A Business at a Glance
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APPLIED MATERIALS INC /DE
AMAT
$433.3B
Mkt Cap
$536.25
-4.72%
APPLIED MATERIALS INC /DE (AMAT) has a current P/E ratio of 55.0, compared to its historical median P/E of 16.3. The stock is currently considered Expensive based on its historical valuation range.
APPLIED MATERIALS INC /DE (AMAT) has a 5-year average return on invested capital (ROIC) of 44.6%. This indicates strong capital allocation and a potential competitive advantage.
APPLIED MATERIALS INC /DE (AMAT) has a market capitalization of $425.8B. It is classified as a mega-cap stock.
Yes, APPLIED MATERIALS INC /DE (AMAT) pays a dividend with a trailing twelve-month yield of 0.34%. The company also returns capital through share buybacks, with a buyback yield of 0.62%.
Based on historical P/E analysis, APPLIED MATERIALS INC /DE (AMAT) appears expensive. The current P/E of 55.0 is 237% above its historical median of 16.3. The estimated fair value CAGR (P/E method) is 19.0%.
APPLIED MATERIALS INC /DE (AMAT) operates in the Semiconductors & Related Devices industry, within the Technology sector.
Applied Materials is the global leader in materials engineering solutions for semiconductor manufacturing, providing the comprehensive portfolio of wafer fabrication equipment and services that enable customers to produce virtually every semiconductor in the world. The company operates through two primary segments: Semiconductor Systems, which designs, develops, manufactures and sells equipment for chip fabrication across patterning, transistor and interconnect, process control, and advanced packaging; and Applied Global Services (AGS), which provides transactional and subscription-based services, spare parts, and factory automation software to optimize customer fab performance and productivity. The Semiconductor Systems segment serves foundry and logic customers (including leading-edge nodes at 7 nanometers and smaller, as well as non-leading-edge markets), DRAM manufacturers, and NAND flash memory producers, while AGS leverages a global installed base through a distributed service model with field engineers positioned near customer sites. Applied's competitive moat derives from its comprehensive, co-optimized materials engineering portfolio that enables customers to evolve their technology roadmaps, combined with deep customer relationships, significant R&D investments, and a portfolio of over 23,500 active patents that protect its technology assets. The company's business model is capital-intensive on the manufacturing side but generates recurring revenue through AGS subscriptions and maintenance, with customers concentrated among leading semiconductor manufacturers in Asia, the United States, and other regions, and end-market exposure spanning personal computing, mobile devices, AI and data center servers, automobiles, and consumer electronics.
【AI-driven capacity expansion】 Management expects semiconductor equipment spending to grow substantially in 2026 and 2027, driven by accelerating AI data center investments and the need for customers to add clean room capacity to support higher wafer starts. The company anticipates leading-edge foundry logic, DRAM (including high-bandwidth memory), and advanced packaging will be the fastest-growing segments, areas where Applied holds strong market leadership positions and has positioned its R&D pipeline to capture incremental share at upcoming device architecture inflections. Applied Global Services is expected to deliver mid-teens annual growth on a sustainable basis, with potential for higher growth in 2026 due to increased factory utilization and new fab ramps, supported by the company's advanced service solutions that help customers accelerate production and optimize yield. Management is systematically translating eight-quarter customer demand forecasts into supply chain signals to ensure manufacturing and service capacity are aligned with customer needs, while maintaining disciplined spending growth below revenue growth to deliver increasing operating profit and modest gross margin expansion as the product portfolio shifts toward higher-value solutions.
| Metric | Target | Period |
|---|---|---|
| Semiconductor equipment business growth | more than 30% | calendar year 2026 |
| Packaging revenues growth | more than 50% | calendar year 2026 |
| Applied Global Services annual growth rate | mid-teens | sustainable basis |
| Q3 non-GAAP gross margin | approximately 50.1% | Q3 fiscal 2026 |
| Q3 Semiconductor Systems revenue | around $6.9 billion | Q3 fiscal 2026 |
| Q3 AGS revenue | about $1.75 billion | Q3 fiscal 2026 |
| Q3 other revenue | around $300 million | Q3 fiscal 2026 |
| Q3 non-GAAP operating expenses | around $1.485 billion | Q3 fiscal 2026 |
Semiconductor equipment business growth (calendar year 2026): “We now expect our semiconductor equipment business will grow more than 30% this calendar year.”
Packaging revenues growth (calendar year 2026): “We expect to grow our packaging revenues more than 50% in calendar 2026”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 29.0B | 28.4B | 27.2B | 26.5B | 25.8B | 23.1B |
| Net Income | 8.5B | 7.0B | 7.2B | 6.9B | 6.5B | 5.9B |
| EPS | $10.71 | $8.66 | $8.61 | $8.11 | $7.44 | $6.40 |
| Free Cash Flow | 5.3B | 5.7B | 7.5B | 7.6B | 4.6B | 4.8B |
| ROIC | 29.2% | 35.1% | 42.9% | 44.3% | 48.2% | 52.3% |
| Gross Margin | 49.0% | 48.7% | 47.5% | 46.7% | 46.5% | 47.3% |
| Debt/Equity | 0.32 | 0.32 | 0.37 | 0.34 | 0.45 | 0.45 |
| Dividends/Share | $1.84 | $1.78 | $1.52 | $1.22 | $1.02 | $0.94 |
| Operating Income | 8.3B | 8.3B | 7.9B | 7.7B | 7.8B | 6.9B |
| Operating Margin | 28.6% | 29.2% | 28.9% | 28.9% | 30.2% | 29.9% |
| ROE | 35.6% | 35.5% | 40.6% | 48.0% | 53.4% | 51.6% |
| Shares Outstanding | 794M | 808M | 834M | 845M | 877M | 920M |
APPLIED MATERIALS INC /DE passes 6 of 9 quality checks, suggesting mixed fundamentals.
APPLIED MATERIALS INC /DE trades at 55.0x trailing earnings, compared to its 15-year median P/E of 16.3x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 68.7x vs a median of 16.4x. The company's 5-year average ROIC is 44.6% with a gross margin of 47.3%. Total shareholder yield (dividends + buybacks) is 1.0%. At current prices, the estimated annualized return to fair value is +19.0%.
APPLIED MATERIALS INC /DE (AMAT) reported annual revenue of $28.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
APPLIED MATERIALS INC /DE (AMAT) has a net profit margin of 24.7%. This is a strong margin indicating high profitability.
APPLIED MATERIALS INC /DE (AMAT) generated $5.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
APPLIED MATERIALS INC /DE (AMAT) has a debt-to-equity ratio of 0.32. This indicates a conservatively financed balance sheet.
APPLIED MATERIALS INC /DE (AMAT) reported earnings per share (EPS) of $8.66 in its most recent fiscal year.
APPLIED MATERIALS INC /DE (AMAT) has a return on equity (ROE) of 35.5%. This indicates the company generates strong returns for shareholders.
APPLIED MATERIALS INC /DE (AMAT) has a 5-year average gross margin of 47.3%. This indicates decent pricing power.
The Ledger Terminal provides 19 years of financial data for APPLIED MATERIALS INC /DE (AMAT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
APPLIED MATERIALS INC /DE (AMAT) has a book value per share of $25.26, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects semiconductor equipment spending to grow substantially in 2026 and 2027, driven by accelerating AI data center investments and the need for customers to add clean room capacity to support higher wafer starts. The company anticipates leading-edge foundry logic, DRAM (including high-bandwidth memory), and advanced packaging will be the fastest-growing segments, areas where Applied holds strong market leadership positions and has positioned its R&D pipeline to capture incremental share at upcoming device architecture inflections. Applied Global Services is expected to deliver mid-teens annual growth on a sustainable basis, with potential for higher growth in 2026 due to increased factory utilization and new fab ramps, supported by the company's advanced service solutions that help customers accelerate production and optimize yield. Management is systematically translating eight-quarter customer demand forecasts into supply chain signals to ensure manufacturing and service capacity are aligned with customer needs, while maintaining disciplined spending growth below revenue growth to deliver increasing operating profit and modest gross margin expansion as the product portfolio shifts toward higher-value solutions.
Based on recent SEC filings and earnings calls, APPLIED MATERIALS INC /DE (AMAT) has provided the following forward guidance: Semiconductor equipment business growth: more than 30% (calendar year 2026); Packaging revenues growth: more than 50% (calendar year 2026); Applied Global Services annual growth rate: mid-teens (sustainable basis); Q3 non-GAAP gross margin: approximately 50.1% (Q3 fiscal 2026); Q3 Semiconductor Systems revenue: around $6.9 billion (Q3 fiscal 2026), plus 3 additional metrics.
Applied Global Services annual growth rate (sustainable basis): “As a result, we expect Applied Global Services to deliver a sustainable annual growth rate in the mid-teens and potentially higher this year.”
Q3 non-GAAP gross margin (Q3 fiscal 2026): “We expect non-GAAP gross margin to increase modestly to approximately 50.1%”
Q3 Semiconductor Systems revenue (Q3 fiscal 2026): “Within this outlook, we expect Semiconductor Systems revenue of around $6.9 billion”
Q3 AGS revenue (Q3 fiscal 2026): “AGS revenue of about $1.75 billion”
Q3 other revenue (Q3 fiscal 2026): “other revenue of around $300 million”
Q3 non-GAAP operating expenses (Q3 fiscal 2026): “we expect non-GAAP operating expenses of around $1.485 billion”
No recent press releases.