Applied Materials vs Lam stock: the numbers side by side (October 2026)
How do Applied Materials and Lam compare?
| Applied Materials AMAT | Lam LRCX | |
|---|---|---|
| Revenue growth | 4.4%Oct 2025 | 26.0%Jun 2026 |
| Operating margin | 29.2%Oct 2025 | 35.3%Jun 2026 |
| Free cash flow | 5,698US$ millions · Oct 2025 | 4,891,252US$ thousands · Jun 2026 |
| Free cash flow yield | 1.4%Today (Oct 11, 2026) | 1.7%Today (Oct 25, 2026) |
| Dividend yield | 0.4%Today (Oct 11, 2026) | 0.6%Today (Oct 25, 2026) |
| P/E, last 12 months | 43.7xToday (Oct 11, 2026) | 34.3xToday (Oct 25, 2026) |
| P/E, next 12 months | 27.1xToday (Oct 11, 2026) | 18.8xToday (Oct 25, 2026) |
| Weighted price forecast, about 1 year | 352.91 (-29%)October 2027 | 211.25 (-8%)October 2027 |
| Weighted price forecast, about 3 years | 384.53 (-23%)October 2029 | 269.60 (+19%)October 2029 |
Who leads on what?
| Leads | The lead is | |
|---|---|---|
| Revenue growth | Lam | The higher figure |
| Operating margin | Lam | The higher figure |
| Free cash flow | — | The higher figure |
| Free cash flow yield | Lam | The higher figure |
| Dividend yield | Lam | The higher figure |
| P/E, last 12 months | Lam | The lower figure |
| P/E, next 12 months | Lam | The lower figure |
| Weighted price forecast, about 1 year | Lam | The higher weighted return |
| Weighted price forecast, about 3 years | Lam | The higher weighted return |
What does each company do?
Applied Materials sells semiconductor fabrication equipment to chipmakers and packaging manufacturers.
Applied Materials (AMAT), from our memo of October 11, 2026 · Applied Materials stock forecast
Lam sells deposition, etch and cleaning systems—equipment that adds material, shapes tiny chip structures, or removes residue—to chipmakers making memory and logic chips.
Lam (LRCX), from our memo of October 25, 2026 · Lam stock forecast
How big are Applied Materials and Lam?
Applied Materials’ revenue was US$9,115 million in the quarter to July 2026; Lam’s was US$8,219,418 thousand in the quarter to September 2026.
How fast are Applied Materials and Lam growing, and what did their latest results show?
Applied Materials’ revenue grew 4.4% in the year to October 2025; Lam’s grew 26.0% in the year to June 2026.
Revenue, gross margin and operating income all strengthened, and operating expenses grew more slowly than sales. Across the recent quarters, the sequence supports a recovery rather than a single isolated spike.
Applied Materials (AMAT), from our memo of October 11, 2026 · Applied Materials earnings
Revenue reached $8.2 billion in the September 2026 quarter, up 54.4% from the prior-year quarter. It also rose 22.3% from June 2026, so the acceleration continued within the year. Systems sales grew 62% year on year, while support-related revenue grew 40%. Because support was nearly flat sequentially, new systems drove almost all of the increase from June.
Lam (LRCX), from our memo of October 25, 2026 · Lam earnings
How much cash do Applied Materials and Lam generate, and where does it go?
Free cash flow was US$5,698 million in the year to October 2025 for Applied Materials and US$4,891,252 thousand in the year to June 2026 for Lam. Applied Materials’ dividend yield was 0.4% on October 11, 2026; Lam’s was 0.6% on October 25, 2026.
Operating cash flow records money collected from customers after cash payments to employees, suppliers and governments. Free cash flow then subtracts capital spending on facilities and equipment. A stricter measure also subtracts stock compensation, because employees receive ownership with economic value even though the award requires no immediate cash payment.
Applied Materials (AMAT), from our memo of October 11, 2026 · Applied Materials stock forecast
Net income reached $7.3 billion in fiscal 2026, while free cash flow reached $4.9 billion. Free cash flow means cash from operations after investment in equipment and facilities. Lam can record a sale when a machine is delivered or an obligation is satisfied, but cash may arrive later.
Lam (LRCX), from our memo of October 25, 2026 · Lam stock forecast
What does an investor pay for Applied Materials and Lam today?
The shares of Applied Materials were priced at 43.7x the last 12 months’ earnings and 27.1x the next 12 months’ on October 11, 2026; those of Lam at 34.3x the last 12 months’ earnings and 18.8x the next 12 months’ on October 25, 2026. The free cash flow yield stood at 1.4% on October 11, 2026 for Applied Materials and 1.7% on October 25, 2026 for Lam.