Applied Materials, Inc.

The grade, in three tenses

Headline 7.1 out of ten, 9 of 9 metrics filed: past 7.6 out of ten, present 7.9 out of ten, future 5.5 out of ten. The past asks what it actually did, the present what it is doing right now, the future what it is set up to do next.

The nine metrics

• Surviving crises (past): 7.6 out of ten. No warning events in its filings since 2017. 76th percentile among 99 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Track record (past): 7.4 out of ten. +7.9% a year over 8 filed years; profitable in 8 of 8. 74th percentile among 93 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Shareholder treatment (past): 8.2 out of ten. Share count shrank 2.7% a year. 57% of cash flow returned. Insiders: 45 sales, 0 purchases. 82nd percentile among 67 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Financial health (present): 7.8 out of ten. ROE 34%: 34¢ of profit per shareholder dollar. Leverage 44%: owes 44¢ per asset dollar. 78th percentile among 95 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Industry position (present): 7.9 out of ten. top 21% of 97 in its family; net margin 24.7%. 79th percentile among 97 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Leadership (present): 8.0 out of ten. top 20% of 66 in its family for leadership; chief executive since 2013. 80th percentile among 66 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-09).
• Room to expand (future): 5.3 out of ten. top 47% of 94 in its family for room to expand. 53rd percentile among 94 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Growth drivers (future): 6.3 out of ten. top 37% of 93 in its family for growth drivers. 63rd percentile among 93 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).
• Expectations vs reality (future): 4.6 out of ten. bottom 46% of 88 in its family for expectations against reality. 46th percentile among 88 sector filers. A production reading, recomputed from the filings on every data build (read from EDGAR 2026-10-12).

The filing record

Newest annual report: Form 10-K filed 2025-12-12 for the period ended 2025-10-26 (on EDGAR). Newest quarterly report: Form 10-Q filed 2026-08-20 for the period ended 2026-07-26 (on EDGAR). Newest results release: Form 8-K filed 2026-08-13 (on EDGAR). Newest filing: Form 4, 2026-10-05. Filings on record since 1994. Read from EDGAR 2026-10-12.

How the company works

Read from its Form 10-K filed 2025-12-12.

The people

Gary E. Dickerson has run Applied Materials for more than a decade. He is 68, was named president of the company in June 2012 and was appointed chief executive and a board member in September 2013. He arrived through a purchase: he was chief executive and a director of Varian Semiconductor Equipment Associates from 2004 until Applied bought it in November 2011. Before Varian he spent 18 years at KLA-Tencor, a supplier of process control and yield management tools to chipmakers, where he was president and chief operating officer, and he began in manufacturing and engineering management at General Motors' Delco Electronics Division and then AT&T Technologies. On the insider record this site holds he has filed as an officer and a director since 2012. [1, 2, 3, 4]

The annual report names five other executive officers. Brice Hill, 59, has been senior vice president and chief financial officer since March 2022 and also oversees global information services; before that he was chief financial officer of Xilinx from April 2020 until Advanced Micro Devices bought it in February 2022, and he spent 25 years in finance at Intel. Prabu Raja, 63, has led the Semiconductor Products Group since March 2023 and joined Applied in 1995. Timothy M. Deane, 60, has run Applied Global Services since December 2024 and joined in 1995 as well. Teri Little, 61, became chief legal officer and corporate secretary in June 2020, after holding the same title at KLA Corporation. Omkaram Nalamasu, 67, has been chief technology officer since June 2013 and president of Applied Ventures, the company's venture capital arm, since November 2013. [5, 6, 7, 8, 9]

The board turns over slowly. On the insider record this site holds, Thomas J. Iannotti has filed as an Applied director since 2006, the first year the SEC's insider data sets reach; Aart de Geus since 2007 and Alexander Karsner since 2008; Xun Chen since 2015, Judy Bruner since 2016 and Scott A. McGregor since 2018. The newest, Akash J. Palkhiwala, first filed in 2026. In all, 32 people appear on that record, 17 of them filing in the last fifteen months. [4]

At the end of fiscal 2025 the company employed about 36,500 regular full-time people across 25 countries, roughly 46% of them in the Asia-Pacific region, 42% in North America and 12% in Europe and the Middle East. Product development, engineering and process support are done mainly in the United States, India and Israel, and customer demonstrations mainly in the United States, China, Taiwan, Israel and South Korea. In the fourth quarter of the year the company approved a workforce reduction plan it expects to touch about 4% of the global workforce, booked 181 million dollars of restructuring charges, mostly severance to be paid in cash, and said it expects to complete the plan in fiscal 2026. [10, 11, 12]

How it operates

Applied Materials makes the machines that chip factories use to build semiconductors. The annual report calls the company the leader in the materials engineering solutions used to produce virtually every semiconductor in the world, and describes its people as experts in the design, development, production and servicing of the critical wafer fabrication tools its customers need. It was incorporated in 1967 and is a Delaware corporation; its financial year ends on the last Sunday in October, so fiscal 2025 closed on October 26, 2025. It reports two segments, Semiconductor Systems and Applied Global Services, with Semiconductor Systems the largest contributor to revenue. Everything else sits in a catch-all called Corporate and Other, which since the end of fiscal 2025 includes the display equipment business, no longer treated as a significant operating segment on its own. [13, 14, 15, 16]

Semiconductor Systems designs, develops, manufactures and sells the equipment used to fabricate chips. Its products cover steps across materials engineering, process control and advanced packaging: turning patterns into device structures, building transistors and interconnects, metrology, inspection and review, and the packaging that joins finished chips to one another. Sales go to customers serving three markets: foundry, logic and other; dynamic random access memory, the working memory a computer forgets when the power goes off; and flash memory, the kind that remembers. Leading edge means customers producing on the most advanced nodes, which the filing defines as 7 nanometers and smaller. Nodes that are not leading edge serve the internet of things, communications, automotive, power and sensors. [17, 18]

Applied Global Services sells services, spare parts and factory automation software to customers' fabrication plants, bought to keep the large global installed base of equipment running well, and delivered through a global distribution system and trained field engineers stationed near customer sites. Through October 26, 2025 the segment also made and sold 200 millimeter and other equipment for markets that are not leading edge; from the first quarter of fiscal 2026 that 200 millimeter business moves into Semiconductor Systems. [19, 20]

The customer list is short and concentrated. Two customers alone took about 19% and 15% of net revenue in fiscal 2025, and about 89% of revenue went to customers in regions outside the United States. By the location of the customer facilities that products were shipped to, China was the largest at 8.5 billion dollars, 30.1% of revenue; then Taiwan at 6.9 billion, 24.2%; South Korea at 5.6 billion, 19.8%; the United States at 3.1 billion, 10.8%; Japan at 2.3 billion, 8.0%; Southeast Asia at 1.1 billion, 3.8%; and Europe at 962.0 million, 3.4%. The filing says the customer base is geographically concentrated, particularly in China, Taiwan and Korea, that the actions of even a single customer have exposed the results to greater swings, and that products are configured to customer specifications, so changing or cancelling an order can leave costs that cannot be recovered. [21, 22, 23, 24, 25]

Applied builds its systems itself, in a spread-out way: manufacturing and supply chain work runs in the United States, Singapore, Japan, China, Korea, Taiwan, Israel and other countries in Asia and Europe, with qualified vendors, including contract manufacturers, supplying parts, services and product support; the products themselves are made mainly in the United States, Singapore, Taiwan and Israel. Some key parts come from a single qualified supplier or a small group of them. The machines are marketed and sold worldwide almost entirely through a direct sales force. At the end of fiscal 2025 the order book stood at 15,002 million dollars: 7,105 million, 47%, in Semiconductor Systems; 7,141 million, 48%, in Applied Global Services; and 756 million, 5%, in Corporate and Other. About 31% of it is not reasonably expected to be filled within the next 12 months. [26, 27, 28, 29, 30, 31]

The specifics

The technology is protected by the weight of many patents rather than by any one of them: more than 23,500 active patents in the United States and other countries, with more applications pending, and the filing says the business is not materially dependent upon any one patent. Royalties paid to and received from others have not been material. Behind the patents sits research spending of 3.6 billion dollars in fiscal 2025, up 10.4% on the year and higher in every year since 2020, which the company puts down to extra headcount for product development and higher depreciation. The stated reason for spending so early is that new products and technologies have to arrive before strong demand does, so customers can pick them during early stage technology selection. [32, 33, 34, 35, 36]

The annual report names not one competitor. It describes them by shape instead: rivals range from small companies that compete in a single region, which may benefit from policies and regulations that favor domestic companies, to global, diversified companies operating in more complex economic and regulatory settings. In services the competition includes a diverse group of third party service providers as well as customers who choose to do their own servicing. The filing does flag one direction of travel, saying the company could see more competition from domestic equipment makers in China helped by local government incentives and funding, and also by the export controls the United States government has placed on sales of certain technologies to customers in China. [37, 38]

Export rules are the single biggest outside force on this business. The filing says that over the past several years the United States government announced additional export regulations for American semiconductor technology sold in China, covering wafer fabrication equipment and related parts and services, which have limited the market for certain products and services, adversely affected revenues and increased exposure to foreign and Chinese domestic competition. The pressure runs the other way too: in 2025 the Chinese government put export controls on rare earth minerals used in certain Applied products. Since 2022 the company has received multiple subpoenas from the Department of Justice, the Commerce Department's Bureau of Industry and Security and the Securities and Exchange Commission about certain China customer shipments and export controls compliance, and further Justice Department subpoenas about federal award applications; it says it is cooperating fully and cannot predict the outcome. [39, 40, 41]

Tax law and public money move the numbers here. The CHIPS and Science Act, enacted on August 9, 2022, created a 25% investment tax credit for certain investments in domestic semiconductor manufacturing, which the One Big Beautiful Bill Act, enacted on July 4, 2025, raised to 35% while also allowing full expensing of domestic research costs; by the end of fiscal 2025 that credit had cut current income taxes payable by 233 million dollars and future income taxes payable by 548 million. The same year's law pushed the other way on the accounts: the effective tax rate rose to 24.5% from 12.0%, on a 659 million dollar remeasurement of deferred tax assets after new tax incentive agreements in Singapore and a 407 million dollar allowance against deferred tax assets tied to corporate alternative minimum tax credits, which the company says it no longer expects to realize. [42, 43, 44, 45, 46]

What drives growth, line by line

Revenue rose to 28,368 million dollars in fiscal 2025 from 27,176 million, an increase of 1,192 million, or 4%, the fifth yearly rise in a row and up from 17.2 billion in 2020. Gross margin widened to 48.7% from 47.5%, which the filing puts down to the higher revenue, a better mix of customers and products, higher average selling prices and lower material and manufacturing costs. Operating income rose 422 million to 8,289 million. Net income went the other way, down 179 million to 6,998 million, the one year in the six the record shows in which it fell, while the charge for income taxes rose 1,298 million to 2,273 million. [47, 48, 49, 44, 36]

Semiconductor Systems. The big one: 20,798 million dollars, 73% of revenue, up 4% on the year, earning 7,379 million of operating income, up 6%, at a margin of 35.5%. The filing says customers kept making strategic investments in new capacity and new technology transitions; foundry and logic spending rose on higher customer investment in leading-edge manufacturing technologies, and memory spending rose on investment in NAND fabrication equipment upgrades. Within the segment, foundry, logic and other was 67% of sales against 68% the year before, dynamic random access memory 26% against 28%, and flash memory 7% against 4%, so the mix tipped toward flash. [48, 50, 51, 52, 53, 54]

Applied Global Services. 6,385 million dollars, 23% of revenue, up 3%, and the steadier line. The growth came from higher customer spending on long-term service agreements and spares, partly offset by lower spending on 200 millimeter equipment. Operating income slipped 20 million to 1,792 million and the margin narrowed to 28.1% from 29.1%, which the filing attributes to the smaller 200 millimeter equipment revenue, more cost from added headcount, and higher charges for excess and obsolete inventory, partly offset by more revenue from services and spares. [48, 51, 53, 55, 56]

Corporate and Other. 1,185 million dollars, 4% of revenue and the fastest-moving line, up 14%. It is the catch-all: revenue and product costs that sit in neither segment, including the display equipment business, plus corporate functions that are not charged to the segments. It lost 882 million at the operating line against 926 million the year before, and it carries the 181 million restructuring charge as well as a 41 million goodwill impairment taken in the fourth quarter. [48, 51, 57, 16, 12, 58]

Where the money came from moved sharply in a single year. China, still the largest at 8.5 billion dollars and 30.1% of revenue, fell 15.7%. Taiwan jumped 71.0% to 6.9 billion, 24.2% of revenue, and South Korea rose 24.8% to 5.6 billion. The United States fell 19.8% to 3.1 billion and Europe fell 33.3% to 962.0 million, while Japan edged up 5.5% to 2.3 billion and Southeast Asia slipped 5.7% to 1.1 billion. Revenue is booked to the place of the customer facility the products were shipped to, so this is a map of where chips are made, not of where the buyers are headquartered. The filing says the changes in all regions primarily reflected changes in investments in semiconductor equipment. [21, 59, 60]

What comes next, in the company's own words: it says investments by semiconductor equipment customers are expected to remain strong, with growth in the adoption of high bandwidth memory and other forms of advanced packaging, continued demand for artificial intelligence and data center computing, and demand for nodes that are not leading edge. It expects demand for services to grow as its installed base of systems and chambers gets larger and customers renew long-term service agreements. Over the longer term it points to data center and edge artificial intelligence, the internet of things, robotics and electric and autonomous vehicles, and to device refresh cycles for personal computers and smartphones. It also warns that the order book on any particular date is not necessarily indicative of actual sales for any future period, and is subject to change, including from changes in export rules. [61, 56, 62, 63]

What the desk infers (inferred, not filed)

• The two customers behind roughly a third of revenue are almost certainly a leading-edge foundry whose plants are in Taiwan, most likely Taiwan Semiconductor Manufacturing Company, and a Korean memory maker. Applied never names them, but the map of where its revenue lands moves with them. Because: Two customers took about 19% and 15% of net revenue in fiscal 2025, and the filing nowhere says who they are. [22] Revenue is booked to the location of the customer facilities the products were shipped to, and Taiwan took 24.2% of revenue and South Korea 19.8%, the two shares closest to those customer shares. [21, 59] Taiwan rose 71.0% in one year, the largest move of any region. [21] Foundry and logic spending rose on higher customer investment in leading-edge manufacturing technologies, which the filing defines as nodes of 7 nanometers and smaller, a club with very few members. [52, 17] The filing says the customer base is geographically concentrated, particularly in China, Taiwan and Korea. [24] Confidence 55 of 100. Wrong if: A disclosure by Applied or by a customer naming either of the two as a buyer whose fabrication plants are outside Taiwan and Korea, for instance a mainland Chinese or a United States based manufacturer.
• What Applied has already sold is becoming service rather than machinery: the service arm books under a quarter of revenue but carries about half the order book, so a growing part of the revenue contracted ahead is maintenance on machines already installed. Because: Applied Global Services brought in 6,385 million dollars, 23% of revenue, while Semiconductor Systems brought in 20,798 million, 73%. [48] In the order book at the end of fiscal 2025 the two are level: 7,141 million dollars, 48%, in services against 7,105 million, 47%, in systems. [30] The order book counts contractual service revenue and maintenance fees alongside accepted equipment orders. [64] About 31% of the order book is not reasonably expected to be filled within the next 12 months. [31] The segment's growth came from higher customer spending on long-term service agreements and spares. [56] Confidence 75 of 100. Wrong if: A year in which the Applied Global Services share of the order book falls back below its share of revenue, or a disclosure that the service backlog is mostly equipment orders rather than contracted service and maintenance fees.
• The one-year swing from China to Taiwan is the export rules working through the order book: what shrank was equipment for mature production lines in China, and what replaced it was leading-edge foundry building elsewhere, which leaves Applied leaning on the handful of customers who can afford the most advanced nodes. Because: China revenue fell 15.7% to 8.5 billion dollars while Taiwan rose 71.0% to 6.9 billion, in the same year. [21] The filing says export regulations for American semiconductor technology sold in China have limited the market for certain products and services, adversely affected revenues and increased exposure to foreign and Chinese domestic competition. [39] Foundry and logic spending rose on higher customer investment in leading-edge manufacturing technologies, while memory spending rose on NAND upgrades. [52] Nodes that are not leading edge, the kind Chinese buyers have been adding, serve the internet of things, communications, automotive, power and sensors. [17] The filing warns of more competition from domestic equipment makers in China, helped by local government incentives and by the United States export controls themselves. [37] Confidence 65 of 100. Wrong if: A later filing showing China revenue returning to its earlier share while leading-edge foundry spending falls, or a disclosure that the China decline came from customers' own demand rather than from export licensing.
• Applied is putting money into buildings and demonstration tools while taking people out: three quarters of a capital budget that nearly doubled sat outside both operating segments, which points at shared research and demonstration facilities rather than extra factory capacity. Because: Capital spending was 2.3 billion dollars in fiscal 2025 against 1.2 billion the year before, and went primarily into real property and improvements, demonstration and testing equipment, manufacturing and network equipment. [65] The segment table splits that 2,260 million dollars as 507 million in Semiconductor Systems, 57 million in Applied Global Services and 1,696 million in Corporate and Other, following the column order the same table uses for revenue. [66, 67] Corporate and Other holds the functions performed at the corporate level rather than either segment's own operations. [57] Research spending rose to 3.6 billion dollars on additional headcount for product development and higher depreciation. [35, 36] In the same quarter the company approved a workforce reduction plan expected to touch about 4% of the global workforce. [12] Confidence 60 of 100. Wrong if: A disclosure that the Corporate and Other capital spending went into manufacturing capacity for the Semiconductor Systems segment, or a later year in which segment capital spending rises while the corporate share falls back.

Sources

1. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Mr. Dickerson, age 68, was named President of Applied in June 2012 and appointed Chief Executive Officer and a member of the Board of Directors in September 2013.”
2. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Before joining Applied, he served as Chief Executive Officer and a director of Varian Semiconductor Equipment Associates, Inc. (Varian) from 2004 until its acquisition by us in November 2011. Prior to Varian, Mr. Dickerson served 18 years with KLA-Tencor Corporation (KLA-Tencor), a supplier of process control and yield management solutions for the semiconductor and related industries, where he held a variety of operations and product development roles, including President and Chief Operating Officer.”
3. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Mr. Dickerson started his semiconductor career in manufacturing and engineering management at General Motors’ Delco Electronics Division and then AT&T Technologies.”
4. The record on this page: the officers and directors who file Forms 3, 4 and 5 (the SEC's insider data sets)
5. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Mr. Hill, age 59, has been Senior Vice President and Chief Financial Officer since March 2022. He also oversees Global Information Services for Applied. Prior to joining Applied, Mr. Hill was Executive Vice President and Chief Financial Officer of Xilinx, Inc., a company that designed and developed programmable devices and associated technologies, from April 2020 until its acquisition by Advanced Micro Devices, Inc. in February 2022. Prior to Xilinx, Mr. Hill served in various finance positions with Intel Corporation for 25 years”
6. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Dr. Raja, age 63, has been President, Semiconductor Products Group since March 2023. He previously served as Senior Vice President, Semiconductor Products Group of Applied from November 2017 to March 2023, and before that served in various senior management, product development and operational roles since joining Applied in 1995”
7. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Mr. Deane, age 60, has been Senior Vice President, Applied Global Services since December 2024 and previously served as Group Vice President, Applied Global Services since September 2022. He joined Applied in 1995”
8. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Ms. Little, age 61, joined Applied as Senior Vice President, Chief Legal Officer and Corporate Secretary in June 2020. Prior to joining Applied, Ms. Little served as Executive Vice President, Chief Legal Officer and Corporate Secretary at KLA Corporation from August 2017 to June 2020.”
9. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Dr. Nalamasu, age 67, has been Senior Vice President, Chief Technology Officer since June 2013, and President of Applied Ventures, LLC, Applied’s venture capital arm, since November 2013.”
10. Applied Materials, Inc., Form 10-K filed 2025-12-12: “As of October 26, 2025, we employed approximately 36,500 regular full-time employees spanning 25 countries, of whom approximately 46%, 42% and 12% resided in the Asia-Pacific region, North America, and Europe/Middle East, respectively.”
11. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Our product development and engineering, and process support are performed primarily in the United States, India and Israel. Our customer demonstrations are performed primarily in the United States, China, Taiwan, Israel and South Korea.”
12. Applied Materials, Inc., Form 10-K filed 2025-12-12: “In the fourth quarter of fiscal 2025, we approved a workforce reduction plan (Fiscal 2025 Restructuring Plan) to position us for continued growth as a more competitive and productive organization and expect approximately 4% of our global workforce to be impacted under this plan. In the fourth quarter of fiscal 2025, we recognized $181 million of restructuring charges consisting primarily of severance and other employment termination benefits to be paid in cash, and other non-cash related charges. We expect to complete the plan in fiscal 2026.”
13. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Applied Materials, Inc. is the leader in the materials engineering solutions used to produce virtually every semiconductor in the world.”
14. Applied Materials, Inc., Form 10-K filed 2025-12-12: “We are experts in the design, development, production, and servicing of the critical wafer fabrication tools our customers need to manufacture semiconductors.”
15. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Incorporated in 1967, we are a Delaware corporation. Our fiscal year ends on the last Sunday in October. We operate in two reportable segments: Semiconductor Systems and Applied Global Services® (AGS). The Semiconductor Systems segment represents the largest contributor to our net revenue.”
16. Applied Materials, Inc., Form 10-K filed 2025-12-12: “As of October 26, 2025, management no longer considers Display a significant operating segment for separate reporting purposes. The financial results of our other operating segments that do not meet the requirements for a reportable segment, including our Display operating segment, are included in Corporate and Other.”
17. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Our Semiconductor Systems sales are to customers that serve the following markets: foundry, logic and other; dynamic random access memory (DRAM); and flash memory (NAND). Foundry, logic, and other is comprised of leading-edge and non-leading edge technology nodes. Leading-edge represents customers that are producing on the most advanced technology nodes, defined as 7 nanometers and smaller. Non-leading edge technology nodes serve markets such as internet of things, communications, automotive, power and sensors.”
18. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Our products address steps across materials engineering, process control and advanced packaging, including the conversion of patterns into device structures, transistor and interconnect fabrication, metrology, inspection and review, and packaging technologies for connecting finished IC die.”
19. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Our AGS segment provides services, spares and factory automation software to customer fabrication plants globally. Through October 26, 2025, our AGS segment also manufactured and sold 200 millimeter (200mm) and other equipment to customers globally that serve non-leading-edge markets. Effective the first quarter of fiscal 2026, our 200mm equipment business will be moved to our Semiconductor Systems segment.”
20. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Customer demand is fulfilled through a global distribution system and trained field engineers located near customer sites to support our semiconductor and other equipment worldwide.”
21. The record on this page: revenue by line and by geography, as tagged in the annual report (the SEC's financial statement data sets)
22. Applied Materials, Inc., Form 10-K filed 2025-12-12: “During fiscal 2025, two customers accounted for approximately 19% and 15%, respectively, of our net revenue.”
23. Applied Materials, Inc., Form 10-K filed 2025-12-12: “In fiscal 2025, approximately 89% of our net revenue was to customers in regions outside the United States.”
24. Applied Materials, Inc., Form 10-K filed 2025-12-12: “A relatively limited number of customers account for a substantial portion of our business. As a result, the actions of even a single customer have exposed and can further expose our business and operating results to greater volatility. Our customer base is geographically concentrated, particularly in China, Taiwan and Korea”
25. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Our products are configured to customer specifications, and changing, rescheduling or canceling orders may result in significant, non-recoverable costs.”
26. Applied Materials, Inc., Form 10-K filed 2025-12-12: “We utilize a distributed manufacturing model under which manufacturing and supply chain activities are conducted in various countries, including United States, Singapore, Japan, China, Korea, Taiwan, Israel and other countries in Asia and Europe. We use qualified vendors, including contract manufacturers, to supply parts, services and product support.”
27. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Although we make reasonable efforts to assure that parts are available from multiple qualified suppliers, this is not always possible. Accordingly, some key parts may be obtained from only a qualified single supplier or a limited group of qualified suppliers.”
28. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Our products are manufactured primarily in the United States, Singapore, Taiwan and Israel.”
29. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Because of the highly technical nature of our products, we market and sell products worldwide almost entirely through a direct sales force.”
30. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Semiconductor Systems $ 7,105 47 % Applied Global Services 7,141 48 % Corporate and Other 756 5 % Total 15,002 100”
31. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Of the total backlog as of October 26, 2025, approximately 31% is not reasonably expected to be filled within the next 12 months.”
32. Applied Materials, Inc., Form 10-K filed 2025-12-12: “We have more than 23,500 active patents in the United States and other countries, and additional applications are pending for new inventions. Although we do not consider our business materially dependent upon any one patent, our rights and the products made and sold under our patents, taken as a whole, are a significant element of our business.”
33. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Royalties received from or paid to third parties have not been material to our consolidated results of operations.”
34. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Our significant investments in RD&E must generally enable us to deliver new products and technologies before the emergence of strong demand, thus allowing customers to incorporate these products into their manufacturing plans during early-stage technology selection.”
35. Applied Materials, Inc., Form 10-K filed 2025-12-12: “The year-over-year change in RD&E expenses was primarily due to additional headcount to support our ongoing investments in product development initiatives and higher depreciation expenses, consistent with our growth strategy.”
36. The record on this page: the filed annual figures (EDGAR's company facts)
37. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Competitors range from small companies that compete in a single region, which may benefit from policies and regulations that favor domestic companies, to global, diversified companies, which operate in more complex global economic and regulatory environments. We could see increased competition from domestic equipment manufacturers in China resulting from local government incentives and funding as well as export controls established by the United States government to restrict the sale of certain technologies to customers in China.”
38. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Competition in the AGS segment includes a diverse group of third-party service providers as well as customers that choose to perform their own service.”
39. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Over the past several years, the U.S. government announced additional export regulations for U.S. semiconductor technology sold in China, including wafer fabrication equipment and related parts and services, with disparate impact on companies in different jurisdictions, which have limited the market for certain of our products and services, adversely impacted our revenues and increased our exposure to foreign and Chinese domestic competition.”
40. Applied Materials, Inc., Form 10-K filed 2025-12-12: “For example, in 2025 the Chinese government implemented export controls on the export of rare earth minerals that are used in certain of our products and may implement additional controls in the future.”
41. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Since 2022, we have received multiple subpoenas from government authorities requesting information relating to certain China customer shipments and export controls compliance, including from the U.S. Department of Justice, the U.S. Commerce Department Bureau of Industry and Security, and the U.S. Securities and Exchange Commission. We also have received subpoenas from the U.S. Department of Justice requesting information related to certain federal award applications and information submitted to the federal government. We are cooperating fully with the U.S. government in these matters.”
42. Applied Materials, Inc., Form 10-K filed 2025-12-12: “On August 9, 2022, the U.S. government enacted the U.S. CHIPS and Science Act (CHIPS Act). The CHIPS Act creates a 25% investment tax credit for certain investments in domestic semiconductor manufacturing.”
43. Applied Materials, Inc., Form 10-K filed 2025-12-12: “As of October 26, 2025, our current income taxes payable was reduced by $233 million, and future income taxes payable will be reduced by $548 million, both of which are due to the investment tax credit.”
44. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Provision for income taxes $ 2,273 $ 975 $ 1,298 Effective income tax rate 24.5 % 12.0 % 12.5 points”
45. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Our effective tax rate for fiscal 2025 was higher than the prior fiscal year primarily due to a $659 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore and the recognition of a $407 million valuation allowance against deferred tax assets related to corporate alternative minimum tax (CAMT) credits. These credits are not expected to be realized as a result of changes in the timing of future tax deductions, following the enactment of the One Big Beautiful Bill Act.”
46. Applied Materials, Inc., Form 10-K filed 2025-12-12: “On July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act (OBBBA). The OBBBA includes a broad range of tax reform provisions including extending and modifying certain key Tax Act provisions and expanding certain Chips Act incentives. These changes include full expensing of domestic research costs, immediate expensing of qualifying property and increasing the investment tax credit for certain investments in domestic semiconductor manufacturing from 25% to 35%.”
47. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Net revenue $ 28,368 $ 27,176 $ 1,192 Gross margin 48.7 % 47.5 % 1.2 points Operating income $ 8,289 $ 7,867 $ 422 Operating margin 29.2 % 28.9 % 0.3 points Net income $ 6,998 $ 7,177 $ (179)”
48. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Semiconductor Systems $ 20,798 73% $ 19,911 73% 4 % Applied Global Services 6,385 23% 6,225 23% 3 % Corporate and Other 1,185 4% 1,040 4% 14 % Total $ 28,368 100% $ 27,176 100% 4”
49. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Net revenue in fiscal 2025 increased as compared to the prior year. Gross margin increased primarily driven by higher net revenue, favorable changes in customer and product mix, an increase in average selling prices, and lower material and manufacturing costs.”
50. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Foundry, logic and other 67 % 68 % Dynamic random-access memory (DRAM) 26 % 28 % Flash memory (NAND) 7 % 4”
51. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Semiconductor Systems $ 7,379 $ 6,981 $ 398 6 % Applied Global Services 1,792 1,812 (20) (1) % Corporate and Other (882) (926) 44 5 % Total $ 8,289 $ 7,867 $ 422 5”
52. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Semiconductor Systems net revenue increased in fiscal 2025 as compared to the prior year as customers continued to make strategic investments in new capacity and new technology transitions. Foundry and logic customers’ spending in fiscal 2025 increased driven primarily by higher customer investments in leading-edge manufacturing technologies. Memory customers’ spending in fiscal 2025 was higher due to increased customer investments in NAND fabrication equipment upgrades.”
53. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Operating margin Semiconductor Systems 35.5 % 35.1 % 0.4 points Applied Global Services 28.1 % 29.1 % (1.0) points”
54. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Semiconductor Systems’ operating margin for fiscal 2025 increased compared to the same period in the prior year primarily driven by higher net revenue, favorable changes in customer and product mix, lower material and manufacturing costs, and an increase in average selling prices, partially offset by increased RD&E expenses.”
55. Applied Materials, Inc., Form 10-K filed 2025-12-12: “AGS’ operating margin for fiscal 2025 decreased compared to the same periods in the prior year primarily due to a decrease in 200mm equipment net revenue, higher expense related to an increase in headcount to support business growth, and higher excess and obsolete inventory charges, partially offset by higher net revenue from services and spares.”
56. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Our AGS net revenue in fiscal 2025 increased compared to the prior year primarily due to higher customer spending on long-term service agreements and spares, partially offset by lower customer spending on 200mm equipment. Demand for services is expected to grow as our installed base of systems and chambers increases and customers renew long-term service agreements.”
57. Applied Materials, Inc., Form 10-K filed 2025-12-12: “The Corporate and Other category includes revenues and costs of product not included in our reportable segments, as well as certain operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level.”
58. Applied Materials, Inc., Form 10-K filed 2025-12-12: “General and administrative expenses in fiscal 2025 decreased primarily due to lower spending on professional services, partially offset by an impairment of goodwill of $41 million recognized during the fourth quarter of fiscal 2025.”
59. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Net revenue by geographic region, determined by the location of customers’ facilities to which products were shipped and services were performed, was as follows”
60. Applied Materials, Inc., Form 10-K filed 2025-12-12: “The changes in net revenue from customers in all regions for fiscal 2025 primarily reflected changes in investments in semiconductor equipment.”
61. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Investments by semiconductor equipment customers are expected to remain strong with growth in the adoption of high-bandwidth memory and other forms of advanced packaging, continued demand for AI and data center computing, and for non-leading edge nodes.”
62. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Over the longer term, we believe secular drivers such as data center AI, edge AI and the internet of things, robotics and electric and autonomous vehicles will continue to create the next wave of growth for semiconductors and expand our served market opportunities. We believe device refresh cycles, such as those for PCs and smartphones, will also contribute to the next wave of growth.”
63. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Our backlog on any particular date is not necessarily indicative of actual sales for any future periods. Our backlog is subject to change, including the addition of new orders, potential amendments or cancellations of existing orders, and changes in export rules and regulations.”
64. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Backlog consisted of: (1) orders for which written authorizations have been accepted, or shipment has occurred but revenue has not been recognized; and (2) contractual service revenue and maintenance fees.”
65. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Capital expenditures in fiscal 2025 and 2024 were $2.3 billion and $1.2 billion, respectively. Capital expenditures were primarily for investments in real property and improvements, demonstration and testing equipment, manufacturing and network equipment.”
66. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Depreciation and amortization $ 192 $ 26 $ 217 $ 435 Capital expenditures $ 507 $ 57 $ 1,696 $ 2,260”
67. Applied Materials, Inc., Form 10-K filed 2025-12-12: “Semiconductor Systems Applied Global Services Corporate and Other Total (In millions, except percentages) 2025: Net revenue $ 20,798 $ 6,385 $ 1,185 $ 28,368”

Where the revenue comes from

By geography: China 30%, Taiwan 24%, South Korea 20%, United States 11%, Japan 8%, Southeast Asia 4%. As tagged in its annual report (Form 10-K, filed 2025-12-12).

Who runs it

Dickerson, Gary E (President and CEO); Raja, Prabu G. (President, Semi. Products Grp.); Nalamasu, Omkaram (Senior Vice President, CTO); Hill, Brice (SVP, CFO); Deane, Timothy M (SVP, Applied Global Services); Sanders, Adam (Corp. Controller & CAO); Little, Teri A. (SVP, CLO); Bruner, Judy (director); Palkhiwala, Akash J. (director); Iannotti, Thomas J (director); and 7 more. 17 officers and directors have filed their own trades in the last fifteen months, names and titles as filed with the SEC, through 2026-10-05.

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