Applied Matls Inc Financials
This page shows Applied Matls Inc (AMAT) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Applied Materials’ core profit engine stayed steady, but cash left after reinvestment narrowed as capital spending stepped up.
Across recent years, operating margin held near29.0% while free-cash-flow margin fell to20.1% , so accounting profitability stayed sturdier than cash left after reinvestment. Because capex climbed to$2.3B as gross margin reached48.7% , the weaker cash outcome looks tied more to heavier investment and below-the-line costs than to a deterioration in core production economics.
The balance sheet is conservative: cash of
A second mechanic is cash deployment discipline: buybacks of
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Applied Matls Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Applied Matls Inc has an operating margin of 29.2%, meaning the company retains $29 of operating profit per $100 of revenue. This strong profitability earns a score of 87/100, reflecting efficient cost management and pricing power. This is up from 28.9% the prior year.
Applied Matls Inc's revenue grew a modest 4.4% year-over-year to $28.4B. This slow but positive growth earns a score of 39/100.
Applied Matls Inc carries a low D/E ratio of 0.30, meaning only $0.30 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 96/100, indicating a strong balance sheet with room for future borrowing.
Applied Matls Inc's current ratio of 2.71 indicates adequate short-term liquidity, earning a score of 51/100. The company can meet its near-term obligations, though with limited headroom.
Applied Matls Inc converts 20.1% of revenue into free cash flow ($5.7B). This strong cash generation earns a score of 85/100.
Applied Matls Inc earns a strong 32.2% return on equity (ROE), meaning it generates $32 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 90/100. This is down from 38.5% the prior year.
Applied Matls Inc scores 17.28, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($352.1B) relative to total liabilities ($15.9B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Applied Matls Inc passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Applied Matls Inc generates $1.14 in operating cash flow ($8.0B OCF vs $7.0B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Applied Matls Inc earns $30.8 in operating income for every $1 of interest expense ($8.3B vs $269.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Applied Matls Inc generated $28.4B in revenue in fiscal year 2025. This represents an increase of 4.4% from the prior year.
Applied Matls Inc's EBITDA was $8.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 5.6% from the prior year.
Applied Matls Inc reported $7.0B in net income in fiscal year 2025. This represents a decrease of 2.5% from the prior year.
Applied Matls Inc earned $8.66 per diluted share (EPS) in fiscal year 2025. This represents an increase of 0.6% from the prior year.
Cash & Balance Sheet
Applied Matls Inc generated $5.7B in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 23.9% from the prior year.
Applied Matls Inc held $7.2B in cash against $6.5B in long-term debt as of fiscal year 2025.
Applied Matls Inc had 794M shares outstanding in fiscal year 2025. This represents a decrease of 2.5% from the prior year.
Margins & Returns
Applied Matls Inc's gross margin was 48.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 1.2 percentage points from the prior year.
Applied Matls Inc's operating margin was 29.2% in fiscal year 2025, reflecting core business profitability. This is up 0.3 percentage points from the prior year.
Applied Matls Inc's net profit margin was 24.7% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.7 percentage points from the prior year.
Applied Matls Inc's ROE was 32.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 6.3 percentage points from the prior year.
Capital Allocation
Applied Matls Inc invested $3.6B in research and development in fiscal year 2025. This represents an increase of 10.4% from the prior year.
Applied Matls Inc spent $4.9B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 28.0% from the prior year.
Applied Matls Inc invested $2.3B in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 89.9% from the prior year.
AMAT Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $7.0B+3.1% | $6.8B-6.9% | $7.3B+2.8% | $7.1B-0.9% | $7.2B+1.7% | $7.0B+3.9% | $6.8B+2.0% | $6.6B |
| Cost of Revenue | $3.6B+1.2% | $3.5B-5.5% | $3.7B+3.5% | $3.6B-1.5% | $3.7B-1.1% | $3.7B+3.8% | $3.6B+2.3% | $3.5B |
| Gross Profit | $3.4B+5.2% | $3.3B-8.3% | $3.6B+2.2% | $3.5B-0.3% | $3.5B+4.8% | $3.3B+4.1% | $3.2B+1.6% | $3.2B |
| R&D Expenses | $928.0M+1.2% | $917.0M+1.8% | $901.0M+0.9% | $893.0M+4.0% | $859.0M+0.1% | $858.0M+2.6% | $836.0M+6.5% | $785.0M |
| SG&A Expenses | $411.0M-54.1% | $895.0M+338.7% | $204.0M-1.4% | $207.0M-55.2% | $462.0M-56.1% | $1.1B+373.9% | $222.0M-10.1% | $247.0M |
| Operating Income | $1.8B+7.0% | $1.7B-23.3% | $2.2B+3.0% | $2.2B-0.3% | $2.2B+6.3% | $2.0B+5.4% | $1.9B+1.6% | $1.9B |
| Interest Expense | $69.0M-2.8% | $71.0M+7.6% | $66.0M-2.9% | $68.0M+6.3% | $64.0M-3.0% | $66.0M+4.8% | $63.0M+6.8% | $59.0M |
| Income Tax | $302.0M-18.4% | $370.0M-52.8% | $784.0M+323.8% | $185.0M-80.2% | $934.0M+469.5% | $164.0M-35.7% | $255.0M-6.3% | $272.0M |
| Net Income | $2.0B+6.8% | $1.9B+6.6% | $1.8B-16.8% | $2.1B+80.3% | $1.2B-31.5% | $1.7B+1.5% | $1.7B-1.0% | $1.7B |
| EPS (Diluted) | $2.54 | N/A | $2.22-15.6% | $2.63+81.4% | $1.45 | N/A | $2.05-0.5% | $2.06 |
AMAT Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $37.6B+3.7% | $36.3B+6.1% | $34.2B+1.7% | $33.6B+0.9% | $33.3B-3.1% | $34.4B+2.3% | $33.6B+5.3% | $31.9B |
| Current Assets | $21.0B+0.8% | $20.9B+5.9% | $19.7B+0.1% | $19.7B-4.8% | $20.7B-2.5% | $21.2B+2.7% | $20.7B+7.3% | $19.3B |
| Cash & Equivalents | $7.2B-0.3% | $7.2B+34.5% | $5.4B-12.7% | $6.2B-1.5% | $6.3B-21.9% | $8.0B-3.2% | $8.3B+17.0% | $7.1B |
| Inventory | $6.0B+1.4% | $5.9B+1.9% | $5.8B+2.7% | $5.7B+2.8% | $5.5B+1.5% | $5.4B-2.6% | $5.6B-2.2% | $5.7B |
| Accounts Receivable | $5.0B-4.0% | $5.2B-10.2% | $5.8B-6.7% | $6.2B+3.2% | $6.0B+14.6% | $5.2B+5.3% | $5.0B+4.0% | $4.8B |
| Goodwill | $3.7B0.0% | $3.7B-1.1% | $3.7B0.0% | $3.7B-0.5% | $3.8B+1.0% | $3.7B0.0% | $3.7B0.0% | $3.7B |
| Total Liabilities | $15.9B+0.3% | $15.9B+8.0% | $14.7B+0.2% | $14.7B-0.3% | $14.7B-4.5% | $15.4B+4.1% | $14.8B+7.7% | $13.8B |
| Current Liabilities | $7.8B-3.1% | $8.0B+1.5% | $7.9B-1.4% | $8.0B+3.4% | $7.7B-8.6% | $8.5B+17.2% | $7.2B+5.0% | $6.9B |
| Long-Term Debt | $6.5B0.0% | $6.5B+18.2% | $5.5B0.0% | $5.5B0.0% | $5.5B0.0% | $5.5B-11.3% | $6.2B+12.7% | $5.5B |
| Total Equity | $21.7B+6.4% | $20.4B+4.7% | $19.5B+2.9% | $19.0B+1.8% | $18.6B-2.0% | $19.0B+0.9% | $18.8B+3.5% | $18.2B |
| Retained Earnings | $56.9B+3.0% | $55.2B+2.9% | $53.7B+2.7% | $52.3B+3.5% | $50.5B+1.7% | $49.7B+2.9% | $48.2B+2.9% | $46.9B |
AMAT Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $1.7B-40.4% | $2.8B+7.4% | $2.6B+67.7% | $1.6B+69.8% | $925.0M-64.1% | $2.6B+8.0% | $2.4B+71.3% | $1.4B |
| Capital Expenditures | $646.0M-17.7% | $785.0M+34.4% | $584.0M+14.5% | $510.0M+33.9% | $381.0M-6.4% | $407.0M+37.0% | $297.0M+15.6% | $257.0M |
| Free Cash Flow | $1.0B-49.1% | $2.0B-0.3% | $2.0B+93.2% | $1.1B+95.0% | $544.0M-74.9% | $2.2B+3.8% | $2.1B+84.0% | $1.1B |
| Investing Cash Flow | -$780.0M-461.2% | -$139.0M+92.9% | -$2.0B-990.0% | $221.0M+124.6% | -$897.0M+16.2% | -$1.1B-62.3% | -$660.0M-343.0% | -$149.0M |
| Financing Cash Flow | -$931.0M-12.0% | -$831.0M+43.0% | -$1.5B+23.4% | -$1.9B-6.6% | -$1.8B-1.0% | -$1.8B-238.9% | -$522.0M+48.9% | -$1.0B |
| Dividends Paid | $365.0M0.0% | $365.0M-0.8% | $368.0M+13.2% | $325.0M-0.3% | $326.0M-0.9% | $329.0M-0.6% | $331.0M+24.4% | $266.0M |
| Share Buybacks | $337.0M-60.4% | $851.0M-19.4% | $1.1B-36.8% | $1.7B+26.7% | $1.3B-8.6% | $1.4B+67.5% | $861.0M+5.0% | $820.0M |
AMAT Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 49.0%+1.0pp | 48.0%-0.8pp | 48.8%-0.3pp | 49.1%+0.3pp | 48.8%+1.5pp | 47.3%+0.1pp | 47.3%-0.2pp | 47.4% |
| Operating Margin | 26.1%+0.9pp | 25.2%-5.4pp | 30.6%+0.0pp | 30.6%+0.2pp | 30.3%+1.3pp | 29.0%+0.4pp | 28.6%-0.1pp | 28.8% |
| Net Margin | 28.9%+1.0pp | 27.9%+3.5pp | 24.4%-5.7pp | 30.1%+13.6pp | 16.5%-8.0pp | 24.6%-0.6pp | 25.1%-0.8pp | 25.9% |
| Return on Equity | 9.3%+0.0pp | 9.3%+0.2pp | 9.1%-2.1pp | 11.3%+4.9pp | 6.4%-2.7pp | 9.1%+0.1pp | 9.0%-0.4pp | 9.5% |
| Return on Assets | 5.4%+0.2pp | 5.2%+0.0pp | 5.2%-1.2pp | 6.3%+2.8pp | 3.5%-1.5pp | 5.0%-0.0pp | 5.1%-0.3pp | 5.4% |
| Current Ratio | 2.71+0.1 | 2.61+0.1 | 2.50+0.0 | 2.46-0.2 | 2.67+0.2 | 2.51-0.4 | 2.86+0.1 | 2.80 |
| Debt-to-Equity | 0.30-0.0 | 0.32+0.0 | 0.280.0 | 0.290.0 | 0.290.0 | 0.29-0.0 | 0.33+0.0 | 0.30 |
| FCF Margin | 14.8%-15.2pp | 30.0%+2.0pp | 28.1%+13.1pp | 14.9%+7.4pp | 7.6%-23.2pp | 30.8%-0.0pp | 30.8%+13.7pp | 17.1% |
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Frequently Asked Questions
What is Applied Matls Inc's annual revenue?
Applied Matls Inc (AMAT) reported $28.4B in total revenue for fiscal year 2025. This represents a 4.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Applied Matls Inc's revenue growing?
Applied Matls Inc (AMAT) revenue grew by 4.4% year-over-year, from $27.2B to $28.4B in fiscal year 2025.
Is Applied Matls Inc profitable?
Yes, Applied Matls Inc (AMAT) reported a net income of $7.0B in fiscal year 2025, with a net profit margin of 24.7%.
What is Applied Matls Inc's EBITDA?
Applied Matls Inc (AMAT) had EBITDA of $8.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Applied Matls Inc have?
As of fiscal year 2025, Applied Matls Inc (AMAT) had $7.2B in cash and equivalents against $6.5B in long-term debt.
What is Applied Matls Inc's gross margin?
Applied Matls Inc (AMAT) had a gross margin of 48.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Applied Matls Inc's operating margin?
Applied Matls Inc (AMAT) had an operating margin of 29.2% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Applied Matls Inc's net profit margin?
Applied Matls Inc (AMAT) had a net profit margin of 24.7% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Applied Matls Inc's return on equity (ROE)?
Applied Matls Inc (AMAT) has a return on equity of 32.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Applied Matls Inc's free cash flow?
Applied Matls Inc (AMAT) generated $5.7B in free cash flow during fiscal year 2025. This represents a -23.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Applied Matls Inc's operating cash flow?
Applied Matls Inc (AMAT) generated $8.0B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Applied Matls Inc's total assets?
Applied Matls Inc (AMAT) had $37.6B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Applied Matls Inc's capital expenditures?
Applied Matls Inc (AMAT) invested $2.3B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Applied Matls Inc spend on research and development?
Applied Matls Inc (AMAT) invested $3.6B in research and development during fiscal year 2025.
What is Applied Matls Inc's current ratio?
Applied Matls Inc (AMAT) had a current ratio of 2.71 as of fiscal year 2025, which is generally considered healthy.
What is Applied Matls Inc's debt-to-equity ratio?
Applied Matls Inc (AMAT) had a debt-to-equity ratio of 0.30 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Applied Matls Inc's return on assets (ROA)?
Applied Matls Inc (AMAT) had a return on assets of 18.6% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Applied Matls Inc's Altman Z-Score?
Applied Matls Inc (AMAT) has an Altman Z-Score of 17.28, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Applied Matls Inc's Piotroski F-Score?
Applied Matls Inc (AMAT) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Applied Matls Inc's earnings high quality?
Applied Matls Inc (AMAT) has an earnings quality ratio of 1.14x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Applied Matls Inc cover its interest payments?
Applied Matls Inc (AMAT) has an interest coverage ratio of 30.8x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Applied Matls Inc?
Applied Matls Inc (AMAT) scores 75 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.