LRCXNEUTRAL

LRCX Return on Equity (ROE) Analysis

65.1%

Higher than 83% of TECHNOLOGY sector peers

Updated 197h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, and LRCX's 65.1% means it earns $0.651 per dollar of equity.

Sector Performance

83th percentile

LRCX

65.1%

Sector Median

33.8%

Sector Avg

36.1%

Prior Period

66.8%(Jul 2026)

↓ Declining

📊

Deep Analysis

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, and LRCX's 65.1% means it earns $0.651 per dollar of equity.

That is well above the sector median of 33.8%, placing the company at the 83rd percentile among its technology peers. The trend data is limited: year-over-year change is not available, and the quarter-over-quarter change is -2.5%, indicating a small decline from the prior value of 66.8%. The combination of a high ROE and a slight quarterly decline suggests the company remains highly profitable but faces a minor cooling in earnings efficiency. For investors, this level implies a strong return on capital, yet the downward movement warrants attention to whether the drop continues. This mixed picture supports the overall NEUTRAL verdict, since the elevated ROE favors the positive side while the recent decline tempers any excess optimism.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about LRCX?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does LRCX's Return on Equity (ROE) compare to its sector?

LRCX's Return on Equity (ROE) of 65.1% compares to a TECHNOLOGY sector median of 33.8%, placing it in the 83th percentile.

Who are LRCX's closest peers by Return on Equity (ROE)?

The closest TECHNOLOGY peers by Return on Equity (ROE) include: QCOM (33.8%), TXN (35.2%), CSCO (27.3%), NOW (14.2%), INTC (-10.7%).

📚

Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.