Lam Research (LRCX) Approves a $25 Billion Buyback, More Than It Spent on Buybacks Since Mid-2020
Chip machine maker Lam Research approved a $25 billion stock buyback, more than the $18.7 billion it spent on buybacks since mid-2020. Lam announced it after trading closed on November 5, 2026, a day its stock fell 16.4%, its largest one-day drop since March 2020.
The short answer. Lam Research approved up to $25 billion of buybacks on November 5, 2026, with no end date, no duty to spend it and, unlike in 2024, no target for how much cash it hands back. Lam makes the machines that Micron, Samsung, SK hynix and TSMC use to build chips. It set this ceiling on the day AI chip stocks fell for a second day. The ceiling is about seven times what Lam spent on buybacks in the past year.
Show the data
| Category | Value |
|---|---|
| Nov 2020, $5B | 8.7% |
| May 2022, $5B | 8.1% |
| May 2024, $10B | 8.1% |
| Nov 2026, $25B | 10.8% |
Lam Research's new buyback in three numbers
On this page
How big is the $25 billion Lam Research buyback?
The $25 billion is a bigger share of what Lam is worth than any of its three approvals since 2020. It is also more than those three put together.
Lam Research is the company behind many of the machines inside chip factories. Its tools lay down thin layers of material on a silicon wafer and etch patterns into them, steps every chip goes through many times. Its annual report for fiscal 2026 names Micron, Samsung, SK hynix and Taiwan Semiconductor Manufacturing among its most significant customers. China made up about 34% of its sales that year.
On November 5, 2026, after the market closed, Lam announced that its board had approved up to $25 billion of share buybacks. A buyback is a company using its cash to buy its own shares, so each share left over is a slightly bigger piece of the company. StockTitan's guide to share buybacks explains the rules they follow.
At the official close of $185.20, Lam's 1.249 billion shares were worth about $231 billion. The new approval is 10.8% of that.
Lam's earlier approvals were smaller for its size. Each of the three since 2020 was about 8% to 9% of its value at the time. Together they add up to $20 billion, less than the new one alone.
The money adds to what was left from before. Lam still had $3.0 billion of room under its old approval on September 27, 2026, its latest quarterly report shows. That gives about $28 billion of room, before any buying after September 27.
At Thursday's closing price, $25 billion would buy about 135 million Lam shares, close to one in nine. At the record close of $433.33 on June 30, 2026, in StockTitan's price history, the same money would have bought about 58 million.
How much has Lam Research spent on buybacks?
Far less than $25 billion. Lam spent $18.7 billion under its buyback program from late June 2020 to September 2026.
The program cost $18.7 billion from late June 2020 to September 27, 2026. Lam spent the most in fiscal 2022, $3.7 billion. Its fiscal year ends in late June, so the chart stops in June 2026, and the September 2026 quarter added another $1.0 billion.
Show the data
| Category | Value |
|---|---|
| FY2021 | $2.6B |
| FY2022 | $3.7B |
| FY2023 | $2.0B |
| FY2024 | $2.7B |
| FY2025 | $3.3B |
| FY2026 | $3.5B |
Recent buying is close to that best year. In the four quarters to September 2026, Lam bought $3.5 billion of its stock. The new approval is about seven times that amount. It sets how much Lam may buy, and says nothing about how fast.
Nearly all of the September quarter's $1.0 billion went into an accelerated buyback, where Lam pays banks up front and gets most of the shares at once. Lam paid two banks $1.0 billion and got about 2.3 million shares, its 10-Q says. The final count depends on the stock's average price until the deal settles, in the quarter ending December 27, 2026.
The buying did shrink the share count. Lam had 1.440 billion shares in October 2020, counted as if its 2024 split had already happened. By October 2026 it had 13% fewer.
The last year was different. The share count fell only 0.5% even as the buying went on. The price Lam paid went up a lot. Its reported average, which leaves out the accelerated buybacks, rose from $105.67 a share in the quarter to September 2025 to $325.14 in the quarter to June 2026.
Shares also go out to employees. Lam's 10-K shows it issued 5.1 million new shares in fiscal 2026. It also reissued 2.5 million shares it held, through its employee stock purchase plan.
Show the data
| Date | Shares outstanding (millions) |
|---|---|
| October 2020 | 1,440 |
| October 2021 | 1,408 |
| October 2022 | 1,364 |
| October 2023 | 1,318 |
| October 2024 | 1,287 |
| October 2025 | 1,256 |
| October 2026 | 1,249 |
Source: share counts on the cover of each Lam Research 10-Q filed in October, on SEC EDGAR; counts before the October 2024 split multiplied by 10. Buyback spending from the stock repurchase notes of Lam's 10-K filings for fiscal 2021 to 2026 and its 10-Q for the quarter ended September 27, 2026.
What does the Lam Research buyback promise?
Very little beyond the ceiling. Lam does not have to buy a single share, and this time it names no share of its cash to hand back.
The November 5 release says the program "does not have a termination date, may be suspended or discontinued at any time, and does not obligate the company to acquire any amount of common stock." Lam's three earlier buyback releases did not carry that last phrase.
The 2024 release also named a target for free cash flow, the cash a business brings in after paying for new buildings and equipment. Finance chief Doug Bettinger said then that the $10 billion was "consistent with our plan to return 75% to 100% of free cash flow to stockholders in the form of dividends and share buybacks."
The new release gives no such percentage. Bettinger said the approval "reinforces our capital allocation plan and commitment to return significant value to stockholders through dividends and share repurchases." Lam did not say why the wording changed.
| May 2024 release, $10 billion | November 2026 release, $25 billion | |
|---|---|---|
| Must Lam buy shares? | No, the program could be stopped at any time | No, and the release says so in plain words |
| Cash return target in the release | 75% to 100% of free cash flow, said the finance chief | No percentage given |
Lam's actual cash returns over the past year sit inside that old range. In the four quarters to September 2026, the cash it paid for its own shares plus its dividends came to 80% of its free cash flow. In the September quarter alone it was 42%.
That cash count puts share purchases at $3.9 billion. It adds shares withheld for employee taxes and excise tax payments to the $3.5 billion bought under the program, so it is close to, but not the same as, the measure Bettinger named in 2024. Dividends were $1.3 billion of the total.
Why is LRCX stock down today?
Lam fell with other AI chip stocks on Thursday. The release came after the close and gives no link between the two.
Lam closed at $185.20 on November 5, down 16.4% from the day before, StockTitan real-time Nasdaq data show.
That was Lam's largest one-day drop since March 16, 2020, when it fell 18.4%.
AI chip stocks fell for a second day on fears Democrats will limit data center building, CNBC reported. StockTitan covered that wider selloff in why AI stocks are down today. Lam's own release lists "wafer fabrication equipment spending or demand related to AI" among its risks.
The fall came on top of earlier ones. The close was 57% below Lam's record close of June 30, 2026, in StockTitan's price history.
Lam announced the buyback at 4:05 p.m. ET. At 4:15 p.m. ET the stock traded at $191.06 after hours, 3.2% above the close, StockTitan real-time Nasdaq data show.
Does Lam Research pay a dividend?
Yes. Lam will pay $0.33 a share on January 6, 2027, the same amount as last quarter.
The dividend goes to holders of record on December 2, 2026. Lam raised it 27%, from $0.26 to $0.33, in an August 27, 2026 release, so this one is not a new raise.
Four payments of $0.33 come to $1.32 a year. A dividend yield calculator turns that into a yield, the yearly dividend as a share of the price. At Thursday's close it is 0.71%.
Each payment costs Lam about $412 million. The dividend is set every quarter and paid on a date, while the $25 billion buyback is only a ceiling Lam may fill over time, or not at all.
What to watch
- How much of the new $25 billion Lam uses, and how many shares the $1.0 billion accelerated buyback finally delivers: Lam's 10-Q for the quarter ending December 27, 2026.
- Whether buybacks plus dividends stay near the 75% to 100% of free cash flow named in 2024: Lam's results release for the December 2026 quarter.
Our numbers
These figures are our calculations from the sources linked in this article. The 10.8% uses the price after the day's fall; at the November 4 close of $221.43 the approval was about 9.0% of Lam's value, still above the three earlier approvals.
- $18.7 billion spent since late June 2020: quarterly program repurchase costs in Lam's annual and quarterly reports, added up, including the 1% excise tax and excluding shares withheld for employee taxes.
- About $231 billion market value and 10.8%: the $185.20 close times 1.249 billion shares outstanding on October 20, 2026, and $25 billion divided by that.
- 8.7%, 8.1% and 8.1% for the 2020, 2022 and 2024 approvals: each amount divided by (the last close before its release times the latest share count before it).
- About $28 billion of room: the $25 billion plus the $3.0 billion left on September 27, 2026.
- $3.5 billion bought under the program in the past year: program repurchase costs of the four quarters to September 2026, added up.
- About seven times the past year: $25 billion divided by that $3.5 billion.
- 13% fewer shares since 2020 and 0.5% in the last year: share counts on Lam's October 10-Q covers.
- 80% and 42% of free cash flow returned: all share purchases in the cash flow statement, including shares withheld for employee taxes, plus dividends, divided by operating cash flow minus capital spending.
- Largest one-day drop since March 16, 2020, and 57% below the June 30, 2026 record close: StockTitan's daily closes for Lam.
- 3.2% above the close: the $191.06 after-hours trade at 4:15 p.m. ET against $185.20.
- 135 million and 58 million shares: $25 billion divided by the $185.20 close and by the $433.33 record close.
- $1.3 billion of dividends and $3.9 billion of share purchases in the past four quarters: Lam's fiscal 2026 cash flow statement, minus its September 2025 quarter, plus its September 2026 quarter.
- 0.71% yield and about $412 million a payment: $1.32 divided by $185.20, and $0.33 times 1.249 billion shares.
Frequently asked questions
What does LRCX do?
Lam Research makes the machines chipmakers use to lay down layers on silicon wafers and etch patterns into them, and it services them. It is based in Fremont, California, and its customers make memory, logic and other chips, its annual report says.
Why is LRCX stock down today?
Lam fell 16.4% on November 5, 2026, to $185.20, as AI chip stocks fell for a second day on fears of limits on data centers, CNBC reported. The buyback came after the close, and the release did not tie it to the fall.
Does LRCX pay dividends?
Yes. Lam pays $0.33 a share each quarter, and the next payment is on January 6, 2027 to holders of record on December 2, 2026. That is $1.32 a year, about 0.71% of Thursday's closing price.
How much is Lam Research worth?
About $231 billion at the November 5, 2026 close of $185.20, with 1.249 billion shares outstanding. The new $25 billion buyback approval is 10.8% of that.
Does Lam Research have to spend the $25 billion?
No. The release says the program has no end date, can be stopped at any time and does not oblige Lam to buy any shares. The $25 billion is a ceiling on what Lam may buy.
Who does Lam Research sell to?
Chipmakers. Its fiscal 2026 annual report names Micron, Samsung, SK hynix and Taiwan Semiconductor Manufacturing among its most significant customers, and China made up about 34% of its sales that year. Its overview page and financials page on StockTitan show its news and results.
Sources
- Lam Research release, $25 billion share repurchase and quarterly dividend, November 5, 2026
- Lam Research release, $10 billion share repurchase and 10-for-1 split, May 21, 2024
- Lam Research release, $5 billion share repurchase, May 11, 2022
- Lam Research release, $5 billion share repurchase, November 5, 2020
- Lam Research release, 27% dividend increase, August 27, 2026
- Lam Research results for the quarter ended September 27, 2026
- Lam Research on StockTitan
- Lam Research Form 10-Q, quarter ended September 27, 2026
- Lam Research Form 10-K, fiscal 2026
- Lam Research Form 10-K, fiscal 2025
- Lam Research Form 10-K, fiscal 2024
- Lam Research Form 10-K, fiscal 2023
- Lam Research Form 10-K, fiscal 2022
- Lam Research Form 10-K, fiscal 2021
- Lam Research shares outstanding by filing, SEC EDGAR
The information provided in this article is for educational and informational purposes only. It does not constitute financial advice, investment recommendation, or an endorsement of any particular investment strategy. Past performance does not guarantee future results. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.