Lam Research sells and services the machines that build the layers of a chip. In its fiscal year to 28 June 2026, its revenue was $23.23 billion, up 26.0% on fiscal year 2025. Its operating margin, which is the share of revenue left after the costs of running the business, was 35.3% under US Generally Accepted Accounting Principles (GAAP).
This guide shows what Lam sells, who buys it and what it has announced since July 2026. The financial figures cover fiscal year 2026 and the June 2026 quarter, which is Lam's fiscal fourth quarter, reported on 29 July 2026. Lam announced on 30 September 2026 that it would host its next quarterly results call on 21 October 2026.
What does Lam Research do? Lam Research makes wafer fabrication equipment, the machines chipmakers use to deposit, etch and clean the layers of a chip. It also sells services, spares and upgrades for the machines it has installed.
In fiscal year 2026, systems, which are new machines, brought in 64.1% of revenue. Customer support-related revenue and other sources brought in 35.9%.
Of Lam's equipment and upgrade revenue in fiscal year 2026, 54% came from foundries, which make chips designed by other companies. That was 45% in fiscal year 2025.
China brought in 34% of revenue in fiscal year 2026 and 26% in the June 2026 quarter.
What Lam Research sells and who buys it
Lam describes itself as a global supplier of wafer fabrication equipment and services to the semiconductor industry. A wafer is the thin disc of silicon on which chips are built.
Its main product areas are deposition, etch and clean. Deposition adds thin layers of material to the wafer, while etch removes material to shape the circuit. Clean removes residue between steps.
Lam's customers are memory makers, foundries and integrated device manufacturers. A foundry makes chips for other companies. An integrated device manufacturer designs and makes its own chips.
Lam reports one segment, the manufacturing and servicing of wafer processing equipment. Its fiscal year ends in late June. Fiscal year 2026 ran to 28 June 2026.
Sales outside the United States accounted for approximately 93% of revenue in fiscal year 2026.
Where Lam Research's revenue comes from
Source: Lam Research Form 10-K for fiscal year 2026 (SEC); YX Insights
Chart 1 splits revenue into systems and customer support, with each column's total on top. Systems are new machines. Customer support-related revenue covers service, spares, upgrades and older-generation equipment from Lam's Reliant product line.
The labels are rounded, so a column's labels can differ from its total by 0.01.
In fiscal year 2026, systems revenue was $14.89 billion, up 29.5% on fiscal year 2025. Customer support-related revenue and other was $8.35 billion, up 20.2% on fiscal year 2025.
Systems were 64.1% of total revenue and customer support-related revenue and other 35.9%. Total revenue was $23.23 billion, up from $14.91 billion in fiscal year 2024.
The June 2026 quarter is the three months to 28 June 2026. Revenue was $6.72 billion, up 30.0% on the June 2025 quarter. Systems brought in $4.25 billion and customer support-related revenue $2.47 billion.
Which chipmakers buy from Lam Research
Source: Lam Research Form 10-K for fiscal year 2026 (SEC); YX Insights
Chart 2 shows the share of Lam's equipment and upgrade revenue by market. Lam's annual report gives only the percentages.
Lam does not define this base in so many words. It appears to be systems revenue plus the upgrades and older-generation equipment inside customer support-related revenue. By its name it leaves out customer service and spares.
Foundry was 40% in fiscal year 2024, 45% in fiscal year 2025 and 54% in fiscal year 2026. Memory was 42%, 42% and 39% in those years. Logic and integrated device manufacturers were 18%, 13% and 7%.
The categories can overlap, because a memory maker can also be an integrated device manufacturer. Lam's annual report does not say how it classifies customers that fit more than one.
Lam attributes the foundry rise to spending on older manufacturing processes as well as leading-edge equipment. It attributes the memory fall to the timing of customer investments.
The report gives no reason for the fall in logic and integrated device manufacturers from 18% in fiscal year 2024 to 7% in fiscal year 2026. A falling share can mean that spending fell, or that other markets grew faster. The report gives no dollar amounts to tell which.
Customers are concentrated. In fiscal year 2026, four customers accounted for approximately 16%, 15%, 12% and 12% of total revenue.
Where Lam Research's customers are
Source: Lam Research Form 10-K for fiscal year 2026 and June 2026 quarter release (SEC); YX Insights
Chart 3 compares two periods, so it shows the mix. In fiscal year 2026, China brought in 34% of revenue, Taiwan 22% and Korea 19%. In the June 2026 quarter, Taiwan brought in 27%, China 26% and Korea 20%.
The United States brought in 7% in fiscal year 2026 and 9% in the June 2026 quarter.
China, which includes global customers and domestic Chinese customers with factories in China, was 34% of revenue in fiscal year 2025 and 42% in fiscal year 2024.
Lam's annual report says US export licence requirements for sales to Chinese customers have limited the market for its products and adversely affected its revenue. It adds that further actions could expand the licensing requirements.
How profitable Lam Research is, under GAAP and non-GAAP
For fiscal year 2026, GAAP gross margin was 50.5% and GAAP operating margin 35.3%, up from 32.0% in fiscal year 2025. GAAP net income was $7.27 billion.
GAAP earnings per share, diluted, was $5.76. Diluted counts the extra shares that could be created by share awards and options.
In the June 2026 quarter, the GAAP operating margin was 37.4% and the non-GAAP margin 38.4%. A non-GAAP figure leaves out certain items. Lam's exclusions are amortisation of acquired intangible assets, deferred compensation effects, note discount amortisation, workforce optimisation charges and the tax effect of those items.
Lam's chief executive, Tim Archer, said Lam "delivered record revenue, operating margin and earnings per share in the June quarter". The release does not say whether the records are on a GAAP or non-GAAP basis, or since when.
In fiscal year 2026 Lam spent $3.85 billion on buying back its own shares and $1.27 billion on dividends. The buyback line includes excise tax payments and net share settlement of employee awards.
Latest developments, with dates
On 29 July 2026 Lam reported the June 2026 quarter. It forecast revenue of $8.10 billion, plus or minus $400 million, for the September 2026 quarter.
It forecast a GAAP operating margin of 39.5%, plus or minus 1 percentage point. These are Lam's own forecasts.
On 7 August 2026 Lam filed its annual report for fiscal year 2026.
On 24 August 2026 two directors, Sohail U. Ahmed and Michael R. Cannon, notified Lam that they will retire from the board on 2 November 2026. The board will then shrink from 12 to 10 directors.
On 30 September 2026 Lam announced that it would host its quarterly financial conference call and webcast on Wednesday 21 October 2026, beginning at 2:00 p.m. Pacific Time.
The chart below includes SPY (the exchange-traded fund, or ETF, that tracks the Standard & Poor's 500, or S&P 500, an index of large US companies).
Source: YX Insights price data
Chart 4 sets Lam, Applied Materials and SPY to 100 on 14 October 2021.
Applied Materials is another maker of chip equipment. By 14 October 2026 Lam stood at 505, Applied Materials at 338 and SPY at 174. These are closing prices, adjusted for splits, with dividends not counted.
On 14 October 2026 Lam closed 33.8% below its highest close of the five years, which was on 30 June 2026. From that day to 29 July 2026 its close fell 41.8%, from $433.33 to $252.35.
Applied Materials fell 39.6% over the same dates, from $723.00 to $436.45. SPY fell 2.3%. The cause of the fall is not established from a primary source, so this guide does not give one.
Across the eight results Lam reported from October 2024 to July 2026, the median move in its share price by the next close was 4.8%, up or down. The largest fall was 4.3% after the 30 July 2025 results. The largest rise was 18.0% after the 29 July 2026 results.
Applied Materials rose 15.0% in the same session, the one after Lam's 29 July 2026 results.
Our guide to the semiconductor value chain shows where equipment makers sit between chip designers and chip factories.
Lam Research sells the machines and services chipmakers use to build chips. In fiscal year 2026, 54% of its equipment and upgrade revenue came from foundries.
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Common questions about Lam Research
How does Lam Research make money?
Lam Research makes money by selling systems, which are new wafer fabrication machines. It also sells customer support, which covers service, spares, upgrades and older-generation equipment. In fiscal year 2026, systems brought in 64.1% of its $23.23 billion of revenue and customer support-related revenue and other sources 35.9%.
Does Lam Research depend on a few customers?
Yes, to a degree. In fiscal year 2026, four customers accounted for approximately 16%, 15%, 12% and 12% of Lam's total revenue. In fiscal year 2025, two customers accounted for approximately 17% and 15%.
How much of Lam Research's revenue comes from China?
China brought in 34% of Lam's revenue in fiscal year 2026, which ended on 28 June 2026. In the three months to 28 June 2026 it brought in 26%. Taiwan was the largest region in that quarter, at 27%.
When does Lam Research report its next results?
Lam announced on 30 September 2026 that it would host its quarterly financial conference call and webcast on Wednesday 21 October 2026, beginning at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Its latest results when this guide was written covered the June 2026 quarter, reported on 29 July 2026.
Is Lam Research a chip maker?
No. Lam does not make chips. It makes the equipment that memory makers, foundries and integrated device manufacturers use to build them. It also services that equipment. Our guide to the semiconductor value chain shows where each type of company sits.
DISCLAIMER: This article is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.