{"schemaVersion":1,"research":true,"symbol":"lrcx","name":"Lam Research","topic":"moat","path":"/stock/lrcx/moat","status":"published","version":5,"updatedAt":"2026-10-19T10:37:20.888Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"Lam has an application-specific switching-cost advantage supported by substantial equipment qualification and integration requirements and demonstrated growth in installed-base support demand. This supports a narrow moat, with durability dependent on continued technical competitiveness. Technical leadership and installed-base learning remain potential reinforcements rather than separately demonstrated advantages. Pricing power is unproven: profitability has held up, but the passages disclose neither realized pricing changes nor sufficient customer pricing terms.","advantages":[{"mechanism":"switching_costs","claim":"Substantial qualification and production-line integration investments favor incumbent equipment suppliers. Lam's expanding installed base and increased spares, upgrades and services revenue demonstrate that it benefits from ongoing equipment relationships. The mechanism also protects competitors where they are incumbent.","durability":"Protection is strongest within an already qualified production-line application. Lifecycle upgrades support continued use, but the claimed extended reliance is management's assessment; no precise duration or customer-level retention history is supplied.","risks":"Technology transitions can shift demand toward applications where Lam has less presence. Regional competition, broader competing portfolios, customer alliances and export restrictions could erode access or competitiveness. These disclosures largely describe potential risks rather than demonstrated displacement.","invalidation":"The advantage would be undermined by demonstrated routine replacement of qualified Lam tools without substantial integration costs, repeated displacement within existing production applications, or sustained loss of installed-base spares, upgrade and service demand attributable to substitution rather than industry spending cycles.","competitors":[],"evidenceIds":["e1","e2","e3","e4"],"counterEvidenceIds":["e5","e6","e7","e8"]}],"evidence":[{"id":"e1","sourceId":"filing-2","location":"Risk factors / equipment qualification and incumbent supplier purchasing","excerpt":"Once a Semiconductor Manufacturer Commits to Purchase a Competitor’s Semiconductor Manufacturing Equipment, the Manufacturer Typically Continues to Purchase That Competitor’s Equipment, Making It More Difficult for Us to Sell Our Equipment to That Customer Semiconductor manufacturers must make a substantial investment to qualify and integrate wafer processing equipment into a semiconductor production line."},{"id":"e2","sourceId":"filing-2","location":"Risk factors / management assessment of application-specific equipment reliance","excerpt":"We believe that once a semiconductor manufacturer selects a particular supplier’s processing equipment, the manufacturer generally relies upon that equipment for that specific production line application for an extended period of time, especially for customers that are more focused on tool reuse."},{"id":"e3","sourceId":"filing-2","location":"MD&A / March 2026 revenue, profitability and installed-base support growth","excerpt":"Lam Research Corporation 2026 Q3 10-Q 18 Table of Contents The following table summarizes certain key financial information for the periods indicated below: Three Months Ended March 29, 2026 December 28, 2025 (in thousands, except per share data and percentages) Revenue $ 5,841,488 $ 5,344,791 Gross margin $ 2,910,527 $ 2,651,162 Gross margin as a percent of total revenue 49.8 % 49.6 % Total operating expenses $ 863,511 $ 840,959 Net income $ 1,825,460 $ 1,593,994 Diluted net income per share $ 1.45 $ 1.26 In the March 2026 quarter, revenue increased 9% compared to the three months ended December 28, 2025 (the “December 2025 quarter”), driven by an increase in systems revenue primarily resulting from increased customer investments in the DRAM market segment as well as an increase in customer support-related revenue mainly tied to our expanding installed base and higher spares, upgrades and services revenue, partially offset by decreased customer spend on non-leading-edge equipment."},{"id":"e4","sourceId":"filing-4","location":"Business / upgrades extending existing fabrication-line capabilities","excerpt":"Many of the technical advances that we introduce in our newest products are also available as upgrades, which provide customers with a cost-effective strategy for extending the performance and capabilities of their existing wafer fabrication lines."},{"id":"e5","sourceId":"filing-1","location":"Risk factors / alternative processes potentially reducing customer reliance","excerpt":"Moreover, customers may adopt new technologies or processes to address the complex challenges associated with next-generation devices, or may adopt new technologies, including those based upon AI, that reduce their reliance on us for process development."},{"id":"e6","sourceId":"filing-2","location":"Risk factors / competing supplier relationships with semiconductor manufacturers","excerpt":"We face a greater risk if our competitors enter into strategic relationships with leading semiconductor manufacturers covering products similar to those we sell or may develop, as this could adversely affect our ability to sell products to those manufacturers."},{"id":"e7","sourceId":"filing-2","location":"Risk factors / competing suppliers' financial resources and product breadth","excerpt":"Certain of our competitors, including those that are created and financially backed by foreign governments, have substantially greater financial resources and more extensive engineering, manufacturing, marketing, and customer service and support resources than we do and therefore have the potential to offer customers a more comprehensive array of products and/or product capabilities and to therefore achieve additional relative success in the semiconductor equipment industry."},{"id":"e8","sourceId":"filing-1","location":"Risk factors / product concentration, competition and export restrictions","excerpt":"Our business, results of operations, financial condition, and cash flows could therefore be adversely affected by: •a decline in demand for even a limited number of our products; •a failure to achieve continued market acceptance of our key products; •export restrictions or other regulatory or legislative actions that could limit our ability to sell those products to key customers or customers within certain markets; •an improved version of products being offered by a competitor in the markets in which we participate; •increased pressure from competitors that offer broader product lines; •increased pressure from regional competitors; •technological changes that we are unable to address with our products; •slower than anticipated development of various target markets that utilize new technologies; or •a failure to release new or enhanced versions of our products on a timely basis."},{"id":"e9","sourceId":"filing-1","location":"Business / asserted opportunities for sustainable differentiation","excerpt":"Several factors create opportunity for sustainable differentiation for us: (i) our focus on research and development, with several on-going programs relating to sustaining engineering, product and process development, and concept and feasibility; (ii) our ability to effectively leverage cycles of learning from our broad installed base; (iii) our collaborative focus with semi-ecosystem partners, including our close-to-customer focus; (iv) our ability to Lam Research Corporation 2026 10-K 4 Table of Contents identify and invest in the breadth of our product portfolio to meet technology inflections; and (v) our focus on delivering our multi-product solutions with a goal to enhance the value of Lam’s solutions to our customers."},{"id":"e10","sourceId":"filing-1","location":"Risk factors / attempted cost pass-through and uncertain customer response","excerpt":"Although we are endeavoring to pass along some of the impact of increased costs to our customers to counteract adverse impacts to our gross margins and other results of operations, such measures could be unsuccessful, or could have the effect of reducing demand for our products or services, which would adversely impact our revenue or market share."},{"id":"e11","sourceId":"filing-3","location":"Appendix / fiscal 2022–2026 operating margin reconciliation","excerpt":"GAAP operating income as percent of revenue 35.3 % 32.0 % 28.6 % 29.7 % 31.2 % Non-GAAP operating income as a percent of revenue 35.8 % 32.3 % 30.3 % 30.7 % 31.3 % Calendar Year 2025 U.S."},{"id":"e12","sourceId":"filing-2","location":"Liquidity and capital resources / actual cash generation and uses","excerpt":"The decrease was primarily driven by $3.60 billion of share repurchases, including net share settlement on employee stock-based compensation and excise tax; $945.3 million in dividends paid; $777.6 million in capital expenditures, and $754.1 million of principal payments on debt instruments and debt issuance costs, partially offset by cash generated from operating activities totaling $4.40 billion."},{"id":"e13","sourceId":"filing-1","location":"MD&A / fiscal 2026 and 2025 operating cash flows","excerpt":"Net cash provided by operating activities of $5.86 billion and $6.17 billion during fiscal year 2026 and 2025, respectively, consisted of:"},{"id":"e14","sourceId":"filing-1","location":"Commitments / purchase obligations at June 28, 2026","excerpt":"The Company’s commitments related to these agreements as of June 28, 2026, were as follows: Payments Due by Fiscal Year: Purchase Obligations (in thousands) 2027 $ 1,056,893 2028 174,260 2029 71,719 2030 61,397 2031 37,185 Thereafter 79,741 Total $ 1,481,195 Transition Tax Liability On December 22, 2017, the “Tax Cuts & Jobs Act” was signed into law."},{"id":"e15","sourceId":"filing-2","location":"Note 4 / recognized equity compensation expense","excerpt":"The Company recognized the following equity-based compensation expense (including expense related to the employee stock purchase plan) in the Condensed Consolidated Statements of Operations: Three Months Ended Nine Months Ended March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025 (in thousands) Equity-based compensation expense $ 96,616 $ 87,115 $ 282,396 $ 249,085 Lam Research Corporation 2026 Q3 10-Q 10 Table of Contents NOTE 5 — OTHER INCOME (EXPENSE), NET The significant components of other income (expense), net, are as follows: Three Months Ended Nine Months Ended March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025 (in thousands) Interest income $ 42,639 $ 50,638 $ 159,724 $ 176,698 Interest expense (39,333) (45,184) (122,681) (135,429) (Losses) gains on deferred compensation plan-related assets, net (27,265) (16,903) 12,451 5,019 Foreign exchange losses, net (1,050) (4,702) (14,618) (19,505) Other, net (10,451) (8,884) (13,852) (7,475) $ (35,460) $ (25,035) $ 21,024 $ 19,308 NOTE 6 — INCOME TAX EXPENSE The Company’s provision for income taxes and effective tax rate are as follows: Three Months Ended Nine Months Ended March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025 (in thousands, except percentages) Income tax expense $ 186,096 $ 206,057 $ 719,217 $ 541,019 Effective tax rate 9.3 % 13.4 % 12.6 % 12.9 % The difference between the U.S."},{"id":"e16","sourceId":"filing-3","location":"Executive compensation / February 2026 grants actually made","excerpt":"dollar value. On February 27, 2026, the committee made a grant under the 2026/2028 LTIP of Market-based PRSUs and service-based RSUs, on the terms set forth in the tables titled “2026/2028 LTIP Equity Vehicles” and “2026/2028 Market-based PRSU Performance Parameters” above, with a combined value equal to the NEO’s total target award opportunity, as determined by the committee and shown below."},{"id":"e17","sourceId":"filing-3","location":"Executive compensation / ownership guidelines and qualified compliance disclosure","excerpt":"Stock Ownership Guidelines (Page 43) – We have stock ownership guidelines for each of our executive officers and certain other senior executives; each of our named executive officers has met their individual ownership level under the current program or has a period of time remaining under the guidelines to do so."},{"id":"e18","sourceId":"filing-3","location":"Executive compensation / actual calendar 2025 incentive funding outcome","excerpt":"(2) The Funding Factor resulted in AIP funding at 250.0% of target award opportunity for the calendar year (based on the actual non-GAAP operating margin results and the specific goal detailed under “ – 2025 Annual Incentive Program Funding Factor, Corporate Performance Factor, and Profitability Performance Factor” above)."},{"id":"e19","sourceId":"filing-3","location":"Corporate governance / current board independence","excerpt":"Our corporate governance structure includes: •Independent Board: All of the Company’s current Board members are independent except for the CEO."},{"id":"e20","sourceId":"filing-3","location":"Corporate governance / independent standing committees","excerpt":"•Independent Committees: Each of the Board’s three key standing committees—the audit committee, the compensation and human resources committee, and the nominating and governance committee—are comprised solely of independent directors."},{"id":"e21","sourceId":"filing-3","location":"Corporate governance / separate CEO and independent chair","excerpt":"•Independent Board Leadership: The Company maintains separate CEO and Board chair roles, and the Board chair is currently an independent director."},{"id":"e22","sourceId":"filing-3","location":"Compensation recovery policy / mandatory restatement-related recoupment","excerpt":"Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which we must recoup, on a pre-tax basis, the excess amount of incentive-based compensation granted, earned, or vested wholly or in part on the attainment of any financial reporting measure during the three completed fiscal years immediately preceding the date on which the Company is required to prepare a restatement."},{"id":"e23","sourceId":"filing-2","location":"Risk factors / acknowledged instances of ineffective compliance procedures","excerpt":"There have been, and may continue to be, instances of our compliance policies and procedures not being effective to ensure full compliance with all of the laws, rules and regulations to which we are subject, which non-compliance has presented and may present risks to our business, including potential fines, restrictions on our actions, and reputational damage."},{"id":"e24","sourceId":"filing-2","location":"Segment reconciliation / comparative revenue, R&D spending and pretax income","excerpt":"The table below reconciles the Company's reportable segment to income before income taxes: Three Months Ended Nine Months Ended March 29, 2026 March 30, 2025 March 29, 2026 March 30, 2025 (In thousands) Revenue $ 5,841,488 $ 4,720,175 $ 16,510,452 $ 13,264,198 Installation and warranty expense 164,334 135,170 446,139 384,265 Other cost of goods sold (COGS) (1) 2,671,667 2,224,119 7,542,513 6,308,606 Segment COGS 2,836,001 2,359,289 7,988,652 6,692,871 Segment gross margin 3,005,487 2,360,886 8,521,800 6,571,327 Reconciliation to consolidated gross margin All other COGS 94,960 47,200 275,232 181,977 Gross margin 2,910,527 2,313,686 8,246,568 6,389,350 Research and development 583,200 525,904 1,732,951 1,516,209 Selling, general, and administrative 280,311 226,023 827,310 713,301 Other income (expense), net (35,460) (25,035) 21,024 19,308 Income before income taxes $ 2,011,556 $ 1,536,724 $ 5,707,331 $ 4,179,148 (1)Other COGS is primarily comprised of the capitalized cost of inventory sold, including both direct and indirect costs, but excludes installation and warranty expense and those items not allocated to the segment."},{"id":"completion-081a8e281e4c-e1","sourceId":"filing-1","location":"Cost pass-through discussion","excerpt":"Although we are endeavoring to pass along some of the impact of increased costs to our customers to counteract adverse impacts to our gross margins and other results of operations, such measures could be unsuccessful, or could have the effect of reducing demand for our products or services, which would adversely impact our revenue or market share."},{"id":"completion-081a8e281e4c-e2","sourceId":"filing-1","location":"Revenue recognition: customer contracts","excerpt":"Revenue Recognition: We generally consider documentation of terms with an approved purchase order as a customer contract, provided that collection is considered probable, which is assessed based on the creditworthiness of the customer as determined by credit checks, payment histories, and/or other circumstances."},{"id":"completion-081a8e281e4c-e3","sourceId":"filing-1","location":"Revenue recognition: fixed consideration and contractual discounts","excerpt":"Fixed consideration includes amounts to be contractually billed to the customer while variable consideration includes estimates for discounts and credits for future usage which are based on contractual terms outlined in volume purchase agreements and other factors known at the time."},{"id":"completion-081a8e281e4c-e4","sourceId":"filing-1","location":"Revenue recognition: service contract periods","excerpt":"Revenue from services is recognized over time as services are completed or ratably over the contractual period of generally one year or less."},{"id":"completion-081a8e281e4c-e5","sourceId":"filing-1","location":"Remaining customer contract durations at June 28, 2026","excerpt":"duration of less than one year. Additionally, outstanding customer contracts with remaining durations more than one year are not material as of June 28, 2026."},{"id":"completion-081a8e281e4c-e6","sourceId":"filing-2","location":"Equipment qualification and integration investment","excerpt":"Once a Semiconductor Manufacturer Commits to Purchase a Competitor’s Semiconductor Manufacturing Equipment, the Manufacturer Typically Continues to Purchase That Competitor’s Equipment, Making It More Difficult for Us to Sell Our Equipment to That Customer Semiconductor manufacturers must make a substantial investment to qualify and integrate wafer processing equipment into a semiconductor production line."},{"id":"completion-081a8e281e4c-e7","sourceId":"filing-2","location":"Supplier reliance for production line applications","excerpt":"We believe that once a semiconductor manufacturer selects a particular supplier’s processing equipment, the manufacturer generally relies upon that equipment for that specific production line application for an extended period of time, especially for customers that are more focused on tool reuse."},{"id":"completion-081a8e281e4c-e8","sourceId":"filing-1","location":"Installed equipment upgrades","excerpt":"Many of the technical advances that we introduce in our newest products are also available as upgrades, which provide customers with a cost-effective strategy for extending the performance and capabilities of their existing wafer fabrication lines."},{"id":"completion-081a8e281e4c-e9","sourceId":"filing-1","location":"Ongoing service relationships","excerpt":"We maintain ongoing service relationships with our customers and have an extensive network of service engineers in place throughout the United States (“U.S.”), China, Europe, India, Japan, Korea, Southeast Asia, and Taiwan."},{"id":"completion-081a8e281e4c-e10","sourceId":"filing-2","location":"March 2026 quarterly results and revenue drivers","excerpt":"Lam Research Corporation 2026 Q3 10-Q 18 Table of Contents The following table summarizes certain key financial information for the periods indicated below: Three Months Ended March 29, 2026 December 28, 2025 (in thousands, except per share data and percentages) Revenue $ 5,841,488 $ 5,344,791 Gross margin $ 2,910,527 $ 2,651,162 Gross margin as a percent of total revenue 49.8 % 49.6 % Total operating expenses $ 863,511 $ 840,959 Net income $ 1,825,460 $ 1,593,994 Diluted net income per share $ 1.45 $ 1.26 In the March 2026 quarter, revenue increased 9% compared to the three months ended December 28, 2025 (the “December 2025 quarter”), driven by an increase in systems revenue primarily resulting from increased customer investments in the DRAM market segment as well as an increase in customer support-related revenue mainly tied to our expanding installed base and higher spares, upgrades and services revenue, partially offset by decreased customer spend on non-leading-edge equipment."},{"id":"completion-081a8e281e4c-e11","sourceId":"filing-7","location":"Systems and customer support revenue: June 2026, March 2026 and June 2025 quarters; thousands of dollars","excerpt":"Revenue \nThe geographic distribution of revenue during the June 2026 quarter is shown in the following table:\nRegion\nRevenue\nTaiwan\n27%\nChina\n26%\nKorea\n20%\nJapan\n9%\nUnited States\n9%\nSoutheast Asia\n5%\nEurope\n4%\nThe following table presents revenue disaggregated between systems and customer support-related revenue:\nThree Months Ended\nJune 28,\n2026\nMarch 29,\n2026\nJune 29,\n2025\n(In thousands)\nSystems revenue\n$\n4,249,848 \n$\n3,730,582 \n$\n3,437,625 \nCustomer support-related revenue and other\n2,472,390 \n2,110,906 \n1,733,768 \n$\n6,722,238 \n$\n5,841,488 \n$\n5,171,393 \nSystems revenue includes sales of new leading-edge equipment in deposition, etch and other wafer fabrication markets."},{"id":"completion-081a8e281e4c-e12","sourceId":"filing-7","location":"June 2026 quarterly GAAP results","excerpt":"GAAP Financial Results\nFor the June 2026 quarter, revenue was $6.72 billion, gross margin was $3.48 billion, or 51.7% of revenue, operating expenses were $965.3 million, operating margin was 37.4% of revenue, and net income was $2.28 billion, or $1.81 per diluted share on a U.S."},{"id":"completion-081a8e281e4c-e13","sourceId":"filing-7","location":"March 2026 quarterly GAAP comparison","excerpt":"GAAP basis. This compares to revenue of $5.84 billion, gross margin of $2.91 billion, or 49.8% of revenue, operating expenses of $863.5 million, operating margin of 35.0% of revenue, and net income of $1.83 billion, or $1.45 per diluted share, for the quarter ended March 29, 2026 (the “March 2026 quarter”)."},{"id":"completion-081a8e281e4c-e14","sourceId":"filing-1","location":"Fiscal 2026 quarterly share repurchases; thousands except per-share data","excerpt":"Repurchases under the repurchase program were as follows during the periods indicated: Period Total Number of Shares Repurchased Total Cost of Repurchase (1) Average Price Paid Per Share (1,2) Amount Available Under Repurchase Program (in thousands, except per share data) Available balance as of June 29, 2025 $ 7,517,184 Quarter ended September 28, 2025 9,686 (3) $ 990,046 $ 105.67 $ 6,527,138 Quarter ended December 28, 2025 9,387 $ 1,442,095 $ 153.62 $ 5,085,043 Quarter ended March 29, 2026 3,516 (3) $ 796,378 $ 210.57 $ 4,288,665 Quarter ended June 28, 2026 811 (3) $ 245,941 $ 325.14 $ 4,042,724 (1) The Company’s net share repurchases are subject to a 1% excise tax under the Inflation Reduction Act."},{"id":"completion-081a8e281e4c-e15","sourceId":"filing-1","location":"Purchase obligations at June 28, 2026; thousands of dollars","excerpt":"The Company’s commitments related to these agreements as of June 28, 2026, were as follows: Payments Due by Fiscal Year: Purchase Obligations (in thousands) 2027 $ 1,056,893 2028 174,260 2029 71,719 2030 61,397 2031 37,185 Thereafter 79,741 Total $ 1,481,195 Transition Tax Liability On December 22, 2017, the “Tax Cuts & Jobs Act” was signed into law."},{"id":"completion-081a8e281e4c-e16","sourceId":"filing-3","location":"Calendar 2025 annual incentive funding based on actual results","excerpt":"(2) The Funding Factor resulted in AIP funding at 250.0% of target award opportunity for the calendar year (based on the actual non-GAAP operating margin results and the specific goal detailed under “ – 2025 Annual Incentive Program Funding Factor, Corporate Performance Factor, and Profitability Performance Factor” above)."},{"id":"completion-081a8e281e4c-e17","sourceId":"filing-3","location":"February 27, 2026 LTIP grants","excerpt":"dollar value. On February 27, 2026, the committee made a grant under the 2026/2028 LTIP of Market-based PRSUs and service-based RSUs, on the terms set forth in the tables titled “2026/2028 LTIP Equity Vehicles” and “2026/2028 Market-based PRSU Performance Parameters” above, with a combined value equal to the NEO’s total target award opportunity, as determined by the committee and shown below."},{"id":"completion-081a8e281e4c-e18","sourceId":"filing-3","location":"Relative TSR measurement beginning with the 2025/2027 LTIP","excerpt":"Starting with our 2025/2027 LTIP, the committee began measuring relative TSR performance by the percentile ranking of our TSR relative to the TSRs for the companies making up the index."},{"id":"completion-081a8e281e4c-e19","sourceId":"filing-3","location":"Qualified retirement: performance-based vesting provisions","excerpt":"For Market-based PRSUs granted to NEOs under our 2026/2028 LTIP, upon a Qualified Retirement prior to the Performance Vesting Date (as defined in the award agreement), the Market-based PRSUs remain outstanding and continue to be eligible to vest on the original Performance Vesting Date, with vesting determined based on actual Company performance over the full performance period, as if the NEO had remained employed through the Performance Vesting Date, subject to the NEO’s continued compliance with all restrictive covenants to which he or she is subject as of the Performance Vesting Date."},{"id":"completion-081a8e281e4c-e20","sourceId":"filing-3","location":"Corporate governance highlights as of September 24, 2026","excerpt":"ü ü ü ü ü ü ü 4 Corporate Governance Highlights Board and Other Governance Information As of September 24, 2026 Size of Board as Nominated 10 Number of Independent Nominated Directors 9 Number of Nominated Directors Who Attended ≥75% of Meetings 10 Number of Nominated Directors on More Than Four Public Company Boards 0 Number of Nominated Non-Employee Executive Officer Directors Who Are on More Than Two Public Company Boards 0 Limitations on Director Commitments, Including Other Board and Committee Memberships and Leadership, With Commitments Evaluated Annually (Page 15) Yes Directors Subject to Stock Ownership Guidelines (Page 15) Yes Hedging and Pledging Prohibited (Page 43) Yes Annual Election of All Directors (Page 67) Yes Voting Standard (Page 67) Majority of votes cast(1) Plurality Voting Carveout for Contested Elections Yes Separate Chair and CEO Yes Independent Board Chair (Page 14) Yes Independent Directors Meet Without Management Present (Page 14) Yes Annual Board (Including Individual Director) and Committee Self-Evaluations (Page 12) Yes Annual Independent Director Evaluation of CEO (Page 17) Yes Risk Oversight by Full Board and Committees (Page 18) Yes Board Refreshment (Page 12) Yes Robust Director Nomination Process (Page 13) Yes Significant Board Engagement (Page 17) Yes Board Orientation/Education Program (Page 13) Yes Code of Ethics Applicable to Directors (Page 11) Yes Stockholder Proxy Access (Pages 14, 88) Yes Stockholder Right to Act by Written Consent Yes Stockholder Right to Call a Special Meeting Yes Stockholder Engagement Program (Page 20) Yes Poison Pill No Board Oversight of Environmental, Social and Governance (Including Climate), Human Capital, Information Security (Including Cybersecurity) & Political Activities (Page 17) Yes Publication of Annual Global Impact Report aligned with GRI, SASB, and TCFD(2) standards (Pages 7, 24) Yes (1) A nominee will be elected as a director at the annual meeting only if the votes cast for such nominee’s election exceed the votes cast against such nominee’s election."},{"id":"completion-081a8e281e4c-e21","sourceId":"filing-3","location":"Independence of key standing committees","excerpt":"•Independent Committees: Each of the Board’s three key standing committees—the audit committee, the compensation and human resources committee, and the nominating and governance committee—are comprised solely of independent directors."},{"id":"completion-081a8e281e4c-e22","sourceId":"filing-3","location":"Audit committee oversight of related-party transactions","excerpt":"The audit committee is responsible for the review and oversight of all related party transactions required to be disclosed to the public under SEC rules and approves or ratifies such transactions pursuant to its written charter."},{"id":"completion-081a8e281e4c-e23","sourceId":"filing-3","location":"Unachieved customer emissions-target goal","excerpt":"(2) Lam did not achieve its goal of 83% of its customers measured by emissions having set SBTs by 2025."},{"id":"completion-081a8e281e4c-e24","sourceId":"filing-1","location":"Actual and potential effects of trade restrictions","excerpt":"Regulations that impact trade, including tariffs, export controls, additional taxes, trade barriers, sanctions, the termination or modification of trade agreements, trade zones, and other duty mitigation initiatives, and any reciprocal retaliatory actions, can increase our manufacturing costs, decrease margins, reduce the competitiveness of our products, disrupt our supply chain operations, or inhibit our ability to sell products or provide services, all of which has had and in the future could have a material adverse effect on our business, results of operations, or financial condition."},{"id":"completion-081a8e281e4c-e25","sourceId":"filing-1","location":"Competition and technological substitution risks","excerpt":"We face significant competition from multiple competitors, and our competitors may be able to develop products comparable or superior to those we offer or may adapt more quickly to new technologies or evolving customer requirements."}],"changes":["Retain the previous narrow switching-cost verdict; qualification requirements and installed-base support growth continue to substantiate it.","Add criterion-level assessments supported by actual capital deployment, operating results and the supplied September 2026 proxy disclosures.","Keep realized pricing and contractual freedom ungraded: attempted cost pass-through does not demonstrate successful price realization."],"limitations":["All supplied evidence is issuer-sourced. Qualification requirements and reported operating results support assessment, but technical superiority and extended customer reliance are partly management assertions.","No competitors are identified by company name in the supplied competitive passages; competitor coverage cannot be established and the competitor array is empty.","No customer-level retention rates, replacement frequency, qualification-cost amounts, comparative market shares or demonstrated pricing changes are supplied.","Pricing clauses, repricing rights and termination terms are insufficient to assess contractual pricing freedom. Deferred revenue does not establish those rights.","The proxy supplies actual grants, incentive outcomes and governance policies, but not the detailed individual ownership balances or full incentive weightings needed to establish exceptional alignment. Ownership compliance includes executives still within their permitted compliance periods.","Source dates retain dateKind filed: filing-1 August 7, 2026; filing-2 April 23, 2026; filing-3 September 24, 2026; filing-4 August 11, 2025. These are filing dates, not retrieval or assumed publication dates. November 2026 voting proposals are not treated as completed votes.","Generic competitive and regulatory risks are potential erosion channels, not proof of realized competitive weakness. Acknowledged past compliance shortcomings are actual adverse evidence, although their severity is unspecified."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":3,"rationale":"Substantial qualification and integration requirements create a concrete incumbent advantage, corroborated by Lam's installed-base support growth. This is application-specific and also benefits incumbent competitors.","evidenceIds":["e1","e3"]},{"criterion":"durability","grade":2,"rationale":"Lifecycle upgrades and management's extended-reliance assessment support persistence within qualified applications. Technology substitution and the absence of measured retention duration limit confidence across technology generations.","evidenceIds":["e2","e4","e5"]},{"criterion":"customer_dependency","grade":3,"rationale":"Qualification investment and increased spares, upgrades and services demand support meaningful operational dependency. Repeat demand is assessed indirectly from operating evidence, without a fabricated retention rate or claim of customer exclusivity.","evidenceIds":["e1","e3","e4"]},{"criterion":"erosion_resilience","grade":2,"rationale":"Installed-base support growth shows continued relevance, but supplier alliances, competing resources and alternative processes leave resilience across future transitions unproven. Disclosed learning advantages are management assertions.","evidenceIds":["e3","e5","e6","e7","e9"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":null,"rationale":"Lam reports attempting to pass through higher costs, but supplies no realized pricing outcome. Revenue growth and margins cannot isolate price from volume, mix or efficiency.","evidenceIds":["e10","e3"]},{"criterion":"retention","grade":3,"rationale":"Higher installed-base spares, upgrades and services revenue, together with substantial qualification friction, supports demonstrated repeat demand. This is indirect retention evidence and does not establish willingness to accept higher prices.","evidenceIds":["e1","e2","e3"]},{"criterion":"margin_resilience","grade":3,"rationale":"GAAP operating margins remained between 28.6% and 35.3% across fiscal 2022–2026, recovering after declines, while March 2026 gross margin held near the preceding quarter. This supports resilience across changing demand conditions, without attributing it solely to pricing.","evidenceIds":["e11","e3","e10"]},{"criterion":"contractual_freedom","grade":2,"rationale":"Approved purchase orders establish contracts with fixed billings and volume-agreement discounts or credits, demonstrating constraints on agreed consideration. Services generally run one year or less, and outstanding contracts longer than one year were immaterial at June 28, 2026, limiting long-duration exposure. Unilateral repricing rights and the ability to change existing terms are undisclosed.","evidenceIds":["completion-081a8e281e4c-e2","completion-081a8e281e4c-e3","completion-081a8e281e4c-e4","completion-081a8e281e4c-e5"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"Substantial operating cash generation supported investment, shareholder returns and debt repayment. 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