AMAT
SP100NasdaqGSApplied Materials, Inc.
Technology · Semiconductor Equipment & Materials · United States
Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments. The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps, including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment offers integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, and 200 millimeter and other equipment and factory automation software for semiconductor and other products. It serves manufacturers of semiconductor wafers and chips, and other electronic devices. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.
www.appliedmaterials.com ↗Shares trade at a premium 56.8× trailing earnings, easing to 36.8× on forward estimates. Profitability shows a net margin of 29.3% and return on equity of 39.7%. Leverage is modest at -0.1× net debt/EBITDA. Revenue grew 11.4% year-on-year. It yields 0.4% in dividends. The mean analyst target of USD578.91 sits 4.0% below the current price (Strong Buy, 35 analysts).
business model
Applied Materials sells semiconductor and display manufacturing equipment, along with related services and spare parts, to chipmakers and display producers. Revenue comes from selling capital equipment for wafer fabrication plus a growing recurring stream from services, upgrades, and consumables tied to its large installed base.
revenue segments
Three segments: Semiconductor Systems (the largest, deposition, etch, ion implant, CMP, and inspection tools), Applied Global Services (spare parts, service contracts, and upgrades), and Display and Adjacent Markets. Revenue is heavily concentrated in Asia, especially China, Taiwan, Korea, and Japan.
key dependencies
Depends on semiconductor capital expenditure cycles, leading customers' fab build-out plans, a complex global component supply chain, and US export controls that restrict sales of advanced tools to China. Foundry/logic and memory investment cycles drive demand.
competitors
Competes with Lam Research, KLA, ASML, Tokyo Electron, and other equipment makers, often specializing by process step.
moat
Moat comes from broad technology breadth across process steps, deep process know-how, high switching costs once tools are qualified in a fab, a large installed base generating recurring service revenue, and heavy R&D scale.
risks
Risks include the cyclicality of chip capex, customer concentration, US-China export restrictions cutting China revenue, geopolitical tension around Taiwan, and competitive intensity in a small number of large customers.
Financials & metrics
as of 26 Aug 2026Price is around the middle of its range. Green = nearer the yearly low, red = nearer the high — a position indicator, not a buy/sell signal.
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Full financial statements
Income statement
| Line item | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Total revenue | $28.37B | $27.18B | $26.52B | $25.79B | — |
| Cost of revenue | $14.56B | $14.28B | $14.13B | $13.79B | — |
| Gross profit | $13.81B | $12.90B | $12.38B | $11.99B | — |
| Operating expense | $5.34B | $5.03B | $4.73B | $4.21B | — |
| R&D | $3.57B | $3.23B | $3.10B | $2.77B | — |
| Operating income | $8.47B | $7.87B | $7.65B | $7.78B | — |
| Interest expense | $269.00M | $247.00M | $238.00M | $228.00M | — |
| Pretax income | $9.27B | $8.15B | $7.72B | $7.60B | — |
| Tax provision | $2.27B | $975.00M | $860.00M | $1.07B | — |
| Net income | $7.00B | $7.18B | $6.86B | $6.53B | — |
| EBITDA | $9.97B | $8.79B | $8.47B | $8.27B | — |
| Diluted EPS | $8.66 | $8.61 | $8.11 | $7.44 | — |
Balance sheet
| Line item | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Total assets | $36.30B | $34.41B | $30.73B | $26.73B | — |
| Current assets | $20.88B | $21.22B | $19.15B | $15.93B | — |
| Cash & equivalents | $7.24B | $8.02B | $6.13B | $2.00B | — |
| Inventory | $5.92B | $5.42B | $5.72B | $5.93B | — |
| Total liabilities | $15.88B | $15.41B | $14.38B | $14.53B | — |
| Current liabilities | $8.00B | $8.47B | $7.37B | $7.38B | — |
| Total debt | $7.05B | $6.61B | $6.00B | $5.83B | — |
| Long-term debt | $6.46B | $5.46B | $5.46B | $5.46B | — |
| Shareholders' equity | $20.41B | $19.00B | $16.35B | $12.19B | — |
| Retained earnings | $55.23B | $49.65B | $43.73B | $37.89B | — |
| Working capital | $12.88B | $12.75B | $11.78B | $8.55B | — |
Cash flow
| Line item | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Operating cash flow | $7.96B | $8.68B | $8.70B | $5.40B | — |
| Investing cash flow | -$2.78B | -$2.33B | -$1.53B | -$1.36B | — |
| Financing cash flow | -$5.98B | -$4.47B | -$3.03B | -$7.04B | — |
| Capital expenditure | -$2.26B | -$1.19B | -$1.11B | -$787.00M | — |
| Free cash flow | $5.70B | $7.49B | $7.59B | $4.61B | — |
| Dividends paid | -$1.38B | -$1.19B | -$975.00M | -$873.00M | — |
| Share buybacks | -$4.89B | -$3.82B | -$2.19B | -$6.10B | — |
| End cash position | $7.31B | $8.11B | $6.23B | $2.10B | — |
Reported figures from public filings via Yahoo Finance. Line coverage varies by company. Not investment advice.
Dividends
Analyst assessment
as of 26 Aug 2026Aggregate consensus only. Named per-analyst targets require a premium source and are not shown; the data model is ready to hold them if one is added.
Technicals
as of 25 Aug 2026News
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