How does Lam Research (LRCX) make money?

Lam Research (LRCX) generates revenue primarily from System, which accounted for 64.4% of total revenue in TTM through Q2 2026. The company reported $23.2B in revenue and converted 31.3% of it into net profit, equivalent to roughly $7.27B 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 50.5% in TTM through Q2 2026, equivalent to $11.7B in gross profit on $23.2B 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 35.3% in TTM through Q2 2026, equivalent to $8.2B 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 31.3% in TTM through Q2 2026, equivalent to $7.27B 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 $7.27B in net income for TTM through Q2 2026, with a net profit margin of 31.3%. 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 $2.38B in research and development during TTM through Q2 2026, roughly 10.2% 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 $966M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 4.2% 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 $4.89B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 21.1%. 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 12.1% in TTM through Q2 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 64.4% of total revenue in TTM through Q2 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.

How Lam Research Makes Money: 2026 Visual Revenue Map

Lam Research (LRCX) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 28, 2026 (reported July 29, 2026).

Lam Research discloses geographic revenue only in annual filings. to view the full breakdown.

Lam Research (LRCX) Revenue by Product Segment — TTM through Q2 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), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
System	$15B	64.4%
Customer Support and Other	$8.27B	35.6%
Total	$23.2B	100%

System$15B
Customer Support and Other$8.27B
Total$23.2B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Lam Research (LRCX) reports revenue across 2 reportable product segments; the largest segment was System at 64.4%, followed by Customer Support and Other (35.6%).

Frequently asked questions

Data & methodology

Lam Research (LRCX) Key Financials

Charts, filings, and peer comparison for every metric

Trains Company Knowledge

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

LRCX Overview

Counters

Income Statement

Cash Flow

Capital Return

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation