What are the top risks for APPLIED MATERIALS INC /DE (AMAT)?

The top risks identified in the 10-K filing are: Regulatory and Geopolitical Risks related to China, Cybersecurity Threats, Supply Chain Disruptions. The company faces significant risks from escalating geopolitical tensions and regulatory changes, particularly concerning China, alongside persistent cybersecurity threats and volatile supply chains. These factors create substantial operational uncertainty and potential impacts on revenue and costs.

AMAT - Comprehensive Filing Intelligence

FY 2025•10-K•Filed Dec 12, 2025

6.0/10

Filing Health:GOOD

Solid fundamentals with minor concerns to monitor

Executive Summary

Gross margins improved due to higher revenue, favorable mix, increased pricing, and lower costs, while operating expenses increased due to RD&E investments and restructuring charges.. Revenue growth was driven by strategic investments in new capacity and technology transitions in the semiconductor industry, with AGS services also contributing positively.. Guarantees totaling $643 million exist, though no probable payments are expected.. Semiconductor Systems revenue grew 4.46% to $20,798M.

Top Concerns

!Goodwill impairment charges indicate potential issues with past acquisitions.
!Guarantees totaling $643 million exist, though no probable payments are expected.
!Uncertainty exists regarding the outcome of legal proceedings and government investigations, with no material impact currently anticipated.
!Regulatory and Geopolitical Risks related to China (high)
!Cybersecurity Threats (high)

Top Positives

+Revenue growth was driven by strategic investments in new capacity and technology transitions in the semiconductor industry, with AGS services also contributing positively.

Analysis Dimensions

Our 5-pass AI analysis examines this filing across multiple dimensions. Each dimension score is derived from direct analysis of SEC filing text.

Narrative Intelligence

7.0/10

Management tone is confidently optimistic with focus on higher net revenue.

Full analysis includes: tone changes vs prior quarter, margin driver breakdown, forward guidance analysis, strategic priorities.

Accounting Quality

7.0/10

Earnings quality shows moderate accounting practices.

Full analysis includes: reserve and allowance changes, non-recurring item analysis, stock-based compensation impact, disclosure concerns.

Hidden Liabilities

Off-balance sheet risk is low with $643 million in identified exposure.

Full analysis includes: cloud and purchase commitments, VIE/SPE exposure, covenant compliance status, refinancing risk assessment.

Risk Landscape

3.0/10

Overall risk profile shows regulatory and geopolitical risks related to china as primary concern.

Full analysis includes: 8 risk categories with severity, new vs escalated risks, management response assessment, risk trend analysis.

Segment Performance

7.0/10

Segment health analysis.

Full analysis includes: segment-by-segment revenue breakdown, geographic concentration risk, customer concentration analysis, segment margin trends.