg, Austria; and Villach, Austria. In addition, we lease or own properties for our servi…
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Our executive offices and principal operating and R&D facilities are located in Fremont and Livermore, California; Tualatin, Oregon; Yongin, Gyeonggi Province, Korea; Bengaluru, India; Salzburg, Austria; and Villach, Austria. In addition, we lease or own properties for our service, technical support, and sales personnel throughout the United States, China, Europe, India, Japan, Korea, Southeast Asia, and Taiwan and lease or own manufacturing and warehouse facilities located in California, Ohio, Oregon, Austria, Korea, Malaysia, and Taiwan. The Company owns the majority of the Fremont, Livermore, and Tualatin facilities, as well as the manufacturing facilities in Sherwood, Oregon; Ohio; and Malaysia. Our Villach, Austria facility is leased; the lease includes an option to renew the lease or purchase the facilities. Our facilities lease obligations are subject to periodic increases. We believe that our existing facilities are well-maintained and in good operating condition.
Please refer to the subsection entitled “Legal Proceedings” within Note 17: Commitments and Contingencies to our Consolidated Financial Statements included in Part II, Item 8 of this 2026 Form 10-K.
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Please refer to the subsection entitled “Legal Proceedings” within Note 17: Commitments and Contingencies to our Consolidated Financial Statements included in Part II, Item 8 of this 2026 Form 10-K.
Quantitative and Qualitative Disclosures About Market Risk
Lam Research faces limited market risk from fixed-rate debt and foreign exchange, with FX hedged via forwards and options.
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As of June 28, 2026, Lam held $3.75B in fixed-rate Senior Notes with a fair value of $3.16B; interest rate changes affect fair value but not cash flows or operations.
The company is exposed to FX risk on non-U.S. dollar transactions and cash flows, though most revenues and expenses are in U.S. dollars.
Lam uses foreign currency forward and option contracts (including ) to hedge anticipated non-U.S. dollar cash flows, designating them as .
The company also uses foreign currency forward contracts to offset gains and losses on non-U.S. dollar monetary assets and liabilities.
Sensitivity analysis indicates that a hypothetical ±10% or ±15% FX rate move would not have a significant impact on the fair value of outstanding or balance sheet derivatives.
Lam Research revenue grew 26% to $23.2B in FY2026, with net income rising 36% to $7.3B.
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increased to $23.23 billion in FY2026 from $18.44 billion in FY2025, driven by systems and customer support.
rose to $7.27 billion, or $5.76 per diluted share, compared to $5.36 billion, or $4.15 per diluted share, in the prior year.
improved to 50.5% of , up from 48.7% in FY2025, as revenue growth outpaced the increase in cost of goods sold.
Cash provided by operating activities was $5.86 billion, while $5.72 billion was used for financing activities including $3.85 billion in stock repurchases.
The company had $5.58 billion in cash and cash equivalents and $3.72 billion in total debt at year-end, with no borrowings under its $2.0 billion .
A 15-year tax incentive in Malaysia reduced worldwide taxes by $967.9 million, contributing to an of 12.1%.