AMATNasdaqSemiconductors & Related DevicesUS GAAP · USD

Applied Materials, Inc

Applied Materials designs, manufactures, and services the wafer fabrication tools used to make semiconductors and related electronic devices. Its portfolio spans semiconductor equipment, installed-base services, spares, and factory automation software, with additional exposure to display manufacturing equipment through its Corporate and Other activities.

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Revenue28.4bn USD
+4.4 %y/y
Operating profit (EBIT)8,289m USD
+5.4 %y/y
EBIT margin29.2%
+0.3 ppy/y
Net income6,998m USD
−2.5 %y/y
Free cash flow5,698m USD
−23.9 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

0102030bn USD2020: 17.2 bn USD2020: EBIT 4.4 bn USD20202021: 23.1 bn USD2021: EBIT 6.9 bn USD20212022: 25.8 bn USD2022: EBIT 7.8 bn USD20222023: 26.5 bn USD2023: EBIT 7.7 bn USD20232024: 27.2 bn USD2024: EBIT 7.9 bn USD20242025: 28.4 bn USD2025: EBIT 8.3 bn USD202528.48.3
RevenueOperating profit (EBIT)
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Business

Share of revenue
Semiconductor Systems78 %

Wafer fabrication tools and process platforms sold to chipmakers for leading-edge and mature-node production.

Applied Global Services (AGS)18 %

Installed-base services, spares, factory automation software, and related support for fabs worldwide.

200mm and other equipment2 %

Legacy and non-leading-edge equipment sold to customers serving mature semiconductor markets.

Display and Corporate/Other2 %

Display manufacturing equipment and other non-core activities reported outside the main semiconductor segments.

Customers

Applied Materials sells primarily to semiconductor manufacturers that invest in new capacity, technology transitions, and installed-base productivity. Its customer base is concentrated among a relatively small number of large chipmakers, especially in China, Taiwan, and Korea, which makes order timing and customer capex cycles highly important. AGS also serves fabs globally that need spares, service, and automation software to maximize uptime and yields.

Foundry, logic and other semiconductor manufacturers

Buy advanced wafer fabrication tools for leading-edge and non-leading-edge nodes to support new device designs and capacity expansion.

DRAM manufacturers

Purchase equipment and services to support memory technology upgrades and output optimization.

NAND flash manufacturers

Buy process tools and installed-base support for flash memory production and yield improvement.

Installed-base fab customers

Purchase spares, transactional services, subscription services, and factory automation software to improve uptime and productivity.

Display industry customers

Buy display manufacturing equipment and related support, mainly through the Corporate and Other category.

Strategy

Applied Materials is focused on sustaining its technology edge through heavy RD&E investment and a broad portfolio that spans equipment, services, and adjacent markets. Management is also emphasizing operating flexibility, manufacturing efficiency, and expansion into new and adjacent applications while protecting the installed base with service and automation offerings.

Sustain high RD&E investmentShort term

New process technologies must be ready before customer demand emerges, or the company risks losing design wins.

Expand installed-base services and automationMedium term

Services and software deepen customer relationships and improve recurring revenue tied to the global installed base.

Broaden into new and adjacent marketsMedium term

Diversification can reduce dependence on a narrow set of semiconductor capex cycles and customer geographies.

Improve operating flexibility and manufacturing efficiencyShort term

A more flexible cost base helps absorb semiconductor cycle swings and supply-chain disruptions.

Geography

Revenue is heavily concentrated in Asia Pacific, with China, Korea, and Taiwan representing the largest end markets. The company also has meaningful sales in the United States and Europe, while product development and engineering are primarily performed in the U.S., India, and Israel, and customer demonstrations are concentrated in the U.S., China, Taiwan, Israel, and South Korea.

Risks

The business is exposed to sharp swings in semiconductor capital spending, and a small number of customers can materially affect results when orders shift or are delayed. Export controls, especially on sales to China, add regulatory uncertainty and can limit product and service delivery, while supply-chain disruptions and cybersecurity incidents at suppliers can interrupt manufacturing and installations.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Customer concentration in China, Taiwan and Korea1Export regulations and trade restrictions2Semiconductor industry cyclicality3Supply-chain disruption and supplier cybersecurity incidents4Impairment of goodwill and long-lived assets5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Customer concentration in China, Taiwan and KoreaImpact: HighLikelihood: High

    A limited number of large customers account for a substantial portion of business, so one customer's spending change can move results materially.

    Exposure: Revenue volatility and pricing pressure

  2. Export regulations and trade restrictionsImpact: HighLikelihood: High

    U.S. licensing and export rules can restrict shipments and services to China and other markets, reducing addressable demand.

    Exposure: China sales and service access

  3. Semiconductor industry cyclicalityImpact: HighLikelihood: Medium

    Customer spending depends on technology transitions, utilization, financing, and end-market demand, which are inherently volatile.

    Exposure: Capital equipment orders

  4. Supply-chain disruption and supplier cybersecurity incidentsImpact: MediumLikelihood: High

    Delays in parts, materials, or services can slow manufacturing, installations, and customer deliveries.

    Exposure: Manufacturing and service execution

  5. Impairment of goodwill and long-lived assetsImpact: MediumLikelihood: Medium

    Weak industry conditions or strategy changes could reduce expected cash flows and trigger impairment charges.

    Exposure: Acquired intangibles and reporting units

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Accounting

Judgemental items
Revenue recognition and shipment/service timing

Results depend on when tools ship and services are performed, which can create quarter-to-quarter volatility.

Impact: Affects reported revenue and margin timing

Goodwill and intangible asset impairment

Acquired intangibles are tested for recoverability using cash flow and market assumptions.

Impact: Could create non-cash charges in weak cycles

Inventory reserves and excess/obsolete inventory

Technology changes and demand swings can leave parts or tools obsolete, especially in services and legacy equipment.

Impact: Affects gross margin and operating income

Segment reporting and expense disclosure

FASB segment disclosure updates require more detail on significant segment expenses and CODM reporting.

Impact: May change how investors analyze segment profitability

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Last updated: 24/09/2026