What does Applied Materials do?

Applied Materials describes itself in its 10-K for fiscal 2025 as the leader in the materials engineering solutions used to produce virtually every semiconductor in the world. Its Semiconductor Systems segment designs, develops, manufactures and sells a wide range of equipment used to fabricate semiconductor chips, and its Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, 200 millimeter and other equipment and factory automation software (10-K for fiscal 2025).

How much revenue did Applied Materials make in fiscal 2025?

Net revenue was $28,368 million in fiscal 2025 (year ended October 26, 2025), against $27,176 million in fiscal 2024, according to its 10-K. Net sales were $26,517 million in fiscal 2023, $25,785 million in fiscal 2022 and $23,063 million in fiscal 2021, as filed in those years' 10-Ks.

Which Applied Materials segment is larger?

Semiconductor Systems, with fiscal 2025 net revenue of $20,798 million and operating income of $7,379 million. Applied Global Services had net revenue of $6,385 million and operating income of $1,792 million (10-K, segments note).

How much of Applied Materials' revenue comes from China?

Net revenue from customers in China was $8,529 million in fiscal 2025, against $10,117 million in fiscal 2024, out of total net revenue of $28,368 million (10-K). For the three months ended July 26, 2026, its 10-Q reports revenue from China of $2,506 million, against $2,548 million a year earlier.

What is Applied Materials' outlook?

In its August 13, 2026 release Applied said it expects fourth quarter of fiscal 2026 total revenue of $10,250 million +/- $500 million and non-GAAP diluted EPS of $4.02 +/- $0.20. The EPS outlook excludes known charges related to completed acquisitions of $0.01 per share, includes the normalized tax benefit of share-based compensation of $0.01 per share and a net income tax benefit related to intra-entity intangible asset transfers of $0.05 per share, and does not reflect items unknown at this time. These are company projections, not reported results.

What was Applied Materials' settlement with BIS?

On February 11, 2026 Applied entered into a settlement agreement with the U.S. Commerce Department Bureau of Industry and Security to resolve its inquiry relating to certain China customer shipments and export controls compliance, and agreed to pay $253 million, which it paid in full during its second quarter of fiscal 2026 (10-Q for the quarter ended July 26, 2026).

Does Applied Materials pay a dividend?

Yes. Dividends declared were $1.78 per share in fiscal 2025, and payments of dividends to stockholders were $1,384 million (10-K). The 10-K says Applied currently anticipates that cash dividends will continue to be paid on a quarterly basis, although the declaration of any future cash dividend is at the discretion of the Board of Directors.

Who runs Applied Materials?

Gary E. Dickerson is President, Chief Executive Officer and Brice Hill is Senior Vice President, Chief Financial Officer; both certified Applied's 10-K for the fiscal year ended October 26, 2025.

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Applied Materials $AMAT

Information Technology · Semiconductor Materials & Equipment · NASDAQ

Profile updated Oct 14, 2026

S&P 500 Nasdaq-100 Russell 1000 California

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$404.98

-8.13 (-1.97%)

As of Oct 20, 2026, 6:42 PM EDT · cached

Price history

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Today's analyst average Analyst average over timeIndividual analyst targets Analyst history starts Aug 14, 2026, the first target we tracked for AMAT.

Key facts

52-week range (closes): $218.19 – $723.00 Lowest close Oct 14, 2025, highest Jun 30, 2026; 251 daily closes to Oct 13, 2026 from Dalsna Finance's price archive
Fiscal year ends: October Fiscal 2025 ended Oct 26, 2025, from SEC filings
In the S&P 500 since: Mar 16, 1995 · All S&P 500 changes
In the Nasdaq-100 since: before 2007 · All Nasdaq-100 changes
Analyst coverage: 2 open price targets from 2 firms: Cantor Fitzgerald, Morgan Stanley Approved targets tracked here; see the analyst section below

Applied Materials (AMAT) is trading down at $404.98 (-1.97%) on NASDAQ, as of the latest quote. It is a S&P 500 constituent in the Information Technology sector.

Analyst price targets on AMAT

Current price targets from 2 firms average $707, ranging from $563 to $850 — 74% above the current $405. Each is tracked to its date and scored the same way a member's call is.

Morgan Stanley $512 → $563 by Sep 2027 Equal-weight Sep 29, 2026 via Yahoo Finance · Morgan Stanley's track record
Cantor Fitzgerald $507 → $850 by Aug 2027 Overweight Aug 14, 2026 via Investing.com · Cantor Fitzgerald's track record

Targets published by research firms, extracted from the news, checked against independent reporting, and linked to their source. Where a firm did not state a horizon the target is tracked as 12 months, the industry convention; the rows where the firm set its own horizon are marked. Reported here as facts about what was published — not recommendations from Dalsna Finance, and no firm listed is affiliated with this site.

Applied Materials revenue & net income history (FY2016–FY2025)

RevenueNet incomeNet margin (right axis, %)

Applied Materials annual financial statements
	FY2016Oct 2016	FY2017Oct 2017	FY2018Oct 2018	FY2019Oct 2019	FY2020Oct 2020	FY2021Oct 2021	FY2022Oct 2022	FY2023Oct 2023	FY2024Oct 2024	FY2025Oct 2025
Income statement
Revenue	$10.8B	$14.7B	$16.7B	$14.6B	$17.2B	$23.1B	$25.8B	$26.5B	$27.2B	$28.4B
Growth (year over year)	+12.1%	+35.8%	+13.7%	−12.6%	+17.8%	+34.1%	+11.8%	+2.8%	+2.5%	+4.4%
Gross profit	$4.51B	$6.61B	$7.52B	$6.39B	$7.69B	$10.9B	$12.0B	$12.4B	$12.9B	$13.8B
Gross margin	41.7%	45.0%	45.0%	43.7%	44.7%	47.3%	46.5%	46.7%	47.5%	48.7%
Operating income	$2.15B	$3.94B	$4.49B	$3.35B	$4.37B	$6.89B	$7.79B	$7.65B	$7.87B	$8.29B
Operating margin	19.9%	26.8%	26.9%	22.9%	25.4%	29.9%	30.2%	28.9%	28.9%	29.2%
Net income	$1.72B	$3.52B	$3.04B	$2.71B	$3.62B	$5.89B	$6.53B	$6.86B	$7.18B	$7.00B
Net margin	15.9%	23.9%	18.2%	18.5%	21.0%	25.5%	25.3%	25.9%	26.4%	24.7%
EPS (diluted)	$1.54	$3.25	$2.96	$2.86	$3.92	$6.40	$7.44	$8.11	$8.61	$8.66
Balance sheet
Cash and equivalents	$3.41B	$5.01B	$3.44B	$3.13B	$5.35B	$5.00B	$2.00B	$6.13B	$8.02B	$7.24B
Total assets	$14.6B	$19.4B	$17.6B	$19.0B	$22.4B	$25.8B	$26.7B	$30.7B	$34.4B	$36.3B
Total liabilities	$7.35B	$10.1B	$10.8B	$10.8B	$11.8B	$13.6B	$14.5B	$14.4B	$15.4B	$15.9B
Long-term debt	$3.13B	$5.30B	$5.31B	$4.71B	$5.45B	$5.45B	$5.46B	$5.46B	$5.46B	$6.46B
Shareholders' equity	$7.41B	$9.63B	$6.84B	$8.21B	$10.6B	$12.2B	$12.2B	$16.3B	$19.0B	$20.4B
Cash flow
Operating cash flow	$2.57B	$3.79B	$3.79B	$3.25B	$3.80B	$5.44B	$5.40B	$8.70B	$8.68B	$7.96B
Capital expenditure	$253.0M	$345.0M	$622.0M	$441.0M	$422.0M	$668.0M	$787.0M	$1.11B	$1.19B	$2.26B
Free cash flow	$2.31B	$3.44B	$3.17B	$2.81B	$3.38B	$4.77B	$4.61B	$7.59B	$7.49B	$5.70B
Dividends paid	$444.0M	$430.0M	$605.0M	$771.0M	$787.0M	$838.0M	$873.0M	$975.0M	$1.19B	$1.38B
Share buybacks	$1.89B	$1.17B	$5.28B	$2.40B	$649.0M	$3.75B	$6.10B	$2.19B	$3.82B	$4.89B

RevenueNet incomeNet margin (right axis, %)

Applied Materials quarterly financial statements
	Q4 FY24^†Oct 2024	Q1 FY25Jan 2025	Q2 FY25Apr 2025	Q3 FY25Jul 2025	Q4 FY25^†Oct 2025	Q1 FY26Jan 2026	Q2 FY26Apr 2026	Q3 FY26Jul 2026
Income statement
Revenue	$7.04B	$7.17B	$7.10B	$7.30B	$6.80B	$7.01B	$7.91B	$9.12B
Growth (year over year)	+4.8%	+6.8%	+6.8%	+7.7%	−3.5%	−2.1%	+11.4%	+24.8%
Gross profit	$3.33B	$3.50B	$3.48B	$3.56B	$3.27B	$3.44B	$3.95B	$4.59B
Gross margin	47.3%	48.8%	49.1%	48.8%	48.0%	49.0%	49.9%	50.3%
Operating income	$2.05B	$2.17B	$2.17B	$2.23B	$1.71B	$1.83B	$2.52B	$3.08B
Operating margin	29.0%	30.4%	30.5%	30.6%	25.2%	26.1%	31.9%	33.7%
Net income	$1.73B	$1.19B	$2.14B	$1.78B	$1.90B	$2.03B	$2.81B	$2.54B
Net margin	24.6%	16.5%	30.1%	24.4%	27.9%	28.9%	35.5%	27.8%
EPS (diluted)	$2.09	$1.45	$2.63	$2.22	$2.36	$2.54	$3.51	$3.17
Balance sheet
Cash and equivalents	$8.02B	$6.26B	$6.17B	$5.38B	$7.24B	$7.22B	$6.30B	$7.04B
Total assets	$34.4B	$33.3B	$33.6B	$34.2B	$36.3B	$37.6B	$40.3B	$43.5B
Total liabilities	$15.4B	$14.7B	$14.7B	$14.7B	$15.9B	$15.9B	$16.4B	$17.9B
Long-term debt	$5.46B	$5.46B	$5.46B	$5.46B	$6.46B	$6.45B	$5.26B	$5.25B
Shareholders' equity	$19.0B	$18.6B	$19.0B	$19.5B	$20.4B	$21.7B	$23.9B	$25.6B
Cash flow
Operating cash flow	$2.58B	$925.0M	$1.57B	$2.63B	$2.83B	$1.69B	$845.0M	$3.04B
Capital expenditure	$407.0M	$381.0M	$510.0M	$584.0M	$785.0M	$646.0M	$635.0M	$707.0M
Free cash flow	$2.17B	$544.0M	$1.06B	$2.05B	$2.04B	$1.04B	$210.0M	$2.33B
Dividends paid	$329.0M	$326.0M	$325.0M	$368.0M	$365.0M	$365.0M	$365.0M	$420.0M
Share buybacks	$1.44B	$1.32B	$1.67B	$1.06B	$851.0M	$337.0M	$400.0M	$440.0M

From Applied Materials's 10-K and 10-Q filings with the SEC; its fiscal year ends in October. Each period shows the latest figure the company has reported for it, including restatements. Net margin is our own calculation from those reported figures (net income ÷ revenue); it is left blank where revenue is zero or missing. † Quarter derived from the company's year-to-date or full-year totals. Filings on SEC EDGAR →

Applied Materials vs the Information Technology sector and the S&P 500

Applied Materials's latest reported figures next to the median of the other 75 S&P 500 Information Technology companies and of the other 502 S&P 500 companies; each median is taken over the companies with a comparable figure (counts in the footnote). A median is the middle value, not an average, so one very large company does not move it.

Applied Materials compared with the median Information Technology company and the median S&P 500 company
Measure	Applied Materials	Information Technology (75 other S&P 500 companies)	S&P 500 (502 other companies)
Revenue growth, latest fiscal year	+4.4%	+13.8%	+7.0%
Net margin, latest fiscal year	24.7%	16.5%	12.9%
Dividend per share, latest fiscal year	$1.78	$2.00	$2.40
Share price change, 1 year	+77.5%	+13.1%	+7.5%

Applied Materials: fiscal year ended October 2025, from its 10-K and 10-Q filings with the SEC. Medians computed October 20, 2026 from each company's latest annual filing (fiscal years ending between July 2025 and September 2026) and our price archive. Prices for every company, Applied Materials included, are the last regular-session prices of October 20, 2026; the 1-year change compares that price with each company's last close on or before October 20, 2025. Net margin and price change are our calculations from reported figures. Each median counts only the companies with a comparable figure (sector / S&P 500): revenue growth 75/496, net margin 75/496, dividend per share 35/349, 1-year price change 67/488; the reasons below can overlap. 14 are left out of the price figure because our archive holds no comparable close for them; dividend medians are among the 35 sector and 349 S&P 500 companies reporting a per-share dividend. The S&P 500 price figure is the middle company's change, not the index's return.

About Applied Materials

Applied Materials, Inc. is an American corporation that supplies equipment, services and software for the manufacture of semiconductor chips for electronics, flat panel displays for computers, smartphones, televisions, and solar products. The company also supplies equipment to produce coatings for flexible electronics, packaging and other applications. The company is headquartered in Santa Clara, California, and is the second largest supplier of semiconductor equipment in the world based on revenue behind Dutch company ASML.

Source: Wikipedia — Applied Materials

Headquarters: Santa Clara, California From SEC filings, Oct 2026

Company profile

Applied Materials, Inc., a Delaware corporation incorporated in 1967 with its address at 3050 Bowers Avenue, Santa Clara, California, describes itself in its Form 10-K for the fiscal year ended October 26, 2025 as the leader in the materials engineering solutions used to produce virtually every semiconductor in the world. Its fiscal year ends on the last Sunday in October. Its common stock trades on the Nasdaq Global Select Market under the symbol AMAT; 792,943,366 shares were outstanding on December 5, 2025 (10-K cover). The 10-K reports approximately 36,500 regular full-time employees spanning 25 countries as of October 26, 2025, more than 23,500 active patents in the United States and other countries, and two reportable segments, Semiconductor Systems and Applied Global Services (AGS); the results of its Display operating segment are included in the Corporate and Other category.

Net revenue was $28,368 million in fiscal 2025, against $27,176 million in fiscal 2024 and $26,517 million in fiscal 2023 (10-K). Income from operations was $8,289 million, against $7,867 million, and net income was $6,998 million, against $7,177 million. In the EPS note, net income of $6,998 million gave diluted earnings per share of $8.66, against net income of $7,177 million and $8.61 in fiscal 2024. The provision for income taxes was $2,273 million, against $975 million; the 10-K says the effective tax rate for fiscal 2025 was higher than the prior fiscal year primarily due to a $659 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore and the recognition of a $407 million valuation allowance against deferred tax assets related to corporate alternative minimum tax (CAMT) credits. Cash provided by operating activities was $7,958 million; common stock repurchases were $4,895 million and payments of dividends to stockholders $1,384 million (cash flow statement).

In the fourth quarter of fiscal 2025 Applied approved a workforce reduction plan under which it expects approximately 4% of its global workforce to be impacted, and recognized $181 million of restructuring charges (10-K, Item 7). By location of customers' facilities, fiscal 2025 net revenue was $8,529 million from China, against $10,117 million in fiscal 2024; $6,857 million from Taiwan, against $4,010 million; $5,608 million from Korea, against $4,493 million; and $3,063 million from the United States, against $3,818 million. During fiscal 2025, two customers accounted for approximately 19% and 15%, respectively, of net revenue (10-K, segments note).

For the quarter ended July 26, 2026, the third quarter of fiscal 2026, its 10-Q (unaudited) reports revenue of $9,115 million, against $7,302 million a year earlier, and net income of $2,538 million, or $3.17 per diluted share, against $1,779 million, or $2.22. For the nine months ended July 26, 2026 revenue was $24,037 million, against $21,568 million, and operating expenses included a legal settlement charge of $253 million. In its August 13, 2026 release Applied reported non-GAAP diluted EPS of $3.50 for the quarter and gave an outlook for the fourth quarter of fiscal 2026 of total revenue of $10,250 million +/- $500 million and non-GAAP diluted EPS of $4.02 +/- $0.20 (company projections; the EPS outlook is non-GAAP). Gary E. Dickerson, President, Chief Executive Officer, and Brice Hill, Senior Vice President, Chief Financial Officer, certified the 10-K (Exhibits 31.1 and 31.2).

Summary sources:¹²³⁴⁵⁶⁷⁸⁹¹⁰¹¹

$28,368 million³

Net revenue, fiscal 2025 (year ended October 26, 2025)

$13,808 million³

Gross profit, fiscal 2025

$8,289 million³

Income from operations, fiscal 2025

$2,273 million³

Provision for income taxes, fiscal 2025

$6,998 million³

Net income, fiscal 2025

$8.66³

Diluted earnings per share, fiscal 2025

$7,177 million³

Net income, fiscal 2024

$7,958 million⁵

Cash provided by operating activities, fiscal 2025

$(2,260) million⁵

Capital expenditures, fiscal 2025

$(4,895) million⁵

Common stock repurchases, fiscal 2025

$(1,384) million⁵

Payments of dividends to stockholders, fiscal 2025

$1.78¹²

Dividends declared per share, fiscal 2025

$7,241 million¹³

Cash and cash equivalents, October 26, 2025

$36,299 million¹³

Total assets, October 26, 2025

$6,455 million¹³

Long-term debt, October 26, 2025

$20,415 million¹³

Total stockholders' equity, October 26, 2025

$15,002 million¹

Backlog, October 26, 2025 (10-K, Item 1)

36,500¹

Regular full-time employees, October 26, 2025 (approximate)

792,943,366²

Shares of common stock outstanding, December 5, 2025

$9,115 million⁸

Revenue, three months ended July 26, 2026 (10-Q, unaudited)

$3.17⁸

Diluted earnings per share, three months ended July 26, 2026 (10-Q, unaudited)

$3.50⁹

Non-GAAP diluted EPS, third quarter of fiscal 2026 (non-GAAP, as reported by Applied Materials)

$2,330 million⁹

Non-GAAP free cash flow, third quarter of fiscal 2026 (non-GAAP, as reported by Applied Materials)

$10,250 million +/- $500 million⁹

Total revenue, fourth quarter of fiscal 2026 (company projection, as of August 13, 2026)

$4.02 +/- $0.20⁹

Non-GAAP diluted EPS, fourth quarter of fiscal 2026 (company projection, non-GAAP, as of August 13, 2026)

Revenue by fiscal year, as reported in 10-K

Fiscal year	Revenue (as reported in 10-K)	Reported as	Filed
2021	$23,063 million¹⁴	Form 10-K for the fiscal year ended October 31, 2021, net sales, in millions as filed	Dec 17, 2021
2022	$25,785 million¹⁵	Form 10-K for the fiscal year ended October 30, 2022, net sales, in millions as filed	Dec 16, 2022
2023	$26,517 million¹⁶	Form 10-K for the fiscal year ended October 29, 2023, net sales, in millions as filed	Dec 15, 2023
2024	$27,176 million¹⁷	Form 10-K for the fiscal year ended October 27, 2024, net revenue, in millions as filed	Dec 13, 2024
2025	$28,368 million³	Form 10-K for the fiscal year ended October 26, 2025, net revenue, in millions as filed	Dec 12, 2025

Products

DRAM and advanced packaging systems

Name	Released	What it is
Centura Prime Epi	—	Among six new systems for DRAM and advanced packaging in the August 13, 2026 release. It selectively grows doped silicon germanium and silicon phosphorous in transistor source/drain regions; the release says this enables faster, more power-efficient DRAM and high bandwidth memory (HBM).⁹
Opta Quad CMP	—	Among six new DRAM and advanced packaging systems in the August 13, 2026 release. The release says it continuously monitors wafer conditions during polish and dynamically adjusts in real time, improving within-wafer uniformity and total thickness variation control.⁹
Nokota VMax 2 ECD	—	Listed in the August 13, 2026 release among six new systems for DRAM and advanced packaging: high-precision copper plating for next-generation packaging, from TSV fill for 3D stacking to fine-pitch interconnects such as microbump formation. It introduces Adaptive Pattern Tuning (APT).⁹
Producer Avila 2 PECVD	—	Listed in the August 13, 2026 release among six new systems for DRAM and advanced packaging. It deposits stress-balanced dielectric films around TSVs to improve the mechanical stability of ultra-thin DRAM dies, enabling reliable stacking of 12, 16 and future high-layer-count HBM designs.⁹
VeritySEM 7AP Metrology	—	Listed in the August 13, 2026 release among six new systems for DRAM and advanced packaging: critical dimension eBeam metrology for measuring features on thick, heterogeneous and highly warped substrates common in HBM and chiplet architectures.⁹
SEMVision G7AP Defect Analysis	—	Listed in the August 13, 2026 release among six new systems for DRAM and advanced packaging. It extends Applied's eBeam defect analysis into advanced packaging, with high-resolution defect review and automated classification across silicon, organic and glass substrates.⁹

Logic and memory deposition and etch

Name	Released	What it is
Centris Spectral SiN ALD	—	Listed in the August 13, 2026 release among new deposition and etch systems for logic and memory. It uses microwave plasma technology to deliver uniform silicon nitride deposition in challenging 3D structures.⁹
Producer Selectra Mo Etch	—	Listed in the August 13, 2026 release among new deposition and etch systems for logic and memory. It selectively removes molybdenum for wordline separation to enable 3D NAND scaling.⁹

Display smart glasses

Name	Released	What it is
SENZ	—	Unveiled, per the August 13, 2026 release: an integrated ambient visual platform combining waveguide optics, light engine, sensing, vision correction and electronic dimming technology in a single system designed for AI-powered next-generation display smart glasses.⁹

Segments and products

Semiconductor Systems: 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 (10-K, segments note). Net revenue as filed, in millions: $20,798 in fiscal 2025, $19,911 in 2024 and $19,698 in 2023; operating income $7,379, $6,981 and $6,879. By market, fiscal 2025 Semiconductor Systems net revenue was 67% foundry, logic and other, 26% dynamic random-access memory (DRAM) and 7% flash memory (NAND), against 68%, 28% and 4% in fiscal 2024. Its revenue is recognized at a point in time.⁶
Applied Global Services: Provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, 200 millimeter and other equipment and factory automation software for semiconductor and other products (10-K, segments note). Net revenue as filed, in millions: $6,385 in fiscal 2025, $6,225 in 2024 and $5,732 in 2023; operating income $1,792, $1,812 and $1,529. AGS revenue is recognized at a point in time for tangible goods such as spare parts and equipment, and over time for service agreements.⁶
Corporate and Other: Not a reportable segment: it includes revenues, costs of products and operating expenses from other operating segments that do not meet the requirements for a reportable segment, including the Display operating segment, and certain corporate function operating expenses not allocated to the reportable segments; restructuring charges are not allocated unless the restructuring actions pertain to a specific reportable segment. Net revenue as filed, in millions: $1,185 in fiscal 2025, $1,040 in 2024 and $1,087 in 2023; operating income (loss) $(882), $(926) and $(754). The chief operating decision-maker is the President and Chief Executive Officer (10-K, segments note).⁶
Net revenue by geography, fiscal years 2023 to 2025: Net revenue as filed, in millions, by location of customers' facilities to which products were shipped and services were performed, for fiscal 2025, 2024 and 2023: United States $3,063, $3,818 and $4,006; China $8,529, $10,117 and $7,247; Korea $5,608, $4,493 and $4,609; Taiwan $6,857, $4,010 and $5,670; Japan $2,273, $2,154 and $2,075; Europe $962, $1,443 and $2,152; Southeast Asia $1,076, $1,141 and $758 (10-K, segments note).⁶
Segment changes in fiscal 2026: Effective in the first quarter of fiscal 2026, management moved the 200-millimeter equipment business from Applied Global Services to Semiconductor Systems and began fully allocating corporate support costs to the operating segments, with prior periods recast; Display results are included in Other. For the third quarter of fiscal 2026 the release reports revenue of $7,040 million for Semiconductor Systems, against $5,564 million a year earlier, $1,781 million for Applied Global Services, against $1,463 million, and $294 million for Other, against $275 million.⁹

Risks

Export controls and China: The 10-K says U.S. export regulations for semiconductor technology sold in China, including wafer fabrication equipment and related parts and services, have limited the market for certain of its products and services, adversely impacted its revenues and increased its exposure to foreign and Chinese domestic competition. They require additional export licenses to supply certain products or services to certain customers in China, and there is no assurance licenses will be issued on a timely basis or at all. China accounted for $8,529 million of fiscal 2025 net revenue (10-K, Items 1A and 7).¹
Settlement with the Bureau of Industry and Security: On February 11, 2026 Applied entered into a settlement agreement with the U.S. Commerce Department Bureau of Industry and Security (BIS) to resolve its inquiry relating to certain China customer shipments and export controls compliance, and agreed to pay BIS $253 million, paid in full during its second quarter of fiscal 2026. The agreement requires internal audits of its export controls compliance program and export compliance training and reporting mechanisms, and includes a denial order that is suspended and will be waived three years after the date of the order, provided the audit requirements are timely completed; the 10-Q says failure to comply could result in significant penalties, including the loss of that suspension, which would prohibit it from exporting certain of its products outside of the United States (10-Q, Note 13 and Item 1A).⁷
Concentrated customer base: The 10-K says a relatively limited number of customers account for a substantial portion of its business, so the actions of even a single customer can expose its results to greater volatility, and that its customer base is geographically concentrated, particularly in China, Taiwan and Korea. During fiscal 2025 two customers accounted for approximately 19% and 15%, respectively, of net revenue (10-K, Items 1 and 1A).¹
Volatile demand: Among its risk factors the 10-K says the industries it serves can be volatile and difficult to predict, and that even with effective allocation of resources and management of costs its gross and operating margins, cash flows and earnings may be adversely impacted during periods of changing demand. It notes that its backlog on any particular date is not necessarily indicative of actual sales for any future periods (10-K, Items 1 and 1A).¹
Tariffs and critical materials: The 10-K says increases in tariffs increase its costs, can negatively impact its margins and reduce the competitiveness of its products, and also increase the cost to customers of importing its products. It says that in 2025 the Chinese government implemented export controls on rare earth minerals that are used in certain of its products and may implement additional controls in the future (10-K, Item 1A).¹
Taxes: The 10-K says Applied has been granted additional conditional reduced tax rates in Singapore that expire beginning in fiscal 2030, that there is risk these rates may not be renewed, and that proposed plans to implement global minimum tax regimes could reduce or eliminate the benefits of its tax incentives. Its effective tax rate was 24.5% in fiscal 2025, against 12.0% in fiscal 2024 (10-K, Items 1A and 7).¹

Frequently asked questions

What does Applied Materials do?: Applied Materials describes itself in its 10-K for fiscal 2025 as the leader in the materials engineering solutions used to produce virtually every semiconductor in the world. Its Semiconductor Systems segment designs, develops, manufactures and sells a wide range of equipment used to fabricate semiconductor chips, and its Applied Global Services segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, 200 millimeter and other equipment and factory automation software (10-K for fiscal 2025).
How much revenue did Applied Materials make in fiscal 2025?: Net revenue was $28,368 million in fiscal 2025 (year ended October 26, 2025), against $27,176 million in fiscal 2024, according to its 10-K. Net sales were $26,517 million in fiscal 2023, $25,785 million in fiscal 2022 and $23,063 million in fiscal 2021, as filed in those years' 10-Ks.
Why was Applied Materials' tax provision higher in fiscal 2025?: The provision for income taxes was $2,273 million in fiscal 2025, against $975 million, and the effective tax rate was 24.5%, against 12.0%. The 10-K says the rate was higher primarily due to a $659 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore and the recognition of a $407 million valuation allowance against deferred tax assets related to corporate alternative minimum tax (CAMT) credits. Net income was $6,998 million, against $7,177 million.
Which Applied Materials segment is larger?: Semiconductor Systems, with fiscal 2025 net revenue of $20,798 million and operating income of $7,379 million. Applied Global Services had net revenue of $6,385 million and operating income of $1,792 million (10-K, segments note).
How much of Applied Materials' revenue comes from China?: Net revenue from customers in China was $8,529 million in fiscal 2025, against $10,117 million in fiscal 2024, out of total net revenue of $28,368 million (10-K). For the three months ended July 26, 2026, its 10-Q reports revenue from China of $2,506 million, against $2,548 million a year earlier.
What were Applied Materials' latest quarterly results?: For the quarter ended July 26, 2026, its 10-Q (unaudited) reports revenue of $9,115 million, against $7,302 million a year earlier, and net income of $2,538 million, or $3.17 per diluted share, against $1,779 million, or $2.22. The August 13, 2026 release reports non-GAAP diluted EPS of $3.50 and non-GAAP free cash flow of $2,330 million, both non-GAAP measures.
What is Applied Materials' outlook?: In its August 13, 2026 release Applied said it expects fourth quarter of fiscal 2026 total revenue of $10,250 million +/- $500 million and non-GAAP diluted EPS of $4.02 +/- $0.20. The EPS outlook excludes known charges related to completed acquisitions of $0.01 per share, includes the normalized tax benefit of share-based compensation of $0.01 per share and a net income tax benefit related to intra-entity intangible asset transfers of $0.05 per share, and does not reflect items unknown at this time. These are company projections, not reported results.
What was Applied Materials' settlement with BIS?: On February 11, 2026 Applied entered into a settlement agreement with the U.S. Commerce Department Bureau of Industry and Security to resolve its inquiry relating to certain China customer shipments and export controls compliance, and agreed to pay $253 million, which it paid in full during its second quarter of fiscal 2026 (10-Q for the quarter ended July 26, 2026).
Does Applied Materials pay a dividend?: Yes. Dividends declared were $1.78 per share in fiscal 2025, and payments of dividends to stockholders were $1,384 million (10-K). The 10-K says Applied currently anticipates that cash dividends will continue to be paid on a quarterly basis, although the declaration of any future cash dividend is at the discretion of the Board of Directors.
Who runs Applied Materials?: Gary E. Dickerson is President, Chief Executive Officer and Brice Hill is Senior Vice President, Chief Financial Officer; both certified Applied's 10-K for the fiscal year ended October 26, 2025.