LRCXNEUTRAL

LRCX Gross Margin Analysis

51.7%

Higher than 20% of TECHNOLOGY sector peers

Updated 197h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying for the direct costs of making its products, so a 49.8% margin means LRCX retains about 50 cents of every dollar of sales before other expenses.

Sector Performance

20th percentile

LRCX

51.7%

Sector Median

57.3%

Sector Avg

56.5%

Prior Period

49.8%(Jul 2026)

↑ Improving

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Deep Analysis

This figure sits above the sector median of 44.6%, placing LRCX in the 58th percentile among its peers, indicating average to slightly above-average profitability relative to competitors. The available historical data shows only the current value of 49.8%, with no year-over-year or quarter-over-quarter changes provided, so no trend can be assessed from the given information. With an above-median margin but no trend data, the metric suggests a stable cost structure that is neither signaling improvement nor deterioration, reducing immediate risk but also lacking momentum. This neutral level of gross margin supports the overall NEUTRAL verdict, as it does not provide a clear bullish or bearish signal on its own. Investors would need to examine other metrics and trends to gauge whether LRCX can maintain or improve its margin over time.

Frequently Asked Questions

What does the Gross Margin tell investors about LRCX?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does LRCX's Gross Margin compare to its sector?

LRCX's Gross Margin of 51.7% compares to a TECHNOLOGY sector median of 57.3%, placing it in the 20th percentile.

Who are LRCX's closest peers by Gross Margin?

The closest TECHNOLOGY peers by Gross Margin include: KLAC (61.4%), QCOM (53.1%), TXN (61.4%), NOW (70.7%), INTC (40.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.