Applied Materials, Inc.AMAT
NasdaqGS•Technology•Semiconductor Equipment & Materials
Applied Materials, Inc. provides materials engineering solutions, equipment, services, and software to the semiconductor and related industries in the United States, China, Korea, Taiwan, Japan, Southeast Asia, Europe, and internationally. The company operates through Semiconductor Systems and Applied Global Services (AGS) segments. The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps, including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment offers integrated solutions to optimize equipment and fab performance and productivity comprising spares, upgrades, services, and 200 millimeter and other equipment and factory automation software for semiconductor and other products. It serves manufacturers of semiconductor wafers and chips, and other electronic devices. Applied Materials, Inc. was incorporated in 1967 and is headquartered in Santa Clara, California.
Applied Materials, Inc. (AMAT) reported trailing twelve months revenue of $29.02B as of April 2026, a 3.3% increase year-over-year. Quarterly revenue reached $7.91B, reflecting continued top-line momentum.
Applied Materials, Inc. generated $8.51B in TTM net income, with quarterly EBITDA of $2.66B. The operating margin expanded from 30.5% to 31.9%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (31.9%) and net margin (35.5%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 30.1% a year ago, signaling stronger bottom-line efficiency.
AMAT trades at a P/E of 38.9x (a premium multiple) and a P/S of 11.4x. The price-to-book ratio of 13.8x indicates a significant premium over book value.
The company generated $210.00M in free cash flow over the trailing twelve months, a 80.2% decrease year-over-year, indicating cash generation ability. The balance sheet shows $40.29B in total assets with $5.26B in long-term debt against $23.91B in stockholders equity for a debt-to-equity ratio of 0.2, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~29.0% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 36.0% suggests a durable competitive advantage and efficient capital allocation.
8 of the last 8 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~28.4% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.2 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 3.9% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation