KLA vs Lam Research
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KIRA’s take AI analyst
I put KLA and Lam Research side by side, using each one’s latest annual report. Here is what stands out:
- Lam Research is the larger business, with $23.2B of revenue in fiscal 2026 against $13.6B for KLA, about 1.7 times as much.
- Lam Research grew revenue faster (26.0%, against 11.7%).
- KLA turned more of its sales into free cash flow (27.7% FCF margin, against 21.1%).
- Lam Research earned a higher return on the capital invested in it (77.7%, against 75.3%).
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
KLA
KLAC
5/10
5-year growthGross marginNet marginFCF marginReturn on equity
Lam Research
LRCX
4/10
Revenue growthReturn on capitalNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | KLAC FY26 | LRCX FY26 |
|---|---|---|
| Size | ||
| Market cap | $202.8B | $302.5B |
| Revenue | $13.6B | $23.2B |
| Free cash flow | $3.8B | $4.9B |
| Net income | $4.8B | $7.3B |
| Growth | ||
| Revenue growth | 11.7% | 26.0% |
| 5-year growth | 14.4% | 9.7% |
| Share count change | −1.3% | −2.3% |
| Profitability | ||
| Gross margin | 61.3% | 50.5% |
| Operating margin | — | 35.3% |
| Net margin | 35.6% | 31.3% |
| FCF margin | 27.7% | 21.1% |
| Return on capital | 75.3% | 77.7% |
| Return on equity | 87.5% | 65.1% |
| Balance sheet | ||
| Net debt | $1.0B | −$1.9B |
| Net debt / EBITDA | 0.2x | −0.2x |
| Dividends and buybacks | $3.3B | $5.1B |
| Valuation & quality | ||
| P/E | — | 35.9x |
| Piotroski F-score | 8 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.