|AMAT Overview
AMAT

APPLIED MATERIALS INC /DE

Technology • CIK: 0000006951

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Market Cap
$183.91B
P/E (TTM)
26.2x
Rev Growth (TTM)
Net Margin (TTM)
24.7%
FCF Yield (TTM)
3.1%
FCF Margin (TTM)
20.1%

LATEST EARNINGS

Q1 2026
1 day ago
View source
Revenue
Net Income
EPS
  • GAAP EPS increased 75% year over year to $2.54, while non-GAAP EPS remained flat at $2.38.
  • Non-GAAP free cash flow increased 91% year over year to $1,040 million.
  • Semiconductor Systems achieved record DRAM revenue.
  • Applied Global Services delivered record services and spares revenue.

Cash Flow Health

Free Cash Flow7/8 positive
TTM$5.7B
Q4 '25
$2.0B-0%
Q3 '25
$2.0B+93%
FCF Margin
TTM20.1%
Q4 '2530.0%+7%
Sector: 14.5%Above Avg
OCF Margin28.1%
OCF/NI1.14x
CapEx Coverage3.5x
FCF Yield3.1%
FCF Growth (2Y)
Cash Conversion Cycle
172 days
DSO: 75+DIO: 142DPO: 44

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM3.4%
Div Yield0.8%
+
Buyback (TTM)2.7%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)0.8%
FCF Payout Ratio25.1%
Free Cash Flow (TTM)$5.7B
Stock Repurchases (TTM)$4.9B
Capital Return / FCF110.5%
Est. Dividends Paid (TTM)$1.4B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
30.3%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
22.1%
Asset Turnover
0.83x
Leverage (1+D/E)
1.32x
D/E: 0.32x
DuPont: 24.2%30.3% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
7.32x
8Q:
Invested Cap Turn
1.38x
8Q:
CapEx Intensity
11.0%
8Q:
CapEx/Depreciation
5.20x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2025Q3 2024Q2 2024Q1 2024
Revenue
$28.4B
$6.8B6.9%
$7.3B2.8%
$7.1B0.9%
$7.2B1.7%
$7.0B3.9%
$6.8B2.0%
$6.6B0.9%
$6.7B
Operating Income
$8.3B
$1.7B23.3%
$2.2B3.0%
$2.2B0.3%
$2.2B6.3%
$2.0B5.4%
$1.9B
$0100.0%
$1.9B
Net Income
$7.0B
$1.9B6.6%
$1.8B16.8%
$2.1B80.3%
$1.2B31.5%
$1.7B1.5%
$1.7B1.0%
$1.7B14.7%
$2.0B
Operating Cash Flow
$8.0B
$2.8B7.4%
$2.6B67.7%
$1.6B69.8%
$925.0M64.1%
$2.6B8.0%
$2.4B71.3%
$1.4B40.1%
$2.3B
Free Cash Flow
$5.7B
$2.0B0.3%
$2.0B93.2%
$1.1B95.0%
$544.0M74.9%
$2.2B3.8%
$2.1B
$0100.0%
$1.1B
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
26.2x
Valuation Lenses
Earnings
26.2x
vs sector
Cash Flow
7.2x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
0.9P/E per %ROIC
ROIC: 30.3%
Shareholder Returns
Dividend
0.8%
Buyback
2.7%
Total Yield
3.4%
Market Cap$183.91B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
100/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 25%
36.4%
8Q:
Return on Invested Capital (ROIC)Top 25%
30.3%
8Q:
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 22.1%
Asset Turnover: 0.83x

Earnings Quality

Cash Conversion

1.14x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin48.7%

Capital Efficiency

Invested Capital Turnover1.38x

Working Capital

Cash Conversion Cycle172 days

Growth Quality & Momentum

Growth Rates

Revenue Growth YoY
N/A
OpInc Growth YoY
-16.3%
EPS Growth YoY
N/A
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
48.7%
Operating
29.2%
Top 25% in sector
Net
24.7%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-4.6 pts
FCF: 20.1% | Net: 24.7%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $2.09B
Interest Coverage
+Net cash position: $2.09B
Leverage Metrics
Debt-to-Equity
0.32x
Balance sheet risk & solvency analysis