How Lam Research (LRCX) Makes Money: A Visual Guide
Lam Research (LRCX) generated $20.56B in revenue (TTM through Q4 2025), earning $6.21B in net profit (30.2% margin). Its largest revenue source is System (65.1% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.
Lam Research (LRCX) Income Statement Flow
Frequently asked questions
How does Lam Research (LRCX) make money?
- Lam Research (LRCX) primarily makes money through System, which accounts for 65.1% of total revenue. For TTM through Q4 2025, Lam Research generated $20.56B in total revenue with a net profit margin of 30.2%.
What is Lam Research (LRCX) gross profit margin?
- Lam Research (LRCX) reported a gross profit margin of 49.8% for TTM through Q4 2025, equivalent to $10.24B in gross profit. This means Lam Research retains 49.8% 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 33.8% for TTM through Q4 2025, equivalent to $6.94B 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 30.2% for TTM through Q4 2025, equivalent to $6.21B 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 $2.26B in research and development in TTM through Q4 2025 (11.0% 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 $830.49M on capital expenditures in TTM through Q4 2025 (4.0% 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 $6.66B in free cash flow for TTM through Q4 2025 (32.4% 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 11.4% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.
About this data
- 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 sum the last four quarters. 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 Q4 2025.