Applied Materials Inc.

AMAT
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$7.9B
Q2 FY2026 · +11.4% YoY · Beat consensus by 3.4%
TTM ROIC
29.3%
FY2025 · NOPAT / Invested Capital (Equity + Debt - Excess Cash) · WACC ~9.25% · Moat spread +20pp

Financial Snapshot

ticker: AMAT step: 04 generated: 2026-05-12 source: quick-research

Applied Materials, Inc. (AMAT) — Financial Snapshot

Note: AMAT fiscal year ends late October. "FY2025" = fiscal year ended Oct 26, 2025.

Income Statement Summary

Metric FY2024 FY2025 FY2026E YoY
Revenue $27.2B $28.4B ~$33B+ +16%+
Semiconductor Systems Revenue growing growing +20%+ mgmt guide
Non-GAAP Gross Margin 47.5% 48.8% (record) maintain +130bps
Non-GAAP Operating Margin 30% 30%+ 32%+
Non-GAAP EPS $8.65 $9.42 ~$11 (+17%)

Quarterly Trajectory (Recent)

Quarter Revenue
Q3 FY25 (Aug 2025) $7.05B
Q4 FY25 (Oct 2025) $6.83B
Q1 FY26 (Jan 2026) record (beat + raise)

Geographic Revenue Mix

Region FY2024 FY2025
China $10.1B (37%) $8.5B (30%)
Taiwan rising rising
Korea rising rising (Samsung, SK Hynix HBM)
Japan, US, Europe balance balance

DRAM + HBM Performance

Metric Value
Q3 FY25 DRAM Revenue Growth ~+50% YoY
DRAM etch sales $1B+
FY25 record DRAM revenue driven by HBM + 3D advanced packaging

Backlog

Metric Value
Total Backlog (Oct 2025) $15.0B
% of backlog >12 months out 31%

2026 Outlook

Item Guidance
Semiconductor Systems growth +20%+ in FY26
2H FY26 weighting Demand-heavy in 2H
China export hit FY26 -$600M
AI data center capex 2026 $600B+ (driver)
AI data center capex 2027 $700B+

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow ~$9B
Capital Expenditures ~$1.2B
Free Cash Flow ~$7.8B
Cash & Investments ~$10B
Total Debt ~$6B
Net Cash Position ~$4B

Key Ratios (approximate, May 2026)

  • P/E (forward FY26): ~25x | EV/Sales: ~8x | FCF Yield: ~3%
  • Net Cash Position
  • ROIC: ~30%

Growth Profile

FY25 record revenue $28.4B (+4.4%) + record GM 48.8% despite -$1.6B China decline. AI cycle ramping: FY26 SC systems +20%+. AMAT FY26 EPS consensus ~$11 (+17%) → FY27 ~$14 (+27%). Stock up 25% YTD 2026, up 170% trailing year. Bull cycle in semiconductor capex.

Forward Estimates

  • FY2026E Revenue: ~$32-34B (+13-20%)
  • FY2026E Non-GAAP EPS: ~$11 (+17%)
  • FY2027E Revenue: ~$36-38B (+12-19%)
  • FY2027E EPS: ~$13-14 (+18-27%)
  • AI capex tailwind: $600B FY26 → $700B FY27 driving demand

Capital Return

  • Dividend $1.84 annual = ~$1.5B paid
  • 8+ consecutive years of dividend growth
  • Buybacks: $4-5B annual run rate
  • Total return: ~3% combined yield + EPS growth

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $AMAT.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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