📊 AMAT Key Takeaways
Is Applied Materials Inc. /de (AMAT) a Good Investment?
Applied Materials demonstrates strong fundamental health with excellent profitability metrics (28.9% net margin, 49% gross margin) and robust cash generation ($1.0B free cash flow). The company maintains a solid balance sheet with conservative leverage (0.30x debt/equity) and strong liquidity (2.71x current ratio), positioning it well to weather cyclical semiconductor demand despite modest revenue growth of 4.4% YoY.
Applied Materials shows strong core fundamentals, with high gross and operating margins, solid free cash flow generation, and a conservatively leveraged balance sheet. Revenue is still growing and EPS is stable, but the slight decline in net income suggests growth quality should be monitored for mix, costs, and cyclicality rather than assumed to be accelerating.
Why Buy Applied Materials Inc. /de Stock? AMAT Key Strengths
- Exceptional net profit margin of 28.9% demonstrates pricing power and operational efficiency
- Strong free cash flow generation of $1.0B with 14.8% FCF margin provides capital flexibility
- Conservative balance sheet with debt-to-equity of 0.30x and interest coverage of 15.5x
- Healthy liquidity position with current ratio of 2.71x and $7.2B cash reserves
- Solid operating margin of 26.1% reflects cost discipline in core business
- High profitability with 49.0% gross margin, 26.1% operating margin, and 28.9% net margin
- Strong financial health supported by $7.22B in cash, 2.71x current ratio, and low 0.30x debt-to-equity
- Healthy cash generation with $1.04B in free cash flow and 15.5x interest coverage
AMAT Stock Risks: Applied Materials Inc. /de Investment Risks
- Modest revenue growth of 4.4% YoY suggests potential maturity or cyclical headwinds in end markets
- Declining net income (-2.5% YoY) despite revenue growth indicates margin compression or one-time charges
- Low ROE of 9.3% and ROA of 5.4% suggest capital is not generating strong returns relative to investment
- High insider trading activity (23 Form 4 filings in 90 days) warrants monitoring for sentiment signals
- Semiconductor sector cyclicality creates earnings volatility risk
- Net income declined 2.5% YoY despite revenue growth, which may indicate margin or expense pressure
- Revenue growth of 4.4% is positive but not especially strong for a cyclical semiconductor equipment business
- Capital intensity remains meaningful, with $646.00M in capex that could rise if demand or technology transitions require more investment
Key Metrics to Watch
- Revenue growth acceleration vs. semiconductor capital equipment cycle trends
- Net income recovery and operating margin sustainability
- Free cash flow generation and capital allocation decisions
- Return on equity improvement and capital efficiency
- Gross margin trends indicating pricing power or input cost pressures
- Operating margin and net income trend
- Free cash flow margin
Applied Materials Inc. /de (AMAT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.71x current ratio provides a solid financial cushion.
AMAT Profit Margin, ROE & Profitability Analysis
AMAT vs Technology Sector: How Applied Materials Inc. /de Compares
How Applied Materials Inc. /de compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Applied Materials Inc. /de Stock Overvalued? AMAT Valuation Analysis 2026
Based on fundamental analysis, Applied Materials Inc. /de has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Applied Materials Inc. /de Balance Sheet: AMAT Debt, Cash & Liquidity
AMAT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Applied Materials Inc. /de's revenue has grown significantly by 23% over the 5-year period, indicating strong business expansion. The most recent EPS of $8.11 reflects profitable operations.
AMAT Revenue Growth, EPS Growth & YoY Performance
AMAT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $7.0B | $1.2B | $1.45 |
| Q3 2025 | $6.8B | $1.7B | $2.05 |
| Q2 2025 | $6.6B | $1.7B | $2.06 |
| Q1 2025 | $6.7B | $1.2B | $1.45 |
| Q3 2024 | $6.4B | $1.6B | $1.85 |
| Q2 2024 | $6.6B | $1.6B | $1.86 |
| Q1 2024 | $6.7B | $1.7B | $2.02 |
| Q3 2023 | $6.4B | $1.6B | $1.85 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Applied Materials Inc. /de Dividends, Buybacks & Capital Allocation
AMAT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Applied Materials Inc. /de (CIK: 0000006951)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775169858.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/wk-form4_1773442472.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/wk-form4_1773442463.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/wk-form4_1773442455.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/wk-form4_1773442447.xml | View → |
❓ Frequently Asked Questions about AMAT
What is the AI rating for AMAT?
Applied Materials Inc. /de (AMAT) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AMAT's key strengths?
Claude: Exceptional net profit margin of 28.9% demonstrates pricing power and operational efficiency. Strong free cash flow generation of $1.0B with 14.8% FCF margin provides capital flexibility. ChatGPT: High profitability with 49.0% gross margin, 26.1% operating margin, and 28.9% net margin. Strong financial health supported by $7.22B in cash, 2.71x current ratio, and low 0.30x debt-to-equity.
What are the risks of investing in AMAT?
Claude: Modest revenue growth of 4.4% YoY suggests potential maturity or cyclical headwinds in end markets. Declining net income (-2.5% YoY) despite revenue growth indicates margin compression or one-time charges. ChatGPT: Net income declined 2.5% YoY despite revenue growth, which may indicate margin or expense pressure. Revenue growth of 4.4% is positive but not especially strong for a cyclical semiconductor equipment business.
What is AMAT's revenue and growth?
Applied Materials Inc. /de reported revenue of $7.0B.
Does AMAT pay dividends?
Applied Materials Inc. /de pays dividends, with $365.0M distributed to shareholders in the trailing twelve months.
Where can I find AMAT SEC filings?
Official SEC filings for Applied Materials Inc. /de (CIK: 0000006951) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AMAT's EPS?
Applied Materials Inc. /de has a diluted EPS of $2.54.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AMAT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Applied Materials Inc. /de has a BUY rating with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AMAT stock overvalued or undervalued?
Valuation metrics for AMAT: ROE of 9.3% (sector avg: 22%), net margin of 28.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy AMAT stock in 2026?
Our dual AI analysis gives Applied Materials Inc. /de a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is AMAT's free cash flow?
Applied Materials Inc. /de's operating cash flow is $1.7B, with capital expenditures of $646.0M. FCF margin is 14.8%.
How does AMAT compare to other Technology stocks?
Vs Technology sector averages: Net margin 28.9% (avg: 18%), ROE 9.3% (avg: 22%), current ratio 2.71 (avg: 2.5).