Lam Research

Lam consistently prioritizes high‑return internal R&D, then returns a large share of free cash flow via buybacks and a growing dividend. In FY2025 the company spent about 2.10 billion dollars on R&D, repurchased about 3.41 billion dollars of stock including a 500 million dollar ASR, and paid roughly 1.15 billion dollars in dividends.

The board raised the quarterly dividend to 0.26 dollars in August 2025 and continued it in February 2026. Management has communicated a framework to return around the vast majority of free cash flow over time. Dilution from equity compensation is modest relative to repurchases.

We view M&A discipline as sound since the Novellus merger, with focus on strengthening core process modules.