# Applied Materials Inc. (AMAT) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/AMAT/thesis · /stocks/AMAT/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/AMAT/fundamental

## Navigation

- Overview: /stocks/AMAT
- Financials (this page): /stocks/AMAT/financials
- Thesis: /stocks/AMAT/thesis
- Investment Memo: /stocks/AMAT/memo
- Coverage universe: /stocks