Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Lam Research Corp., consolidated income statement

US$ in thousands

12 months ended:	Jun 28, 2026	Jun 29, 2025	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021
Revenue	23,232,690)	18,435,591)	14,905,386)	17,428,516)	17,227,039)	14,626,150)
Cost of goods sold	(11,507,382)	(9,456,532)	(7,809,220)	(9,573,425)	(9,355,232)	(7,820,844)
Restructuring charges, net, cost of goods sold	—)	—)	(43,375)	(78,166)	—)	—)
Cost of goods sold	(11,507,382)	(9,456,532)	(7,852,595)	(9,651,591)	(9,355,232)	(7,820,844)
Gross margin	11,725,308)	8,979,059)	7,052,791)	7,776,925)	7,871,807)	6,805,306)
Research and development	(2,375,873)	(2,096,387)	(1,902,444)	(1,727,162)	(1,604,248)	(1,493,408)
Selling, general, and administrative	(1,149,640)	(981,704)	(868,247)	(832,753)	(885,737)	(829,875)
Restructuring charges, net, operating expenses	—)	—)	(18,187)	(42,150)	—)	—)
Operating expenses	(3,525,513)	(3,078,091)	(2,788,878)	(2,602,065)	(2,489,985)	(2,323,283)
Operating income	8,199,795)	5,900,968)	4,263,913)	5,174,860)	5,381,822)	4,482,023)
Interest income	196,189)	231,331)	251,938)	138,984)	15,209)	19,687)
Interest expense	(156,884)	(178,203)	(185,236)	(186,462)	(184,759)	(208,597)
Gains (losses) on deferred compensation plan related assets, net	73,776)	39,121)	58,767)	20,186)	(38,053)	61,838)
Foreign exchange gains (losses), net	(30,082)	(26,412)	(4,837)	(7,078)	(723)	(6,962)
Other, net	(20,321)	(8,676)	(24,323)	(31,280)	19,618)	22,815)
Other income (expense), net	62,678)	57,161)	96,309)	(65,650)	(188,708)	(111,219)
Income before income taxes	8,262,473)	5,958,129)	4,360,222)	5,109,210)	5,193,114)	4,370,804)
Income tax expense	(997,077)	(599,912)	(532,450)	(598,279)	(587,828)	(462,346)
Net income	7,265,396)	5,358,217)	3,827,772)	4,510,931)	4,605,286)	3,908,458)

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 reflects a cyclical revenue pattern characterized by a period of growth, a contraction in 2024, and a subsequent acceleration toward 2026. Revenue grew from 14.6 billion in 2021 to a peak of 17.4 billion in 2023, before declining to 14.9 billion in 2024. However, a significant recovery is observed in the subsequent years, with revenue projected to reach 23.2 billion by 2026.

Gross Profitability and Margin Trends: Gross margin exhibits a positive trajectory in the latter half of the period. While the gross margin value fluctuated between 2021 and 2024, there is a marked expansion beginning in 2025, reaching 8.9 billion, and further increasing to 11.7 billion in 2026. This suggests an improvement in production efficiency or a shift toward higher-margin product mixes as revenue scales.
Operating Expense Analysis: Operating expenses have increased steadily from 2.3 billion in 2021 to 3.5 billion in 2026. This growth is primarily driven by a consistent upward trend in research and development spending, which rose from 1.49 billion to 2.37 billion over the period. Selling, general, and administrative expenses remained relatively controlled, showing a more gradual increase. The consistent investment in research and development indicates a strategic focus on long-term innovation despite short-term revenue volatility.
Operating Income and Leverage: Operating income mirrored the revenue cycle, peaking in 2022 at 5.38 billion, dipping to 4.26 billion in 2024, and then expanding rapidly to 8.19 billion by 2026. The disproportionate increase in operating income relative to the increase in operating expenses between 2024 and 2026 demonstrates strong operating leverage, where incremental revenue is contributing significantly to the bottom line.
Non-Operating Items and Net Income: Interest income showed a notable increase from 19.6 million in 2021 to a peak of 251.9 million in 2024, while interest expenses trended slightly downward from 208.5 million to 156.8 million. These factors, combined with fluctuating gains on deferred compensation assets, contributed to the overall net income trend. Net income followed the operational trajectory, recovering from a low of 3.8 billion in 2024 to a projected 7.2 billion in 2026, representing a substantial increase in overall profitability.

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Lam Research Corp. (NASDAQ:LRCX)

Income Statement