Stock Analysis on Net
Stock Analysis on Net

Lam Research Corp. (NASDAQ:LRCX)

Common-Size Income Statement 

Lam Research Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Jun 28, 2026 Jun 29, 2025 Jun 30, 2024 Jun 25, 2023 Jun 26, 2022 Jun 27, 2021
Revenue 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -49.53 -51.29 -52.39 -54.93 -54.31 -53.47
Restructuring charges, net, cost of goods sold 0.00 0.00 -0.29 -0.45 0.00 0.00
Cost of goods sold -49.53% -51.29% -52.68% -55.38% -54.31% -53.47%
Gross margin 50.47% 48.71% 47.32% 44.62% 45.69% 46.53%
Research and development -10.23 -11.37 -12.76 -9.91 -9.31 -10.21
Selling, general, and administrative -4.95 -5.33 -5.83 -4.78 -5.14 -5.67
Restructuring charges, net, operating expenses 0.00 0.00 -0.12 -0.24 0.00 0.00
Operating expenses -15.17% -16.70% -18.71% -14.93% -14.45% -15.88%
Operating income 35.29% 32.01% 28.61% 29.69% 31.24% 30.64%
Interest income 0.84 1.25 1.69 0.80 0.09 0.13
Interest expense -0.68 -0.97 -1.24 -1.07 -1.07 -1.43
Gains (losses) on deferred compensation plan related assets, net 0.32 0.21 0.39 0.12 -0.22 0.42
Foreign exchange gains (losses), net -0.13 -0.14 -0.03 -0.04 0.00 -0.05
Other, net -0.09 -0.05 -0.16 -0.18 0.11 0.16
Other income (expense), net 0.27% 0.31% 0.65% -0.38% -1.10% -0.76%
Income before income taxes 35.56% 32.32% 29.25% 29.32% 30.15% 29.88%
Income tax expense -4.29 -3.25 -3.57 -3.43 -3.41 -3.16
Net income 31.27% 29.06% 25.68% 25.88% 26.73% 26.72%

Based on: 10-K (reporting date: 2026-06-28), 10-K (reporting date: 2025-06-29), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27).

The financial performance over the analyzed period exhibits a trajectory of initial margin compression followed by a significant expansion in profitability. While profitability ratios experienced a slight decline between 2021 and 2024, a strong recovery is evident in 2025 and 2026, driven primarily by improved gross margins and optimized operating expenses.

Gross Profitability and Cost Management
A U-shaped trend is observed in gross margins, which declined from 46.53% in 2021 to a low of 44.62% in 2023. However, a consistent recovery followed, with margins ascending to 50.47% by 2026. This improvement is directly correlated with a reduction in the cost of goods sold as a percentage of revenue, which fell from a peak of 55.38% in 2023 to 49.53% in 2026, indicating enhanced production efficiency or a more favorable product mix.
Operating Expense Analysis
Operating expenses showed volatility, peaking at 18.71% of revenue in 2024 before retreating to 15.17% by 2026. Research and development expenditures were the primary driver of this volatility, spiking to 12.76% in 2024 from a low of 9.31% in 2022. Selling, general, and administrative expenses remained relatively stable, maintaining a gradual downward trend from 5.67% in 2021 to 4.95% in 2026. Minimal restructuring charges were noted in 2023 and 2024, though they had a negligible impact on overall operating margins.
Operating and Net Income Trends
Operating income mirrored the gross margin trend, dipping to a low of 28.61% in 2024 before expanding rapidly to 35.29% in 2026. Net income followed a similar pattern, reaching a trough of 25.68% in 2024 and climbing to 31.27% by 2026. This expansion indicates that the company successfully leveraged its revenue growth to scale profitability in the latter part of the period.
Non-Operating Items and Taxation
Interest income peaked in 2024 at 1.69% of revenue, while interest expenses showed a consistent decline from 1.43% in 2021 to 0.68% in 2026, suggesting a strengthening balance sheet or reduced debt burden. Income tax expense remained relatively stable, fluctuating between 3.16% and 4.29% of revenue, with a slight increase observed in the final year of the period.

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