Lam Research Corporation

lamresearch.com

What Do They Do?

Sells wafer-fabrication equipment and services, including deposition, etch and cleaning systems, to semiconductor memory, foundry and integrated device manufacturers.

How Do They Make Money?

Systems sales are the largest revenue source; customers are generally invoiced at shipment. Support includes spares and equipment sold at shipment or delivery and services billed as provided; invoices are generally due within 30 to 90 days.

revenue

Segment	Share	Revenue	How money arrives
Systems Revenue Sold outright	64% FY2023: 61%		Sold outright
Customer support-related revenue and other Mix	36% FY2023: 39%		Mix

Who Are Their Customers?

Semiconductor memory, foundry and integrated device manufacturers buy wafer-processing equipment and services; Lam's sales and engineering teams work closely with customers, and it maintains ongoing service relationships.

Customers above 10% of revenue, FY2026

of revenue from four customers (16%, 15%, 12%, 12%)

FY2024: 17% from one customer

Do Revenues Turn Into Profits?

Yes. It kept 31 cents of every revenue dollar as net income in FY2026 and turned 21 cents into free cash flow.

Operating income, FY2026

35% of revenue

▲ +39% vs FY2025 ($5.9B, 32%)

Net income, FY2026

31% of revenue

▲ +36% vs FY2025 ($5.4B, 29%)

Free cash flow, FY2026

21% of revenue

▼ −10% vs FY2025 ($5.4B, 29%)

How Are They Changing?

Since the FY2026 annual report

Latest quarter: Q1 FY2027, the three months to Sep 27, 2026

Revenue: ▲ +54%; vs $5.3B in Q1 FY2026
Net income: ▲ +76%; vs $1.6B in Q1 FY2026

Systems revenue share of revenue vs 66.6% in Q1 FY2026

Growing. Revenue grew 35% in 4 years, from $17.2B in FY2022 to $23.2B in FY2026, about 8% a year.

Revenue over time

Systems Revenue Customer support-related revenue and other

$25B$12.5B$0

FY2022 FY2023 FY2024 FY2025 FY2026

Who Do They Compete With?

Competes with Applied Materials, ASM International, Wonik IPS, Hitachi, Tokyo Electron, Screen Holding, and Semes

Comments