AMAT

APPLIED MATERIALS INC /DE

Technology • CIK: 0000006951

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Market Cap
$257.50B
P/E (TTM)
32.9x
Rev Growth (TTM)
+2.1%
Net Margin (TTM)
27.8%
FCF Yield (TTM)
2.4%
FCF Margin (TTM)
22.0%

What Changed

View Full Filings
10-Q Q1 FY2026 vs 10-Q Q3 FY2025
Semiconductor Systems Revenue Growth+10.21%→-8.15%
Semiconductor Systems Segment Margin35.50% (10-K FY2025)→27.80% (Q1 FY2026)
Management Toneconfident→mixed
BIS Export Controls Settlementnone (subpoenas ongoing, no material settlement...→$253M settlement charged in Q1 FY2026
Applied Global Services Revenue Growth+1.27%→+15.22%

Semiconductor Systems revenue growth — monitor Q2 FY2026 for return above 0%;...·BIS settlement follow-on obligations — confirm whether the $253M includes...·China revenue as % of total — track directional change given $253M BIS penalty...

LATEST EARNINGS

•
Q1 2026
•
3 months ago
•View source
Revenue
$7.01B
-2.0%
Net Income
$2.03B
+71.0%
EPS
$2.54
+75.0%
Gross
49.0%↑ +0.2%
Operating
26.1%↓ -4.3%
Net
28.9%↑ +12.4%
  • •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.
View Full Earnings →

Cash Flow Health

Free Cash Flow7/8 positive
TTM$6.2B
Q1 '26
$1.0B-49%
Q4 '25
$2.0B-0%
FCF Margin
TTM22.0%
Q1 '2614.8%-51%
Sector: 8.5%Top 25%
OCF Margin30.9%
OCF/NI1.11x
CapEx Coverage3.5x
FCF Yield2.4%
FCF Growth (2Y)-7%
Cash Conversion Cycle
173 days
DSO: 73+DIO: 146−DPO: 47
View Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.1%
Div Yield0.6%
+
Buyback (TTM)1.5%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)0.6%
FCF Payout Ratio23.7%
Free Cash Flow (TTM)$6.2B
Stock Repurchases (TTM)$3.9B
Capital Return / FCF86.4%
Est. Dividends Paid (TTM)$1.5B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
24.7%
Stable
-6.0%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
23.3%
8Q: 24.9%
Asset Turnover
0.81x
8Q: 0.83x
Leverage (1+D/E)
1.30x
D/E: 0.30x
DuPont: 24.5% ≈ 24.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.71x
8Q:7.99x
-347.8%
Invested Cap Turn
1.34x
8Q:1.36x
-6.5%
CapEx Intensity
12.0%
8Q:8.9%
CapEx/Depreciation
5.53x
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2025Q3 2024Q2 2024
Revenue
$28.2B
$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
Operating Income
$7.9B
$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
$0
Net Income
$7.8B
$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
Operating Cash Flow
$8.7B
$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
Free Cash Flow
$6.2B
$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
$0
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
32.9x
Volatile
8Q: 96.7x+767%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
32.9x
vs – sector
Cash Flow
41.4x
EV/FCF vs –
Growth-Adj
1.2xPEG
Fair for growth
Quality-Adj
1.3P/E per %ROIC
ROIC: 24.7%
Shareholder Returns
Dividend
0.6%
Buyback
1.5%
Total Yield
2.1%
Market Cap$257.50B
EV$256.56B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
94/100
Exceptional

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

Returns on Capital

Return on Equity (ROE)Top 25%
39.7%
8Q:–
Return on Invested Capital (ROIC)Top 25%
24.7%
8Q:–
-6.0%
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 23.3%
Asset Turnover: 0.81x

Earnings Quality

Cash Conversion

1.11x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin48.7%

Capital Efficiency

Invested Capital Turnover1.34x

Working Capital

Cash Conversion Cycle173 days

Growth Quality & Momentum

Low Quality
Growth Quality Score
49/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
2.1%
OpInc Growth YoY
-15.8%
EPS Growth YoY
27.6%
FCF 3Y CAGR
-6.6%

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
48.7%
Operating
28.2%
Top 25% in sector
Net
27.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-5.8 pts
FCF: 22.0% | Net: 27.8%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $2.03B
Interest Coverage
–
+Net cash position: $2.03B
Leverage Metrics
Debt-to-Equity
0.30x
Balance sheet risk & solvency analysis

Research

All research