How does Lam Research (LRCX) make money?

Lam Research (LRCX) generates revenue primarily from System, which accounted for 64.9% of total revenue in TTM through Q1 2026. The company reported $21.68B in revenue and converted 30.9% of it into net profit, equivalent to roughly $6.71B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Lam Research (LRCX)?

Lam Research (LRCX) reported a gross profit margin of 50% in TTM through Q1 2026, equivalent to $10.84B in gross profit on $21.68B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Lam Research (LRCX)?

Lam Research (LRCX) reported an operating profit margin of 34.3% in TTM through Q1 2026, equivalent to $7.43B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Lam Research (LRCX)?

Lam Research (LRCX) reported a net profit margin of 30.9% in TTM through Q1 2026, equivalent to $6.71B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Lam Research (LRCX) profitable?

Yes. Lam Research (LRCX) reported $6.71B in net income for TTM through Q1 2026, with a net profit margin of 30.9%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Lam Research (LRCX) invest in research and development?

Lam Research (LRCX) invested $2.31B in research and development during TTM through Q1 2026, roughly 10.7% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

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

Lam Research (LRCX) spent $503.80M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 2.3% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Lam Research (LRCX) generate?

Lam Research (LRCX) generated $6.45B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 29.8%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Lam Research (LRCX)?

Lam Research (LRCX) had an effective tax rate of 10.4% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Lam Research (LRCX)?

Lam Research (LRCX) reports revenue across 2 reportable product segments, led by System at 64.9% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Lam Research (LRCX) generate most of its revenue?

CHINA is the largest geographic market for Lam Research (LRCX), accounting for 38.7% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Lam Research Makes Money: 2026 Visual Revenue Map

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).

Lam Research (LRCX) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Lam Research (LRCX) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
System	$14.07B	64.9%
Customer Support and Other	$7.61B	35.1%
Total	$21.68B	100%

System$14.07B
Customer Support and Other$7.61B
Total$21.68B

Lam Research (LRCX) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Lam Research (LRCX), TTM through Q1 2026
Region	Revenue (USD)	% of total
CHINA	$7.97B	38.7%
TAIWAN, PROVINCE OF CHINA	$4.38B	21.2%
KOREA, REPUBLIC OF	$4.31B	20.9%
JAPAN	$2.29B	11.1%
UNITED STATES	$1.20B	5.8%
Europe	$472.36M	2.3%
Total	$20.63B	100%

CHINA
TAIWAN, PROVINCE OF CHINA
KOREA, REPUBLIC OF
JAPAN
UNITED STATES
Europe
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Lam Research (LRCX) reports revenue across 2 operating segments; the largest segment was System at 64.9%, followed by Customer Support and Other (35.1%). Separately, by end-market geography, CHINA accounted for 38.7% of revenue, followed by TAIWAN, PROVINCE OF CHINA (21.2%) and KOREA, REPUBLIC OF (20.9%).

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