LR
LRCX
Latest · Mar 29, 2026
Quarter ended Mar 29, 2026 · FY2026 Q3

Lam Research Corporation stock research

Lam Research (LRCX) Free Cash Flow — Quarter Ended Mar 29, 2026

Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin decreased versus both periods, as operating cash flow declined while capital expenditure rose.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin decreased versus both periods, as operating cash flow declined while capital expenditure rose.

  • Operating cash flow as a percentage of revenue weakened from the prior quarter and the year-ago quarter, leading to a lower free cash flow margin despite higher revenue. Capital expenditure increased in absolute terms, further reducing free cash flow conversion.
  • Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were lower.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$6.0B

Trailing twelve-month free cash flow.

Quarter free cash flow

$809.8M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$1.1B

Cash generated by operations before capital spending.

CapEx

$331.6M

Capital spending and related asset purchases.

FCF margin

13.9%

The share of revenue converted into free cash flow.

TTM FCF yield

1.5%

TTM FCF divided by market capitalization.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2025-06-29$5.2B$2.6B$172.2M$2.4B46.1%
2025-09-28$5.3B$1.8B$185.1M$1.6B29.9%
2025-12-28$5.3B$1.5B$260.9M$1.2B22.8%
2026-03-29$5.8B$1.1B$331.6M$809.8M13.9%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income44.4%Shows whether accounting earnings convert into cash.
CapEx / revenue5.7%Lower capital intensity usually supports FCF margin.
Net cashn/aCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

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Weaker operating cash flow

Operating cash flow decreased from both the prior quarter and the year-ago quarter, despite higher revenue. This was the primary factor behind the decline in free cash flow and free cash flow margin.

The lower operating cash flow reduced free cash flow generation relative to revenue.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Operating cash flow as a percentage of revenue weakened from the prior quarter and the year-ago quarter, leading to a lower free cash flow margin despite higher revenue. Capital expenditure increased in absolute terms, further reducing free cash flow conversion.

Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were lower.

Monitor the trend in capital expenditure, which increased sequentially and year-over-year, as it directly impacts free cash flow.

Valuation context

A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.

Market capitalization$414.0BUsed as the denominator for FCF yield.
TTM FCF yield1.5%TTM free cash flow divided by market capitalization.
EV / TTM FCFn/aA quick valuation bridge, not a full DCF.

Peer context

Free cash flow quality is easier to read against related public companies.

LR
LRCX

Lam Research Corporation

FCF margin

13.9%

FCF yield

1.5%