Applied Materials, Inc. (AMAT) Income Statement

30Y historyFree accessUpdated daily

Revenue growth has re-accelerated sharply to 24.8% year-over-year in 2026Q3, while gross margins have expanded structurally from a 47.3% baseline in 2024 to 50.3%, indicating strong pricing power and a favorable mix shift.

Annual statement

AMAT Income Statement

Applied Materials, Inc. (AMAT) annual income statement — 30-year revenue, gross profit & net income history

Annual Quarterly

Metric	TTM	Oct'25	Oct'24	Oct'23	Oct'22	Oct'21	Oct'20	Oct'19	Oct'18	Oct'17	Oct'16	Oct'15	Oct'14	Oct'13	Oct'12	Oct'11	Oct'10	Oct'09	Oct'08	Oct'07	Oct'06	Oct'05	Oct'04	Oct'03	Oct'02	Oct'01	Oct'00	Oct'99	Oct'98	Oct'97	Oct'96

Sales/Revenue	30.84B	28.37B	27.18B	26.52B	25.79B	23.06B	17.2B	14.61B	16.7B	14.7B	10.82B	9.66B	9.07B	7.51B	8.72B	10.52B	9.55B	5.01B	8.13B	9.73B	9.17B	6.99B	8.01B	4.48B	5.06B	7.34B	9.56B	4.86B	4.04B	4.07B	4.14B
Revenue Growth %	7.77%	4.39%	2.49%	2.84%	11.8%	34.07%	17.76%	-12.55%	13.65%	35.78%	12.07%	6.47%	20.82%	-13.88%	-17.1%	10.14%	90.45%	-38.33%	-16.49%	6.19%	31.11%	-12.74%	78.97%	-11.56%	-31.06%	-23.22%	96.84%	20.22%	-0.8%	-1.7%	35.37%
Cost of Goods Sold	15.6B	14.56B	14.28B	14.13B	13.79B	12.15B	9.51B	8.22B	9.19B	8.09B	6.31B	5.71B	5.23B	4.52B	5.41B	6.16B	5.83B	3.58B	4.69B	5.24B	4.88B	3.91B	4.31B	2.87B	3.01B	4.09B	4.71B	2.54B	2.18B	2.17B	2.2B
COGS % of Revenue	-	51.33%	52.54%	53.3%	53.49%	52.68%	55.28%	56.28%	55%	55.01%	58.33%	59.08%	57.64%	60.17%	62%	58.54%	61.09%	71.46%	57.65%	53.85%	53.18%	55.86%	53.81%	64.16%	59.37%	55.71%	49.23%	52.22%	53.9%	53.34%	52.96%
Gross Profit	15.23B	13.81B	12.9B	12.38B	11.99B	10.91B	7.69B	6.39B	7.52B	6.61B	4.51B	3.95B	3.84B	2.99B	3.31B	4.36B	3.72B	1.43B	3.44B	4.49B	4.29B	3.09B	3.7B	1.6B	2.06B	3.25B	4.86B	2.32B	1.86B	1.9B	1.95B
Gross Margin %	49.4%	48.67%	47.46%	46.7%	46.51%	47.32%	44.72%	43.72%	45%	44.99%	41.67%	40.92%	42.36%	39.83%	38%	41.46%	38.91%	28.54%	42.35%	46.15%	46.82%	44.14%	46.19%	35.84%	40.63%	44.29%	50.77%	47.78%	46.1%	46.66%	47.04%
Gross Profit Growth %	-	7.06%	4.14%	3.26%	9.89%	41.89%	20.45%	-15.05%	13.69%	46.58%	14.14%	2.84%	28.49%	-9.72%	-24.01%	17.36%	159.64%	-58.44%	-23.36%	4.67%	39.08%	-16.63%	130.69%	-21.99%	-36.76%	-33.03%	109.14%	24.61%	-1.98%	-2.5%	38.29%
Operating Expenses	5.83B	5.52B	5.03B	4.73B	4.21B	4.03B	3.33B	3.04B	3.02B	2.66B	2.36B	2.26B	2.32B	2.56B	2.31B	2.02B	2.33B	1.82B	2.07B	2.09B	2.84B	1.64B	1.94B	1.92B	1.85B	2.32B	1.91B	1.39B	1.47B	1.21B	1.02B
OpEx % of Revenue	-	19.45%	18.51%	17.84%	16.32%	17.45%	19.34%	20.78%	18.08%	18.12%	21.79%	23.39%	25.55%	34.08%	26.53%	19.2%	24.41%	36.39%	25.45%	21.46%	31.02%	23.43%	24.18%	42.84%	36.48%	31.62%	19.95%	28.57%	36.49%	29.7%	24.63%
Selling, General & Admin	1.67B	1.77B	1.8B	1.63B	1.44B	1.23B	1.09B	982M	999M	890M	819M	897M	890M	898M	1.08B	901M	941.85M	734.52M	965.16M	952.44M	906.74M	697.4M	751.62M	625.87M	708.96M	901.92M	960.75M	658M	593.7M	566.6M	1.02B
SG&A % of Revenue	-	6.23%	6.61%	6.14%	5.58%	5.33%	6.35%	6.72%	5.98%	6.06%	7.57%	9.29%	9.81%	11.96%	12.34%	8.57%	9.86%	14.65%	11.87%	9.78%	9.89%	9.97%	9.38%	13.98%	14%	12.28%	10.05%	13.54%	14.69%	13.91%	24.64%
Research & Development	3.97B	3.57B	3.23B	3.1B	2.77B	2.48B	2.23B	2.05B	2.02B	1.77B	1.54B	1.45B	1.43B	1.32B	1.24B	1.12B	1.14B	934.12M	1.1B	1.14B	1.15B	940.51M	991.87M	920.62M	1.05B	1.2B	1.11B	681.8M	643.9M	567.6M	481.4M
R&D % of Revenue	-	12.58%	11.9%	11.7%	10.75%	10.77%	12.99%	14.06%	12.09%	12.07%	14.23%	15.02%	15.74%	17.58%	14.19%	10.63%	11.98%	18.63%	13.58%	11.73%	12.57%	13.45%	12.38%	20.56%	20.79%	16.33%	11.58%	14.03%	15.93%	13.93%	11.61%
Other Operating Expenses	1000K	181M	0	0	0	311M	0	0	3M	0	0	-89M	0	341M	0	0	245.63M	155.79M	0	-5M	784.77M	0	194.09M	371.75M	85.48M	221.16M	-160.79M	48.3M	237.2M	75.8M	-481.5M
Operating Income	9.41B	8.29B	7.87B	7.65B	7.79B	6.89B	4.37B	3.35B	4.49B	3.94B	2.15B	1.69B	1.52B	432M	1.09B	2.4B	1.38B	-393.62M	1.36B	2.37B	1.45B	1.45B	1.76B	-313.78M	209.96M	930.15M	2.95B	933.7M	692.71M	690.9M	928.6M
Operating Margin %	30.5%	29.22%	28.95%	28.86%	30.2%	29.87%	25.37%	22.93%	26.88%	26.78%	19.88%	17.53%	16.75%	5.75%	12.55%	22.8%	14.49%	-7.85%	16.67%	24.36%	15.8%	20.71%	22.01%	-7.01%	4.15%	12.67%	30.82%	19.22%	17.14%	16.96%	22.4%
Operating Income Growth %	-	5.36%	2.78%	-1.72%	13.05%	57.82%	30.3%	-25.41%	14.1%	82.9%	27.11%	11.38%	251.85%	-60.51%	-54.38%	73.3%	451.54%	-129.04%	-42.85%	63.78%	0%	-17.9%	662.07%	-249.45%	-77.43%	-68.45%	215.72%	34.79%	0.26%	-25.6%	33.82%
EBITDA	9.68B	8.4B	8.26B	8.17B	8.23B	7.28B	4.74B	3.71B	4.95B	4.34B	2.54B	2.06B	1.9B	842M	1.52B	2.64B	1.69B	-102.41M	1.68B	2.64B	1.72B	1.75B	2.12B	70.61M	597.48M	1.32B	3.31B	1.22B	986.21M	910.3M	1.08B
EBITDA Margin %	31.38%	29.61%	30.39%	30.81%	31.93%	31.58%	27.56%	25.42%	29.62%	29.55%	23.47%	21.37%	20.89%	11.21%	17.39%	25.14%	17.68%	-2.04%	20.61%	27.12%	18.75%	25.01%	26.46%	1.58%	11.8%	17.94%	34.61%	25.15%	24.4%	22.34%	26%
EBITDA Growth %	6.89%	1.7%	1.1%	-0.77%	13.03%	53.62%	27.69%	-24.96%	13.93%	70.92%	23.11%	8.92%	125.06%	-44.46%	-42.66%	56.61%	1748.45%	-106.11%	-36.53%	53.62%	-1.73%	-17.55%	2903.37%	-88.18%	-54.64%	-60.21%	170.83%	23.92%	8.34%	-15.52%	38.66%
D&A (Non-Cash Add-back)	372M	110M	392M	515M	444M	394M	376M	363M	457M	407M	389M	371M	375M	410M	422M	246M	304.51M	291.2M	320.05M	268.33M	270.41M	300.58M	356.99M	384.39M	387.53M	386.97M	361.97M	288.41M	293.5M	219.4M	148.9M
EBIT	11B	9.54B	8.4B	7.95B	7.83B	7.01B	4.41B	3.51B	4.63B	4.01B	2.17B	1.7B	1.56B	445M	411M	2.44B	1.41B	-464.5M	1.43B	2.48B	1.66B	1.62B	1.93B	57.97M	295.44M	930.15M	2.95B	983.81M	692.71M	750.4M	928.6M
Net Interest Income	1.06B	-269M	285M	62M	-189M	-118M	-199M	-81M	-95M	-120M	-139M	-95M	-72M	-82M	-95M	-17M	16M	27.28M	88.81M	97.52M	-36.1M	-37.82M	65.58M	0	0	0	0	0	0	0	0
Interest Income	1.34B	0	532M	300M	39M	118M	41M	156M	139M	78M	16M	8M	23M	13M	0	42M	37M	48.58M	109.32M	136.15M	0	0	118.46M	0	0	0	0	0	0	0	0
Interest Expense	277M	269M	247M	238M	228M	236M	240M	237M	234M	198M	155M	103M	95M	95M	95M	59M	21M	21.3M	20.51M	38.63M	36.1M	37.82M	52.88M	0	0	0	0	0	0	0	0
Other Income/Expense	1.32B	982M	285M	62M	-189M	-118M	-199M	-81M	-95M	-120M	-139M	-95M	-72M	-82M	-778M	-20M	3M	-92.19M	53.29M	68.15M	719.01M	133.6M	65.58M	102.23M	130.55M	173.66M	0	89.64M	-221.09M	108M	-6.1M
Pretax Income	10.73B	9.27B	8.15B	7.72B	7.6B	6.77B	4.17B	3.27B	4.4B	3.82B	2.01B	1.6B	1.45B	350M	316M	2.38B	1.39B	-485.8M	1.41B	2.44B	2.17B	1.58B	1.83B	-211.56M	340.51M	1.1B	2.95B	1.02B	471.62M	798.9M	922.5M
Pretax Margin %	34.79%	32.68%	30%	29.1%	29.47%	29.36%	24.22%	22.38%	26.32%	25.96%	18.6%	16.54%	15.96%	4.66%	3.62%	22.61%	14.53%	-9.69%	17.33%	25.06%	23.64%	22.62%	22.83%	-4.73%	6.73%	15.03%	30.82%	21.03%	11.67%	19.61%	22.26%
Income Tax	1.46B	2.27B	975M	860M	1.07B	883M	547M	563M	1.36B	297M	292M	221M	376M	94M	207M	452M	449.1M	-180.48M	447.97M	729.46M	650.31M	371.67M	477.95M	-62.41M	71.51M	328.57M	884.29M	329.9M	172.96M	300.4M	322.9M
Effective Tax Rate %	13.61%	24.52%	11.96%	11.15%	14.13%	13.04%	13.13%	17.22%	30.89%	7.78%	14.51%	13.83%	25.97%	26.86%	65.51%	19.01%	32.38%	37.15%	31.8%	29.9%	30.01%	23.5%	26.13%	29.5%	21%	29.77%	30%	32.29%	36.67%	37.6%	35%
Net Income	9.27B	7B	7.18B	6.86B	6.53B	5.89B	3.62B	2.71B	3.04B	3.52B	1.72B	1.38B	1.07B	256M	109M	1.93B	937.87M	-305.33M	960.75M	1.71B	1.52B	1.21B	1.35B	-149.15M	269M	775.23M	2.06B	713.88M	277.67M	498.5M	599.6M
Net Margin %	30.05%	24.67%	26.41%	25.86%	25.31%	25.53%	21.04%	18.52%	18.19%	23.94%	15.9%	14.26%	11.82%	3.41%	1.25%	18.31%	9.82%	-6.09%	11.82%	17.57%	16.54%	17.3%	16.86%	-3.33%	5.31%	10.56%	21.58%	14.69%	6.87%	12.24%	14.47%
Net Income Growth %	35.64%	-2.49%	4.68%	5.07%	10.82%	62.7%	33.74%	-10.93%	-13.67%	104.47%	24.98%	28.45%	318.75%	134.86%	-94.34%	105.36%	407.17%	-131.78%	-43.82%	12.76%	25.35%	-10.46%	1006.02%	-155.44%	-65.3%	-62.43%	189.06%	157.1%	-44.3%	-16.86%	32.04%
Net Income (Continuing)	9.27B	7B	7.18B	6.86B	6.53B	5.89B	3.62B	2.71B	3.04B	3.52B	1.72B	1.38B	1.07B	256M	109M	1.93B	937.87M	-305.33M	960.75M	1.71B	1.52B	1.21B	1.35B	-149.15M	269M	775.23M	2.06B	692.89M	298.67M	498.5M	599.6M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	21M	-21M	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)	11.58	8.66	8.61	8.11	7.44	6.40	3.92	2.86	2.96	3.17	1.54	1.12	0.87	0.21	0.09	1.45	0.70	-0.23	0.70	1.20	0.97	0.73	0.78	-0.09	0.16	0.46	1.20	0.46	0.15	0.33	0.41
EPS Growth %	38.42%	0.58%	6.17%	9.01%	16.25%	63.27%	37.06%	-3.38%	-6.62%	105.84%	37.5%	28.74%	314.29%	143.9%	-94.06%	107.14%	404.35%	-132.86%	-41.67%	23.71%	32.88%	-6.41%	966.67%	-156.25%	-65.22%	-61.67%	160.87%	206.67%	-54.55%	-19.51%	32.26%
EPS (Basic)	-	8.71	8.68	8.16	7.49	6.47	3.95	2.89	3.00	3.20	1.56	1.13	0.88	0.21	0.09	1.46	0.70	-0.23	0.71	1.22	0.98	0.74	0.80	-0.09	0.16	0.48	1.28	0.48	0.16	0.33	0.42
Diluted Shares Outstanding	800M	808M	834M	845M	877M	919M	923M	945M	1.03B	1.08B	1.12B	1.23B	1.23B	1.22B	1.28B	1.33B	1.35B	1.33B	1.37B	1.43B	1.57B	1.66B	1.72B	1.66B	1.7B	1.69B	1.72B	1.64B	1.51B	1.52B	1.46B
Basic Shares Outstanding	794M	804M	827M	840M	871M	910M	916M	937M	1.01B	1.07B	1.11B	1.21B	1.22B	1.2B	1.27B	1.32B	1.34B	1.33B	1.35B	1.41B	1.55B	1.65B	1.69B	1.66B	1.64B	1.63B	1.61B	1.56B	1.47B	1.5B	1.43B
Dividend Payout Ratio	-	19.78%	16.61%	14.22%	13.38%	14.23%	21.75%	28.49%	19.91%	12.22%	25.8%	35.37%	45.24%	178.13%	398.17%	20.61%	37.16%	-	33.87%	17.87%	16.54%	8.1%	-	-	-	-	-	-	-	-	-

Key Metrics

Growth RegimeAccelerating

ProfitabilityStrong

Balance SheetHealthy

Cash FlowRobust

Top Statement Risk

China export control overhang

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q3)

AI-Driven Acceleration in Growth

Applied Materials' revenue growth has re-accelerated sharply, with the most recent quarter showing a 24.8% year-over-year increase, a significant acceleration from the low-single-digit growth seen in early 2024, suggesting a powerful new demand cycle.

The growth trajectory has shifted from a stable, low-single-digit pattern in 2024 to a pronounced acceleration in 2026, with the most recent quarter's 24.8% growth representing the strongest performance in the dataset. This inflection appears driven by the 'WFE Intensity' of new AI-related chip architectures, which require more of the company's deposition and etch steps. The durability of this acceleration hinges on the sustained capital expenditure plans of leading-edge foundries and memory makers for advanced packaging and logic nodes.

Structural Margin Expansion

Gross margins have expanded from a 47.3% baseline in 2024 to 50.3% in the latest quarter, indicating successful pricing power and a favorable mix shift toward higher-value, integrated materials solutions for advanced nodes.

The steady climb in gross margin, now exceeding 50%, suggests the company is successfully passing through inflationary costs and capturing value from the increased complexity of its Integrated Materials Solutions. This margin expansion appears structural rather than cyclical, as it coincides with the transition to more complex transistor architectures like Gate-All-Around, where the company's process-sequence control becomes more critical. The margin profile now approaches that of peer Lam Research, indicating a potential re-rating of the company's profitability profile.

Exceptional Operating Leverage

Operating income has scaled from $1.9B to $3.1B over the last eight quarters, a 63% increase, while revenue grew 38%, demonstrating powerful operating leverage as fixed R&D and SG&A costs are spread over a rapidly expanding revenue base.

The data shows a clear demonstration of operating leverage, with operating margin expanding from 28.8% to 33.7% over the period. This indicates that management's cost discipline, particularly in SG&A which has remained relatively flat, is allowing incremental revenue to flow through to the bottom line at an accelerated rate. The leverage is particularly notable given the high fixed-cost burden of R&D, suggesting the current growth cycle is highly profitable and that the company's overhead structure is well-optimized for the current scale.

High-Quality Earnings with SBC Caveat

Net income growth has been robust, but the quality is partially offset by elevated stock-based compensation, which reached $207M in 2026Q1, representing a significant non-cash charge that dilutes shareholder value despite strong operational performance.

The core earnings power is strong, with net income growing from $1.7B to $2.5B in the latest quarter. However, the volatility in stock-based compensation, which spiked to $207M in 2026Q1 before falling to $38M in 2026Q2, introduces noise into the net income figure and warrants monitoring. The underlying operational earnings, as measured by operating income, appear high-quality and driven by core business performance rather than non-operating items, though the SBC trend suggests ongoing dilution that investors should factor into their valuation models.

The AI-Driven Inflection Point

The most significant inflection occurred in 2026Q2, where sequential revenue growth of 11.4% and a 33.5% year-over-year EPS increase marked a decisive break from the prior period's stagnation, signaling the start of a new, AI-fueled investment cycle.

The 2026Q2 period represents a clear operational inflection, breaking the pattern of flat to slightly negative sequential growth seen in late 2025. This inflection was driven by a surge in demand for advanced packaging and logic equipment, as evidenced by the sharp acceleration in the Semiconductor Systems segment. The lasting impact appears to be a reset of the company's growth trajectory and margin profile, positioning it for a multi-year cycle of elevated capital intensity from its foundry and memory customers.

Sustainability of China-Driven Growth

A key risk is that a substantial portion of recent growth may be tied to trailing-edge equipment sales to Chinese customers, a revenue stream that faces an imminent ceiling from tightening U.S. export controls, potentially creating a significant headwind.

While the headline growth is impressive, the geographic concentration in Asia, particularly China, introduces a material risk. The recent acceleration could partially reflect customers front-loading orders ahead of anticipated export restrictions, which would make the current growth rate unsustainable. If new controls are implemented, the company may face not only a revenue cliff but also potential inventory write-downs for equipment designed for specific Chinese fabs. This overhang suggests the market may be under-pricing the regulatory risk to the company's largest geographic market.

AMAT — Frequently Asked Questions

Quick answers to the most common questions about buying AMAT stock.

What was Applied Materials, Inc.'s (AMAT) revenue in 2025?

For fiscal year 2025, Applied Materials, Inc. (AMAT) reported total revenue of $28.37B. This represents a 584.4% increase compared to $4.14B in 1996.

Is Applied Materials, Inc. (AMAT) profitable?

Applied Materials, Inc. (AMAT) is profitable, generating $7.00B in net income for the fiscal year ending 2025 with a net profit margin of 24.7%.

What is Applied Materials, Inc.'s operating profit margin?

Applied Materials, Inc. (AMAT) reported an operating income of $8.29B, resulting in an operating profit margin of 29.2%. This margin reflects the operational efficiency of the business before interest and taxes.

What is Applied Materials, Inc.'s gross profit and gross margin?

Applied Materials, Inc. (AMAT) generated $13.81B in gross profit for the year, representing a gross profit margin of 48.7%. This demonstrates the company's core pricing power and production efficiency.