Lam Research (LRCX) FY2026: Revenue +26% to $23.2B; FCF -10%
Lam Research finished fiscal 2026 with cycle-high margins and the weakest cash conversion in years — and both facts come from the same source. Revenue rose 26.0% to $23.23 billion and gross margin reached 50.5% on a GAAP basis, the highest annual level in Lam's recent history; management flagged the June quarter's 52.0% non-GAAP gross margin as its best in 20 years. But free cash flow fell 9.7% to $4.89 billion, because two working capital lines reversed at once: accounts receivable ballooned by $1.96 billion as shipments accelerated into the final quarters, and deferred profit swung from a $1.15 billion inflow to a $286 million drain. For a wafer fabrication equipment (WFE) supplier riding an AI-driven upcycle, the question is not whether the boom is real but whether the company is being paid for it on schedule.
Unless otherwise noted, all figures are U.S. GAAP, taken from Lam Research's Annual Report on Form 10-K for the fiscal year ended June 28, 2026. Quarterly and forward-looking figures are from the company's July 29, 2026 results release and the accompanying earnings call.
1. Consolidated Balance Sheet
1-1. Major asset movements
| Item | FY2025 ($M) | FY2026 ($M) | Change % |
|---|---|---|---|
| Cash and cash equivalents | 6,390.7 | 5,579.2 | -12.7 |
| Accounts receivable, net | 3,378.1 | 5,339.7 | +58.1 |
| Inventories | 4,308.0 | 4,276.1 | -0.7 |
| Property, plant and equipment, net | 2,405.5 | 2,936.0 | +22.1 |
| Goodwill | 1,600.0 | 1,630.0 | +1.9 |
| Total assets | 21,345.3 | 23,529.7 | +10.2 |
Source: FY2026 Form 10-K, consolidated balance sheets.
