10-KPeriod: FY2025

APPLIED MATERIALS INC /DE Annual Report, Year Ended Oct 26, 2025

Filed December 12, 2025For Securities:AMAT

Summary

Applied Materials, Inc. (AMAT) reported solid performance for the fiscal year ending October 25, 2025, with net revenue increasing 4% to $28.4 billion. The company's core Semiconductor Systems segment continued to be the primary revenue driver, demonstrating strength fueled by strategic customer investments in new capacity and technology transitions, particularly in leading-edge manufacturing and NAND upgrades. The Applied Global Services (AGS) segment also saw growth, primarily from service agreements and spares. Despite a challenging global economic environment and ongoing geopolitical uncertainties that present risks to demand and supply chains, AMAT has maintained strong operational execution. The company continues to invest significantly in Research, Development, and Engineering (RD&E) to maintain its technology leadership, essential for navigating the rapid pace of innovation in the semiconductor industry. Management expresses confidence that operating cash flow, current cash reserves, and available credit facilities are sufficient to meet liquidity needs for the next 12 months.

Financial Highlights

62 data points
Beta

Revenue

$28.37B

48.7% Gross Margin

Net Income

$7.00B

24.7% Net Margin

EPS (Diluted)

$8.66

Total Assets

$36.30B

Cash & Equivalents

$7.24B

Free Cash Flow

$5.70B

Financial Statements
Beta
Revenue$28.37B
Cost of Revenue$14.56B
Gross Profit$13.81B
R&D Expenses$3.57B
SG&A Expenses$1.77B
Operating Expenses$5.52B
Operating Income$8.29B
Net Income$7.00B
EPS (Basic)$8.71
EPS (Diluted)$8.66
Shares Outstanding (Basic)804.00M
Shares Outstanding (Diluted)808.00M

Key Highlights

  • 1Net revenue grew 4% year-over-year to $28.4 billion, driven by strong performance in the Semiconductor Systems segment.
  • 2Semiconductor Systems segment revenue increased 4%, fueled by customer investments in leading-edge logic and NAND fabrication.
  • 3Applied Global Services (AGS) segment revenue rose 3%, supported by increased spending on service agreements and spares.
  • 4Gross margin improved to 48.7% from 47.5% due to favorable product mix, higher ASPs, and lower manufacturing costs.
  • 5Operating income saw a 5% increase to $8.3 billion, with operating margin slightly improving to 29.2%.
  • 6The company maintained a strong cash position, with cash and cash equivalents totaling $7.2 billion and total cash, cash equivalents, and investments at $12.9 billion.
  • 7AMAT repurchased $4.9 billion of its common stock in fiscal 2025 and declared $1.4 billion in dividends, reflecting a commitment to returning capital to shareholders.

Frequently Asked Questions

Applied Materials' revenue is primarily driven by customer investments in semiconductor manufacturing equipment and services. Key growth drivers include strategic customer investments in new capacity, technological transitions (such as leading-edge logic and advanced packaging), demand for AI and data center computing, and the growth of emerging end-market drivers like the Internet of Things and autonomous vehicles. The Applied Global Services segment also contributes through services, spares, and factory automation software.

Applied Materials faces several significant risks, including the cyclical and volatile nature of the semiconductor industry, which can lead to unpredictable customer demand. Other key risks include global economic uncertainty, geopolitical issues affecting trade policies and export regulations (particularly concerning China), supply chain disruptions, intense competition, and cybersecurity threats. The company also notes risks related to managing a global business and potential impacts from new tax laws and regulations.

Applied Materials continues to prioritize significant investments in RD&E as a core part of its long-term growth strategy. These investments are aimed at developing new materials engineering solutions and products that anticipate technology inflections and meet evolving customer requirements. This proactive approach allows customers to incorporate AMAT's latest technologies into their manufacturing plans early in their technology selection process, maintaining the company's competitive edge.

Applied Materials demonstrates a commitment to returning capital to shareholders through both share repurchases and dividends. In fiscal year 2025, the company repurchased approximately $4.9 billion of its common stock under an expanded $10 billion repurchase program, and paid approximately $1.4 billion in cash dividends. The company anticipates continuing quarterly dividend payments, subject to Board discretion and financial performance.