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Applied Materials vs. Lam Research
Revenue, growth, margins, cash flow and cash returned, side by side from each company's latest annual report.
Both make the machines chipmakers use to build chips. Applied Materials sells tools for deposition, etch, ion implantation and inspection; Lam Research's systems deposit thin films on wafers, etch patterns into them and clean them. Below are the figures each one reported in its latest annual report (Form 10-K), side by side, with links to the filing behind every number. Lam Research's fiscal year ends on June 28 and Applied Materials' on October 26, so the two years overlap by four months. Why fiscal years differ.
Comparing Applied Materials fiscal 2025 (ended Oct 26, 2025) with Lam Research fiscal 2026 (ended Jun 28, 2026)
Applied MaterialsLam Research
Each pair of bars shows both companies on one scale. Their fiscal years end on different dates, so the periods overlap but aren't identical.
Revenue and profit
Revenue and growth
| Company | Prior year | Latest year | Change |
|---|---|---|---|
| Applied Materials (FY2024 to FY2025) | $27.2B | $28.4B | +4.4% |
| Lam Research (FY2025 to FY2026) | $18.4B | $23.2B | +26.0% |
Applied Materials reports net revenue: sales of chipmaking equipment, plus services, spares and display equipment. Lam Research reports revenue: sales of wafer fabrication equipment, plus spares, upgrades and services.
Margins
| Company | Revenue | Operating income | Operating margin | Net income | Net margin |
|---|---|---|---|---|---|
| Applied Materials FY2025 | $28.4B | $8.3B | 29.2% | $7.0B | 24.7% |
| Lam Research FY2026 | $23.2B | $8.2B | 35.3% | $7.3B | 31.3% |
Margin is the profit line divided by revenue, worked out by Ticker Sage from the linked figures. What profit margins measure.
Cash flow and cash returned
| Company | Cash from operations | Capital spending | Free cash flow | Buybacks | Dividends paid |
|---|---|---|---|---|---|
| Applied Materials FY2025 | $8.0B | $2.3B | $5.7B | $4.9B | $1.4B |
| Lam Research FY2026 | $5.9B | $966M | $4.9B | $3.9B | $1.3B |
Capital spending is property and equipment for Applied Materials, and the capital expenditures and intangible assets line for Lam Research, as each company labels it in the cash flow statement. Free cash flow isn't a GAAP line; Ticker Sage works it out the same way for both. How free cash flow works · How buybacks work · How dividends work.
How each one makes money
Applied Materials
Applied Materials reports two segments. Semiconductor Systems sells the machines used across chip manufacturing, such as deposition, etch, ion implantation and inspection tools. Applied Global Services provides spare parts, upgrades, service contracts and remanufactured equipment for the installed base of tools. A smaller display business is reported with corporate and other items.
Its customers are chip and display makers, mostly in Asia. Its fiscal year ends on the last Sunday of October, so FY2025 means the year to Oct 26, 2025.
Lam Research
Lam sells systems used to deposit thin films on silicon wafers and etch patterns into them, plus cleaning tools. Its Customer Support Business Group provides spare parts, services, upgrades and refurbished tools for the large installed base of its equipment.
Its customers are memory, foundry and logic chipmakers, mostly in Asia. Its fiscal year ends on the last Sunday of June, so FY2026 means the year to Jun 28, 2026.
Main risks each one lists
Applied Materials
- US rules limit what it can sell to some Chinese customers, and China is a large market.
- Chipmakers' spending on equipment swings with demand for chips, and orders can drop quickly.
- A few large chipmakers account for a large share of revenue.
- It must keep up with new chip designs and manufacturing methods, and rivals compete hard.
- Some parts come from limited suppliers, and disruptions can delay shipments.
Lam Research
- Chipmakers' spending on equipment, especially in memory, swings with demand and prices for chips.
- US rules restrict some sales to China, a large share of revenue.
- A few large chipmakers buy a large share of its equipment.
- It must keep pace with new chip technologies and compete with large equipment makers.
- Limited suppliers for some parts can delay shipments or raise costs.
How they differ
- Size. Applied Materials reported $28.4B of revenue for fiscal 2025, and Lam Research $23.2B for fiscal 2026.
- Growth. Applied Materials' revenue grew 4.4% in its latest year and Lam Research's 26.0%.
- Margins. Lam Research kept 31.3% of revenue as net income and Applied Materials 24.7%.
- Fiscal calendar. Lam Research's year ends in June, Applied Materials' in October, so news in one company's latest 10-K can be up to eight months newer than in the other's.
- Services. Both earn money servicing the tools already installed: Applied Global Services at Applied Materials, the Customer Support Business Group at Lam.
- Customers. Lam's customers are memory, foundry and logic chipmakers, mostly in Asia.
- Where the money goes. Both spent more on buybacks than on dividends in the latest year: Lam Research $3.9B and $1.3B, Applied Materials $4.9B and $1.4B.
Differences in size, growth or margin describe the past year only. None of this says which business will do better.
Sources
- Applied Materials Form 10-K for fiscal 2025, filed Dec 12, 2025
- Lam Research Form 10-K for fiscal 2026, filed Aug 7, 2026
Applied Materials company file → · Lam Research company file →
Common questions
Which is bigger by revenue, Lam Research or Applied Materials?
Applied Materials reported $28.4B of revenue for fiscal 2025 and Lam Research $23.2B for fiscal 2026. Their fiscal years end on different dates.
Do Applied Materials and Lam Research make chips?
No. They make the equipment chipmakers use to process silicon wafers, and they sell parts and services for it.
How do their profit margins compare?
In the latest fiscal year Lam Research's net margin was 31.3% and Applied Materials' was 24.7%, worked out from the net income and revenue in each 10-K.
Where do these numbers come from?
From each company's latest Form 10-K filed with the SEC. Every figure on this page links to the filing it came from.
Disclosures
- Editor holdings
- The editor holds no position in any company named on this page. As of Oct 25, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Oct 26, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
More in Learn · Methodology & Disclosures explains where every number comes from.