On this page of StockholderLetter.com we present the latest annual shareholder letter from LAM RESEARCH CORP — ticker symbol LRCX. Reading current and past LRCX letters to shareholders can bring important insights into the investment thesis.

INCREASING VELOCITY
Accelerating what comes next Progress waits for no one. Chipmakers are driving innovations at unprecedented speeds, fueling a demand for partners who can stay ahead. But even at a time where urgency is mission-critical, speed alone isn t enough. True advancement requires more the ability to rapidly move ahead with a clear sense of where to go next. Speed plus direction. That s why Lam Research is increasing velocity to help propel our industry forward with purpose. Through collaborative innovation and a network of labs around the globe, we seek to enable customers to unlock breakthroughs faster. Our leading technologies deliver game-changing performance to create the most advanced chips in the world. And we re making it all happen exactly where we believe it is most effective: closer to our customers, where our resilient operations work to eliminate distance and delay and our advanced services help our customers to maximize efficiency to enable the fab of the future. By accelerating the pace of innovation with a relentless focus on what comes next, we are working to get there faster because that s what today s chipmakers demand. At Lam Research, we re helping to build the AI era, atom by atom.
LETTER TO OUR STOCKHOLDERS Dear Lam Stockholders, Lam delivered the strongest financial results in our history in fiscal year 2026. We owe our success to the dedicated efforts of our employees around the world as well as close partnerships with our customers, suppliers, and industry partners. Revenue in fiscal year 2026 grew 26% year over year to a record $23.2 billion and diluted earnings per share increased 39% to a new fiscal year high of $5.76. We expanded gross margin to greater than 50% and achieved a record 35.3% operating margin. These results underscore the benefits we are seeing from our disciplined execution and the increased scale of our global operations. This performance also enabled us to invest a record $2.4 billion in research and development while returning $4.7 billion to stockholders through share repurchases and dividends. Growing global investment in artificial intelligence (AI) is driving strong demand for higher performance semiconductor devices and manufacturing equipment. AI requires unprecedented levels of computational power, memory bandwidth, and storage capacity. To enable these advances, semiconductor device architectures are becoming increasingly threedimensional, with higher aspect ratios and new materials. These technology shifts align closely with Lam s strengths in deposition, etch, and clean, expanding our opportunity with each new device generation. Together with the strength of our product portfolio, we believe these trends position us well to outperform overall wafer fabrication equipment spending growth over the long term. The demand environment for Lam s equipment shifted decisively higher through the fiscal year as our customers reported record revenue and profitability and announced multi-year investment timelines for new fabs. In response, we are expanding our manufacturing capacity and strengthening our supply chain to support our customers when they need us. Demand was strong across all of our device market segments, and we are seeing additional opportunities being created for Lam as foundry-logic and DRAM devices move to threedimensional architectures to deliver improved performance. We have more than a decade of technology leadership in 3D NAND, and we are benefiting from that experience as vertical scaling comes to foundry-logic and DRAM. As Lam s business has grown, so has our installed base. Importantly, we continue to generate value long after each system ships. Our installed base now exceeds 100,000 chambers, with each chamber generating spares, service, and upgrade demand that has been more resilient across industry cycles. Revenue in our Customer Support Business Group (CSBG) grew 20% year over year, more than twice the rate of installed base chamber growth. We are also innovating to make our installed base tools more productive for our customers. Lam s Equipment Intelligence solutions analyze data from hundreds of sensors on our tools, and our Dextro cobots use that data to perform automated preventive maintenance safely, precisely, and efficiently, work that a technician once did manually. This enables our customers tools to spend more time processing wafers.
Supporting our customers at the pace of AI adoption has required us to increase both our manufacturing and innovation velocity. Over the past four years, we have nearly doubled our manufacturing capacity. In fiscal year 2026, we added approximately 3,400 employees across all functions of the company. We have expanded our global manufacturing footprint, extended our supply chain, and automated our warehouses. In August 2026, we broke ground in Oregon on what is intended to become our most advanced R&D lab, the first milestone of a planned investment of more than $3 billion in our global lab network over the next five years. This investment in our global labs is aimed at building competitive advantage for Lam in the devices and equipment the industry will need five to ten years from now. Locating labs close to our customers is intended to increase innovation velocity by allowing a wafer to leave a customer s fab, be processed on a Lam tool still in the early stages of development, and return the wafer for evaluation and further processing on the same day. This is velocity made possible by proximity. In the global communities in which we operate, how we do our work matters as much as what we build. We met or exceeded nearly all the multi-year sustainability goals we set for calendar year 2025, and we have established a new set of 2030+ goals that reflect both the opportunity ahead and the responsibility that comes with industry leadership. These and other efforts are described in our 2025 Global Impact Report. As we enter fiscal year 2027, we are equipped with a product portfolio built for the technology inflections ahead and see an industry investing at record levels. With AI evolving at an unprecedented pace, there has never been a more exciting time to be part of this industry. We are confident Lam will continue to deliver the innovations that enable the next generation of semiconductor scaling, positioning Lam to create lasting value for our customers, employees, stockholders, and communities. Sincerely, Timothy M. Archer President and Chief Executive Officer September 24, 2026 Abhijit Y. Talwalkar Chair of the Board
 • shareholder letter icon 9/24/2026 Letter Continued (Full PDF)
 • stockholder letter icon 9/27/2023 LRCX Stockholder Letter
 • stockholder letter icon 9/25/2024 LRCX Stockholder Letter
 • stockholder letter icon 9/24/2025 LRCX Stockholder Letter
 • stockholder letter icon More "Industrial Machinery & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon LRCX Benford's Law Stock Score = 75


LRCX Shareholder/Stockholder Letter Transcript:


INCREASING VELOCITY

Accelerating what comes next
Progress waits for no one. Chipmakers are driving innovations at
unprecedented speeds, fueling a demand for partners who can stay
ahead. But even at a time where urgency is mission-critical, speed alone
isn   t enough. True advancement requires more     the ability to rapidly
move ahead with a clear sense of where to go next. Speed plus direction.
That   s why Lam Research is increasing velocity to help propel our industry
forward with purpose.
Through collaborative innovation and a network of labs around the globe,
we seek to enable customers to unlock breakthroughs faster. Our leading
technologies deliver game-changing performance to create the most
advanced chips in the world. And we   re making it all happen exactly where
we believe it is most effective: closer to our customers, where our resilient
operations work to eliminate distance and delay and our advanced services
help our customers to maximize efficiency to enable the fab of the future.
By accelerating the pace of innovation with a relentless focus on what
comes next, we are working to get there faster     because that   s what today   s
chipmakers demand. At Lam Research, we   re helping to build the AI era, atom
by atom.

LETTER TO OUR STOCKHOLDERS
Dear Lam Stockholders,
Lam delivered the strongest financial results in our history in fiscal year 2026. We owe our success
to the dedicated efforts of our employees around the world as well as close partnerships with our
customers, suppliers, and industry partners. Revenue in fiscal year 2026 grew 26% year over year to
a record $23.2 billion and diluted earnings per share increased 39% to a new fiscal year high of $5.76.
We expanded gross margin to greater than 50% and achieved a record 35.3% operating margin. These
results underscore the benefits we are seeing from our disciplined execution and the increased scale
of our global operations. This performance also enabled us to invest a record $2.4 billion in research
and development while returning $4.7 billion to stockholders through share repurchases
and dividends.
Growing global investment in artificial intelligence (AI) is driving strong demand for higher
performance semiconductor devices and manufacturing equipment. AI requires unprecedented levels
of computational power, memory bandwidth, and storage capacity.
To enable these advances, semiconductor device architectures are becoming increasingly threedimensional, with higher aspect ratios and new materials. These technology shifts align closely with
Lam   s strengths in deposition, etch, and clean, expanding our opportunity with each new device
generation. Together with the strength of our product
portfolio, we believe these trends position us well to outperform
overall wafer fabrication equipment spending growth over the
long term.
The demand environment for Lam   s equipment shifted decisively
higher through the fiscal year as our customers reported record
revenue and profitability and announced multi-year investment
timelines for new fabs. In response, we are expanding our
manufacturing capacity and strengthening our supply chain
to support our customers when they need us.
Demand was strong across all of our device market segments,
and we are seeing additional opportunities being created
for Lam as foundry-logic and DRAM devices move to threedimensional architectures to deliver improved performance.
We have more than a decade of technology leadership in 3D NAND, and we are benefiting from that
experience as vertical scaling comes to foundry-logic and DRAM.
As Lam   s business has grown, so has our installed base. Importantly, we continue to generate value
long after each system ships. Our installed base now exceeds 100,000 chambers, with each chamber
generating spares, service, and upgrade demand that has been more resilient across industry
cycles. Revenue in our Customer Support Business Group (CSBG) grew 20% year over year, more
than twice the rate of installed base chamber growth. We are also innovating to make our installed
base tools more productive for our customers. Lam   s Equipment Intelligence   solutions analyze data
from hundreds of sensors on our tools, and our Dextro    cobots use that data to perform automated
preventive maintenance safely, precisely, and efficiently, work that a technician once did manually.
This enables our customers    tools to spend more time processing wafers.

Supporting our customers at the pace of AI adoption has required us to increase both our
manufacturing and innovation velocity. Over the past four years, we have nearly doubled our
manufacturing capacity. In fiscal year 2026, we added approximately 3,400 employees across all
functions of the company. We have expanded our global manufacturing footprint, extended our
supply chain, and automated our warehouses. In August 2026, we broke ground in Oregon on what is
intended to become our most advanced R&D lab, the first milestone of a planned investment of more
than $3 billion in our global lab network over the next five years. This investment in our global labs is
aimed at building competitive advantage for Lam in the devices and equipment the industry will need
five to ten years from now. Locating labs close to our customers is intended to increase innovation
velocity by allowing a wafer to leave a customer   s fab, be processed on a Lam tool still in the early
stages of development, and return the wafer for evaluation and further processing on the same day.
This is velocity made possible by proximity.
In the global communities in which we operate, how we do our work matters as much as what we
build. We met or exceeded nearly all the multi-year sustainability goals we set for calendar year 2025,
and we have established a new set of 2030+ goals that reflect both the opportunity ahead and the
responsibility that comes with industry leadership. These and other efforts are described in our 2025
Global Impact Report.
As we enter fiscal year 2027, we are equipped with a product portfolio built for the technology
inflections ahead and see an industry investing at record levels. With AI evolving at an unprecedented
pace, there has never been a more exciting time to be part of this industry. We are confident Lam
will continue to deliver the innovations that enable the next generation of semiconductor scaling,
positioning Lam to create lasting value for our customers, employees, stockholders, and communities.
Sincerely,
Timothy M. Archer
President
and Chief Executive Officer
September 24, 2026
Abhijit Y. Talwalkar
Chair of the Board


shareholder letter icon 9/24/2026 Letter Continued (Full PDF)
 

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