How does Lam Research (LRCX) make money?

Lam Research (LRCX) primarily makes money through System, which accounts for 64.9% of total revenue. For TTM through Q1 2026, Lam Research generated $21.68B in total revenue with a net profit margin of 30.9%.

What is Lam Research (LRCX) gross profit margin?

Lam Research (LRCX) reported a gross profit margin of 50% for TTM through Q1 2026, equivalent to $10.84B in gross profit. This means Lam Research retains 50% of each revenue unit after direct costs of production.

What is Lam Research (LRCX) operating profit margin?

Lam Research (LRCX) reported an operating profit margin of 34.3% for TTM through Q1 2026, equivalent to $7.43B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Lam Research (LRCX) net profit margin?

Lam Research (LRCX) reported a net profit margin of 30.9% for TTM through Q1 2026, equivalent to $6.71B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Lam Research (LRCX) invest in R&D?

Lam Research (LRCX) invested $2.31B in research and development in TTM through Q1 2026 (10.7% of total revenue). R&D spending reflects investment in future products, services, and technologies.

How much does Lam Research (LRCX) spend on capital expenditures?

Lam Research (LRCX) spent $503.80M on capital expenditures in TTM through Q1 2026 (2.3% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Lam Research (LRCX) free cash flow?

Lam Research (LRCX) generated $6.45B in free cash flow for TTM through Q1 2026 (29.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Lam Research (LRCX) effective tax rate?

Lam Research (LRCX) had an effective tax rate of 10.4% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

How Lam Research (LRCX) Makes Money: A Visual Guide

Lam Research (LRCX) generated $21.68B in revenue, earning $6.71B in net profit (30.9% margin). Its largest revenue source is System (64.9% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Lam Research (LRCX) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 29, 2026 (reported April 23, 2026).

Frequently asked questions

How does Lam Research (LRCX) make money?: Lam Research (LRCX) primarily makes money through System, which accounts for 64.9% of total revenue. For TTM through Q1 2026, Lam Research generated $21.68B in total revenue with a net profit margin of 30.9%.
What is Lam Research (LRCX) gross profit margin?: Lam Research (LRCX) reported a gross profit margin of 50% for TTM through Q1 2026, equivalent to $10.84B in gross profit. This means Lam Research retains 50% of each revenue unit after direct costs of production.
What is Lam Research (LRCX) operating profit margin?: Lam Research (LRCX) reported an operating profit margin of 34.3% for TTM through Q1 2026, equivalent to $7.43B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Lam Research (LRCX) net profit margin?: Lam Research (LRCX) reported a net profit margin of 30.9% for TTM through Q1 2026, equivalent to $6.71B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Lam Research (LRCX) invest in R&D?: Lam Research (LRCX) invested $2.31B in research and development in TTM through Q1 2026 (10.7% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Lam Research (LRCX) spend on capital expenditures?: Lam Research (LRCX) spent $503.80M on capital expenditures in TTM through Q1 2026 (2.3% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Lam Research (LRCX) free cash flow?: Lam Research (LRCX) generated $6.45B in free cash flow for TTM through Q1 2026 (29.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Lam Research (LRCX) effective tax rate?: Lam Research (LRCX) had an effective tax rate of 10.4% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q1 2026.