AMAT

APPLIED MATERIALS INC /DE

TechnologyCIK 0000006951

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Market Cap
$331.55B
P/E (TTM)
39.0x
Rev Growth (TTM)
+3.3%
Net Margin (TTM)
29.3%
FCF Yield (TTM)
1.6%
FCF Margin (TTM)
18.4%

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LATEST EARNINGS

Q1 2026
5 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.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$5.3B
Q2 '26
$210M-80%
Q1 '26
$1.0B-49%
FCF Margin
TTM18.4%
Q2 '262.7%-82%
Sector: 8.5%Above Avg
OCF Margin27.5%
OCF/NI0.94x
CapEx Coverage3.0x
FCF Yield1.6%
FCF Growth (2Y)-3%
Cash Conversion Cycle
169 days
DSO: 70+DIO: 146DPO: 47

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldTTM
TTM1.3%
Div Yield0.5%
+
Buyback (TTM)0.8%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)0.5%
FCF Payout Ratio28.4%
Free Cash Flow (TTM)$5.3B
Stock Repurchases (TTM)$2.6B
Capital Return / FCF77.2%
Est. Dividends Paid (TTM)$1.5B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
24.6%
Stable
-0.0% YoY-1.6%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
23.4%
8Q: 24.9%
Asset Turnover
0.80x
8Q: 0.83x
Leverage (1+D/E)
1.32x
D/E: 0.32x
DuPont: 24.7%24.6% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.37x
8Q:7.51x
-335.3%
Invested Cap Turn
1.33x
8Q:1.36x
-5.4%
CapEx Intensity
12.2%
8Q:10.4%
CapEx/Depreciation
5.42x
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
39.0x
Volatile
8Q: 98.0x+2041%
Multiple expansion without fundamental improvement
Valuation Lenses
Earnings
39.0x
vs sector
Cash Flow
61.9x
EV/FCF vs
Growth-Adj
1.3xPEG
Fair for growth
Quality-Adj
1.6P/E per %ROIC
ROIC: 24.6%
Shareholder Returns
Dividend
0.5%
Buyback
0.8%
Total Yield
1.3%
Market Cap$331.55B
EV$330.49B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
92/100
Exceptional

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

Returns on Capital

Return on Equity (ROE)Top 10%
41.0%
8Q:
Return on Invested Capital (ROIC)Top 25%
24.6%
8Q:
Flat
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 23.4%
Asset Turnover: 0.80x

Earnings Quality

Cash Conversion

0.94x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin49.0%

Capital Efficiency

Invested Capital Turnover1.33x

Working Capital

Cash Conversion Cycle169 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
52/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
3.3%
OpInc Growth YoY
16.3%
EPS Growth YoY
29.7%
FCF 3Y CAGR
-3.3%

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
49.0%
Operating
28.6%
Top 25% in sector
Net
29.3%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-10.9 pts
FCF: 18.4% | Net: 29.3%
FCF margin lags net margin by 10.9 pts

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $587.00M
Interest Coverage
+Net cash position: $587.00M
Leverage Metrics
Debt-to-Equity
0.32x
Balance sheet risk & solvency analysis