10-KPeriod: FY2026

LAM RESEARCH CORP Annual Report, Year Ended Jun 28, 2026

Filed August 7, 2026For Securities:LRCX

Summary

Lam Research Corporation reported a strong fiscal year 2026, with revenue increasing by 26.0% to $23.23 billion, driven by robust customer demand, particularly from the foundry segment. This growth was accompanied by an improved gross margin of 50.5%, up from 48.7% in the prior year, attributed to a favorable customer mix, though partially offset by tariff-related costs. The company continued its commitment to innovation with significant investments in research and development, which increased by 13.3% year-over-year, focusing on advanced semiconductor manufacturing processes essential for next-generation devices. Lam Research's financial health remains solid, with substantial cash reserves and strong operating cash flows, enabling continued returns to shareholders through dividends and significant share repurchases, including $3.85 billion in treasury stock purchases during fiscal year 2026. The company remains optimistic about long-term growth, driven by secular demand for semiconductors and technology inflections like 3D device scaling and AI advancements, despite acknowledging short-term volatility from trade restrictions and geopolitical factors.

Key Highlights

  • 1Revenue grew by 26.0% to $23.23 billion in fiscal year 2026, fueled by strong demand in the foundry market segment.
  • 2Gross margin improved to 50.5% from 48.7% in the prior year, driven by customer mix, with an offset from tariff-related costs.
  • 3Research and development expenses increased by 13.3% to $2.38 billion, underscoring the company's focus on innovation.
  • 4Net income saw a substantial increase of 35.6% to $7.27 billion, resulting in diluted earnings per share of $5.76.
  • 5The company returned significant capital to shareholders through $3.85 billion in stock repurchases and $1.27 billion in dividends paid during fiscal year 2026.
  • 6China remains a significant market, accounting for 34% of total revenue, despite ongoing geopolitical and trade-related risks.
  • 7Lam Research's strong liquidity position is supported by $5.60 billion in cash and cash equivalents as of June 28, 2026.

Frequently Asked Questions

Lam Research's revenue growth of 26.0% in fiscal year 2026 was primarily driven by strong customer demand for semiconductor equipment systems, particularly from customers within the foundry market segment, as well as increased revenue from customer support-related services, spares, and upgrades.

Lam Research's gross margin increased to 50.5% of revenue in fiscal year 2026, up from 48.7% in fiscal year 2025. This improvement was largely due to a favorable customer mix. However, this benefit was partially offset by increased spending related to aluminum and steel tariffs.

Lam Research anticipates continued growth in wafer fabrication equipment investments, driven by the AI market. Over the longer term, secular demand for semiconductors and technology inflections like 3D device scaling and advanced packaging are expected to drive sustainable growth. However, the company acknowledges short-term volatility due to trade restrictions and other geopolitical risks that could negatively impact revenue and operating margins.

Lam Research continues to return capital to shareholders through a strategy that includes paying quarterly dividends and repurchasing its common stock. In fiscal year 2026, the company repurchased approximately $3.85 billion of its common stock and paid $1.27 billion in dividends.