| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 18 | 35.4x | 17.3x | Bottom tier | |
Growth | 87 | 33.4% | 7.1% | Top tier | |
Quality | 96 | 50.7% | 4.5% | Top tier | |
Safety | 83 | — | 2.6x | Top tier | |
Capital Return | 55 | 0.47% | 0.06% | Around median | |
Momentum | 50 | 117.5% | -1.6% | Around median | |
Sentiment | 61 | 22 | 3 | Around median |
The floor: what the company is worth if growth stopped today
78% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Lam Research Corporation, listed under the ticker LRCX on NASDAQ, sells semiconductor manufacturing equipment and services, focusing on etching, deposition, cleaning, and advanced packaging. The company generates revenue from system sales and from equipment upgrades, spare parts, maintenance, and equipment intelligence services within its customer support group, CSBG. Its technological opportunity is tied to the growing complexity of three-dimensional chips; customers' transition to multilayer NAND, gate-all-around transistors, and HBM memory increases the need for the processes performed by Lam's equipment.
In quarter 4 of fiscal year 2026, ended 2026-06-28, Lam reported revenue of $6.7 billion, net income of $2.3 billion, and diluted earnings per share of $1.82, with a gross margin of 51.7% and an operating margin of 37.4%. Memory accounted for 46% of systems revenue that quarter, split equally between NAND and DRAM at 23% each, compared with 44% for foundry and 10% for logic and other activities. These percentages apply to systems revenue, while CSBG generated approximately $2.5 billion in revenue in the same quarter, driven particularly by upgrades.
Revenue for fiscal year 2026, ended 2026-06-28, was approximately $23.2 billion, with net income of $7.3 billion and a gross margin of 50.5%. According to EL7 data, operating cash flow over the last 12 months through 2026-06-28 was approximately $5.9 billion, equivalent to 81% of net income, and free cash flow was $4.9 billion. These figures reflect strong profitability, with cash generation remaining below accounting earnings; a reliable year-over-year revenue growth comparison for quarter 4 of fiscal year 2026 is unavailable.
Q4 FY2026
Last 12 months to 2026-06-28
When: 2026-10-21
Revenue versus guidance of $8.1 billion at the expected earnings release
Non-GAAP gross margin versus guidance of 52%
Non-GAAP operating margin versus guidance of 39.5%
The median target from 11 analysts is $365, within a range of $290 to $500, reflecting growth expectations, while the industry-multiple valuation is $240, within a range of $165 to $348, based on next year's earnings and a median multiple of 26.6 across 70 companies, measuring the company against its peers' pricing. The discounted cash flow model produces a low-confidence indicative value of $77, within a range of $66 to $91, measuring expected cash generation at a discount rate of 13.5%, compared with a no-growth value of $44 that measures after-tax operating profit remaining constant forever at the same rate. The analyst target range overlaps with the industry-multiple range, while the cash flow and no-growth values fall below both, highlighting the different weights assigned to expected growth and peer pricing versus cash generation and the continuation of earnings without expansion. Analyst targets naturally tend toward optimism and cash flow models toward conservatism; Morgan Stanley also raised its target to $385 from $367 on 2026-10-05, and B. Riley raised its target to $390 from $350 on 2026-10-01.
Figures in the text are as of 2026-10-19; the live price is shown at the top of the page.
Lam benefits from customers' need for more complex etching and deposition in NAND, DRAM, advanced foundries, and packaging, rather than selling artificial intelligence processors themselves. In quarter 4 of fiscal year 2026, ended 2026-06-28, memory accounted for 46% of systems revenue and foundry for 44%. On the 2026-07-29 call, management forecast growth exceeding 70% for the advanced packaging business during 2026 compared with 2025, benefiting from through-silicon via etching and copper electroplating technologies.
NAND represented 23% of systems revenue in quarter 4 of fiscal year 2026, ended 2026-06-28, the same percentage as DRAM, while foundry accounted for 44%. Lam is expanding the use of Akara, VECTOR, and Argos in DRAM and advanced foundries, extending its expertise in three-dimensional structures to other applications. On the 2026-07-29 call, management expected DRAM to lead equipment spending growth in 2027, followed by foundry and advanced logic, then NAND, but provided no numerical forecasts for that year.
Automated analysis for informational purposes only — not investment advice.
CSBG includes upgrades, spare parts, services, and Reliant, and generates revenue from the installed equipment base. Its revenue reached approximately $2.5 billion in quarter 4 of fiscal year 2026, ended 2026-06-28, with upgrades making a major contribution. On the 2026-07-29 call, management said the number of preventive maintenance tasks that can be automated using Dextro had doubled since the start of 2026, and that solutions proven effective in NAND were expanding into DRAM.
According to EL7 data, Lam held cash and short-term investments of $5.6 billion against debt of $4.1 billion at the end of quarter 4 of fiscal year 2026, ended 2026-06-28. Also according to EL7 data, free cash flow totaled $4.9 billion over the last 12 months through 2026-06-28, compared with share repurchases of $3.9 billion over the same period. Diluted shares declined to 1.26 billion in quarter 4 of fiscal year 2026 from 1.28 billion in quarter 4 of fiscal year 2025, a decrease of 1.2%, while management emphasized on the 2026-07-29 call that it also needed to support inventory and investment.
The earnings release is expected on 2026-10-21, and management's guidance covers quarter 1 of fiscal year 2027, ended September 2026. The company targets revenue of $8.1 billion, plus or minus $400 million, and non-GAAP earnings per share of $2.15, plus or minus $0.15. Guidance on the same basis includes a gross margin of 52% and an operating margin of 39.5%, each plus or minus one percentage point, testing Lam's ability to expand shipments while maintaining profitability.