XStocksXray

Research report · 16 October 2026

Lam Research Corp (LRCX)

Information Technology · Semiconductor Materials & Equipment · US stock · price as of 16 Oct 2026

Key indicators

Price	$263.94
52-week range	$134.88 – $438.03
Market cap	$332.9B
P/E (trailing)	45.9×
EV / EBITDA	38.3×
Free-cash-flow yield	1.5%
Dividend yield	0.4%
Revenue (last 12 months)	$23.2B
Revenue growth (3y a year)	10.1%
Operating margin	35.3%
Return on invested capital	65.5%
Net debt / EBITDA	-0.2×

Fair value

Blended fair value$137.07 range $133 – $142

Versus priceOvervalued−48% to fair value

Peer multiples	$161.31
Fundamentals-adjusted multiple	$127.41
10-year DCF (market-scaled)	$122.49
Earnings power value (floor, not blended)	$46.34
Model uncertainty	Medium

X-Ray Score

56/ 100 · High confidence · ahead of 67% of sector peers

Valuation28

Growth54

Profitability66

Financial health87

Dividends44

Five-year price chart navy: price · brown: 200-day average · blue band: fair value range

Executive summary

Lam Research makes equipment used by chipmakers to manufacture semiconductors, specifically systems for depositing thin films and etching patterns onto silicon wafers. Its customers are memory and logic chip producers, and it also provides spare parts, upgrades and services for installed machines. The company earns money from system sales and from its customer support business. Demand follows chip makers' capital spending, which can vary widely from year to year.

Revenue for the last twelve months was $23.2 billion, and it grew by 10.1% a year over three years. The operating margin is 35.3%, and return on invested capital reached 66%. Net debt to EBITDA is -0.2 times, which means the company holds more cash than debt. It pays a dividend with a yield of 0.4%.

StocksXray gives Lam Research Corp an X-Ray Score of 56 out of 100 (high confidence), ahead of 67% of the S&P 500 stocks in its sector. Its strongest lens is financial health (87) and its weakest is valuation (28).

Our fair value blend is $137.07 (range $132.63 to $142.04). At $263.94 the stock trades 93% above that blend, so the label is "Overvalued" with medium model uncertainty. Fair value is a range, not a price target.

XStocksXray

Lam Research Corp (LRCX)

Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months

	FY2022	FY2023	FY2024	FY2025	FY2026	Now
Price	$43.17	$59.20	$104.57	$96.56	$378.69	$263.94
Market cap	$6.1B	$80.4B	$138.0B	$124.6B	$477.6B	$332.9B
P/E	1.3×	17.8×	36.1×	23.3×	65.7×	45.9×
EV / revenue	0.4×	4.6×	9.2×	6.7×	20.5×	14.2×
EV / EBITDA	1.3×	14.5×	29.7×	19.5×	55.1×	38.3×
Price / free cash flow	2.4×	17.2×	32.4×	23.0×	97.6×	68.1×
Free-cash-flow yield	42.1%	5.8%	3.1%	4.3%	1.0%	1.5%
Price / book	1.0×	9.8×	16.2×	12.6×	38.3×	26.7×
Dividend yield	13.90%	1.17%	0.77%	0.95%	0.27%	0.42%

Fundamentals checklist ● 9 Good · ● 2 Average · ● 5 Bad · each check graded against the sector

Cash quality

Earnings backed by cash6.0%Bad

Free-cash-flow yield1.5%Bad

Risk models

Altman Z score11.1×Good

Piotroski F-Score8 of 9Good

Growth

EPS growth (3y)20.2%Good

Free-cash-flow growth (3y)1.5%Bad

Revenue growth (3y)10.1%Average

Growth consistency90%Average

Balance sheet

Current ratio2.6×Good

Net debt / EBITDA-0.2×Good

Interest coverno interest costGood

Valuation

Fair value vs price0.5×Bad

EBIT / EV yield2.5%Bad

Profitability

Return on invested capital65.5%Good

Operating margin35.3%Good

Gross profitability49.8%Good

XStocksXray

Lam Research Corp (LRCX)

Financials US$ millions, from SEC filings; last column is the last twelve months

Income statement	FY22	FY23	FY24	FY25	FY26	LTM
Revenue	17,227	17,429	14,905	18,436	23,233	23,233
Gross profit	7,872	7,777	7,053	8,979	11,725	11,725
Operating income	5,382	5,175	4,264	5,901	8,200	8,200
Net income	4,605	4,511	3,828	5,358	7,265	7,265
Diluted EPS ($)	32.75	3.32	2.90	4.15	5.76	5.76
Free cash flow	2,554	4,677	4,256	5,414	4,891	4,891
Gross margin	45.7%	44.6%	47.3%	48.7%	50.5%	50.5%
Operating margin	31.2%	29.7%	28.6%	32.0%	35.3%	35.3%
Net margin	26.7%	25.9%	25.7%	29.1%	31.3%	31.3%
Balance sheet	FY22	FY23	FY24	FY25	FY26	LTM
Total assets	17,196	18,782	18,745	21,345	23,530	23,530
Cash	3,522	5,337	5,848	6,391	5,579	5,579
Total debt	4,962	4,965	4,967	4,469	3,722	3,722
Equity	6,278	8,210	8,539	9,862	12,471	12,471
Dividend per share ($)	6.00	0.69	0.80	0.92	1.04	1.04

Revenue and net income US$ billions: navy revenue, teal net income

Margins blue gross, teal operating, brown net

Latest quarters

	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue ($M)	4,720	5,171	5,324	5,345	5,841	6,722
Growth vs a year earlier	+24.4%	+33.6%	+27.7%	+22.1%	+23.8%	+30.0%
Net income ($M)	1,331	1,720	1,569	1,594	1,825	2,277
Diluted EPS ($)	1.03	–	1.24	1.26	1.45	–

XStocksXray

Lam Research Corp (LRCX)

Peers in Semiconductor Materials & Equipment

Company	X-Ray
LRCX · Lam Research Corp	56
AMAT · Applied Materials Inc	52
KLAC · Kla Corp	50
TER · Teradyne, Inc	44
Q · Qnity Electronics, Inc.	38

Market Compass outlook for Information Technology: Favourable (75/100). It blends regime history, macro sensitivity, momentum and valuation.

Returns

1 week	−17.2%
1 month	−1.9%
3 months	−13.9%
6 months	−1.2%
1 year	+83.2%
3 years	+321.7%
5 years	+404.7%

Technical summary

DailyStrongly bearish3 bullish · 1 neutral · 12 bearish

WeeklyNeutral6 bullish · 1 neutral · 5 bearish

MonthlyBullish5 bullish · 1 neutral · 2 bearish

50-day / 200-day average	$308.89 / $281.52
52-week low / high	$134.88 / $438.03
Classic pivot, support and resistance	S2 255.11 · S1 259.53 · P – · R1 271.97 · R2 279.99

Recent dividends

Ex-dividend date	Amount per share
23 Sep 2026	$0.3300
17 Jun 2026	$0.2600
4 Mar 2026	$0.2600
3 Dec 2025	$0.2600
24 Sep 2025	$0.2600
18 Jun 2025	$0.2300

XStocksXray

Lam Research Corp (LRCX)

Strengths

Return on invested capital of 65.5% is ahead of 87% of its sector peers.
Operating margin of 35.3% is ahead of 79% of its sector peers.
Interest cover of no interest cost is ahead of 89% of its sector peers.
Holds more cash than debt (net debt to EBITDA of -0.2×).
Piotroski F-Score of 8 out of 9: most of the nine accounting health tests pass.
Has raised its dividend for 6 years in a row.

Risks and weak spots

Earnings backed by cash is weak against Information Technology peers (6.0%).
Free-cash-flow yield is weak against Information Technology peers (1.5%).
Free-cash-flow growth (3y) is weak against Information Technology peers (1.5%).
Fair value vs price is weak against Information Technology peers (0.5×).
EBIT / EV yield is weak against Information Technology peers (2.5%).
The price is above our fair value range, so good news may already be in the price.

Latest SEC filings

Date	Form	Items
24 Sep 2026	DEF 14A
27 Aug 2026	8-K	5.02
7 Aug 2026	10-K
29 Jul 2026	8-K	2.02,9.01
23 Apr 2026	10-Q
22 Apr 2026	8-K	2.02,9.01
3 Feb 2026	8-K	5.02,9.01
29 Jan 2026	10-Q

How to read this report

Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.