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How LAM Research (LRCX) makes money

LAM Research (LRCX) made $8.2B of revenue in the first quarter fiscal 2027 (Q1 FY27), +54% from a year earlier. Systems revenue brought in $5.7B (70%); Customer support-related revenue and other brought in $2.5B (30%). Of every dollar of revenue, 52¢ was left as gross profit, 40¢ was left as operating profit, 33¢ was left as net earnings.

Drawing the Sankey…

LAM Research revenue by segment, Q1 FY27LAM Research revenue by segment, Q1 FY27Systems revenue$5.7BCustomer support-related revenue …$2.5B
LAM Research: revenue by line, Q3 FY25 to Q1 FY27LAM Research: revenue by line, Q3 FY25 to Q1 FY27Systems revenueCustomer support-rela…Systems revenue: $5.7B latest$5.7BCustomer support-related revenue and other: $2.5B latest$2.5BQ3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Customer support-related revenue and other went from 36% of revenue in Q3 FY25 to 30% in Q1 FY27, the largest shift in the mix.
LAM Research revenue by quarterLAM Research revenue by quarter$4.7BQ3 FY25$5.2BQ4 FY25$5.3BQ1 FY26$5.3BQ2 FY26$5.8BQ3 FY26$6.7BQ4 FY26$8.2BQ1 FY27
LAM Research: where each dollar of revenue goesLAM Research: where each dollar of revenue goesCost of revenue48¢Gross profit52¢Operating expenses12¢Operating profit40¢Income tax7¢Net earnings33¢Operating cash flow43¢Free cash flow39¢

Revenue by segment, Q1 FY27

SegmentRevenueShareQ/QY/Y
Systems revenue$5.7B69.7%+35%+62%
Customer support-related revenue and other$2.5B30.3%+0.6%+40%

Where each dollar of revenue goes

LineQ1 FY27% of revenue
Revenue$8.2B100.0%
Cost of revenue$3.9B47.7%
Gross profit$4.3B52.3%
Operating expenses$1.0B12.4%
Operating profit$3.3B40.0%
Income tax$559M6.8%
Net earnings$2.8B33.5%
Operating cash flow$3.5B42.6%
Free cash flow$3.2B39.4%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q1 FY27$8.2B+54%
Q4 FY26$6.7B+30%
Q3 FY26$5.8B+24%
Q2 FY26$5.3B+22%
Q1 FY26$5.3B+28%
Q4 FY25$5.2B+34%
Q3 FY25$4.7B+24%

From LAM Research's 10-Q filed Oct 22, 2026 (on EDGAR).

Questions

How does LAM Research make money?

LAM Research (LRCX) made $8.2B of revenue in the first quarter fiscal 2027 (Q1 FY27), +54% from a year earlier. Systems revenue brought in $5.7B (70%); Customer support-related revenue and other brought in $2.5B (30%). Of every dollar of revenue, 52¢ was left as gross profit, 40¢ was left as operating profit, 33¢ was left as net earnings.

What is LAM Research's biggest business?

Systems revenue: $5.7B in the first quarter fiscal 2027, 70% of revenue, +62% from a year earlier.

What is LAM Research's profit margin?

Net earnings were $2.8B, 33.5% of revenue, in the first quarter fiscal 2027; the operating margin was 40.0%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.