LRCX · 10-K · 2026A · Full report

Operating Expense Trends

LAM RESEARCH CORP · 2026-08-07 · Importance 49 · Surprise 22 · In source text

Total operating expenses increased $447.4 million, or 14.5%, to $3.526 billion in fiscal 2026 from $3.078 billion in fiscal 2025. Research and development expense increased $279.5 million, or 13.3%, to $2.376 billion, while R&D expense as a percentage of revenue declined 120 basis points to 10.2%. R&D growth included $131.4 million of employee-related costs from increased headcount and $69.8 million of higher engineering supplies expense. SG&A increased $167.9 million, or 17.1%, to $1.150 billion, primarily because additional headcount increased employee-related costs by $180.0 million.

Key facts

• SG&A expense for fiscal year 2026: $1,149,640 (in thousands), a 17.1% increase versus fiscal year 2025 source
• Total operating expenses for fiscal year 2026: $3,525,513 (in thousands) source
• Gains on deferred compensation plan related assets, net were $73,776 (in thousands) in fiscal year 2026 versus $39,121 (in thousands) in fiscal year 2025, an increase of $34,655 (88.6%) source
• Other, net was $(20,321) (in thousands) in fiscal year 2026 versus $(8,676) (in thousands) in fiscal year 2025, change of $(11,645) (134.2%) primarily driven by fluctuations in the fair market value of equity investments source
• Total operating expenses for fiscal year 2025: $3,078,091 (in thousands) source
• SG&A percent of revenue decreased to 4.9% in fiscal year 2026 from 5.3% in fiscal year 2025 (-40 bps) source
• Increase in SG&A expense during fiscal year 2026 was mainly driven by an increase of $180.0 million in employee-related costs as a result of additional headcount source
• Increase in operating expenses in fiscal year 2026 was primarily due to employee-related costs from increased headcount and higher supplies spending for research and development source

Impact estimates