Lam ResearchLRCX -9.93%85 Pretax Margin % is 34.44% as of Mar. 2026, which is 19% above its 10-year median of 28.85. GuruFocus rates LRCX with a GF Score™ of 85/100 and a GF Value™ of $131.10 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,021 Semiconductors companies, Lam Research ranks better than 94.32% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Lam Research's Pre-Tax Income for the
three
months ended in Mar. 2026 was $2,012 Mil. Lam Research's Revenue for the
three
months ended in Mar. 2026 was $5,841 Mil. Therefore, Lam Research's pretax margin for the quarter that ended in Mar. 2026 was 34.44%.
The historical rank and industry rank for Lam Research's Pretax Margin % or its related term are showing as below:
LRCX'
s Pretax Margin % Range Over the Past 10 Years
Min: 16.31 Med: 28.85 Max: 34.53
Current: 34.53
LRCX's Pretax Margin % is ranked better than 94.32% of 1021
companies
in the Semiconductors industry
Industry Median: 5.07
vs LRCX: 34.53
Lam Research (NAS:LRCX) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Lam Research Pretax Margin % Related Terms
Lam Research Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Lam Research's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LRCX vs AMAT, KLAC, TER: Pretax Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Lam Research's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lam Research Pretax Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lam Research's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Lam Research's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lam Research (LRCX) has a Pretax Margin % of 34.44% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lam Research and its competitors. This is 19% above median its historical median of 28.85. Over the past decade, Lam Research's Pretax Margin % has ranged from 16.31 to 34.53. According to the industry distribution chart, Lam Research ranks #58 out of 1021 companies in the Semiconductors industry, placing it in the top 5.7%.
Is Lam Research's Pretax Margin % too high?
Lam Research's current Pretax Margin % of 34.44% is 19% above median its 10-year median of 28.85. Over the past 10 years, this metric has ranged from a low of 16.31 to a high of 34.53. The Semiconductors industry median Pretax Margin % is 5.07. Lam Research's value of 34.44% is 579.3% above this industry median. Based on the distribution chart, Lam Research ranks #58 out of 1021 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Lam Research has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lam Research's Pretax Margin % compare to AMAT and KLAC?
According to the Semiconductors industry distribution chart, Lam Research ranks #58 out of 1021 companies for Pretax Margin %. This places Lam Research in the top 6% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.07. Lam Research's value of 34.44% is 579.3% above this benchmark. Historically, Lam Research's own Pretax Margin % has ranged from 16.31 to 34.53 over the past decade. While the company's 10-year median is 28.85 vs. the industry median of 5.07, Lam Research has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Semiconductors company?
The median Pretax Margin % among Semiconductors companies is 5.07, based on 1,021 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lam Research's current Pretax Margin % of 34.44% is 579.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lam Research and its competitors. For the Semiconductors industry, the median Pretax Margin % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Research's current Pretax Margin % is 34.44%, which is 19% above median its own 10-year median of 28.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lam Research stock overvalued right now?
Based on GuruFocus' analysis, Lam Research (LRCX) is currently considered Significantly Overvalued. The stock's GF Value™ is $131.10, compared to a current price of $352.39 — trading 168.8% above its estimated fair value. The current Pretax Margin % is 34.44%, which is 19% above median its 10-year median of 28.85 and 579.3% above the Semiconductors industry median of 5.07. Lam Research's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Lam Research (LRCX), the current Pretax Margin % is 34.44% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lam Research (LRCX) Overvalued in 2026?
Based on GuruFocus' analysis, Lam Research stock appears to be overvalued.
The current stock price of $352.39 is trading 168.8% above its estimated GF Value™ of $131.10.
GuruFocus considers Lam Research to be Significantly Overvalued.
Key valuation signals for LRCX:
Pretax Margin %: 34.44% (19% above median its 10-year median of 28.85)
GF Value™: $131.10 vs. price of $352.39 (168.8% above fair value)
Industry Position: 579.3% above the Semiconductors median (#58 of 1021)
No single metric tells the full story. See the LRCX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lam Research is one of the largest semiconductor wafer fabrication equipment manufacturers in the world. It specializes in deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.
85GF Score
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