Lam Research (LRCX) risk factors, FY2026 10-K

Lam Research's FY2026 10-K, filed Aug 07, 2026, lists 19 risk factors in 4 groups. Against the prior year's 27: 1 new, 9 dropped, 13 substantially reworded.

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Risk factors listed
194 groups
New this year
1vs 27 last year
Dropped
9since the prior 10-K
Substantially reworded
13of those kept
Section length
14k wordsItem 1A

What the changes say

  • AI use is newly identified across R&D, manufacturing, servicing, supply chain, sales, marketing, compliance, products, and services.
  • International sales remained 93% of revenue in fiscal 2026, 2025, and 2024, while field and manufacturing hiring needs intensified.
  • Regulatory exposure now emphasizes national and economic security, designated technologies, taxes, data protection, and privacy.
  • Lam now highlights dependence on third-party technology licensed or incorporated into its products and services.

What changed since the prior 10-K

New

  • NewBUSINESS AND OPERATIONAL RISKS

    We Use Artificial Intelligence in Our Business, and Challenges with Properly Managing Its Use Could Result in Reputational Harm, Competitive Harm, and Legal Liability, and Materially and Adversely Affect Our Results of Operations

    Expanded use of internally developed and third-party AI, including agentic AI, could fail, disrupt product delivery, or create reputational, competitive, and legal harm.

Dropped

  • DroppedINDUSTRY AND CUSTOMER RISKS

    Lam Research Corporation 2025 10-K 12

    Continued R&D spending, acquisitions, technology investments, and joint development relationships could create operational and financial risks.

  • DroppedBUSINESS AND OPERATIONAL RISKS

    Lam Research Corporation 2025 10-K 16

  • DroppedBUSINESS AND OPERATIONAL RISKS

    Lam Research Corporation 2025 10-K 17

  • DroppedBUSINESS AND OPERATIONAL RISKS

    Lam Research Corporation 2025 10-K 18

  • DroppedBUSINESS AND OPERATIONAL RISKS

    Epidemics, Pandemics or Outbreaks of Diseases May Adversely Impact Our Business, Operations, and Financial Results

  • DroppedBUSINESS AND OPERATIONAL RISKS

    Lam Research Corporation 2025 10-K 20

  • DroppedLEGAL, REGULATORY AND TAX RISKS

    Lam Research Corporation 2025 10-K 21

    International operations faced trade rules, tariffs, export controls, political conditions, currency controls, and financially constrained customers or suppliers.

  • DroppedLEGAL, REGULATORY AND TAX RISKS

    Lam Research Corporation 2025 10-K 22

    Hedging could be ineffective if actual exposures differ in timing from forecasts, leaving Lam over- or under-hedged.

  • DroppedFINANCIAL, ACCOUNTING AND CAPITAL MARKETS RISKS

    Lam Research Corporation 2025 10-K 24

    Single- or limited-source components and sub-assemblies could disrupt production if suppliers fail.

Reworded

  • 99% rewrittenBUSINESS AND OPERATIONAL RISKS

    Our Future Success Depends Heavily on International Sales and the Management of Global Operations

    The reported period shifted forward: non-U.S. sales were 93% of revenue in fiscal 2026, 2025, and 2024, versus 93%, 93%, and 91% previously.

  • 66% rewrittenLEGAL, REGULATORY AND TAX RISKS

    We Are Exposed to Various Risks from Our Regulatory Environment

    The regulatory discussion now specifically highlights national and economic security, designated technologies, taxes, data protection, and privacy.

  • 56% rewrittenBUSINESS AND OPERATIONAL RISKS

    Our Ability to Attract, Retain, and Motivate Key Employees Is Critical to Our Success

    Lam added that it is actively hiring field and manufacturing personnel, with intense competition potentially hindering operating and strategic goals.

  • 54% rewrittenBUSINESS AND OPERATIONAL RISKS

    We May Fail to Protect Our Critical Proprietary Technology Rights, Which Could Affect Our Business

    The risk now includes proprietary technology licensed from or incorporated from others, plus contractual confidentiality protections.

  • 53% rewrittenFINANCIAL, ACCOUNTING AND CAPITAL MARKETS RISKS

    If One or More of Our Counterparty Financial Institutions Default on Their Obligations To Us or Fail, We May Incur Significant Losses

    The text now expressly includes financial-market volatility alongside economic downturns and uncertainty as factors heightening counterparty risk.

  • 49% rewrittenBUSINESS AND OPERATIONAL RISKS

    Our Revenues and Results of Operations Are Variable

    The wording now focuses on fluctuating results of operations and omits the prior explicit reference to gross profit levels.

    Was: Our Revenues and Operating Results Are Variable

  • 44% rewrittenLEGAL, REGULATORY AND TAX RISKS

    Our Financial Results May Be Adversely Impacted by Higher than Expected Tax Rates or Exposure to Additional Tax Liabilities

    No substantive change; the risk remains higher worldwide tax rates, audits, changing tax laws, and additional tax liabilities.

  • 37% rewrittenLEGAL, REGULATORY AND TAX RISKS

    Increasing and Evolving Environmental Regulations May Adversely Affect Our Results of Operations

    No substantive change; PFAS regulation, hazardous-substance compliance, fines, remediation, production suspension, and customer acceptance remain central concerns.

    Was: Increasing and Evolving Environmental Regulations May Adversely Affect Our Operating Results

  • 35% rewrittenINDUSTRY AND CUSTOMER RISKS

    We Face a Challenging and Complex Competitive Environment

  • 28% rewrittenFINANCIAL, ACCOUNTING AND CAPITAL MARKETS RISKS

    Our Leverage and Debt Service Obligations May Adversely Affect Our Financial Condition and Results of Operations

    Was: Our Leverage and Debt Service Obligations May Adversely Affect Our Financial Condition, Results of Operations, and Earnings per Share

  • 26% rewrittenFINANCIAL, ACCOUNTING AND CAPITAL MARKETS RISKS

    When evaluating goodwill, if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test is performed and we may be required to record an impairment charge in that period, which could adversely affect our result of operations

  • 22% rewrittenBUSINESS AND OPERATIONAL RISKS

    We Face Risks Related to the Disruption of Our Primary Manufacturing and R&D Facilities

  • 21% rewrittenFINANCIAL, ACCOUNTING AND CAPITAL MARKETS RISKS

    There Can Be No Assurance That We Will Continue to Declare Cash Dividends or Repurchase Our Shares at All or in Any Particular Amounts

All 19 risk factors

Headings as the filing states them, in filing order.

INDUSTRY AND CUSTOMER RISKS

  1. 01We Face a Challenging and Complex Competitive Environment35% rewritten
  2. 02We Have a Limited Number of Key Customers
  3. 03Strategic Alliances and Customer Consolidation May Have Negative Effects on Our Business

BUSINESS AND OPERATIONAL RISKS

  1. 04Our Revenues and Results of Operations Are Variable49% rewritten
  2. 05We Use Artificial Intelligence in Our Business, and Challenges with Properly Managing Its Use Could Result in Reputational Harm, Competitive Harm, and Legal Liability, and Materially and Adversely Affect Our Results of OperationsNew
  3. 06Our Future Success Depends Heavily on International Sales and the Management of Global Operations99% rewritten
  4. 07We Face Risks Related to the Disruption of Our Primary Manufacturing and R&D Facilities22% rewritten
  5. 08We Are Subject to Risks Relating to Product Concentration and Lack of Product Revenue Diversification
  6. 09We May Fail to Protect Our Critical Proprietary Technology Rights, Which Could Affect Our Business54% rewritten
  7. 10Our Ability to Attract, Retain, and Motivate Key Employees Is Critical to Our Success56% rewritten

LEGAL, REGULATORY AND TAX RISKS

  1. 11Increasing and Evolving Environmental Regulations May Adversely Affect Our Results of Operations37% rewritten
  2. 12We Are Exposed to Various Risks from Our Regulatory Environment66% rewritten
  3. 13Our Financial Results May Be Adversely Impacted by Higher than Expected Tax Rates or Exposure to Additional Tax Liabilities44% rewritten

FINANCIAL, ACCOUNTING AND CAPITAL MARKETS RISKS

  1. 14We May Incur Impairments to Goodwill or Long-lived Assets
  2. 15When evaluating goodwill, if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test is performed and we may be required to record an impairment charge in that period, which could adversely affect our result of operations26% rewritten
  3. 16Our Leverage and Debt Service Obligations May Adversely Affect Our Financial Condition and Results of Operations28% rewritten
  4. 17Our Credit Agreements Contain Covenant Restrictions That May Limit Our Ability to Operate Our Business
  5. 18There Can Be No Assurance That We Will Continue to Declare Cash Dividends or Repurchase Our Shares at All or in Any Particular Amounts21% rewritten
  6. 19If One or More of Our Counterparty Financial Institutions Default on Their Obligations To Us or Fail, We May Incur Significant Losses53% rewritten

Other Lam Research 10-Ks

  • FY2025 10-K risk factors
    27 risks

    International sales drive 93% of revenue, exposing the company to global trade rules and tariffs.

    Filed Aug 11, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.