APPLIED MATERIALS INC /DEAMAT

APPLIED MATERIALS INC /DE Financial Overview 2021–2025

Updated Jul 10, 2026

Despite facing an estimated $600 million revenue headwind from new U.S. export restrictions in FY2026, Applied Materials expanded its operating margin to 31.9% by the second quarter of the year. This resilience underscores a clear thesis: the company leverages its indispensable role in advanced logic and NAND manufacturing to generate the cash flow necessary to insulate its core operations from geopolitical friction.

The company's financial trajectory demonstrates steady top-line execution, with total revenue scaling from $23.06 billion in FY2021 to $28.4 billion in FY2025. Underneath this expansion, management has aggressively prioritized cost discipline and capital returns. During FY2025, the company initiated a 4% global workforce reduction to streamline operations, a move that helped lift annual gross margins to 48.7%. These structural efficiencies directly funded shareholder yield, allowing the company to deploy $4.9 billion toward stock repurchases over the fiscal year.

At the close of FY2025, the market validated this operational consistency, valuing the company at a $181.4 billion market cap with shares priced at $228.75 and trading at 26.4x earnings. After absorbing a $252.5 million settlement regarding past export compliance, the company quickly demonstrated its underlying pricing power, posting an 11% revenue jump to $7.91 billion in the second quarter of FY2026. By continuously shrinking its share base and increasing average selling prices, Applied Materials continues to navigate a constrained global trade environment without sacrificing profitability.

Recent Developments (Q1 and Q2 2026)

Applied Materials accelerated bottom-line growth through the first half of FY2026. First-quarter net income surged 71% year-over-year to $2.03 billion, followed by a 31% increase to $2.81 billion in the second quarter. The Applied Global Services segment provided top-line support early in the year, growing 15% in Q1 2026 to offset a 7.8% drop in Semiconductor Systems. In March, shareholders re-elected the ten-member board, maintaining leadership continuity under executives including Gary E. Dickerson.

Bulls will point to expanding profitability, with second-quarter gross margins reaching 49.9% alongside $13.2 billion remaining authorized for stock repurchases. Conversely, bears will highlight the elevated valuation, as shares traded at 49.3x earnings as of the May 21, 2026 reporting date, suggesting the $338.9 billion market capitalization leaves limited room for operational missteps.

What to watch: revenue recovery in the Semiconductor Systems segment; execution of the newly implemented export control internal audits.

Rev

$28.37B

+4.4% YoY

FY2025

NI

$7.00B

-2.5% YoY

FY2025

EPS

$8.71

+0.3% YoY

FY2025

OCF

$7.96B

-8.3% YoY

FY2025

Revenue Trend
Beta

Year-over-year comparison from 10-K annual reports

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Data from SEC Company Facts

All AMAT Financial Metrics(65)

Recent SEC Filings

APPLIED MATERIALS INC /DE 8-K Report, Executive Changes (Aug 27, 2026)

Applied Materials, Inc. (AMAT) announced on August 27, 2026, a significant addition to its Board of Directors with the election of Akash Palkhiwala. This appointment, effective immediately, also includes his placement on the Board's Audit Committee, signaling confidence in his financial expertise and oversight capabilities. Investors should note that Mr. Palkhiwala's compensation package is standard for non-employee directors, consisting of retainers and a restricted stock unit grant, with a vesting date of March 1, 2027. This move is a routine governance update, indicating no immediate impact on company operations but reinforcing the board's structure.

APPLIED MATERIALS INC /DE 8-K Report, Financial Results (Aug 13, 2026)

Applied Materials, Inc. (AMAT) filed an 8-K on August 13, 2026, to report its financial results for the third quarter ended July 26, 2026. While the specific financial figures are detailed in the attached press release (Exhibit 99.1), this filing serves as the official notification of these results. Investors should refer to Exhibit 99.1 for comprehensive data on revenue, earnings, and other key performance indicators for the quarter. This report is furnished and not deemed filed, meaning it does not carry the same liability under Section 18 of the Exchange Act as a traditional filing. However, it is crucial for investors tracking AMAT's performance and understanding its financial position. The filing also includes the interactive data file in XBRL format, facilitating easier analysis of the disclosed financial information.

APPLIED MATERIALS INC /DE 8-K Report, Financial Results (May 14, 2026)

Applied Materials, Inc. (AMAT) has filed a Form 8-K on May 14, 2026, to announce its financial results for the second quarter ended April 26, 2026. This filing primarily serves to provide investors with the company's latest performance metrics and financial condition. The press release detailing these results is attached as Exhibit 99.1 to the 8-K filing, and it is the primary source of information regarding the company's operational and financial outcomes for the reported period. Investors should refer to the attached press release for specific details on revenue, profitability, and any forward-looking statements or guidance. It's important to note that the information furnished in this 8-K, including the press release, is not considered 'filed' for the purposes of Section 18 of the Securities Exchange Act of 1934, meaning it does not carry the same legal implications as a filed document for liability purposes. However, it remains a crucial update for understanding the company's current business trajectory and financial health.

APPLIED MATERIALS INC /DE 8-K Report, Shareholder Vote Results (Mar 13, 2026)

Applied Materials, Inc. (AMAT) filed an 8-K on March 13, 2026, reporting on the outcomes of its Annual Meeting of Shareholders held on March 12, 2026. The meeting primarily focused on voting on three key proposals: the election of directors, an advisory vote on executive compensation, and the ratification of the company's independent auditor. All ten director nominees were overwhelmingly elected for one-year terms, indicating strong shareholder confidence in the current board's leadership and strategy. Additionally, shareholders provided advisory approval for the compensation of the named executive officers for fiscal year 2025, with a majority voting in favor, suggesting general satisfaction with the company's executive pay structure relative to performance. The appointment of KPMG LLP as the independent registered public accounting firm for fiscal year 2026 was also ratified by a substantial margin, reinforcing the company's audit oversight and financial reporting integrity.

APPLIED MATERIALS INC /DE 8-K Report, Regulation FD Disclosure (Feb 12, 2026)

Applied Materials, Inc. (AMAT) has reached a significant resolution regarding ongoing investigations by U.S. government agencies. The company announced that the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have closed their respective inquiries without any enforcement actions. This news is a positive development, alleviating a key area of uncertainty for investors. Furthermore, Applied Materials has entered into a settlement agreement with the U.S. Commerce Department's Bureau of Industry and Security (BIS) concerning export controls compliance related to certain China customer shipments. As part of this settlement, the company will pay $252.5 million. While this represents a financial charge, the resolution provides clarity on a previously disclosed matter and allows the company to move forward with enhanced compliance measures. Investors can view this as a step towards de-risking the company's operations.

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