Compare · Technology
Applied Materials vs. Lam Research: how they make money
The same facts for both companies, in the same order, from each company's own page and filings. This is not a ranking and says nothing about which share to own.
Each company in 5 points
Applied Materials
1 · What it sells
Applied Materials makes the machines chipmakers use to build chips: Semiconductor Systems brought in $20.8 billion of FY2025 revenue of $28.4 billion, and service for installed machines $6.4 billion.
Sources and detail on the Applied Materials page2 · Who pays it
In FY2025, chipmakers buying new machines paid 73.3% of revenue, owners of installed machines paid 22.5% for service, spare parts and software, and display and other businesses 4.2%.
Sources and detail on the Applied Materials page3 · What it keeps from $100
Of every $100 that came in during FY2025, Applied kept $23.6 as net income, after gains on equity investments and deferred tax charges of $659 million and $407 million; operating income was $29.2 per $100 of revenue.
Sources and detail on the Applied Materials page4 · Where the operating profit comes from
Semiconductor Systems earned $7.4 billion of FY2025 operating income and Applied Global Services $1.8 billion, while Corporate and Other, which carries unassigned costs, lost $0.9 billion.
Sources and detail on the Applied Materials page5 · The one thing to watch
China was 30% of Applied's FY2025 revenue, and Applied estimated on Oct 2, 2025 that a new US export rule would cut its FY2026 revenue by about $600 million.
Sources and detail on the Applied Materials page
Lam Research
1 · What it sells
Lam makes machines that deposit, etch and clean the thin layers of a chip, which brought in $14.9 billion of FY2026 revenue of $23.2 billion, and service, spares and upgrades brought in $8.3 billion.
Sources and detail on the Lam Research page2 · Who pays it
By where the customer's plant is, FY2026 revenue came 34% from China, 23% from Taiwan, 19% from Korea, 9% from Japan, 7% from the US, 5% from Southeast Asia and 3% from Europe.
Sources and detail on the Lam Research page3 · What it keeps from $100
Of every $100 that came in during FY2026, Lam kept $31.2 as net income, while operating income, before interest and tax, was $35.3 per $100 of revenue.
Sources and detail on the Lam Research page4 · Where the operating profit comes from
Lam reports one business segment, so it does not split profit between new machines and service, and across the company FY2026 gross margin was 50.5% and operating income $8.20 billion.
Sources and detail on the Lam Research page5 · The one thing to watch
China was about 34% of Lam's FY2026 revenue and 42% of FY2024 revenue, and Lam's 10-K says US export rules restrict sales to some customers in China.
Sources and detail on the Lam Research page
Where each $100 went
Each company's own receipt for its latest full fiscal year, with matching lines in the same order where both have them.
Applied Materials
Where $100 went · FY2025
| Cost of products sold | $49.2 |
|---|---|
| Research, development and engineering | $12.1 |
| Marketing, selling, general and administrative | $6.0 |
| Restructuring | $0.6 |
| Interest expense | $0.9 |
| Income tax | $7.7 |
| Kept as net income | $23.6 |
| Total | $100 |
Cityfort calculation from FY2025 10-K. Of every $100 that came in during FY2025 (revenue plus $1.25 billion of interest and other income): each line = line ÷ $29.6 billion × 100. Income tax includes deferred tax charges of $659 million and $407 million.
Lam Research
Where $100 went · FY2026
| Making, installing and servicing machines | $49.4 |
|---|---|
| Research and development | $10.2 |
| Selling, general and administrative | $4.9 |
| Income tax | $4.3 |
| Kept as net income | $31.2 |
| Total | $100 |
Cityfort calculation from FY2026 10-K. Of every $100 that came in during FY2026 (revenue plus net other income): each line = line ÷ $23.3 billion × 100.
Line items differ because each company groups its costs its own way in its filings. Only on Applied Materials' receipt: Cost of products sold; Research, development and engineering; Marketing, selling, general and administrative; Restructuring; Interest expense. Only on Lam Research's receipt: Making, installing and servicing machines; Research and development; Selling, general and administrative.
Revenue, net income and free cash flow
Up to five fiscal years for each company, drawn on one shared scale per measure. Amounts in US$ as reported (GAAP).
Revenue
Applied Materials
Lam Research
See the numbers
Net income
Applied Materials
Lam Research
See the numbers
Free cash flow
Applied Materials
Lam Research
See the numbers
Who pays each company
Applied Materials
- Chipmakers buying new machines (Semiconductor Systems) · 73.3% of revenueFoundries, logic chipmakers and memory makers equipping new or upgraded factories. Foundry, logic and other was 67% of this segment's FY2025 revenue, DRAM 26% and NAND 7%.
- Owners of installed machines (Applied Global Services) · 22.5% of revenueCustomers paying for service, spare parts and factory automation software.
- Display makers and others (Corporate and Other) · 4.2% of revenueDisplay equipment, $1.06 billion in FY2025, and other small businesses.
Lam Research
- Chipmakers buying new machines (systems) · 64.1% of revenueFoundries that make chips for other companies, memory makers, and logic chipmakers buying advanced equipment. Of FY2026 equipment and upgrade revenue, foundries were 54%, memory 39% and logic and other chipmakers 7%.
- Chipmakers paying for service, spares, upgrades and older tools · 35.9% of revenueCustomer support-related revenue and other: service and spare parts for installed machines, upgrades, and Reliant older-generation tools.
Revenue by segment
Applied Materials
FY2025
| Segment | Revenue | Share |
|---|---|---|
| Semiconductor Systems | $20.8B | 73.3% |
| Applied Global Services | $6.4B | 22.5% |
| Corporate and Other | $1.2B | 4.2% |
Lam Research
FY2026
| Segment | Revenue | Share |
|---|---|---|
| Systems | $14.9B | 64.1% |
| Customer support and other | $8.3B | 35.9% |
Sources: Applied Materials S1, S8, S11, S2, S3 · Lam Research S1
Debt and cash
Applied Materials
- Debt
- $6.5B
- Cash and investments
- $14.5B
On Jul 26, 2026.
At Jul 26, 2026, cash and investments of $14.5 billion exceeded debt of $6.5 billion by $8.0 billion. Debt equaled about 10 months of FY2025 cash from operations.
Lam Research
- Debt
- $3.7B
- Cash and investments
- $7.4B
On Sep 27, 2026.
At Sep 27, 2026 Lam's cash of $7.44 billion exceeded its debt of $3.74 billion by $3.70 billion. That debt equals about 64% of FY2026 cash from operations.
Sources: Applied Materials S5, S8, S1, S24 · Lam Research S5, S1, S7, S25
Who owns each company
Applied Materials
- One class of shares.
- BlackRock, Inc.: 9.7% (as of Dec 31, 2023).
- Vanguard Capital Management: 7.5% (as of Mar 31, 2026).
Lam Research
- One class of shares.
- Officers and directors as a group: 0.3% of shares (as of Sep 4, 2026).
- BlackRock, Inc.: 9.4% (as of Dec 31, 2023).
- Vanguard Capital Management: 7.5% (as of Mar 31, 2026).
Sources: Applied Materials S5, S16, S17, S18 · Lam Research S16, S5, S18, S19
Risks only one page tracks
Risks whose type the other company's page does not list. Both pages track risks of these types: demand, regulation, customer or supplier concentration, competition, execution. Every risk is on each company's page.
Applied Materials
- Export settlement terms and other inquiries (legal cases)Under the Feb 2026 BIS settlement Applied must run export-compliance audits; a suspended denial order is waived after three years if they are completed. The FY2025 10-K also discloses Justice Department subpoenas about federal award applications.
- Investment gains and losses move net income (other)Interest and other income was $1.25 billion in FY2025, mainly gains on equity investments, while Q3 FY2026 included a $220 million unrealized loss. Applied agreed on Oct 26, 2026 to raise its Besi stake to about 20%.
Lam Research
Every risk type on the Lam Research page also appears on the other page.
Key facts
- How does Applied Materials make money compared with Lam Research?
- Applied Materials' revenue by segment in FY2025: Semiconductor Systems 73.3%, Applied Global Services 22.5%, Corporate and Other 4.2%. Lam Research's revenue by segment in FY2026: Systems 64.1%, Customer support and other 35.9%.
- Which is bigger by revenue, Applied Materials or Lam Research?
- Applied Materials reported $28.4B of revenue in FY2025, and Lam Research reported $23.2B in FY2026. The two fiscal years end in different months.
- How much net income did Applied Materials and Lam Research report?
- Applied Materials reported net income of $7.0B in FY2025, and Lam Research reported $7.3B in FY2026.
- How much of every $100 did Applied Materials and Lam Research keep as net income?
- Applied Materials kept $23.6 of every $100 that came in during FY2025, and Lam Research kept $31.2 in FY2026 (Cityfort calculation from each company's annual report).
- How much debt and cash do Applied Materials and Lam Research have?
- Applied Materials had $6.5B of debt and $14.5B of cash and investments on Jul 26, 2026. Lam Research had $3.7B of debt and $7.4B of cash and investments on Sep 27, 2026.
- When do Applied Materials' and Lam Research's fiscal years end?
- Applied Materials: Last Sunday of October. Lam Research: Last Sunday of June.
Sources: Applied Materials S3, S1, S8, S11, S2, S5, S24 · Lam Research S3, S2, S1, S5, S7, S25
Built from each company's page. Applied Materials updated Nov 6, 2026; Lam Research updated Nov 6, 2026.
Sources
Applied Materials
- S1Form 10-K, fiscal 2025 (year ended Oct 26, 2025), Applied Materials, Inc. (SEC EDGAR), Dec 12, 2025
- S2Form 10-K, fiscal 2024 (year ended Oct 27, 2024), Applied Materials, Inc. (SEC EDGAR), Dec 13, 2024
- S3Form 10-K, fiscal 2023 (year ended Oct 29, 2023), Applied Materials, Inc. (SEC EDGAR), Dec 15, 2023
- S5Form 10-Q, Q3 fiscal 2026 (quarter ended Jul 26, 2026), Applied Materials, Inc. (SEC EDGAR), Aug 20, 2026
- S8Q3 fiscal 2026 earnings release (8-K Ex. 99.1), Applied Materials, Inc. (SEC EDGAR), Aug 13, 2026
- S11Q4 and fiscal 2025 earnings release (8-K Ex. 99.1), Applied Materials, Inc. (SEC EDGAR), Nov 13, 2025
- S162026 proxy statement (DEF 14A), annual meeting Mar 12, 2026, Applied Materials, Inc. (SEC EDGAR), Jan 28, 2026
- S17Schedule 13G filed by Vanguard Capital Management for Applied Materials (event date Mar 31, 2026), Vanguard Capital Management (SEC EDGAR), Apr 29, 2026
- S18Schedule 13G/A (Amendment 11) filed by The Vanguard Group for Applied Materials (event date Mar 13, 2026), The Vanguard Group (SEC EDGAR), Mar 26, 2026
- S198-K filed Feb 12, 2026: settlement with the U.S. Commerce Department (BIS), Ex. 99.1, Applied Materials, Inc. (SEC EDGAR), Feb 12, 2026
- S208-K filed Oct 26, 2026: agreement to raise stake in BE Semiconductor Industries (Besi) to about 20%, Applied Materials, Inc. (SEC EDGAR), Oct 26, 2026
- S248-K filed Sep 19, 2025: $1.0 billion of senior notes due 2031 and 2036, Applied Materials, Inc. (SEC EDGAR), Sep 19, 2025
Lam Research
- S1Form 10-K, fiscal 2026 (year ended Jun 28, 2026), Lam Research Corporation (SEC EDGAR), Aug 7, 2026
- S2Form 10-K, fiscal 2025 (year ended Jun 29, 2025), Lam Research Corporation (SEC EDGAR), Aug 11, 2025
- S3Form 10-K, fiscal 2024 (year ended Jun 30, 2024), Lam Research Corporation (SEC EDGAR), Aug 29, 2024
- S5Form 10-Q, Q1 fiscal 2027 (quarter ended Sep 27, 2026), Lam Research Corporation (SEC EDGAR), Oct 22, 2026
- S7Q1 fiscal 2027 earnings release (8-K Exhibit 99.1), Lam Research Corporation (SEC EDGAR), Oct 21, 2026
- S162026 proxy statement (DEF 14A), Lam Research Corporation (SEC EDGAR), Sep 24, 2026
- S18Schedule 13G by Vanguard Capital Management (7.49%, as of Mar 31, 2026), SEC EDGAR, Apr 30, 2026
- S19Schedule 13G/A by The Vanguard Group (0%, event Mar 13, 2026), SEC EDGAR, Mar 27, 2026
- S25Form 8-K, Item 1.01: $2.0 billion revolving credit facility (Third Amended and Restated Credit Agreement), Lam Research Corporation (SEC EDGAR), Jan 29, 2025
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