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LRCXLam Research

Technology · Industrial Machinery · Nasdaq

Incorporated in 1980, Lam Research Corporation (“Lam Research,” “Lam,” “we,” “our,” “us,” or the “Company”) is a Delaware corporation, headquartered in Fremont, California. 10-K, Item 1

Headquarters
Fremont, CA
CEO
Timothy Archer
Next results
around Jan 27, 2027
Compare with peers → Embed

10-K 0000707549-26-000037 (2026-08-07) vs 10-K 0000707549-25-000075 (2025-08-11)

SectionCompared textWords nowChanged
Risk FactorsItem 1A13,822 22.8%
MD&AItem 74,586 32.7%
Legal ProceedingsItem 3, via Note 17 – Commitments and Contingencies1,130 2.0%
Accounting PoliciesItem 8, Note 2 – Summary of Significant Accounting Policies3,119 2.2%

The redline: what was cut and what was added

In each section, the paragraph that changed most, marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

Risk Factors 477 words changed in this paragraph; it is 40% similar to last year's version.
The technology, data, intellectual property and other sensitive information we seek to protect protect, and the information systems used to store, process, or transmit such information, are subject to loss, unauthorized access, unauthorized release, misappropriation or misappropriation, misuse, and the information systems containing or transmitting such technology, data, intellectual property and other sensitive information are subject to disruption, breach breach, degradation, or failure, in each case as a result of various possible causes, any of which could have a material adverse effect on our business or operations. Such causes events may include result from various possible causes, including mistakes or unauthorized actions by our employees employees, contractors, or contractors, phishing schemes and other third-party attacks, and degradation third parties, or loss cyberattacks or other malicious activities by third parties, including industrial, corporate, or other espionage, criminal hackers, or state-sponsored intrusions, by methods that include exploitation of service known or access to data due to unknown software or hardware vulnerabilities, viruses, malware, ransomware, social engineering (such as phishing schemes), credential harvesting, denial of service attacks, destructive or inadequate code, software or hardware failure, power failures, or physical damage to computers, hard drives, communication lines, or networking equipment, in each case with respect to us or the third-party product and service providers upon which we rely. Such causes We or our third-party product and service providers may also not be able to anticipate, identify, or implement effective preventive measures against cyberattacks or data security incidents and, even if timely identified, we or our third-party product and service providers may not be able to remediate such attacks or incidents in a timely and effective manner, or to mitigate or avoid adverse impacts resulting from any such attacks or incidents. These threats continue to evolve and may include the use of tools and techniques that change frequently or may be disguised or difficult to detect, or designed to circumvent security controls, evade detection, or remove forensic evidence, or remain dormant until a triggering event, or that may continue undetected for an extended period of time. time, which may hinder our or our third-party product and service providers’ ability to identify, investigate, and remediate attacks or incidents in a timely and effective manner, or to mitigate or avoid adverse impacts resulting from any such attacks or incidents. In addition, the development and deployment of AI models, tools, and other applications expose us, our customers, suppliers, and other third-party providers to increased and novel risks and vulnerabilities, including prompt injection, hallucinations, errors, and other issues related to AI agents, as well as the risk of compromise of valuable intellectual property. For example, the autonomous nature of agentic AI increases the risk that agents learn to circumvent security controls, and certain generative AI systems and large language models may, in order to satisfy user prompts, access or retrieve data using the credentials, permissions, or access rights of the user or connected systems, which may increase the risk of unauthorized access, data leakage, or improper use of sensitive or proprietary information. To the extent AI capabilities improve and are increasingly adopted, they may be used to identify introduce, identify, or exploit vulnerabilities and to implement increasingly sophisticated cybersecurity attacks. Further, the use of AI by us, our customers, suppliers, attacks and third-party providers, among others, may also introduce unique vulnerabilities whose existence or exploitation could have a material adverse effect on materially and adversely impact our business or operations. In addition, even if we or our third-party product and service providers are able to develop patches or other mitigations to address newly identified vulnerabilities, the pace at which AI enables the discovery and exploitation of such vulnerabilities may exceed our or our third-party product and service providers’ ability to implement such patches and mitigations quickly enough to prevent the exploitation of such vulnerabilities.

Source: Item 1A, 10-K 0000707549-26-000037 vs Item 1A, 10-K 0000707549-25-000075

MD&A 89 words changed in this paragraph; it is 49% similar to last year's version.
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) provides a description of our results of operations generally discusses fiscal year 2026 and 2025 items and year-to-year comparisons between fiscal year 2026 and 2025 and should be read in conjunction with our Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements included in Part II, Item 8 of this 2025 2026 Form 10-K. MD&A consists A discussion of fiscal year 2024 items and year-to-year comparisons between fiscal year 2025 and 2024 that are not included in this 2026 Form 10-K can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the following sections: fiscal year ended June 29, 2025.

Source: Item 7, 10-K 0000707549-26-000037 vs Item 7, 10-K 0000707549-25-000075

Accounting Policies 50 words changed in this paragraph; it is 91% similar to last year's version.
Revenue Recognition: The Company generally considers documentation of terms with an approved purchase order as a customer contract, provided that collection is considered probable, which is assessed based on the creditworthiness of the customer as determined by credit checks, payment histories, and/or other circumstances. The transaction price for contracts with customers is allocated among the identified performance obligations and consists of both fixed and variable consideration provided it is probable that a significant reversal of revenue will not occur when the uncertainty related to variable consideration is resolved. Fixed consideration includes amounts to be contractually billed to the customer while variable consideration includes estimates for discounts and credits for future usage which are based on contractual terms outlined in volume purchase agreements and other factors known at the time. The Company generally invoices customers at shipment and for professional services as provided. Customer invoices are generally due within 30 to 90 days after issuance. The Company’s contracts with customers typically do not include significant financing components as the period between the transfer of performance obligations and timing of payment are generally within one year. Revenue for systems and spares are recognized at a point in time, which is generally upon shipment or delivery. Revenue from services is recognized over time as services are completed or ratably over the contractual period of generally one year or less. Revenue is recognized in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. The Company elects to use the practical expedient afforded in the accounting guidance and therefore does not disclose remaining performance obligations for contracts with a duration of less than one year. Additionally, outstanding customer contracts with remaining durations more than one year are not material as of June 28, 2026.

Source: Item 8, Note 2 – Summary of Significant Accounting Policies, 10-K 0000707549-26-000037 vs Item 8, Note 2 – Summary of Significant Accounting Policies, 10-K 0000707549-25-000075

Legal Proceedings 26 words changed in this paragraph; it is 90% similar to last year's version.
On December 22, 2017, the “Tax Cuts & Jobs Act” was signed into law. Among other items, this U.S. tax reform assessed a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred. As a result, the Company recognized a total transition tax of $868.4 million and elected to pay the one-time tax over a period of 8 years, commencing in the twelve months ended June 30, 2019. During fiscal year 2023, this one-time tax was adjusted, resulting in a total tax liability increase of approximately $50.0 million, which was spread over the same 8-year period. The remaining obligation related to this arrangement totals $229.6 million and is expected to be paid was settled in fiscal year 2026. The Company may choose to apply existing tax credits, thereby reducing the actual cash payment.

Source: Item 3, via Note 17 – Commitments and Contingencies, 10-K 0000707549-26-000037 vs Item 3, via Note 17 – Commitments and Contingencies, 10-K 0000707549-25-000075

Every change, by type

Sentences and paragraphs of LRCX's Risk Factors and MD&A, 10-K 2026-08-07 against 10-K 2025-08-11. Each links to the text at sec.gov.

Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier (may, could, will, not, significant, material…). A year or date rolling forward is not counted.

The full word listadverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would

AddedRisk Factors
Our business depends on the capital equipment expenditures of semiconductor manufacturers, which in turn depend on the current and anticipated market demand for integrated circuits. With the consolidation of customers within the industry, the semiconductor

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedRisk Factors
For example, the growth of AI technologies and related infrastructure has been and is expected to continue to be a significant driver of capital equipment expenditures of semiconductor manufacturers across both the memory and non-memory market segments we serve. However, customer decisions regarding the amount and timing of capital expenditures and the demand for our products and services could change rapidly and be impacted by factors outside of our control. These factors may include, without limitation: changes in actual or anticipated AI-driven demand for AI-related infrastructure or compute power to support AI models, tools, and other applications, including due to slower-than-anticipated adoption of AI technologies, increases in compute efficiency, or oversupply of AI-related infrastructure compute power; advances in fabrication processes, technology inflections or changes in technology architectures; new and emerging technologies or market drivers; actual or anticipated production capacity, utilization, and volumes of semiconductor manufacturers relative to demand for semiconductor devices; changes in end-user demand or behavior; the timing of or constraints on increases to AI-related infrastructure or semiconductor manufacturing capacity; the availability and cost of capital, including increases in interest rates or tightening in global capital markets; the availability and amount of government subsidies and incentives; the regulation of AI or related infrastructure technologies by government or other regulatory agencies; and geopolitical or macroeconomic instability, including wars, terrorism, political unrest, public health emergencies, inflation, recessionary conditions, trade restrictions, export controls, boycotts, and other business disruptions.

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedRisk Factors
•the impact of stagnating or worsening business and economic conditions, including inflationary pressures, general economic slowdown or a recession, actual or anticipated changes in interest rates, reductions in government spending or other changes in monetary policy, or adverse financial or commodity markets activity or macroeconomic conditions, including as a result of geopolitical conflicts;

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedRisk Factors
•changes in industry trends or demand drivers for semiconductor chips and semiconductor equipment, including changes in the level of investment in AI and related infrastructure;

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedRisk Factors
•any disruption to our relationship with, or loss of business from, customers, including due to actual or alleged non-compliance with contractual or other customer requirements, applicable laws, rules, or regulations, or breaches of customer trust;

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedRisk Factors
While we have implemented International Organization for Standardization (“ISO”) 27001 compliant security procedures and virus protection software, intrusion prevention systems, identity and access control, and emergency recovery processes, and we carefully

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedRisk Factors
We Use Artificial Intelligence in Our Business, and Challenges with Properly Managing Its Use Could Result in Reputational Harm, Competitive Harm, and Legal Liability, and Materially and Adversely Affect Our Results of Operations.

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedRisk Factors
We are increasingly using AI tools as part of our business, including internally developed machine learning tools and large language models provided by third parties. For example, we use or are seeking to use AI tools to enhance research and development, manufacturing, installation, and servicing of our products, services delivery, supply chain management, sales and marketing, and compliance activities. We are also pursuing additional opportunities to incorporate AI tools, including agentic AI, into our business, including our products and services, and we expect this trend to continue. There are significant risks involved in developing and deploying AI, and there can be no assurance that our usage of AI will enhance our business, products or services, including our productivity, operational efficiency, effectiveness, or profitability. For example, if the AI tools we utilize are flawed or fail to execute properly, our ability to deliver our products and services to our customers may be adversely impacted. In addition, our competitors may incorporate AI tools into their products or operational processes more quickly or more successfully than us, which could have a material adverse effect on our competitive position, reputation and results of operations.

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedRisk Factors
The intellectual property rights, including patent and copyright rights, associated with artificial intelligence have not been fully addressed by U.S. and foreign courts, and there remains uncertainty and ongoing litigation in different jurisdictions as to the degree and extent of protection warranted for artificial intelligence-generated technologies and relevant system inputs and outputs. The courts and regulators have not clearly defined the scope for artificial intelligence-generated content, algorithms or trained models. If we fail to secure or maintain protection for the intellectual property rights concerning technologies developed using artificial intelligence, or later have our intellectual property rights invalidated or otherwise diminished, our competitors may be able to take advantage of our research and development efforts to develop competing products, which could adversely affect our business, reputation, results of operations, or financial condition.

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedRisk Factors
Our use or future adoption of artificial intelligence in our business, which may include tools developed by third parties, could expose us to breach of a data or software license, website terms of service claims, claimed violations of privacy rights or other tort claims. Further, although we have taken measures to prohibit such use, our employees’ use of third-party or publicly available artificial intelligence or other software tools may inadvertently result in the disclosure of our intellectual property, proprietary information or other sensitive or confidential data into the public domain, which could expose us to legal liability, diminish the value of our intellectual property, weaken our competitive position and harm our reputation.

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedRisk Factors
There is inherent risk that political, diplomatic and national security influences can lead to trade disputes, impacts and/or disruptions, in particular those affecting the semiconductor industry. This can adversely affect our business in China, Japan, Korea, and/or Taiwan and perhaps the entire Asia Pacific region or worldwide. A significant trade dispute, impact, and/or disruption in any area where we do business could have a materially adverse impact on our future results of operations and cash flows. For example, the conflict that began in February 2026 between the United States, Israel, a number of states in the Persian Gulf, and Iran has led to significant regional instability and disruption in the Middle East, including the closure of or restrictions on the Strait of Hormuz, threatened or actual attacks on vessels in the Red Sea, and threatened or actual attacks on transportation and energy infrastructure, which has significantly and adversely affected the supply and prices of oil, refined oil products and byproducts, liquid natural gas, as well as certain other industrial commodities, such as aluminum, helium, bromine, and sulfur. Some of these commodities are important to the semiconductor industry. As a result, this instability and disruption has adversely affected, and may in the future materially and adversely affect, our business, results of operations, and financial condition. The extent to which we may be affected by this conflict will depend on various factors, including the scope, severity, and duration of the conflict and the extent to which the conflict, or additional laws, sanctions, or trade restrictions arising from or related to the conflict, further disrupt the availability or cost of critical inputs used in the semiconductor industry. Continuation or escalation of this conflict may also magnify the impact of other risks identified in this 2026 Form 10-K.

Read it in 10-K 2026-08-07 at sec.gov ↗

RemovedRisk Factors
•macroeconomic, industry and market conditions, including those caused by war, conflict in the Middle East, bank failures; uncertainty regarding economic and other policies and priorities; and geopolitical issues;

Read it in 10-K 2025-08-11 at sec.gov ↗

RemovedRisk Factors
There is inherent risk, based on the complex relationships among the world’s major trading nations, that political, diplomatic and national security influences can lead to trade disputes, impacts and/or disruptions, in particular those affecting the semiconductor industry. This can adversely affect our business with China, Japan, Korea, and/or Taiwan and perhaps the entire Asia Pacific region or global economy. A significant trade dispute, impact, and/or disruption in any area where we do business could have a materially adverse impact on our future revenue and profits.

Read it in 10-K 2025-08-11 at sec.gov ↗

RemovedRisk Factors
Epidemics, pandemics or outbreaks of diseases may arise at any time and may have significant business, operational, and financial impacts. For example, the COVID-19 pandemic has in the past and additional global heath crises may in the future result in efforts by national, state and local governments worldwide to control the applicable disease’s spread. Such governmental efforts may result in measures aimed at containing the applicable disease such as quarantines, travel bans, shutdowns, and shelter in place or “stay at home” orders, which collectively have the potential to significantly restrict the ability of businesses to operate. In addition, restrictions resulting from global health crises and related measures aimed at containing the applicable disease, incidents of confirmed or suspected infections within our workforce or those of our suppliers or other business partners, and efforts to act in the best interests of our employees, customers, and suppliers, in connection with a pandemic or disease outbreak, may affect our business and operations by, among other things, causing facility closures, production delays and capacity limitations; disrupting production by our supply chain; disrupting the transport of goods from our supply chain to us and from us to our customers; requiring modifications to our business processes; requiring the implementation of business continuity plans; requiring the development and qualification of alternative sources of supply; requiring the implementation of social distancing measures that impede manufacturing processes; disrupting business travel; disrupting our ability to staff our on-site manufacturing and research and development facilities; delaying capital expansion projects; and necessitating teleworking by portions of our workforce. These impacts may cause delays in product shipments and product development, increases in costs, and decreases in revenue, profitability and cash from operations, which may cause an adverse effect on our results of operations that may be material. Global health crises may also have significant macroeconomic impacts, including, but not limited to, significant disruption of global financial markets, increases in levels of unemployment, and economic uncertainty. This may lead to significant negative impacts on customer spending, demand for our products, the ability of our customers to pay, our financial condition and the financial condition of our suppliers, and our access to external sources of financing to fund our operations and capital expenditures.

Read it in 10-K 2025-08-11 at sec.gov ↗

RemovedRisk Factors
Third parties may assert infringement, misappropriation, unfair competition, product liability, breach of contract, or other claims against us. From time to time, other persons send us notices alleging that our products infringe or misappropriate their patent or other intellectual property rights. In addition, law enforcement authorities may seek criminal charges relating to intellectual property or other

Read it in 10-K 2025-08-11 at sec.gov ↗

RemovedRisk Factors
Recommendations made by the Organization for Economic Co-operation and Development’s Base Erosion and Profit Shifting 2.0 (“BEPS 2.0”) project have the potential to lead to changes in the tax laws in numerous countries, including the implementation of a global minimum tax. Several countries around the world have enacted or proposed changes to their existing tax laws based on these recommendations. As each country in which we operate evaluates their alignment with the recommendations and enacts minimum tax rules, the ultimate impact of any such changes on our effective tax rate remains uncertain. When fully enacted, such changes could have a material impact on our effective tax rate. We will continue to monitor the progress of the BEPS 2.0 implementation.

Read it in 10-K 2025-08-11 at sec.gov ↗

RemovedRisk Factors
•macroeconomic, industry and market conditions, including those caused by war, conflict in the Middle East or elsewhere, or bank failures; and geopolitical issues;

Read it in 10-K 2025-08-11 at sec.gov ↗

RewordedRisk Factors
Such causes events may include result from various possible causes, including mistakes or unauthorized actions by our employees employees, contractors, or contractors, phishing schemes and other third-party attacks, and degradation third parties, or loss cyberattacks or other malicious activities by third parties, including industrial, corporate, or other espionage, criminal hackers, or state-sponsored intrusions, by methods that include exploitation of service known or access to data due to unknown software or hardware vulnerabilities, viruses, malware, ransomware, social engineering (such as phishing schemes), credential harvesting, denial of service attacks, destructive or inadequate code, software or hardware failure, power failures, or physical damage to computers, hard drives, communication lines, or networking equipment, in each case with respect to us or the third-party product and service providers upon which we rely.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedRisk Factors
Such causes These threats continue to evolve and may also include the use of tools and techniques that change frequently or may be disguised or difficult to detect, or designed to circumvent security controls, evade detection, or remove forensic evidence, or remain dormant until a triggering event, or that may continue undetected for an extended period of time. time, which may hinder our or our third-party product and service providers’ ability to identify, investigate, and remediate attacks or incidents in a timely and effective manner, or to mitigate or avoid adverse impacts resulting from any such attacks or incidents.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedRisk Factors
However, For example, our owned or licensed intellectual property rights could be challenged, invalidated, circumvented, infringed, or misappropriated; we may fail to apply for or obtain sufficient patent protection for our technology, other parties may challenge or attempt to invalidate or circumvent any patents the U.S. or foreign governments issue to us; these technology; governments may fail to issue patents for pending applications; or we may lose confidentiality or trade secret protection protections over valuable information due to our, including our employees’, or third parties’ intentional or unintentional disclosure or other actions or omissions or even those of our own employees. omissions.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedRisk Factors
As a public company with global operations, we are subject to the laws of multiple jurisdictions and the rules and regulations of various governing bodies, including including, but not limited to, those related to import and export controls, controls and other trade restrictions, national and economic security (including receipt or use of designated technologies), intellectual property rights, taxes, financial and other disclosures, corporate governance, data protection, privacy, anti-corruption, such as the Foreign Corrupt Practices Act and other local laws prohibiting corrupt payments to governmental officials, anti-boycott compliance, conflict minerals or other social responsibility legislation, immigration or travel regulations, antitrust regulations, foreign ownership and investment, employment and labor, product and manufacturing regulations, environmental, health, and safety requirements, human rights, and laws or regulations relating to carbon emissions emissions, such as the recent reporting requirements imposed by the State of California that will require corporations companies to provide climate-related disclosures, as well as other laws or regulations imposed in response to climate change concerns, among others.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedRisk Factors
The technology, data, intellectual property and other sensitive information we seek to protect protect, and the information systems used to store, process, or transmit such information, are subject to loss, unauthorized access, unauthorized release, misappropriation or misappropriation, misuse, and the information systems containing or transmitting such technology, data, intellectual property and other sensitive information are subject to disruption, breach breach, degradation, or failure, in each case as a result of various possible causes, any of which could have a material adverse effect on our business or operations.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedRisk Factors
In addition to the other information in this Annual Report on Form 10-K (“2025 (“2026 Form 10-K”), the following risk factors should be carefully considered in evaluating us and our business because such the occurrence of any of these factors may significantly impact could materially and adversely affect our business, operating results, results of operations, financial condition, and financial condition. price of our Common Stock, and they could cause our actual results to differ materially from those contemplated in any forward-looking statements.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedRisk Factors
If we do not adequately adapt to the changing business environment, we may lack the infrastructure and resources to scale up our business to meet customer expectations and compete successfully during a period of growth, which could have a material adverse effect on our business, reputation, results of operations, financial condition, and/or our market share, or we may expand our capacity and resources too rapidly and/or beyond what is appropriate for the actual demand environment, resulting which could result in excess fixed costs. costs and have a material adverse effect on our results of operations and financial condition.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedRisk Factors
Each of these laws, rules, and regulations imposes costs on our business, including financial costs and potential diversion of our management’s attention associated with compliance, that could adversely impact our competitive position and may present risks our ability to our business, including potential fines, restrictions on our actions, and reputational damage if we do not fully comply. meet customer demand.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedRisk Factors
However, we may be unable in the future to negotiate necessary licenses or reach agreement on other settlements on commercially reasonable terms, or at all, and any litigation resulting from these claims by other parties may materially and adversely affect our business and financial results, and we may be subject to substantial damage awards and penalties. all.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedRisk Factors
Since the majority of our cash is generated outside of the United States, this may impact certain business decisions and outcomes. outcomes with respect to our priorities for the use of cash or the need for alternative sources of liquidity if our subsidiaries are unable to provide sufficient funds for us.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedRisk Factors
While the restructuring plan was intended to better align our cost structure with the current economic environment and future business opportunities, and our anticipated transformation such plans or initiatives would generally have the goal of strengthening our operations and and/or achieving operational efficiencies, there can be no assurance that we will be successful in these plans and initiatives.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedRisk Factors
Even if they select our equipment, the institutions and the customers that follow their lead could impose conditions on acceptance of that equipment, such as adherence to standards and requirements or limitations on how we license our proprietary rights, that increase our costs or require us to take on greater risk.

Read it in 10-K 2026-08-07 at sec.gov ↗

Quiet changesRisk Factors
Where appropriate, we will endeavor to attempt to respond to these fluctuations with cost management programs aimed at aligning our expenditures with anticipated revenue streams, which sometimes result in restructuring charges.

Read it in 10-K 2026-08-07 at sec.gov ↗

Quiet changesRisk Factors
Tariffs, export controls, additional taxes, trade barriers, sanctions, the termination or modification of trade agreements, trade zones, and other duty mitigation initiatives, and any reciprocal retaliatory actions, can increase our manufacturing costs, decrease margins, reduce the competitiveness of our products, disrupt our supply chain operations, or inhibit our ability to sell products or provide services, all of which has had and in the future could have a material adverse effect on our business, results of operations, or financial conditions. condition.

Read it in 10-K 2026-08-07 at sec.gov ↗

Quiet changesRisk Factors
This has been and may is expected to continue to be an ongoing challenge due to intense competition for top talent, fluctuations in industry or business economic conditions, as well as increasing geographic expansion, and these factors in combination may result in cycles of hiring activity and workforce reductions.

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedMD&A
Demand for electronic systems supporting artificial intelligence, cloud infrastructure, communications, automotive, industrial and other intelligent systems is driving the need for high performance, energy efficient and highly integrated semiconductor devices. To meet these requirements, semiconductor manufacturers are adopting vertical scaling approaches, including three-dimensional (“3D”) architecture, more sophisticated patterning schemes, new materials, and advanced integration approaches, as traditional two-dimensional scaling is becoming more challenging. These technology inflections are increasing manufacturing complexity and precision requirements in the production of semiconductors driving demand for our advanced semiconductor fabrication technologies and services.

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedMD&A
We generate revenue primarily through the sale and service of semiconductor manufacturing equipment. Demand for our products and services is driven by customers’ investments in wafer fabrication capacity, technology advancement and installed base support. We present revenue on a disaggregated basis to differentiate between systems revenue and customer support-related revenue. Systems revenue includes sales of new leading-edge equipment in deposition, etch, clean and other wafer fabrication markets. Customer support-related revenue includes sales of customer services, spares, upgrades, and non-leading-edge equipment from the Company’s Reliant® product line.

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedMD&A
Timing of revenue recognition depends on a number of factors, including customer requirements, resource availability, supply-chain conditions, manufacturing capacity, delivery schedules, and other operational considerations.

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedMD&A
We present our revenues disaggregated by geographic region based on the location of customers’ facilities to which products were shipped and services were rendered. A significant portion of our revenue is generated outside of the United States.

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedMD&A
Systems revenue increased by $3.39 billion, or 29.5%, in fiscal year 2026 compared to fiscal year 2025 primarily due to foundry equipment customer spending. Customer support-related revenue increased by $1.40 billion, or 20.2%, in fiscal year 2026 compared to fiscal year 2025 mainly due to revenue from spares and non-leading-edge equipment.

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedMD&A
Year Ended Change June 28, June 29, FY26 vs. FY25 2026 2025 (in thousands, except percentages and basis points) Research & development $ 2,375,873 $ 2,096,387 $ 279,486 13.3% Percent of revenue 10.2 % 11.4 % - 120 bps

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedMD&A
Year Ended Change June 28, June 29, FY26 vs. FY25 2026 2025 (in thousands, except percentages and basis points) Selling, general, and administrative ("SG&A") $ 1,149,640 $ 981,704 $ 167,936 17.1% Percent of revenue 4.9 % 5.3 % - 40 bps

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedMD&A
Year Ended Change June 28, June 29, FY26 vs. FY25 2026 2025 (in thousands, except percentages and basis points) Income tax expense $ 997,077 $ 599,912 $ 397,165 66.2% Effective tax rate 12.1 % 10.1 % + 200 bps

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedMD&A
The Organization for Economic Co-operation and Development’s Base Erosion and Profit Shifting 2.0 (“BEPS 2.0”) GMT was fully effective for us this fiscal year. We assessed GMT under currently enacted legislation and determined that we met transitional safe harbor requirements in most jurisdictions, with limited jurisdictions subject to GMT. We assessed the impact and concluded that it was not material. The impact has been included within income tax expense in fiscal year 2026.

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedMD&A
duration of less than one year. Additionally, outstanding customer contracts with remaining durations more than one year are not material as of June 28, 2026.

Read it in 10-K 2026-08-07 at sec.gov ↗

AddedMD&A
In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires disaggregation of certain expenses in the notes to the financial statements to provide enhanced transparency into the expense captions presented on the face of the income statement. In January 2025, the FASB issued ASU 2025-01 which clarified the effective date for entities that do not have an annual reporting period that ends on December 31st. The guidance is effective for annual periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is required to adopt this standard in fiscal year 2028 for the annual reporting period ending June 25, 2028 either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented in the financial statements. The Company will apply the guidance prospectively and is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements.

Read it in 10-K 2026-08-07 at sec.gov ↗

RemovedMD&A
The following discussion of our financial condition and results of operations contains forward-looking statements, which are subject to risks, uncertainties, and changes in condition, significance, value, and effect. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors, including but not limited to those discussed in “Risk Factors” and elsewhere in this 2025 Form 10-K and other documents we file from time to time with the Securities and Exchange Commission. (See “Cautionary Statement Regarding Forward-Looking Statements” in Part I of this 2025 Form 10-K.)

Read it in 10-K 2025-08-11 at sec.gov ↗

RemovedMD&A
Executive Summary provides a summary of the key highlights of our results of operations and our management’s assessment of material trends and uncertainties relevant to our business.

Read it in 10-K 2025-08-11 at sec.gov ↗

RemovedMD&A
Demand from cloud computing, artificial intelligence, 5G, the Internet of Things, and other markets is driving the need for increasingly powerful and cost-efficient semiconductors. At the same time, there are growing technical challenges with traditional two-dimensional scaling. These trends are driving significant inflections in semiconductor manufacturing, such as the increasing importance of vertical scaling strategies like three-dimensional architecture as well as multiple patterning to enable shrinks.

Read it in 10-K 2025-08-11 at sec.gov ↗

RemovedMD&A
On October 2, 2024, the Company effected a ten-for-one stock split of its common stock and a proportional increase in the number of authorized shares. All references made to share or per share amounts throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations have been retroactively adjusted to reflect the stock split.

Read it in 10-K 2025-08-11 at sec.gov ↗

RemovedMD&A
We aim to balance the requirements of our customers with the availability of resources, as well as performance to our operational and financial objectives. As a result, from time to time, we exercise discretion and judgment as to the timing and prioritization of manufacturing and deliveries of products, which has impacted, including in the current fiscal year, and may in the future impact, the timing of revenue recognition with respect to such products.

Read it in 10-K 2025-08-11 at sec.gov ↗

RemovedMD&A
In fiscal year 2023, we initiated a restructuring plan, that continued into fiscal year 2024, designed to better align our cost structure with our outlook for the economic environment and business opportunities. Under the plan, we terminated approximately 1,760 employees, incurring expenses related to employee severance and separation costs. Employee severance and separation costs are primarily related to severance, non-cash severance, including equity award compensation expense, pension and other termination benefits. Additionally, we made a strategic decision to relocate certain manufacturing activities to pre-existing facilities. The restructuring plan was substantially complete as of June 30, 2024.

Read it in 10-K 2025-08-11 at sec.gov ↗

RemovedMD&A
Net income $5,358,217 Non-cash charges: Depreciation and amortization 386,277 Deferred income taxes (363,247) Equity-based compensation expense 343,371 Changes in operating asset and liability accounts 441,801 Other 6,845 $6,173,264

Read it in 10-K 2025-08-11 at sec.gov ↗

RewordedMD&A
Significant changes in operating asset and liability accounts, net of foreign exchange impact, in fiscal year 2026 included the following sources uses of cash: increases in accounts receivable of $1.96 billion and inventory of $93.9 million, combined with decreases in deferred gross profit of $1.1 billion, $286.4 million, and accrued expenses and other liabilities of $328 million, and accounts payable of $212 $39.3 million.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedMD&A
The increase in operating expenses in fiscal year 2025 2026 compared to fiscal year 2024 2025 was driven by higher primarily due to employee-related costs primarily as a result of from increased headcount, increased spending on transformational activities, headcount and higher outside service expense. supplies spending for research and development.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedMD&A
The decrease increase in the effective tax rate in fiscal year 2025 2026 as compared to fiscal year 2024 2025 was primarily due to the recognition of previously unrecognized tax benefits from lapses of statutes of limitation in fiscal year 2025 and Global Minimum Tax (“GMT”) being fully effective in fiscal year 2026, offset by the change in level and proportion of income in higher and lower tax jurisdictions. jurisdictions and higher stock-based compensation excess tax benefits in fiscal year 2026.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedMD&A
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) provides a description of our results of operations generally discusses fiscal year 2026 and 2025 items and year-to-year comparisons between fiscal year 2026 and 2025 and should be read in conjunction with our Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements included in Part II, Item 8 of this 2025 2026 Form 10-K.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedMD&A
Wafer fabrication equipment spending levels investments were strong in the 2025 fiscal year driven by an increase calendar year, and have continued to grow in 2026 with the AI market driving higher semiconductor industry spending across both the memory and non-memory market segments.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedMD&A
Fiscal year 2025 2026 revenue increased 23.7% 26.0% compared to fiscal year 2024, 2025, driven by strong customer demand for semiconductor equipment systems systems, particularly from customers within the foundry market segment, as well as customer support-related revenues from customer investments across memory and non-memory markets. revenues.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedMD&A
Interest income decreased in fiscal year 2025 2026 compared to fiscal year 2024 2025 primarily due to lower interest rates, partially offset by higher rates as well as an impact from slightly lower average invested cash balances. balances versus the prior year.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedMD&A
These sources uses of cash are were offset by the following uses sources of cash: increases increase in accounts receivable payable of $859 million, $417.5 million and decrease in prepaid expenses and other current assets of $207 million, and inventory of $181 $50.2 million.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedMD&A
See Note 3 - Recent Accounting Pronouncements Pronouncements, of our Consolidated Financial Statements, included in Part II, Item 8 of this 2025 2026 Form 10-K. 10-K for details of any recently adopted or effective accounting pronouncements.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedMD&A
This increase decrease was primarily due to cash provided by operating activities, partially offset by Common Stock repurchases in connection with our stock repurchase program, dividends paid, capital expenditures, and principal payments on debt instruments. instruments, partially offset by cash provided by operating activities.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedMD&A
Restructuring charges, Net of Please refer to Note 14, “Long-term Debt and Other Borrowings" to our Consolidated Financial Statements Statements, included in Part II, Item 8 of this 2025 2026 Form 10-K for additional information.

Read it in 10-K 2026-08-07 at sec.gov ↗

RewordedMD&A
Gross margin as a percentage of revenue increased in fiscal year 2025 2026 compared to fiscal year 2024 2025 largely due to improved factory efficiencies and favorable product customer mix, partially offset by increased transformational charges. aluminum and steel tariff-related spend.

Read it in 10-K 2026-08-07 at sec.gov ↗

Work on LRCX in a spreadsheet: Excel workbook (a sheet per section, ten years by column, charts, links to the filings) · CSV. For a Google Sheet that stays up to date, paste =IMPORTDATA("https://tickdelta.com/company/LRCX/export.csv") into a cell.