AMAT Applied Materials, Inc. - Common Stock

NASDAQ · Semiconductors · View on SEC EDGAR ↗
$419.13
Price · May 20, 2026
Fundamentals as of Feb 19, 2026
52W Range
$153–$448
90% of range
Analyst Rating
BUY
43 analysts
Price Target
$509
+21% upside
P/E (TTM)
26.4
ROE
35.5%
Net Profit Margin
24.7%

AMAT Stock Snapshot Price, market cap, P/E, EPS, ROE, debt/equity, 52-week range

Price
$419.13
Market Cap
$181.40B
P/E (TTM)
26.4
EPS (TTM)
$8.66
Revenue (TTM)
$28.37B
Div Yield
0.76%
ROE
35.5%
Debt/Equity
0.3
52W Range
$153 – $448

AMAT Stock Price Chart Daily OHLCV with technical indicators — pan, zoom, and customize your view

10-Year Performance Revenue, net income, margins and EPS trends

Revenue & Net Income $28.37B
10-point trend, +162.1%
2016-10-30 → 2025-10-26
EPS $8.66
10-point trend, +462.3%
2016-10-30 → 2025-10-26
Free Cash Flow $5.70B
10-point trend, +157.5%
2016-10-30 → 2025-10-26
Margins 24.7%
10-point trend, +16.8%
2016-10-30 → 2025-10-26

Valuation P/E, P/S, P/B, EV/EBITDA ratios — is the stock expensive or cheap?

Metric
5Y trend
AMAT
Peer Median
P/E (TTM)
5-point trend, +23.7%
26.4
43.8
P/S (TTM)
5-point trend, +21.0%
6.4
9.8
P/B
5-point trend, -10.7%
8.9
4.1
EV / EBITDA
5-point trend, +29.3%
21.6
—
Price / FCF
5-point trend, +24.7%
31.8
—

Profitability Gross, operating and net margins; ROE, ROA, ROIC

Metric
5Y trend
AMAT
Peer Median
Gross Margin
5-point trend, +2.9%
48.7%
47.8%
Operating Margin
5-point trend, -2.2%
29.2%
—
Net Profit Margin
5-point trend, -3.4%
24.7%
13.8%
ROA
5-point trend, -19.0%
19.8%
6.2%
ROE
5-point trend, -26.6%
35.5%
11.3%
ROIC
5-point trend, -31.5%
23.2%
—

Financial Health Debt, liquidity, solvency — balance sheet strength

Metric
5Y trend
AMAT
Peer Median
Debt / Equity
5-point trend, -27.9%
0.3
44.0
Current Ratio
5-point trend, +2.8%
2.6
2.7
Quick Ratio
5-point trend, +4.8%
1.7
—

Growth Revenue, EPS and net income growth: YoY, 3Y CAGR, 5Y CAGR

Metric
5Y trend
AMAT
Peer Median
Revenue YoY
5-point trend, +23.0%
4.4%
—
Revenue CAGR 3Y
5-point trend, +23.0%
3.2%
—
Revenue CAGR 5Y
5-point trend, +23.0%
10.5%
—
EPS YoY
5-point trend, +35.3%
0.58%
—
Net Income YoY
5-point trend, +18.9%
-2.5%
—

Per Share Metrics EPS, book value per share, cash flow per share, dividend per share

Metric
5Y trend
AMAT
Peer Median
EPS (Diluted)
5-point trend, +35.3%
$8.66
—

Capital Efficiency Asset turnover, inventory turnover, receivables turnover

Metric
5Y trend
AMAT
Peer Median
Payout Ratio
5-point trend, +39.0%
19.8%
—

Dividends Yield, payout ratio, dividend history, 5Y CAGR

Dividend Yield
0.76%
Payout Ratio
19.8%
5Y Div CAGR
—
Ex-dateAmount
Feb. 19, 2026$0.4600
Nov. 20, 2025$0.4600
Aug. 21, 2025$0.4600
May 22, 2025$0.4600
Feb. 20, 2025$0.4000
Nov. 21, 2024$0.4000
Aug. 22, 2024$0.4000
May 22, 2024$0.4000
Feb. 21, 2024$0.3200
Nov. 22, 2023$0.3200
Aug. 23, 2023$0.3200
May 24, 2023$0.3200
Feb. 22, 2023$0.2600
Nov. 23, 2022$0.2600
Aug. 24, 2022$0.2600
May 25, 2022$0.2600
Feb. 22, 2022$0.2400
Nov. 24, 2021$0.2400
Aug. 25, 2021$0.2400
May 26, 2021$0.2400

AMAT Analyst Consensus Bullish and bearish analyst opinions, 12-month price target, upside

BUY 43 analysts
  • Strong Buy 11 25.6%
  • Buy 25 58.1%
  • Hold 7 16.3%
  • Sell 0 0.0%
  • Strong Sell 0 0.0%

12-Month Price Target

35 analysts · 2026-05-19
Median target $520.00 +24.1%
Mean target $508.63 +21.4%

Earnings History EPS actual vs estimate, surprise %, beat rate, next earnings date

Avg Surprise
0.08%
Period EPS Actual EPS Est Surprise
June 30, 2026 $2.86 $2.72 0.14%
March 31, 2026 $2.38 $2.25 0.13%
Dec. 31, 2025 $2.17 $2.14 0.03%
Sept. 30, 2025 $2.48 $2.41 0.07%
June 30, 2025 $2.39 $2.36 0.03%

Peer Comparison Key metrics vs sector peers

Ticker Market Cap P/E Rev YoY Net Margin ROE Gross Margin
AMAT $181.40B 26.4 4.4% 24.7% 35.5% 48.7%
LRCX $123.32B 23.4 23.7% 29.1% 57.4% 48.7%
KLAC $118.26B 29.5 23.9% 33.4% 98.1% —
TER $30.21B 55.8 13.1% 17.4% 19.7% 58.2%
Q — 24.7 9.7% 15.3% 8.2% —
MKSI $10.74B 36.6 9.6% 7.5% 11.2% 46.7%
ENTG $12.80B 54.4 -1.4% 7.4% 6.1% 44.4%
AMKR $9.76B 26.3 6.2% 5.6% 8.7% 14.0%
ONTO $8.24B 59.7 1.8% 13.6% 6.7% 49.7%
FORM $4.51B 84.1 2.8% 6.9% 5.4% 39.3%
AXTI $905M -33.4 -11.1% -24.1% -9.1% 12.7%

Full Fundamentals All metrics by year — income statement, balance sheet, cash flow

Income Statement 18
Annual Income Statement data for AMAT
Metric Trend 202520242023202220212020201920182017201620152014
Revenue 12-point trend, +212.7% $28.37B $27.18B $26.52B $25.79B $23.06B $17.20B $14.61B $16.70B $14.70B $10.82B $9.66B $9.07B
Cost of Revenue 12-point trend, +178.4% $14.56B $14.28B $14.13B $13.79B $12.15B $9.51B $8.22B $9.19B $8.09B $6.31B $5.71B $5.23B
Gross Profit 12-point trend, +259.3% $13.81B $12.90B $12.38B $11.99B $10.91B $7.69B $6.39B $7.52B $6.61B $4.51B $3.95B $3.84B
R&D Expense 12-point trend, +150.0% $3.57B $3.23B $3.10B $2.77B $2.48B $2.23B $2.05B $2.02B $1.78B $1.54B $1.45B $1.43B
SG&A Expense 12-point trend, +252.2% $1.77B $1.80B $1.63B $735M $620M $567M $461M $483M $438M $390M $469M $502M
Operating Expenses 12-point trend, +137.6% $5.52B $5.03B $4.73B $4.21B $4.03B $3.33B $3.04B $3.03B $2.68B $2.36B $2.26B $2.32B
Operating Income 12-point trend, +445.3% $8.29B $7.87B $7.65B $7.79B $6.89B $4.37B $3.35B $4.49B $3.94B $2.15B $1.69B $1.52B
Interest Expense 10-point trend, +150.5% · · $238M $228M $236M $240M $237M $234M $198M $155M $103M $95M
Interest Income 3-point trend, +55.0% $406M $486M $262M · · · · · · · · ·
Other Non-op 12-point trend, +5339.1% $1.25B $532M $300M $39M $118M $41M $156M $139M $78M $16M $8M $23M
Pretax Income 12-point trend, +540.3% $9.27B $8.15B $7.72B $7.60B $6.77B $4.17B $3.27B $4.40B $3.82B $2.01B $1.60B $1.45B
Income Tax 12-point trend, +504.5% $2.27B $975M $860M $1.07B $883M $547M $563M $1.36B $297M $292M $221M $376M
Net Income 12-point trend, +552.8% $7.00B $7.18B $6.86B $6.53B $5.89B $3.62B $2.71B $3.04B $3.52B $1.72B $1.38B $1.07B
EPS (Basic) 12-point trend, +889.8% $8.71 $8.68 $8.16 $7.49 $6.47 $3.95 $2.89 $3.00 $3.28 $1.56 $1.13 $0.88
EPS (Diluted) 12-point trend, +895.4% $8.66 $8.61 $8.11 $7.44 $6.40 $3.92 $2.86 $2.96 $3.25 $1.54 $1.12 $0.87
Shares (Basic) 12-point trend, -33.8% 804,000,000 827,000,000 840,000,000 871,000,000 910,000,000 916,000,000 937,000,000 1,013,000,000 1,073,000,000 1,107,000,000 1,214,000,000 1,215,000,000
Shares (Diluted) 12-point trend, -34.4% 808,000,000 834,000,000 845,000,000 877,000,000 919,000,000 923,000,000 945,000,000 1,026,000,000 1,084,000,000 1,116,000,000 1,226,000,000 1,231,000,000
EBITDA 12-point trend, +445.3% $8.29B $7.87B $7.65B $8.23B $7.28B $4.37B $3.35B $4.80B $3.87B $2.15B $1.69B $1.52B
Balance Sheet 29
Annual Balance Sheet data for AMAT
Metric Trend 202520242023202220212020201920182017201620152014
Cash & Equivalents 12-point trend, +141.2% $7.24B $8.02B $6.13B $2.00B $5.00B $5.35B $3.13B $3.44B $5.01B $3.41B $4.80B $3.00B
Short-term Investments 12-point trend, +732.5% $1.33B $1.45B $737M $586M $464M $387M $489M $590M $2.27B $343M $168M $160M
Receivables 12-point trend, +210.5% $5.18B $5.23B $5.17B $6.07B $4.95B $2.96B $2.53B $2.32B $2.34B $2.28B $1.74B $1.67B
Inventory 12-point trend, +277.5% $5.92B $5.42B $5.72B $5.93B $4.31B $3.90B $3.47B $3.72B $2.71B $2.05B $1.83B $1.57B
Prepaid Expense 12-point trend, +312.5% $1.06B $974M $976M $883M $793M $602M $485M $490M $317M $188M $194M $257M
Other Current Assets 10-point trend, +339.3% $1.21B $1.09B $1.39B $1.34B $1.39B $764M $581M $530M $374M $275M · ·
Current Assets 12-point trend, +199.7% $20.88B $21.22B $19.15B $15.93B $16.11B $13.37B $10.21B $10.60B $12.92B $8.35B $9.26B $6.97B
PP&E (Net) 12-point trend, +435.4% $4.61B $3.34B $2.72B $2.31B $1.93B $1.60B $1.53B $1.41B $1.07B $937M $892M $861M
PP&E (Gross) 12-point trend, +198.8% $8.51B $7.11B $6.37B $5.63B $4.98B $4.38B $4.07B $3.81B $3.31B $3.04B $2.95B $2.85B
Accum. Depreciation 12-point trend, +96.3% $3.90B $3.77B $3.65B $3.32B $3.05B $2.78B $2.54B $2.40B $2.25B $2.11B $2.05B $1.99B
Goodwill 12-point trend, +12.2% $3.71B $3.73B $3.73B $3.70B $3.48B $3.47B $3.40B $3.37B $3.37B $3.32B $3.30B $3.30B
Intangibles 12-point trend, -76.2% $226M $249M $294M $339M $104M $153M $156M $213M $412M $575M $762M $951M
Other Non-current Assets 8-point trend, +225.0% $806M $314M $345M $691M $229M $260M $265M $248M · · · ·
Total Assets 12-point trend, +175.5% $36.30B $34.41B $30.73B $26.73B $25.82B $22.35B $19.02B $17.63B $19.42B $14.57B $15.31B $13.17B
Accounts Payable 12-point trend, +222.7% $1.98B $1.57B $1.48B $1.75B $1.47B $1.12B $958M $996M $945M $813M $658M $613M
Short-term Debt 9-point trend, +100000000.00 $100M $799M $100M $0 · · $600M $0 · $200M $1.20B $0
Current Liabilities 12-point trend, +183.4% $8.00B $8.47B $7.37B $7.38B $6.34B $4.46B $4.45B $3.92B $4.12B $3.63B $3.80B $2.82B
Capital Leases 7-point trend, +404000000.00 $404M $259M $252M $287M $228M $195M $0 · · · · ·
Deferred Tax 6-point trend, -65.6% · · · · · · $11M $12M $5M $1M $56M $32M
Other Non-current Liabilities 12-point trend, +1412.7% $1.07B $810M $714M $732M $692M $662M $163M $126M $99M $77M $85M $71M
Total Liabilities 12-point trend, +199.4% $15.88B $15.41B $14.38B $14.53B $13.58B $11.78B $10.81B $10.79B $10.07B $7.35B $7.70B $5.31B
Long-term Debt 10-point trend, +231.5% $6.46B $6.16B $5.46B · · $5.45B $5.31B $5.31B $5.30B $3.12B $3.34B $1.95B
Total Debt 12-point trend, +236.7% $6.55B $6.96B $5.56B $5.46B $5.45B $5.45B $5.91B $5.31B $5.30B $3.54B $4.54B $1.95B
Retained Earnings 12-point trend, +322.5% $55.23B $49.65B $43.73B $37.89B $32.25B $27.21B $24.39B $20.88B $18.26B $15.25B $13.97B $13.07B
Treasury Stock 12-point trend, +290.9% $45.04B $40.15B $36.30B $34.10B $28.00B $24.25B $23.60B $21.19B $15.91B $14.74B $12.85B $11.52B
AOCI 12-point trend, -44.7% $-110M $-168M $-217M $-202M $-260M $-299M $-180M $-125M $-64M $-115M $-92M $-76M
Stockholders' Equity 12-point trend, +159.5% $20.41B $19.00B $16.35B $12.19B $12.25B $10.58B $8.21B $6.84B $9.63B $7.41B $7.61B $7.87B
Liabilities + Equity 12-point trend, +175.5% $36.30B $34.41B $30.73B $26.73B $25.82B $22.35B $19.02B $17.63B $19.42B $14.57B $15.31B $13.17B
Shares Outstanding 12-point trend, -35.1% 793,000,000 818,000,000 833,000,000 844,000,000 892,000,000 914,000,000 916,000,000 967,000,000 1,060,000,000 1,078,000,000 1,160,000,000 1,221,000,000
Cash Flow 19
Annual Cash Flow data for AMAT
Metric Trend 202520242023202220212020201920182017201620152014
D&A 12-point trend, +16.0% $435M $392M $515M $444M $394M $376M $363M $457M $407M $389M $371M $375M
Stock-based Comp 12-point trend, +277.4% $668M $577M $490M $413M $346M $307M $263M $258M $220M $201M $187M $177M
Deferred Tax 12-point trend, +6505.6% $1.15B $-678M $-358M $195M $60M $68M $51M $198M $-12M $-21M $-130M $-18M
Amort. of Intangibles 10-point trend, -76.1% · · $44M $40M $49M $56M $57M $199M $193M $189M $186M $184M
Restructuring 9-point trend, +2485.7% $181M $0 $0 $-4M $157M $0 $0 · · · $9M $7M
Other Non-cash 2-point trend, -74.8% · · · $-2.18B $-1.25B · · · · · · ·
Operating Cash Flow 12-point trend, +342.1% $7.96B $8.68B $8.70B $5.40B $5.44B $3.80B $3.25B $3.79B $3.79B $2.57B $1.16B $1.80B
CapEx 12-point trend, +837.8% $2.26B $1.19B $1.11B $787M $668M $422M $441M $622M $345M $253M $215M $241M
Investing Cash Flow 12-point trend, -1628.0% $-2.78B $-2.33B $-1.53B $-1.36B $-1.22B $-130M $-443M $571M $-2.53B $-425M $-281M $-161M
Debt Issued 11-point trend, -61.6% $991M $694M $0 $0 $0 $2.98B $0 $0 $2.18B $0 $2.58B ·
Net Debt Issued 8-point trend, -85.2% $291M $694M · $0 $0 $97M $0 $0 $1.97B · · ·
Stock Issued 12-point trend, +143.9% $261M $243M $227M $199M $175M $174M $145M $124M $97M $88M $88M $107M
Stock Repurchased 12-point trend, +4895000000.00 $4.89B $3.82B $2.19B $6.10B $3.75B $649M $2.40B $5.28B $1.17B $1.89B $1.32B $0
Net Stock Activity 12-point trend, -4634000000.00 $-4.63B $-3.58B $-1.96B $-5.90B $-3.58B $-475M $-2.26B $-5.16B $-1.07B $-1.80B $-1.32B $0
Dividends Paid 12-point trend, +185.4% $1.38B $1.19B $975M $873M $838M $787M $771M $605M $430M $444M $487M $485M
Financing Cash Flow 12-point trend, -1617.5% $-5.98B $-4.47B $-3.03B $-7.04B $-4.59B $-1.34B $-3.12B $-5.93B $341M $-3.53B $913M $-348M
Net Change in Cash 12-point trend, -162.0% $-801M $1.88B $4.13B $-3.00B $-365M $2.34B $-311M $-1.57B $1.60B $-1.39B $1.79B $1.29B
Free Cash Flow 12-point trend, +265.5% $5.70B $7.49B $7.59B $4.61B $4.77B $3.38B $2.81B $3.17B $3.26B $2.21B $948M $1.56B
Levered FCF 10-point trend, +395.9% · · $7.38B $4.42B $4.57B $3.17B $2.61B $3.00B $3.08B $2.08B $859M $1.49B
Profitability 8
Annual Profitability data for AMAT
Metric Trend 202520242023202220212020201920182017201620152014
Gross Margin 12-point trend, +14.9% 48.7% 47.5% 46.7% 46.5% 47.3% 44.7% 43.7% 45.3% 44.9% 41.7% 40.9% 42.4%
Operating Margin 12-point trend, +74.4% 29.2% 28.9% 28.9% 30.2% 29.9% 25.4% 22.9% 27.8% 26.6% 19.9% 17.5% 16.8%
Net Margin 12-point trend, +108.7% 24.7% 26.4% 25.9% 25.3% 25.5% 21.0% 18.5% 19.2% 23.6% 15.9% 14.3% 11.8%
Pretax Margin 12-point trend, +104.8% 32.7% 30.0% 29.1% 29.5% 29.4% 24.2% 22.4% 27.2% 25.7% 18.6% 16.5% 16.0%
EBITDA Margin 12-point trend, +74.4% 29.2% 28.9% 28.9% 31.9% 31.6% 25.4% 22.9% 27.8% 26.6% 19.9% 17.5% 16.8%
ROA 12-point trend, +132.8% 19.8% 22.0% 23.9% 24.8% 24.4% 17.5% 14.8% 17.8% 20.2% 11.5% 9.7% 8.5%
ROE 12-point trend, +157.7% 35.5% 37.9% 43.6% 53.8% 48.4% 35.9% 33.1% 48.0% 38.0% 24.5% 17.7% 13.8%
ROIC 12-point trend, +102.3% 23.2% 26.7% 31.0% 37.9% 33.9% 23.7% 19.6% 27.9% 24.3% 17.1% 12.0% 11.5%
Liquidity & Solvency 5
Annual Liquidity & Solvency data for AMAT
Metric Trend 202520242023202220212020201920182017201620152014
Current Ratio 12-point trend, +5.8% 2.6 2.5 2.6 2.2 2.5 3.0 2.3 2.6 3.1 2.3 2.4 2.5
Quick Ratio 12-point trend, +0.5% 1.7 1.7 1.6 1.2 1.6 2.0 1.4 1.6 2.3 1.7 1.8 1.7
Debt / Equity 12-point trend, +29.7% 0.3 0.4 0.3 0.4 0.4 0.5 0.7 0.8 0.6 0.5 0.6 0.2
LT Debt / Equity 12-point trend, +27.8% 0.3 0.3 0.3 0.4 0.4 0.5 0.6 0.8 0.6 0.4 0.4 0.2
Interest Coverage 10-point trend, +101.0% · · 32.2 34.2 29.2 18.2 14.1 20.5 19.5 13.9 16.4 16.0
Efficiency 3
Annual Efficiency data for AMAT
Metric Trend 202520242023202220212020201920182017201620152014
Asset Turnover 12-point trend, +11.5% 0.8 0.8 0.9 1.0 1.0 0.8 0.8 0.9 0.9 0.7 0.7 0.7
Inventory Turnover 12-point trend, -27.3% 2.6 2.6 2.4 2.7 3.0 2.6 2.3 2.9 3.2 3.3 3.4 3.5
Receivables Turnover 12-point trend, -7.6% 5.1 5.2 4.7 4.7 5.8 6.3 6.0 7.0 6.3 5.4 5.7 5.5
Per Share 6
Annual Per Share data for AMAT
Metric Trend 202520242023202220212020201920182017201620152014
Book Value / Share 12-point trend, +299.5% $25.74 $23.23 $19.63 $14.45 $13.73 $11.57 $8.97 $7.07 $8.82 $6.69 $6.56 $6.44
Revenue / Share 12-point trend, +376.4% $35.11 $32.59 $31.38 $29.40 $25.10 $18.64 $15.46 $16.82 $13.41 $9.70 $7.88 $7.37
Cash Flow / Share 12-point trend, +573.6% $9.85 $10.40 $10.30 $6.16 $5.92 $4.12 $3.44 $3.69 $3.33 $2.21 $0.95 $1.46
Cash / Share 12-point trend, +271.4% $9.13 $9.81 $7.36 $2.36 $5.60 $5.85 $3.42 $3.56 $4.73 $3.16 $4.14 $2.46
Dividend / Share 12-point trend, +1680.0% $2 $2 $1 $1 $1 $1 $1 $1 $0 $0 $0 $0
EPS (TTM) 12-point trend, +895.4% $8.66 $8.61 $8.11 $7.44 $6.40 $3.92 $2.86 $2.96 $3.25 $1.54 $1.12 $0.87
Growth Rates 10
Annual Growth Rates data for AMAT
Metric Trend 202520242023202220212020201920182017201620152014
Revenue YoY 5-point trend, -87.1% 4.4% 2.5% 2.8% 11.8% 34.1% · · · · · · ·
Revenue CAGR 3Y 3-point trend, -79.2% 3.2% 5.6% 15.5% · · · · · · · · ·
Revenue CAGR 5Y 10.5% · · · · · · · · · · ·
EPS YoY 5-point trend, -99.1% 0.58% 6.2% 9.0% 16.2% 63.3% · · · · · · ·
EPS CAGR 3Y 3-point trend, -81.1% 5.2% 10.4% 27.4% · · · · · · · · ·
EPS CAGR 5Y 17.2% · · · · · · · · · · ·
Net Income YoY 5-point trend, -104.0% -2.5% 4.7% 5.1% 10.8% 62.7% · · · · · · ·
Net Income CAGR 3Y 3-point trend, -90.1% 2.4% 6.8% 23.7% · · · · · · · · ·
Net Income CAGR 5Y 14.1% · · · · · · · · · · ·
Dividend CAGR 5Y 11.9% · · · · · · · · · · ·
Valuation (TTM) 17
Annual Valuation (TTM) data for AMAT
Metric Trend 202520242023202220212020201920182017201620152014
Revenue TTM 12-point trend, +212.7% $28.37B $27.18B $26.52B $25.79B $23.06B $17.20B $14.61B $16.70B $14.70B $10.82B $9.66B $9.07B
Net Income TTM 12-point trend, +552.8% $7.00B $7.18B $6.86B $6.53B $5.89B $3.62B $2.71B $3.04B $3.52B $1.72B $1.38B $1.07B
Market Cap 12-point trend, +607.8% $181.40B $152.57B $109.37B $75.72B $121.89B $55.71B $51.04B $31.29B $60.09B $30.90B $19.07B $25.63B
Enterprise Value 12-point trend, +634.8% $179.38B $150.06B $108.06B $78.60B $121.88B $55.42B $53.33B $32.57B $58.12B $30.69B $18.65B $24.41B
P/E 12-point trend, +9.5% 26.4 21.7 16.2 12.1 21.4 15.5 19.5 10.9 17.4 18.6 14.7 24.1
P/S 12-point trend, +126.4% 6.4 5.6 4.1 2.9 5.3 3.2 3.5 1.9 4.1 2.9 2.0 2.8
P/B 12-point trend, +172.8% 8.9 8.0 6.7 6.2 10.0 5.3 6.2 4.6 6.4 4.3 2.5 3.3
P / Tangible Book 6-point trend, +37.5% 11.0 10.2 8.9 9.3 14.1 8.0 · · · · · ·
P / Cash Flow 12-point trend, +60.1% 22.8 17.6 12.6 14.0 22.4 14.6 15.7 8.3 16.7 12.5 16.4 14.2
P / FCF 12-point trend, +93.7% 31.8 20.4 14.4 16.4 25.5 16.5 18.2 9.9 18.4 14.0 20.1 16.4
EV / EBITDA 12-point trend, +34.7% 21.6 19.1 14.1 9.5 16.7 12.7 15.9 6.8 15.0 14.3 11.0 16.1
EV / FCF 12-point trend, +101.0% 31.5 20.0 14.2 17.0 25.5 16.4 19.0 10.3 17.8 13.9 19.7 15.7
EV / Revenue 12-point trend, +135.0% 6.3 5.5 4.1 3.0 5.3 3.2 3.7 1.9 4.0 2.8 1.9 2.7
Dividend Yield 12-point trend, -59.8% 0.76% 0.78% 0.89% 1.1% 0.69% 1.4% 1.5% 1.9% 0.72% 1.4% 2.5% 1.9%
Earnings Yield 12-point trend, -8.5% 3.8% 4.6% 6.2% 8.3% 4.7% 6.4% 5.1% 9.2% 5.7% 5.4% 6.8% 4.1%
Payout Ratio 12-point trend, -56.3% 19.8% 16.6% 14.2% 13.4% 14.2% 21.8% 28.5% 18.3% 12.5% 25.8% 35.4% 45.2%
Annual Payout 12-point trend, +185.4% $1.38B $1.19B $975M $873M $838M $787M $771M $605M $430M $444M $487M $485M

Financial Statements Income statement, balance sheet, cash flow — annual, last 5 years

Income Statement
2025-10-262024-10-272023-10-292022-10-302021-10-31
Revenue $28.37B$27.18B$26.52B$25.79B$23.06B
Gross Margin % 48.7%47.5%46.7%46.5%47.3%
Operating Margin % 29.2%28.9%28.9%30.2%29.9%
Net Income $7.00B$7.18B$6.86B$6.53B$5.89B
Diluted EPS $8.66$8.61$8.11$7.44$6.40
Balance Sheet
2025-10-262024-10-272023-10-292022-10-302021-10-31
Debt / Equity 0.30.40.30.40.4
Current Ratio 2.62.52.62.22.5
Quick Ratio 1.71.71.61.21.6
Cash Flow
2025-10-262024-10-272023-10-292022-10-302021-10-31
Free Cash Flow $5.70B$7.49B$7.59B$4.61B$4.77B

AMAT AI Analyst Panel — Bullish and Bearish Views 2026Q2 debate: Claude, Grok, Gemini, ChatGPT on the stock's prospects

Round 1 — Opening Takes

Grok NEUTRAL 0.80
↑ Bullish

I see Applied Materials perfectly positioned to capture the explosive growth in AI chip fabrication, with improving profitability underscoring its pricing power in a supply-constrained market. Market cap doubled to $307 billion from $204 billion in 2026Q1, signaling strong investor buy-in to the AI tailwinds. EPS TTM rose to $9.76 from $8.67, proving the company is delivering real earnings acceleration amid surging demand. Net margin climbed to 27.78%, a standout for semi equipment that means they're converting sales into profits more effectively than ever.

↓ Bearish

The biggest risk for AMAT is a potential slowdown in wafer-fab equipment spending if AI hype cools, leaving its elevated multiples exposed in a cyclical sector. P/E TTM at 39.2 edges above peers like LRCX at 37, baking in aggressive growth expectations with slim room for misses. ROE TTM of 38.9% lags leaders such as KLAC's 98%, highlighting they're not the top dog on capital efficiency. Shares surged 47% from $135 to $198 in four months, a classic setup for profit-taking after such a steep climb.

Claude NEUTRAL 0.68
↑ Bullish

Applied Materials is riding genuine structural tailwinds in AI chip manufacturing, and the valuation is not yet pricing in the full cycle. The stock is up 130% in a year, yes, but the fundamentals are accelerating faster than the price. EPS grew to 9.76 from 8.67 in a single quarter — that's 12.6% growth quarter-over-quarter. Net margin expanded to 27.78% from 24.67%, showing pricing power is real, not borrowed. At 39.2 times trailing earnings, AMAT trades in line with LRCX at 37x, but AMAT's ROE of 38.9% is sustainable given the secular demand for wafer-fab equipment. If AI capex cycles extend into 2027, this stock has room.

↓ Bearish

The market has already priced in years of AI upside, and AMAT is now vulnerable to any stumble in wafer-fab spending visibility. The P/E jumped from 29.1 to 39.2 in one quarter — a 35% multiple expansion in 90 days is not gradual repricing, it's euphoria. Market cap doubled from 203 billion to 307 billion in the same window. Gross margin is flat at 48.72%, which means the company is not expanding unit economics, only riding volume. If semiconductor capex normalizes or AI demand softens, the multiple compresses hard, and there is no margin expansion cushion to catch the stock.

Gemini NEUTRAL 0.75
↑ Bullish

Applied Materials is successfully translating the relentless demand for AI infrastructure into superior operational efficiency. The company is generating a 38.9% return on equity. This means for every dollar shareholders have invested, the company is generating nearly 39 cents in profit, proving their equipment is essential to the current semiconductor supercycle. Furthermore, their net profit margin has expanded to 27.78%. This indicates that the company is keeping more of every sales dollar as actual bottom-line earnings, showcasing strong pricing power as they roll out their latest advanced chipmaking systems.

↓ Bearish

The valuation has reached a point where the market is pricing in perfection, leaving zero room for execution errors or a cyclical slowdown. The stock is currently trading at a P/E of 39.15. This multiple suggests investors are paying a significant premium for future earnings, which is risky if the semiconductor capital expenditure cycle cools down. Additionally, the P/S ratio has climbed to 10.87. This elevated level implies that the market is valuing the company's revenue at a historic high, creating a fragile setup if growth expectations shift even slightly in the coming quarters.

Chatgpt NEUTRAL 0.65
↑ Bullish

I think the strongest bullish case is that AMAT sits at the center of a durable AI-driven wafer-fab upgrade cycle with strong profitability. ROE TTM: 38.9%. That means AMAT converts a large share of equity into profits, supporting ongoing buybacks and earnings growth. Gross margin TTM: 48.72%. That implies pricing power and durable gross profitability in a capital-intensive but high-visibility market. EPS TTM: 9.7629. That shows earnings momentum that can power multiple expansion if AI demand remains robust.

↓ Bearish

My bear case is that AMAT trades at a rich multiple and faces cyclical risk if AI capex slows. P/E TTM: 39.16. That valuation implies high growth expectations and leaves little cushion if demand slows. P/S TTM: 10.8792. That premium on sales suggests the market is pricing in outsized top-line leverage; any deceleration hurts multiples. Debt/equity Q1'26: 32.11. That leverage raises financial risk in a downturn and could pressure equity if cash flow falters.

Round 2 — Responses & Rebuttals

Grok

ChatGPT, I push back on your bearish flag on debt/equity at 32.11% as a financial risk – that's actually low leverage for semi equipment, meaning AMAT relies mostly on equity to fund growth and has ample dry powder for buybacks or acquisitions without straining cash flows. With current ratio at 2.71, short-term liquidity is robust, buffering any capex slowdown better than higher-debt peers like LRCX.

Claude

I need to push back on Grok's ROE comparison. Grok says AMAT's 38.9% ROE lags KLAC's 98%, implying KLAC is more capital-efficient. That's backwards. KLAC's 98% ROE is a red flag, not a badge of honor — it signals extreme leverage or aggressive buybacks artificially inflating returns on a shrinking equity base. AMAT's 38.9% is actually the healthier number: it's sustainable, it comes from real operational performance, and it doesn't require financial engineering to look good. When you see ROE that high in a capital-intensive business, ask what's propping it up. KLAC's answer is probably debt and share count reduction, not superior business quality.

Gemini

Grok, your point about the valuation gap between AMAT and KLA Corporation is the most critical factor for investors to weigh right now. While you noted KLAC's 98% ROE, it is important to remember that Applied Materials operates a much broader, more capital-intensive business model that naturally dilutes that specific metric. A 38.9% ROE is still exceptional for a company of this scale, showing they are highly efficient at deploying capital. However, I agree that paying a premium multiple for AMAT while its capital efficiency lags behind smaller, specialized peers creates real downside risk.

Chatgpt

Claude, your point about valuation assuming limited upside misses the durability of AMAT's AI-driven capex cycle. P/E TTM around 39 indicates investors are pricing in several years of above-trend earnings, which means the stock's return profile hinges on continued wafer-fab spending. AMAT's profitability is supported by strong margins and cash flow, giving at least some cushion if the cycle cools. But if AI demand stalls, multiples could compress despite the earnings; the key is visibility on capex spend.

Round 3 — Final Rebuttals

G
Grok

Claude, I side with Gemini on KLAC's ROE — that 98% isn't a warning sign but evidence of superior capital allocation in a high-margin inspection niche. It means KLAC squeezes nearly a full dollar of profit from every dollar of equity, outpacing AMAT's broader equipment lines that require more scale to hit similar returns. AMAT's own 38.9% ROE is strong, yet it trades at a 39x P/E versus KLAC's 38x, paying up for catch-up potential in an AI fab boom that could narrow the gap if execution holds.

C
Claude

I want to challenge something Grok said that no one pushed back on: that AMAT's 32.11% debt-to-equity is 'low leverage for semi equipment.' That's not quite right. A D/E of 32% means AMAT is carrying about 32 cents of debt for every dollar of equity — which is moderate, not low. The real issue is that this ratio has been stable for three quarters, which tells me AMAT isn't using balance sheet capacity aggressively. If AI capex truly extends into 2027 as I argued, why isn't management deploying more debt to fund buybacks or M&A? The flat D/E suggests either confidence is softer than the stock price implies, or they're being cautious ahead of a potential cycle turn. That hesitation is worth watching.

G
Gemini

I want to challenge Claude’s dismissal of the valuation risk by bringing in the geopolitical reality of export controls. While we are debating margins, the real threat to AMAT’s 2026 outlook is the tightening of U.S. export restrictions on advanced chipmaking equipment to China. Roughly 30% of their revenue is tied to that region, and any further tightening creates a massive revenue cliff that current P/E multiples of 39.2 do not account for. That multiple is the price investors pay for one dollar of earnings, and it assumes a smooth, uninterrupted global supply chain that simply no longer exists.

C
Chatgpt

Claude, your point about durable AI tailwinds not yet priced in is the loud claim I challenge. My read is the market is already pricing several years of above-trend earnings, evidenced by a P/E TTM of about 39x. That multiple implies investors expect material growth to continue; any abrupt AI capex slowdown could compress multiple, even if margin stays healthy. Also, the stock has surged dramatically over the past year, suggesting limited upside surprise unless demand accelerates further.

Price Forecasts

Model 3M Target 6M Target Reasoning
G Grok 3M Target $215.00 6M Target $245.00 Reasoning I expect AMAT to rally as AI chipmakers sustain aggressive wafer-fab equipment orders into late 2026, extending the current earnings momentum. The key catalyst is AMAT's Q3 2026 earnings in mid-October, where guidance for 20%+ order growth from AI hyperscalers could spark multiple expansion. The main risk is a surprise U.S. export control expansion targeting China announced by the Commerce Department, hitting 30% of revenue. At a forward P/E of 42 on $10.50 EPS, that means the market would reward flawless execution with a 10% premium over today's 39x, baking in two more years of 15% growth.
C Claude 3M Target $168.00 6M Target $182.00 Reasoning AMAT's AI tailwinds are real, but the stock has already priced in years of upside — a 39x P/E means the market is betting on flawless execution with zero margin for error. My thesis: the stock consolidates near current levels over three months as investors digest whether wafer-fab capex truly extends into 2027, then re-rates higher if 2026Q3 earnings confirm sustained demand. The catalyst I'm watching is AMAT's next earnings print — if management guides 2027 capex visibility above consensus, the multiple holds and the stock pushes toward 182 by year-end. The risk that breaks this: any China export control tightening (Gemini's point is valid — 30% China exposure at a 39x multiple leaves no cushion). At 39x trailing earnings, AMAT is paying roughly $3.80 per dollar of annual profit, which works only if AI spending doesn't stall. I'm holding my hold thesis — the risk-reward is balanced, not skewed bullish.
G Gemini 3M Target $165.00 6M Target $180.00 Reasoning My thesis is that Applied Materials will grind higher as AI infrastructure demand offsets geopolitical headwinds, though the valuation remains a ceiling on explosive growth. A specific catalyst for the six-month outlook is the fiscal 2026 third-quarter earnings report; if management demonstrates that new chipmaking systems are successfully capturing market share in high-bandwidth memory, the stock will likely re-rate. The primary risk is a sudden expansion of U.S. export controls on semiconductor equipment, which would immediately threaten a significant portion of revenue. The current P/E of 39.16 means investors are paying a steep premium for future earnings, leaving little room for error if growth expectations falter.
C Chatgpt 3M Target $165.00 6M Target $185.00 Reasoning I think AMAT can drift higher over the next few months on durable AI-driven wafer-fab capex and solid profitability. Catalyst: a stronger-than-expected 2026Q2 print with upbeat guidance on continued chipmaking spend. Risk: export controls to China or a cyclical slowdown in AI capex could crush multiples. Connect to reality: at about 151.55, with a 39x P/E and EPS near 9.76, the market is pricing years of growth; a miss could compress the multiple.

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