October 12, 2026·69 min read

Applied Materials, Inc. (AMAT), Financial Analysis

Insights derived from analysing SEC filings. Independent analysis, not a publication of the SEC.

Figures are read from the Forms 10-K for FY2021 to FY2025, the Forms 10-Q for Q3 FY2013, Q2 FY2022 and Q1 FY2025 to Q3 FY2026, the Forms 8-K of November 2024 to August 2026 with their quarterly earnings exhibits 99.1, credit agreement exhibits 10.1 and supplemental indenture exhibit 4.1, the proxy statement of January 2026, Schedules 13G, Forms 13F and Forms 3, 4 and 144 on the record for central index key 6951, together with the comparable filings of seven peers and three chip makers. Accession numbers for every filing used appear in the Sources appendix. Market prices are closing prices of 9 October 2026.

Applied Materials (AMAT) guides Q4 FY2026 revenue to $10.25bn, 50.7% above Q4 FY2025, after Q3 FY2026 revenue of $9.12bn, up 25%. China supplied 28% of Q3 revenue against 35% a year earlier. Shares closed at $507.03 on 9 October 2026, 43.7x diluted GAAP EPS of $11.60 for the trailing twelve months (TTM).

Key findings

Q3 FY2026 (quarter ended 26 July 2026) revenue was $9.12bn, up 25% year on year, with GAAP operating margin of 33.7% (30.6% a year earlier), diluted GAAP EPS of $3.17 and non GAAP EPS of $3.50; Q4 FY2026 guidance is revenue of $10.25bn ± $500m and non GAAP EPS of $4.02 ± $0.20.
China revenue was $2.51bn in Q3 FY2026, 28% of total, against 35% a year earlier and 37% in FY2024; on 11 February 2026 the company settled with the Bureau of Industry and Security (BIS) for $252.5m, and the Department of Justice and the SEC closed their inquiries with no enforcement action.
Cash and investments were $14.50bn and debt $6.54bn at 26 July 2026, net cash of $7.96bn; TTM free cash flow (FCF, operating cash flow less capital expenditure) was $5.62bn, 18.2% of revenue, with capital expenditure at 9.0% of TTM revenue against 4.4% in FY2024.
At $507.03 shares trade at 12.8x enterprise value (EV) to TTM sales, 43.7x price to earnings (P / E) and 71.6x P / FCF, against medians of 14.0x, 55.4x and 60.9x for seven equipment peers; TTM revenue growth was 7.8% against a peer median of 11.7%.
Cost of shares repurchased was $400m in Q3 FY2026 against $1.04bn a year earlier, the quarterly dividend rose 15% to $0.53 per share in March 2026, and repurchase authority of $12.8bn remained at 26 July 2026.
One class of common stock carries one vote per share; the ten largest positions identified in Form 13F filings held 38.0% of shares at 30 June 2026, and at the 12 March 2026 annual meeting the advisory pay vote received 92.2%, auditor ratification 93.0% and director Kevin P. March 89.6% (97.0% in 2025).
Forms 4 report open market sales of 307,925 shares for $180.64m and open market purchases of 0 in the twelve months to 10 October 2026; June 2026 holds 276,692 of those shares, and sales after 26 July 2026 total 9,225 shares for $4.45m.
Three sets of stated assumptions for FY2027 to FY2029 give arithmetic outcomes of $194, $613 and $1,110 per share at end FY2029; base case price equals the current price at revenue growth of 6.1% per year.

Table 0.1 Applied Materials at a glance

Measure	Value	Basis
Share price	$507.03	Close, 9 October 2026
Market cap	$402.38bn	793.6m shares, 10-Q cover, 26 July 2026
Net cash	$7.96bn	Cash and investments $14.50bn less debt $6.54bn, 26 July 2026
EV	$394.42bn	Market cap less net cash
TTM revenue	$30.84bn	Q4 FY2025 to Q3 FY2026
Revenue growth	25% in Q3 FY2026; 7.8% TTM	Against the same periods a year earlier
Operating margin, Q3 FY2026	33.7% GAAP; 34.0% non GAAP	Non GAAP excludes $21m of acquisition items
TTM FCF margin	18.2%	FCF of $5.62bn
Backlog	$15.00bn	26 October 2025; filed once a year in the 10-K
Remaining performance obligations (RPO)	$1.0bn	26 July 2026; contracts with an original duration of one year or more
EV / sales	12.8x	TTM revenue; peer median 14.0x
P / E	43.7x	TTM diluted GAAP EPS of $11.60; peer median 55.4x
P / FCF	71.6x	Market cap over TTM FCF; peer median 60.9x
Diluted shares	800m	Q3 FY2026 weighted average

Source: 10-Q Q3 FY2026, 10-K FY2025, 8-K Exhibit 99.1 of 13 August 2026, SEC filings via SEC-API.io; Market data, 9 October 2026. TTM = last four reported quarters; peer medians from Table 4.5

1 Revenue & Business Model

Revenue was $9.12bn in Q3 FY2026, up 25% year on year, and $24.04bn for the first nine months (9M), up 11% (10-Q Q3 FY2026). Semiconductor Systems, the segment that sells chip making equipment, produced 77% of Q3 revenue; Applied Global Services (AGS), which sells services, spares and software for the installed base, produced 20%.

Applied Materials business model and segment revenue

Table 1.1 Segments, Q3 FY2026

Segment	What it sells	Revenue	Share	Year on year	Operating income	Operating margin
Semiconductor Systems	Equipment for patterning, transistor and interconnect fabrication, process control and advanced packaging; 200mm equipment from Q1 FY2026	$7.04bn	77%	27%	$2.66bn	37.7%
Applied Global Services	Transactional and subscription services, spares, factory automation software	$1.78bn	20%	22%	$536m	30.1%
Other	Operating segments below the reporting threshold, including display equipment	$294m	3%	7%	($118m)	n/a
Total		$9.12bn	100%	25%	$3.08bn	33.7%

Source: 10-Q Q3 FY2026, Note 14 and Item 2; 10-K FY2025, Item 1; SEC filings via SEC-API.io

Sales run through a direct sales force; manufacturing is assembly, integration and test of vendor supplied parts in seven countries. Purchase obligations were $10.6bn at 26 October 2025 (10-K FY2025, Items 1 and 7).

Figure 1.1 Revenue by segment, FY2021 to FY2025

Table 1.2 Segment revenue and operating income by fiscal year

	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	$23.06bn	$25.79bn	$26.52bn	$27.18bn	$28.37bn
Semiconductor Systems	$16.29bn	$18.80bn	$19.70bn	$19.91bn	$20.80bn
Applied Global Services	$5.01bn	$5.54bn	$5.73bn	$6.23bn	$6.39bn
Display	$1.63bn	$1.33bn	$868m	$885m	n/a
Display, Corporate and Other	$1.76bn	$1.45bn	$1.09bn	$1.04bn	$1.19bn
Operating income	$6.89bn	$7.79bn	$7.65bn	$7.87bn	$8.29bn
Operating income, Semiconductor Systems	$6.31bn	$6.97bn	$6.88bn	$6.98bn	$7.38bn
Operating income, Applied Global Services	$1.51bn	$1.66bn	$1.53bn	$1.81bn	$1.79bn
Operating income, Display, Corporate and Other	($930m)	($842m)	($754m)	($926m)	($882m)
Semiconductor Systems operating margin	38.8%	37.1%	34.9%	35.1%	35.5%
Applied Global Services operating margin	30.1%	30.0%	26.7%	29.1%	28.1%

Source: 10-K FY2023 for FY2021 and FY2022; 10-K FY2024 for FY2024 Display revenue; 10-K FY2025 for FY2023 to FY2025. Segment operating income for FY2021 and FY2022 is on the cost allocation of the FY2023 10-K; FY2023 to FY2025 on that of the FY2025 10-K; SEC filings via SEC-API.io

FY2025 10-K moved Display into Corporate and Other, leaving two reportable segments. From Q1 FY2026 the 200mm equipment business moved from AGS to Semiconductor Systems; the recast shifted $524m of 9M FY2025 revenue.

Table 1.3 Segment revenue and operating income by quarter

	Q2 FY2025	Q3 FY2025	Q4 FY2025	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	$7.10bn	$7.30bn	$6.80bn	$7.01bn	$7.91bn	$9.12bn
Semiconductor Systems	$5.40bn	$5.56bn	$4.76bn *	$5.14bn	$5.97bn	$7.04bn
Applied Global Services	$1.42bn	$1.46bn	$1.63bn *	$1.56bn	$1.67bn	$1.78bn
Other	$279m	$275m	$415m *	$312m	$280m	$294m
Operating income	$2.17bn	$2.23bn	$1.71bn	$1.83bn	$2.52bn	$3.08bn
Operating income, Semiconductor Systems	$1.77bn	$1.84bn	n/a	$1.43bn	$2.09bn	$2.66bn
Operating income, Applied Global Services	$378m	$400m	n/a	$438m	$487m	$536m
Operating income, Other	$21m	($4m)	n/a	($34m)	($56m)	($118m)
Semiconductor Systems operating margin	32.8%	33.0%	n/a	27.8%	35.1%	37.7%
Applied Global Services operating margin	26.6%	27.3%	n/a	28.1%	29.2%	30.1%

Source: 10-Q Q2 FY2026, 10-Q Q3 FY2026, 10-Q Q1 FY2026, 10-K FY2025, 10-Q Q3 FY2025. FY2025 quarters are as recast in the FY2026 10-Q filings. * Q4 FY2025 is full year less nine months on the FY2025 10-K basis, with 200mm equipment in AGS; SEC filings via SEC-API.io

Semiconductor Systems revenue by end market: foundry and logic, DRAM, NAND

DRAM (memory chips used for working data) was 29% of Semiconductor Systems revenue in 9M FY2026 against 25% a year earlier.

Figure 1.2 Semiconductor Systems revenue by end market, FY2021 to 9M FY2026

Table 1.4 Semiconductor Systems revenue by end market, share as filed

End market	FY2021	FY2022	FY2023	FY2024	FY2025	9M FY2025	9M FY2026	Q3 FY2025	Q3 FY2026
Foundry, logic and other	60%	66%	77%	68%	67%	68%	65%	69%	67%
DRAM	19%	19%	17%	28%	26%	25%	29%	22%	26%
Flash memory (NAND)	21%	15%	6%	4%	7%	7%	6%	9%	7%

Source: 10-K FY2023, 10-K FY2025, 10-Q Q3 FY2026. FY2026 and recast FY2025 periods include 200mm equipment; SEC filings via SEC-API.io

China revenue was $2.51bn in Q3 FY2026, (2)% year on year, and United States revenue rose 100% to $1.37bn. Figure 3.3 shows China revenue by quarter.

Figure 1.3 Revenue by region, FY2021 to FY2025

Table 1.5 Revenue by region by fiscal year, by location of customer facility

Region	FY2021	FY2022	FY2023	FY2024	FY2025	9M FY2025	9M FY2026
China	$7.54bn	$7.25bn	$7.25bn	$10.12bn	$8.53bn	$6.57bn	$6.69bn
Korea	$5.01bn	$4.40bn	$4.61bn	$4.49bn	$5.61bn	$4.39bn	$4.55bn
Taiwan	$4.74bn	$6.26bn	$5.67bn	$4.01bn	$6.86bn	$5.02bn	$5.90bn
Japan	$1.96bn	$2.01bn	$2.08bn	$2.15bn	$2.27bn	$1.83bn	$1.99bn
Southeast Asia	$677m	$1.08bn	$758m	$1.14bn	$1.08bn	$616m	$894m
United States	$2.04bn	$3.10bn	$4.01bn	$3.82bn	$3.06bn	$2.41bn	$2.96bn
Europe	$1.10bn	$1.67bn	$2.15bn	$1.44bn	$962m	$742m	$1.05bn
Total	$23.06bn	$25.79bn	$26.52bn	$27.18bn	$28.37bn	$21.57bn	$24.04bn
China share	33%	28%	27%	37%	30%	30%	28%
Asia Pacific share	86%	81%	77%	81%	86%	85%	84%

Source: 10-K FY2023, 10-K FY2025, 10-Q Q3 FY2026; SEC filings via SEC-API.io

Table 1.6 Revenue by region by quarter

Region	Q2 FY2025	Q3 FY2025	Q4 FY2025	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q3 year on year
China	$1.77bn	$2.55bn	$1.96bn	$2.10bn	$2.09bn	$2.51bn	(2)%
Korea	$1.56bn	$1.16bn	$1.22bn	$1.46bn	$1.57bn	$1.52bn	31%
Taiwan	$2.00bn	$1.84bn	$1.83bn	$1.72bn	$2.16bn	$2.03bn	10%
Japan	$572m	$713m	$448m	$525m	$623m	$839m	18%
Southeast Asia	$135m	$195m	$460m	$335m	$185m	$374m	92%
United States	$808m	$683m	$655m	$656m	$941m	$1.37bn	100%
Europe	$252m	$160m	$220m	$221m	$347m	$483m	202%
Total	$7.10bn	$7.30bn	$6.80bn	$7.01bn	$7.91bn	$9.12bn	25%

Source: 10-Q Q2 FY2026, 10-Q Q3 FY2026, 10-Q Q1 FY2026, 10-K FY2025. Q4 FY2025 is full year less nine months; SEC filings via SEC-API.io

Table 1.7 Customers at or above 10% of revenue

Period	Customer	Share of revenue
FY2021	Samsung Electronics	20%
FY2021	Taiwan Semiconductor Manufacturing Company (TSMC)	15%
FY2022	Taiwan Semiconductor Manufacturing Company (TSMC)	20%
FY2022	Samsung Electronics	12%
FY2022	Intel	10%
FY2023	Taiwan Semiconductor Manufacturing Company (TSMC)	19%
FY2023	Samsung Electronics	15%
FY2024	Samsung Electronics	12%
FY2024	Taiwan Semiconductor Manufacturing Company (TSMC)	11%
FY2025	Largest customer, unnamed	19%
FY2025	Second largest customer, unnamed	15%
9M FY2026	Largest customer, unnamed	20%
9M FY2026	Second largest customer, unnamed	14%

Source: 10-K FY2023, 10-K FY2024, 10-K FY2025, 10-Q Q3 FY2026. FY2025 10-K and FY2026 10-Q filings give percentages without customer names; SEC filings via SEC-API.io

Backlog, remaining performance obligations and contract liabilities

Table 1.8 Backlog and contract balances at period end

	FY2021	FY2022	FY2023	FY2024	FY2025	Q3 FY2026
Backlog	$11.76bn	$19.01bn	$17.17bn	$15.87bn	$15.00bn	n/a
Semiconductor Systems	$6.68bn	$12.69bn	$11.13bn	$8.26bn	$7.11bn	n/a
Applied Global Services	$4.34bn	$5.64bn	$5.16bn	$6.77bn	$7.14bn	n/a
Display, Corporate and Other	$744m	$677m	$882m	$847m	$756m	n/a
Backlog due beyond 12 months	n/a	32%	30%	31%	31%	n/a
RPO, contracts with an original duration of one year or more	n/a	$4.8bn	$6.0bn	$3.7bn	$1.7bn	$1.0bn
RPO recognized within 12 months	n/a	28%	59%	62%	53%	73%
Contract liabilities	n/a	$3.14bn	$2.98bn	$2.85bn	$2.57bn	$3.27bn

Source: 10-K FY2022, 10-K FY2023, 10-K FY2024, 10-K FY2025, 10-Q Q3 FY2026. Backlog is filed once a year in Item 1 of the 10-K; SEC filings via SEC-API.io. FY2025 and earlier backlog by segment is on the segment basis before the 200mm recast

AGS backlog was $7.14bn at 26 October 2025 and Semiconductor Systems backlog $7.11bn, both on the FY2025 segment basis before the 200mm recast, with 200mm equipment in AGS; three years earlier the figures were $5.64bn and $12.69bn.

2 Financial Analysis & Ratios

GAAP operating margin was 33.7% in Q3 FY2026 against 30.6% a year earlier, on gross margin of 50.3% against 48.8%. Diluted EPS of $3.17 includes a $213m loss on equity investments and a 12.7% tax rate.

Applied Materials Q3 FY2026 results year on year

Table 2.1 Q3 FY2026 and nine months FY2026 against the prior year

Metric	Q3 FY2026	Q3 FY2025	Change	Nine months FY2026	Nine months FY2025	Change
Revenue	$9.12bn	$7.30bn	25%	$24.04bn	$21.57bn	11%
Gross profit	$4.59bn	$3.56bn	29%	$11.97bn	$10.54bn	14%
Gross margin	50.3%	48.8%	1.5 pts	49.8%	48.9%	0.9 pts
Research, development and engineering	$1.10bn	$901m	22%	$3.06bn	$2.65bn	15%
Operating income	$3.08bn	$2.23bn	38%	$7.43bn	$6.58bn	13%
Operating margin	33.7%	30.6%	3.1 pts	30.9%	30.5%	0.4 pts
Interest and other income (expense), net	($100m)	$396m	n/a	$1.24bn	$625m	98%
of which gain (loss) on equity investments	($213m)	$298m	n/a	$927m	$299m	210%
Effective tax rate	12.7%	30.6%	(17.9) pts	12.9%	27.2%	(14.3) pts
Net income	$2.54bn	$1.78bn	43%	$7.37bn	$5.10bn	44%
Diluted EPS	$3.17	$2.22	43%	$9.22	$6.29	47%
Operating cash flow	$3.04bn	$2.63bn	15%	$5.57bn	$5.13bn	9%
Capital expenditure	$707m	$584m	21%	$1.99bn	$1.48bn	35%
FCF	$2.33bn	$2.05bn	14%	$3.58bn	$3.66bn	(2)%
Cost of shares repurchased	$400m	$1.04bn	(61)%	$1.14bn	$4.04bn	(72)%
Dividends paid	$420m	$368m	14%	$1.15bn	$1.02bn	13%

Source: 10-Q Q3 FY2026, 10-Q Q2 FY2026, 10-Q Q3 FY2025, 10-Q Q2 FY2025; SEC filings via SEC-API.io

Nine month operating cash flow is stated after a $2.51bn increase in receivables.

Figure 2.1 Quarterly revenue, gross margin and operating margin, Q1 FY2024 to Q3 FY2026

Applied Materials financial ratios FY2021 to FY2025

Days sales outstanding were 77 on the quarterly basis the company reports and 91 on TTM revenue.

Table 2.2 Ratio analysis, FY2021 to FY2025 and TTM to Q3 FY2026

Ratio	FY2021	FY2022	FY2023	FY2024	FY2025	TTM to Q3 FY2026
Revenue	$23.06bn	$25.79bn	$26.52bn	$27.18bn	$28.37bn	$30.84bn
Revenue growth	34.1%	11.8%	2.8%	2.5%	4.4%	7.8%
Diluted EPS	$6.40	$7.44	$8.11	$8.61	$8.66	$11.60
Diluted EPS growth	63.3%	16.3%	9.0%	6.2%	0.6%	38.3%
Gross margin	47.3%	46.5%	46.7%	47.5%	48.7%	49.4%
Operating margin	29.9%	30.2%	28.9%	28.9%	29.2%	29.6%
Net margin	25.5%	25.3%	25.9%	26.4%	24.7%	30.1%
FCF margin	20.7%	17.9%	28.6%	27.6%	20.1%	18.2%
SBC (share based compensation) % of revenue	1.5%	1.6%	1.8%	2.1%	2.4%	2.3%
RD&E % of revenue	10.8%	10.7%	11.7%	11.9%	12.6%	12.9%
Capex % of revenue	2.9%	3.1%	4.2%	4.4%	8.0%	9.0%
Effective tax rate	13.0%	14.1%	11.1%	12.0%	24.5%	13.6%
ROE	51.6%	53.4%	48.0%	40.6%	35.5%	41.1%
ROIC (return on invested capital)	63.3%	57.5%	52.6%	53.8%	46.2%	48.9%
ROA	24.4%	24.8%	23.9%	22.0%	19.8%	23.8%
Current ratio	2.54x	2.16x	2.60x	2.51x	2.61x	2.42x
Debt / equity	0.45x	0.45x	0.34x	0.33x	0.32x	0.26x
Net cash (cash and investments less debt)	$2.06bn	($896m)	$3.59bn	$6.00bn	$6.35bn	$7.96bn
Interest cover	29.2x	34.2x	32.2x	31.9x	30.8x	33.0x
DSO (days sales outstanding)	78	86	71	70	67	91
Inventory days	129	157	148	139	148	154
Inventory turns	2.96x	2.69x	2.42x	2.56x	2.57x	2.52x
Asset turnover	0.96x	0.98x	0.92x	0.83x	0.80x	0.79x
FCF per share	$5.19	$5.26	$8.99	$8.98	$7.05	$7.04
Diluted shares	919m	877m	845m	834m	808m	799m

Source: 10-K FY2025, 10-K FY2023, 10-K FY2021, 10-Q Q3 FY2026, 10-Q Q3 FY2025, 8-K of 13 November 2025; SEC filings via SEC-API.io. Returns use average balances; ROIC is operating income after the period tax rate over debt plus equity less cash and investments; DSO and inventory days use period end balances over full period flows; FY2021 had 53 weeks

GAAP and non GAAP earnings, one off items and equity investment gains

Nine month FY2026 diluted EPS rose 47% to $9.22 on a GAAP basis and 20% to $8.73 on the company's non GAAP basis, which excludes $927m of equity investment gains and the $253m legal settlement. Equity investment gains are reported in interest and other income, below operating income. Non GAAP tax rate for Q3 FY2026 was 11.0%.

Table 2.3 GAAP and non GAAP operating income, net income and EPS, from 8-K Exhibit 99.1

Item	Q3 FY2026	Q3 FY2025	Nine months FY2026	Nine months FY2025	FY2025	FY2024
GAAP operating income	$3.08bn	$2.23bn	$7.43bn	$6.58bn	$8.29bn	$7.87bn
Acquisition items, deal costs, impairments	$21m	$12m	$45m	$38m	$92m	$57m
Legal settlement	$0m	$0m	$253m	$0m	$0m	$0m
Restructuring charges	$0m	$0m	$12m	$0m	$181m	$0m
Non GAAP operating income	$3.10bn	$2.25bn	$7.74bn	$6.62bn	$8.56bn	$7.92bn
Non GAAP operating margin	34.0%	30.7%	32.2%	30.7%	30.2%	29.2%
GAAP net income	$2.54bn	$1.78bn	$7.37bn	$5.10bn	$7.00bn	$7.18bn
Operating adjustments above	$21m	$12m	$310m	$38m	$273m	$57m
Strategic investment loss (gain)	$213m	($298m)	($927m)	($299m)	($821m)	($20m)
Asset sale gain and currency loss on investment purchase	$0m	$0m	$0m	($21m)	($21m)	$0m
Income tax items	$23m	$496m	$227m	$1.06bn	$1.18bn	($4m)
Non GAAP net income	$2.80bn	$1.99bn	$6.98bn	$5.88bn	$7.61bn	$7.21bn
GAAP diluted EPS	$3.17	$2.22	$9.22	$6.29	$8.66	$8.61
Non GAAP diluted EPS	$3.50	$2.48	$8.73	$7.25	$9.42	$8.65

Source: 8-K of 13 August 2026, 8-K of 13 November 2025; SEC filings via SEC-API.io

Table 2.4 One off and non operating items

Item	Period	Amount	Detail
Fiscal 2025 Restructuring Plan, estimate at approval	23 October 2025	$160m to $180m	About 4% of global workforce
Restructuring charge recognized	Q4 FY2025	$181m	Severance $154m, asset impairments $27m
Restructuring charge recognized	Nine months FY2026	$12m	Reserve fell from $165m to $12m at 26 July 2026
Legal settlement, export controls matter	Q1 FY2026	$253m	Paid in Q2 FY2026
Goodwill impairment	Q4 FY2025	$41m	Within general and administrative expense
Deferred tax asset remeasurement, Singapore	FY2025	$659m	Added 7.1 points to FY2025 tax rate
Valuation allowance, corporate alternative minimum tax (CAMT) credits	FY2025	$407m	Added 4.4 points to FY2025 tax rate
Gain on equity investments, net	FY2025	$821m	FY2024 $20m
Gain on equity investments, net	Nine months FY2026	$927m	Q3 FY2026 loss $213m

Source: 8-K of 23 October 2025, 10-K FY2025, 10-Q Q3 FY2026; SEC filings via SEC-API.io

Figure 2.2 Operating income, gain or loss on equity investments and effective tax rate by quarter

Balance sheet, capital expenditure, dividends and buybacks against FCF

Table 2.5 Working capital and balance sheet by quarter

Quarter end	Q3 FY2025	Q4 FY2025	Q1 FY2026	Q2 FY2026	Q3 FY2026
Accounts receivable	$5.77bn	$5.19bn	$4.98bn	$6.37bn	$7.69bn
DSO, quarter basis (days)	72	69	65	73	77
Inventories	$5.81bn	$5.92bn	$6.00bn	$6.34bn	$6.56bn
Inventory days, quarter basis	141	152	153	146	132
Contract liabilities	$2.47bn	$2.57bn	$2.47bn	$2.57bn	$3.27bn
Property, plant and equipment, net	$4.12bn	$4.61bn	$4.95bn	$5.26bn	$5.61bn
Cash and investments	$11.15bn	$12.90bn	$13.48bn	$13.38bn	$14.50bn
Total debt	$6.26bn	$6.56bn	$6.55bn	$6.46bn	$6.54bn
Net cash	$4.89bn	$6.35bn	$6.93bn	$6.93bn	$7.96bn
Stockholders equity	$19.50bn	$20.42bn	$21.72bn	$23.91bn	$25.63bn

Source: 10-Q Q3 FY2026, 10-Q Q2 FY2026, 10-Q Q1 FY2026, 10-K FY2025, 10-Q Q3 FY2025; SEC filings via SEC-API.io

Contract liabilities rose $705m in nine months. Inventories of $6.56bn include raw materials of $2.32bn and customer service spares of $1.87bn.

Table 2.6 Cash returned to shareholders against FCF

Capital return	FY2021	FY2022	FY2023	FY2024	FY2025	Nine months FY2026
Operating cash flow	$5.44bn	$5.40bn	$8.70bn	$8.68bn	$7.96bn	$5.57bn
Capital expenditure	$668m	$787m	$1.11bn	$1.19bn	$2.26bn	$1.99bn
FCF	$4.77bn	$4.61bn	$7.59bn	$7.49bn	$5.70bn	$3.58bn
Dividends paid	$838m	$873m	$975m	$1.19bn	$1.38bn	$1.15bn
Share repurchases, cash paid	$3.75bn	$6.10bn	$2.19bn	$3.82bn	$4.90bn	$1.18bn
Dividends plus repurchases	$4.59bn	$6.98bn	$3.16bn	$5.02bn	$6.28bn	$2.33bn
Returned as % of FCF	96%	151%	42%	67%	110%	65%
Dividends declared per share	$0.94	$1.02	$1.22	$1.52	$1.78	$1.52
Shares repurchased	28m	54m	18m	20m	30m	3m
Average repurchase price	$134.03	$113.84	$123.63	$190.27	$162.85	$343.16

Source: 10-K FY2025, 10-K FY2023, 10-Q Q3 FY2026; SEC filings via SEC-API.io. Repurchases in this table are cash paid ($440m in Q3 FY2026); average repurchase price is cost of shares over shares repurchased, on a nine month FY2026 cost of $1.14bn

Figure 2.3 FCF against dividends and share repurchases, FY2021 to TTM

Construction in progress reached $2.04bn at 26 July 2026. 10-Q Q3 FY2026 names the Equipment and Process Innovation and Commercialization (EPIC) Center among major infrastructure projects. Senior notes total $6.5bn in principal, of which $1.2bn at 3.300% falls due in 2027 (Figure 5.3).

3 MD&A & Management Commentary

Applied Materials guides Q4 FY2026 revenue to $10.25bn ± $500m and non GAAP diluted EPS to $4.02 ± $0.20, 50.7% and 85.3% above Q4 FY2025 at midpoint, after Q3 FY2026 revenue came in 1.8% above guidance midpoint (8-K of 13 August 2026). Nine months reported plus Q4 midpoint gives FY2026 revenue of $34.29bn, 20.9% above FY2025.

Applied Materials guidance against actual results

Revenue and non GAAP EPS reached or exceeded guidance midpoint in each of the last seven quarters; Q2 FY2026 EPS of $2.86 exceeded the $2.84 top of the range.

Figure 3.1 Guidance range against actual: revenue and non GAAP EPS, Q1 FY2025 to Q4 FY2026

Table 3.1 Quarterly guidance against actual, Q1 FY2025 to Q4 FY2026

Quarter	Guidance given	Revenue guidance	Revenue actual	Against midpoint	Non GAAP EPS guidance	Non GAAP EPS actual	Against midpoint	Non GAAP gross margin guidance	Non GAAP gross margin actual
Q4 FY2026	13 Aug 2026	$10.25bn ± $500m	n/a	n/a	$4.02 ± $0.20	n/a	n/a	50.4%	n/a
Q3 FY2026	14 May 2026	$8.95bn ± $500m	$9.12bn	1.8%	$3.36 ± $0.20	$3.50	$0.14	50.1%	50.4%
Q2 FY2026	12 Feb 2026	$7.65bn ± $500m	$7.91bn	3.4%	$2.64 ± $0.20	$2.86	$0.22	49.3%	50.0%
Q1 FY2026	13 Nov 2025	$6.85bn ± $500m	$7.01bn	2.4%	$2.18 ± $0.20	$2.38	$0.20	48.4%	49.1%
Q4 FY2025	14 Aug 2025	$6.70bn ± $500m	$6.80bn	1.5%	$2.11 ± $0.20	$2.17	$0.06	48.1%	48.1%
Q3 FY2025	15 May 2025	$7.20bn ± $500m	$7.30bn	1.4%	$2.35 ± $0.20	$2.48	$0.13	48.3%	48.9%
Q2 FY2025	13 Feb 2025	$7.10bn ± $400m	$7.10bn	0.0%	$2.30 ± $0.18	$2.39	$0.09	48.4%	49.2%
Q1 FY2025	14 Nov 2024	$7.15bn ± $400m	$7.17bn	0.2%	$2.29 ± $0.18	$2.38	$0.09	n/a	48.9%

Source: SEC filings via SEC-API.io, 8-K Exhibit 99.1 of 14 Nov 2024, 13 Feb 2025, 15 May 2025, 14 Aug 2025, 13 Nov 2025, 12 Feb 2026, 14 May 2026, 13 Aug 2026. Gross margin guidance for Q1 FY2026 to Q4 FY2026: earnings calls of the dates shown

Gross margin drivers

10-Q Q3 FY2026 attributes the 1.5 point rise in GAAP gross margin to "higher revenue, increases in average selling prices, and lower material and manufacturing costs" and product mix. Gross margin was 55.3% against 53.4% in Semiconductor Systems and 35.6% against 33.8% in AGS.

Figure 3.2 Non GAAP gross margin against guidance, Q1 FY2024 to Q4 FY2026

China was 28% of Q3 FY2026 revenue against 35% a year earlier and 45% in Q1 FY2024.

Figure 3.3 China revenue and share of total revenue, Q1 FY2024 to Q3 FY2026

Table 3.2 China and export control effects quantified by management

Date	Source	What management stated
13 Aug 2026	Earnings call	China was 26% of Semiconductor Systems plus AGS revenue in Q3 FY2026; China revenue is expected to increase in calendar 2026.
13 Aug 2026	8-K Item 2.02, Exhibit 99.1	China revenue $2.51bn, 28% of total, against $2.55bn and 35% in Q3 FY2025.
14 May 2026	Earnings call	China was 24% of Semiconductor Systems plus AGS revenue in Q2 FY2026 (27% of total revenue in Exhibit 99.1).
12 Feb 2026	Earnings call	China was 27% of Semiconductor Systems plus AGS revenue and 30% of total in Q1 FY2026; outlook for China described as flattish.
11 Feb 2026	8-K Item 8.01	Settlement with BIS: one payment of $252.5m for China customer shipments between November 2020 and July 2022; the Department of Justice and the SEC closed their inquiries with no enforcement action. 10-Q records a $253m legal settlement charge in the first nine months of FY2026.
13 Nov 2025	Earnings call	China fell to 28% of systems and service revenue in FY2025 and 25% in Q4 FY2025. Restrictions covered around 10% of the China wafer fabrication equipment market in FY2024 and well over 20% in FY2025. CFO stated that the BIS Affiliates Rule had been suspended, that the $110m would ship in Q1 FY2026 and that $600m remained the estimate for the rest of FY2026.
2 Oct 2025	8-K Item 7.01	The BIS Affiliates Rule of 29 Sep 2025 was estimated to reduce net revenue by about $110m in Q4 FY2025 and about $600m in FY2026.
14 Aug 2025	8-K Item 2.02, Exhibit 99.1	The CFO expected a Q4 FY2025 revenue decline from digestion of capacity in China and uneven demand from leading edge customers.
13 Feb 2025	8-K Item 2.02, Exhibit 99.1	Q2 FY2025 outlook stated as including the estimated impact of recently announced U.S. export regulations.

Source: SEC filings via SEC-API.io, 8-K of 13 Aug 2026, 11 Feb 2026, 2 Oct 2025, 14 Aug 2025, 13 Feb 2025; 10-Q for Q3 FY2026. Earnings call rows: company earnings calls of the dates shown

DRAM, leading edge foundry and logic, advanced packaging

Figure 3.4 Semiconductor Systems revenue mix by market, Q1 FY2025 to Q3 FY2026

Table 3.3 Trends and risks management names

Theme	What management stated	Source and date
Calendar 2026 and 2027 outlook	Semiconductor equipment growth expectation for calendar 2026 raised from over 20% (12 Feb 2026) to more than 30% (14 May 2026) and raised again on 13 Aug 2026 in qualitative terms; another growth year expected in 2027.	8-K Exhibit 99.1, 12 Feb, 14 May and 13 Aug 2026
DRAM and high bandwidth memory (HBM)	DRAM revenue including HBM packaging rose 52% year on year in Q3 FY2026; an increase is expected in the second half of calendar 2026. HBM revenue was about $1.5bn in FY2025 with a target of $3bn or more over the next few years.	Earnings calls, 13 Aug 2026 and 13 Nov 2025
Leading edge foundry and logic	10-Q: higher foundry and logic spending reflected demand for leading edge technologies, partly offset over nine months by lower demand for trailing edge logic systems. Call: leading edge foundry logic, DRAM and advanced packaging expected to be around 80% of wafer fabrication equipment growth in 2026 and 2027.	10-Q, 20 Aug 2026; earnings call, 13 Aug 2026
Advanced packaging	Packaging revenue growth expected for calendar 2026 raised from more than 50% to more than 70%; six new systems for DRAM and advanced packaging introduced.	Earnings calls, 14 May and 13 Aug 2026; 8-K Exhibit 99.1, 13 Aug 2026
Services	AGS revenue $1.78bn, up 22%, on long term service agreements and spares; growth above 20% expected for calendar 2026.	10-Q, 20 Aug 2026; earnings call, 13 Aug 2026
Capacity and supply	Additional manufacturing capacity investments planned to support demand through the end of the decade; $500m Tampines Campus in Singapore; capacity to double quarterly system output by 2028; capital expenditure $2.0bn in nine months.	8-K Exhibit 99.1 and earnings call, 13 Aug 2026; 10-Q
Operating expenses	RD&E $1.10bn against $901m on added headcount and depreciation; G&A $162m against $204m. Q4 FY2026 non GAAP operating expenses guided to about $1.58bn; Q1 FY2027 has 14 weeks.	10-Q, 20 Aug 2026; earnings call, 13 Aug 2026
Trade policy and tariffs	Export rules have limited sales to China for several years; tariff changes have caused substantial uncertainty and retaliatory measures. Tariffs partly offset cost reductions in FY2025.	10-Q, 20 Aug 2026; earnings call, 13 Nov 2025
Tax	Effective tax rate 12.7% against 30.6%; the global minimum tax in Singapore is expected to materially increase foreign taxes from Q1 FY2026.	10-Q, 20 Aug 2026
Receivables	DSO 77 days against 72, on down payment invoices and lower factoring.	10-Q, 20 Aug 2026

Source: SEC filings via SEC-API.io, 10-Q for Q3 FY2026; 8-K Exhibit 99.1 of 12 Feb 2026, 14 May 2026, 13 Aug 2026. Earnings call rows: company earnings calls of the dates shown

4 Sector & Competitor Analysis

Applied Materials TTM revenue grew 7.8% to $30.84bn, against an 11.7% median for seven equipment peers, at a 29.6% operating margin against 30.2%. Shares trade at 12.8x EV / sales and 43.7x P / E against medians of 14.0x and 55.4x (Market data, 9 October 2026).

Wafer fabrication equipment market size and forecast

SEMI, the equipment industry association, forecasts wafer fabrication equipment (WFE) sales of $143.9bn in 2026, up 23.1%. World Semiconductor Trade Statistics (WSTS) forecasts chip sales of $1.51tn, up 89.9%.

Figure 4.1 Wafer fab equipment sales by segment, 2025 to 2028, SEMI forecast

Table 4.1 Named research on equipment and semiconductor markets

Source	Date	Finding
SEMI mid year equipment forecast	14 Jul 2026	Total equipment sales $165.9bn in 2026, up 23.2%, and $229.5bn in 2028; WFE $116.9bn in 2025, $143.9bn in 2026, growth of 21.8% in 2027 and 14.1% in 2028
Same SEMI release	14 Jul 2026	2026 WFE by application: foundry and logic $78.0bn, up 18.9%; DRAM $38.8bn, up 39.0%; NAND $13.9bn, up 30.7%. Test equipment (back end, outside WFE) $15.3bn, up 31.0%
Same SEMI release	14 Jul 2026	China, Taiwan and Korea are the three largest destinations for equipment spending through 2028; China growth moderates in 2026
WSTS Spring 2026 forecast	2 Jun 2026	Semiconductor market $795.6bn in 2025, up 26.2%; $1.51tn in 2026, up 89.9%; $1.91tn in 2027, up 26.6%
Same WSTS release	2 Jun 2026	Memory $803.9bn in 2026, up 249.5%, and $1.06tn in 2027; logic $411.4bn in 2026, up 37.3%

Source: SEMI and WSTS releases linked in the table

Micron capital expenditure rose 93.7% to $30.7bn in its year to 3 September 2026; Intel spent $6.2bn in H1 2026, down 29.1%.

Table 4.2 Capital expenditure of five chip makers

Company	Latest fiscal year	Capex	Prior year	Change	Latest update
TSMC	FY2025	NT$1.27tn ($40.6bn)	NT$956bn	33.1%	H1 2026 $26.8bn, up 36%; 2026 guidance $60bn to $64bn, raised from $52bn to $56bn (16 Jul 2026)
Samsung Electronics	FY2025	KRW 52.7tn	n/a	n/a	Semiconductor division KRW 47.5tn of the FY2025 total (29 Jan 2026)
Intel	FY2025	$14.6bn	$23.9bn	(38.8)%	H1 2026 $6.2bn against $8.7bn, (29.1)%
Micron	FY to 3 Sep 2026	$30.7bn	$15.9bn	93.7%	10-K filed 9 Oct 2026
SK hynix	2026 plan	KRW 45tn or more (about $31bn)	n/a	about 50%	Plan reported 3 Aug 2026

Source: TSMC 20-F 0001628280-26-025362, Intel 10-K 0000050863-26-000011, Intel 10-Q 0000050863-26-000157, Micron 10-K 0000723125-26-000023, SEC filings via SEC-API.io; TSMC Q2 2026 results as reported by Focus Taiwan; Samsung FY 2025 CAPEX Results; SK hynix plan as reported by Bits&Chips. Capex is purchases of property, plant and equipment; TSMC US dollar figure is the 20-F convenience translation

China was 27.8% of Applied Materials revenue in 9M FY2026 and 30.1% in FY2025, against a 23.7% peer median. ASML China share was 19% in Q1 2026 (TrendForce, 22 Jun 2026).

Figure 4.2 China share of revenue by equipment maker, latest fiscal year

Table 4.3 China revenue and share of total revenue

Company	Fiscal year	China revenue	Share	Latest year to date	China revenue	Share
Applied Materials	FY2025	$8.53bn	30.1%	9M FY2026	$6.69bn	27.8%
Lam Research	FY to Jun 2026	$7.86bn	33.8%	n/a	n/a	n/a
KLA	FY to Jun 2026	$4.05bn	29.8%	n/a	n/a	n/a
ASML	FY2025	€9.52bn	29.1%	n/a	n/a	n/a
Teradyne	FY2025	$451m	14.1%	n/a	n/a	n/a
Onto Innovation	FY2025	$71m	7.0%	H1 2026	$32m	5.0%
Entegris	FY2025	$658m	20.6%	H1 2026	$316m	18.6%
MKS	FY2025	$931m	23.7%	H1 2026	$543m	23.3%

Source: Applied Materials 10-K 0001628280-25-056742, Applied Materials 10-Q 0001628280-26-058235, Lam Research 10-K 0000707549-26-000037, KLA 10-K 0000319201-26-000027, ASML 20-F 0001628280-26-011378, Teradyne 10-K 0001193125-26-059002, Onto Innovation 10-K 0001193125-26-066937, Onto Innovation 10-Q 0001193125-26-338401, Entegris 10-K 0001101302-26-000012, Entegris 10-Q 0001101302-26-000150, MKS 10-K 0001193125-26-066820, MKS 10-Q 0001193125-26-337821, SEC filings via SEC-API.io. Revenue by customer or ship to location as each company files it

Applied Materials versus Lam Research, KLA, ASML, Teradyne, Onto Innovation, Entegris and MKS

Peer set: SEC registrants selling equipment, subsystems or materials to chip makers, with TTM revenue above $1bn. ROIC of 48.9% ranks fourth of eight; FCF margin is 18.2% against a 21.1% median.

Figure 4.3 Revenue growth and operating margin, latest twelve months

Table 4.4 Like for like operating comparison, latest twelve months

Metric	Applied Materials	Lam Research	KLA	ASML	Teradyne	Onto Innovation	Entegris	MKS	Peer median
Period	TTM to 26 Jul 2026	FY to 28 Jun 2026	FY to 30 Jun 2026	TTM to 28 Jun 2026	TTM to 28 Jun 2026	TTM to 30 Jun 2026	TTM to 27 Jun 2026	TTM to 30 Jun 2026
Revenue	$30.84bn	$23.23bn	$13.58bn	€35.33bn	$4.46bn	$1.12bn	$3.33bn	$4.35bn
Revenue growth	7.8%	26.0%	11.7%	9.8%	57.9%	8.1%	3.2%	16.2%	11.7%
Gross margin	49.4%	50.5%	61.3%	52.7%	59.2%	50.4%	45.5%	47.0%	50.5%
Operating margin	29.6%	35.3%	41.7%	35.4%	30.2%	12.0%	16.0%	15.7%	30.2%
FCF margin	18.2%	21.1%	27.7%	28.4%	17.9%	22.5%	17.3%	10.5%	21.1%
SBC % of revenue	2.3%	1.7%	2.3%	0.6%	1.7%	2.8%	2.2%	1.3%	1.7%
R&D % of revenue	12.9%	10.2%	11.3%	13.7%	12.5%	12.7%	9.6%	7.2%	11.3%
Inventory days	154	136	253	257	81	249	142	164	164
ROIC	48.9%	77.6%	72.7%	65.1%	44.3%	8.8%	6.7%	9.8%	44.3%
Net cash (debt)	$7.96bn	$1.84bn	($985m)	€5.21bn	$517m	$410m	($3.10bn)	($3.33bn)
Debt / equity	0.26x	0.30x	0.93x	0.17x	0.00x	0.77x	0.83x	1.32x	0.77x
Backlog or RPO	Backlog $15.0bn, 26 Oct 2025	RPO $2.43bn, 28 Jun 2026	n/a	RPO €46.5bn, 31 Dec 2025	RPO $130m, 28 Jun 2026	n/a	n/a	n/a

Source: Applied Materials 10-Q 0001628280-26-058235, Applied Materials 10-K 0001628280-25-056742, Applied Materials 10-Q 0000006951-25-000037, Lam Research 10-K 0000707549-26-000037, KLA 10-K 0000319201-26-000027, ASML 6-K 0001628280-26-048235, ASML 6-K 0001628280-25-034992, ASML 20-F 0001628280-26-011378, Teradyne 10-K 0001193125-26-059002, Teradyne 10-Q 0001193125-26-327715, Teradyne 10-Q 0000950170-25-101248, Onto Innovation 10-K 0001193125-26-066937, Onto Innovation 10-Q 0001193125-26-338401, Onto Innovation 10-Q 0000950170-25-105161, Entegris 10-K 0001101302-26-000012, Entegris 10-Q 0001101302-26-000150, Entegris 10-Q 0001101302-25-000079, MKS 10-K 0001193125-26-066820, MKS 10-Q 0001193125-26-337821, MKS 10-Q 0001193125-25-175092, SEC filings via SEC-API.io. ROIC as defined under Table 2.2; inventory days use period end inventory over TTM cost of sales. KLA operating income is revenue less costs of revenues, R&D and selling, general and administrative expense. ASML debt at 28 June 2026 is debt at 31 December 2025 less H1 2026 repayments

Valuation multiples against peers

P / FCF is 71.6x against a 60.9x median, and market cap of $402.4bn compares with $399.0bn for Lam Research.

Figure 4.4 EV / sales and P / E by equipment maker, 9 October 2026

Table 4.5 Valuation at the close on 9 October 2026

Company	Share price	Shares outstanding	Market cap	EV	EV / sales	P / E	P / FCF
Applied Materials	$507.03	794m	$402.4bn	$394.4bn	12.8x	43.7x	71.6x
Lam Research	$318.84	1.25bn	$399.0bn	$397.1bn	17.1x	55.4x	81.6x
KLA	$195.57	1.31bn	$255.5bn	$256.5bn	18.9x	53.4x	67.8x
ASML	$1,780.34	385m	$686.2bn	$680.3bn	17.2x	57.6x	60.9x
Teradyne	$402.68	156m	$63.0bn	$62.4bn	14.0x	55.3x	78.7x
Onto Innovation	$294.53	49m	$14.5bn	$14.0bn	12.5x	110.3x	57.2x
Entegris	$159.28	153m	$24.3bn	$27.4bn	8.3x	79.6x	42.3x
MKS	$263.93	68m	$17.8bn	$21.2bn	4.9x	42.0x	39.2x
Peer median					14.0x	55.4x	60.9x

Source: Market data, 9 October 2026; share counts from the cover of each latest 10-Q, 10-K or 20-F and TTM figures from the filings under Table 4.4, SEC filings via SEC-API.io. P / E is share price over TTM diluted GAAP EPS; EV is market cap less net cash; ASML euro figures converted at $1.1227 per euro. Entegris and Onto Innovation closes are single source figures; an Entegris close of $165.79 from a second source gives P / E of 82.9x, with all three medians unchanged

Table 4.6 Equipment makers outside SEC registration, public figures

Company	Period	Revenue	Growth	Operating margin	Outlook
Tokyo Electron	Year to 31 Mar 2026	¥2.44tn	0.5%	25.6%	H1 of year to March 2027: sales ¥1.57tn, up 33.1%
ASM International	Q2 2026	€1.00bn	20%	32.2%	Q3 2026 revenue €1.1bn ± 5% at constant currency

Source: Japan Credit Rating Agency sector report, 26 May 2026; ASM International Q2 2026 results, 28 Jul 2026

5 Material Events & Contracts

Applied Materials filed 8 current reports (Form 8-K) between 10 October 2025 and 10 October 2026; the two largest by amount are the $252.5m export control settlement of 11 February 2026 and the workforce reduction of 23 October 2025, which produced $193m of charges.

Figure 5.1 Applied Materials dated events, October 2025 to October 2026

Applied Materials 8-K filings last twelve months

Table 5.1 Applied Materials 8-K filings, 10 October 2025 to 10 October 2026, newest first

Filed	Items	Event summary	Accession number
27 Aug 2026	5.02, 7.01, 9.01	Board elected Akash Palkhiwala, CFO and Chief Operating Officer of Qualcomm Incorporated, as director and Audit Committee member, effective 27 August 2026; standard non employee director pay applies: $100,000 annual retainer, $25,000 Audit Committee retainer and restricted stock units (RSU) valued at $250,000, each prorated, with RSU vesting on 1 March 2027.	0001628280-26-059257
13 Aug 2026	2.02, 9.01	Q3 FY2026 revenue $9.12bn, up 25% year on year; GAAP diluted EPS $3.17 and non GAAP $3.50; $420m of dividends; Q4 FY2026 outlook of $10.25bn revenue ± $500m and non GAAP diluted EPS of $4.02 ± $0.20.	0001628280-26-056699
14 May 2026	2.02, 9.01	Q2 FY2026 revenue $7.91bn, up 11% year on year; GAAP diluted EPS $3.51 and non GAAP $2.86; quarterly dividend raised 15% from $0.46 to $0.53 per share; agreement with ASMPT Limited to acquire its NEXX business, a supplier of large area advanced packaging deposition equipment; Q3 FY2026 outlook of $8.95bn revenue.	0001628280-26-035071
13 Mar 2026	5.07	Annual meeting of 12 March 2026: 10 directors elected for one year terms with 89.6% (Kevin P. March) to 99.7% (Rani Borkar) of votes for and against; advisory pay vote approved and KPMG LLP ratified as auditor (Table 6.4).	0001193125-26-106339
12 Feb 2026	2.02, 9.01	Q1 FY2026 revenue $7.01bn, down 2% year on year; GAAP diluted EPS $2.54 after a $253m legal settlement charge and $12m of restructuring charges; non GAAP diluted EPS $2.38; Q2 FY2026 outlook of $7.65bn revenue.	0001628280-26-007661
11 Feb 2026	7.01, 8.01, 9.01	Settlement agreement with BIS of 11 February 2026 resolves its inquiry relating to certain China customer shipments, dated November 2020 to July 2022 in Exhibit 99.1, and export controls compliance; one payment of $252.5m; internal audits of the export controls compliance program, training and reporting mechanisms agreed; 8-K states that Department of Justice and SEC closed their inquiries and that neither agency took enforcement action.	0001628280-26-007444
13 Nov 2025	2.02, 9.01	Q4 FY2025 revenue $6.80bn, down 3% year on year, and FY2025 revenue $28.37bn, up 4%; Q4 GAAP diluted EPS $2.38 after $181m of restructuring charges; non GAAP diluted EPS $2.17; Q1 FY2026 outlook of $6.85bn revenue.	0001628280-25-051998
23 Oct 2025	2.05, 7.01, 9.01	Workforce reduction plan approved on 23 October 2025 covering about 4% of the global workforce, across all levels and groups; charges estimated at $160m to $180m, mostly severance paid in cash; most charges expected in Q4 FY2025 and completion in Q1 FY2026.	0001628280-25-046107

Source: Applied Materials Forms 8-K with Exhibit 99.1, SEC filings via SEC-API.io

Form 8-K reports under Items 1.01, 2.01, 2.03 and 5.03 in the window: 0. Form 8-K/A filings in the window: 0.

Applied Materials export control settlement and restructuring charges

BIS payment was recorded as a $253m charge in Q1 FY2026 and paid in full in Q2 FY2026. Restructuring charges reached $193m against the $160m to $180m estimate, and $12m of reserve remained at 26 July 2026.

Figure 5.2 Workforce reduction plan: estimate, charges and reserve, $m

Table 5.2 Events disclosed in periodic reports and results releases, newest first

Event date	Where disclosed	Event summary
26 Jul 2026	8-K of 13 Aug 2026, Exhibit 99.1	Regular full time employees 38,900 at the end of Q3 FY2026 against 36,100 at the end of Q3 FY2025.
26 Jul 2026	10-Q Q3 FY2026, Note 13	BIS settlement agreement includes a denial order that is suspended and will be waived three years after the date of the order, provided the audit requirements are completed on time; standby letters of credit and guarantee instruments carry a maximum exposure of about $282m, and parent guarantees to banks total about $293m.
26 Jul 2026	10-Q Q3 FY2026, Note 6 and MD&A	Government incentives: capital expenditure related incentives reduced gross property, plant and equipment by $1.8bn ($1.2bn at 26 October 2025); investment tax credits recorded $1.2bn ($781m), of which $1.2bn is expected to be refunded in cash; the CHIPS Act credit rate rises from 25% to 35% for qualifying property placed in service after 31 December 2025.
26 Jul 2026	10-Q Q3 FY2026, Notes 3 and 4	Equity investments $2.42bn: publicly traded securities $1.98bn ($2.11bn at 26 October 2025) and privately held companies $442m ($370m); net gain on equity investments $927m in the first nine months of FY2026 and net loss of $213m in Q3 FY2026.
26 Jul 2026	10-Q Q3 FY2026, cash flow statement	Cash paid for acquisitions, net of cash acquired: $262m in the first nine months of FY2026, of which $175m in Q2 and $87m in Q3 ($29m in the first nine months of FY2025).
26 Jul 2026	10-Q Q3 FY2026, Part II Item 5	Rule 10b5-1 trading arrangements adopted or terminated by directors and officers in Q3 FY2026: 0; the same count applies to Q1 and Q2 FY2026 and Q4 FY2025.
Q2 FY2026	10-Q Q2 FY2026, Note 13	$253m paid to BIS in full during the quarter.
25 Jan 2026	10-Q Q1 FY2026, Note 13	$253m charge recorded as legal settlement in Q1 FY2026, with a matching accrued liability; Department of Justice and SEC informed the company during the quarter that their inquiries were closed.
12 Dec 2025	10-K FY2025, Note 14	Subpoenas received since 2022 from the Department of Justice, BIS and the SEC on certain China customer shipments and export control compliance; further Department of Justice subpoenas on certain federal award applications and information submitted to the federal government.
26 Oct 2025	10-K FY2025, Note 10 and Item 1	Q4 FY2025 restructuring charges $181m: $154m of severance and other employee charges and $27m of asset impairments; 36,500 regular full time employees in 25 countries at 26 October 2025.
26 Oct 2025	10-K FY2025, Item 7	Purchase obligations for goods and services $10.6bn, of which $7.3bn is payable within 12 months; operating lease obligations $565m, of which $104m within 12 months; future interest on senior notes $2.9bn.

Source: filings linked in each row, SEC filings via SEC-API.io

Applied Materials material contracts, senior notes and credit agreements

Committed bank lines total $4.0bn across two revolving credit agreements, both undrawn at 26 July 2026, against $6.5bn of senior unsecured notes and $100m of commercial paper. Termination date of 364 day agreement is 24 September 2026. Form 8-K filings between 28 August 2026 and 10 October 2026: 0.

Figure 5.3 Senior unsecured notes by maturity year at 26 July 2026, $bn

Table 5.3 Material contracts register

Contract and date	Counterparty	What it does	Terms	Filed in
Five year credit agreement, 24 February 2025	Bank of America, N.A. as administrative agent, and a lender group	Unsecured revolving credit facility of $2.0bn for general corporate purposes; it replaced a $1.5bn agreement dated 21 February 2020.	Matures 24 February 2030; may rise to $2.5bn with lender commitments; letter of credit sublimit $400m; interest at Term SOFR (secured overnight financing rate plus 0.10%) plus a margin of 0.50% to 1.00% set by public debt ratings, or at a base rate; commitment fee 0.04% to 0.10% a year on unused commitments; covenant: adjusted EBITDA (earnings before interest, tax, depreciation and amortization) for four quarters to net interest expense of at least 3.00 to 1.00; an event of default lets lenders end commitments and demand repayment. Drawn at 26 July 2026: $0.	8-K of 27 Feb 2025, Exhibit 10.1; 10-K exhibit 10.20
364 day credit agreement, 25 September 2025	Bank of America, N.A. as administrative agent, and a lender group	Unsecured revolving credit facility of $2.0bn for general corporate purposes.	Termination date 24 September 2026; may rise to $3.0bn with lender commitments; margin over Term SOFR 0.50% to 1.00% and commitment fee 0.04% to 0.10% by rating; loans outstanding at termination may convert to term loans due one year later for a fee of 0.75% of the converted principal; same 3.00 to 1.00 interest coverage covenant. Drawn at 26 July 2026: $0.	8-K of 26 Sep 2025, Exhibit 10.1; 10-K exhibit 10.21
Second supplemental indenture, 18 September 2025	The Bank of New York Mellon Trust Company, N.A. as trustee; underwriters led by Citigroup, Mizuho and MUFG	Issue of $550m 4.000% senior notes due 2031 and $450m 4.600% senior notes due 2036; part of the proceeds repaid $700m of 3.900% notes on 1 October 2025.	Interest paid on 15 January and 15 July; redeemable at any time at a make whole price of Treasury rate plus 10 basis points before the par call dates of 15 December 2030 and 15 October 2035, and at par afterwards; holders may require repurchase at 101% of principal on a change of control with a rating downgrade below investment grade; covenants limit liens on principal property, sale and leaseback transactions and mergers.	8-K of 19 Sep 2025, Exhibit 4.1; 10-K exhibit 4.9
Commercial paper program	Note holders	Short term unsecured notes for general corporate purposes.	Limit $4.0bn, raised from $2.0bn in Q4 FY2025; $100m outstanding at 26 July 2026 at a weighted average rate of 3.78% and maturities of 69 days; $0 outstanding at 26 April 2026.	10-Q Q3 FY2026, Note 9; 10-K FY2025, Note 9
Share repurchase program, approved March 2025	Board of Directors authorization	Authorizes $10.0bn of common stock repurchases, adding to the $10.0bn program approved in March 2023.	$12.8bn remained available at 26 July 2026; the 1% federal excise tax on repurchases is recorded in equity and reduces the amount available.	10-Q Q3 FY2026, Note 11 and Part II Item 2
BIS settlement agreement, 11 February 2026	US Commerce Department Bureau of Industry and Security	Resolves the export control inquiry on certain China customer shipments.	One payment of $252.5m, paid in Q2 FY2026; internal audits of the export control compliance program, plus training and reporting mechanisms; a suspended denial order is waived three years after the order date if audit requirements are met on time.	8-K of 11 Feb 2026; 10-Q Q3 FY2026, Note 13
Offer letter, signed 14 August 2013	Gary E. Dickerson, President and Chief Executive Officer	Sets employment terms from 1 September 2013; employment is at will.	Base salary $980,000 and target bonus of 175% of salary at signing; option over 1.0m shares vesting over four years; on termination by the company other than for cause, death or disability, a lump sum of 275% of base salary, conditional on a release of claims effective within 60 days.	10-Q of 22 Aug 2013, Exhibit 10.2; 10-K exhibit 10.10
Offer letter, 26 February 2022	Brice Hill, Senior Vice President and Chief Financial Officer	Sets employment terms from 7 March 2022.	Base salary $675,000 and target bonus of 135% of salary at signing; sign on and retention bonus of $2.0m with a 24 month repayment condition; new hire RSU award of $8.5m vesting over three years.	10-Q of 26 May 2022, Exhibit 10.1; 10-K exhibit 10.19
Forms of performance share unit and RSU agreements for executive staff, Q1 FY2026	Members of senior management	Set the terms of FY2026 long term equity awards under the Employee Stock Incentive Plan.	Performance awards vest after three years at 0% to 200% of target, weighted 50% on non GAAP economic profit and 50% on total shareholder return against the S&P 500 companies; vesting requires continued employment, with partial vesting on a qualifying retirement.	10-Q Q1 FY2026, Exhibit 10.1 and Note 11
First amendment to the 2016 Deferred Compensation Plan, 6 January 2026	Plan participants	Amends the restated plan with effect from 1 January 2026.	A divorce or annulment order revokes a former spouse's beneficiary designation; plan administration moves to the Vice President, Total Rewards.	10-Q Q1 FY2026, Exhibit 10.3
Form of director indemnification agreement	Directors and certain officers, including the director elected on 27 August 2026	Company indemnifies directors to the fullest extent permitted by law and advances expenses in proceedings, subject to conditions.	Standard form; entered into on election.	8-K of 27 Aug 2026; 10-K exhibit 10.1

Source: filings and exhibits linked in each row; exhibit numbers from the 10-K FY2025 exhibit index, SEC filings via SEC-API.io

Cost of shares repurchased was $400m in Q3 FY2026 at an average of $455.43 per share and $1.14bn in 9M FY2026 at $343.16. Board raised the quarterly dividend 15% to $0.53 per share in March 2026.

Figure 5.4 Share repurchases, dividends paid and dividend declared per share by quarter

Table 5.4 Cost of shares repurchased, dividends and repurchase authority by quarter

Quarter	Repurchase cost including excise tax	Average price per share	Dividends paid	Dividend declared per share	Authority remaining at quarter end
Q3 FY2026	$400m	$455.43	$420m	$0.53	$12.84bn
Q2 FY2026	$400m	$352.63	$365m	$0.53	$13.24bn
Q1 FY2026	$337m	$259.17	$365m	$0.46	$13.64bn
Q4 FY2025	$856m	$172.46	$365m	$0.46	$13.98bn
Q3 FY2025	$1.04bn	$164.47	$368m	$0.46	n/a
Q2 FY2025	$1.69bn	$148.88	$325m	$0.46	n/a
Q1 FY2025	$1.31bn	n/a	$326m	$0.40	n/a

Source: 10-Q Q3 FY2026, 10-Q Q2 FY2026, 10-Q Q1 FY2026, 10-K FY2025, 10-Q Q1 FY2025, results releases in 8-K of 13 Aug 2026, 8-K of 14 May 2026, 8-K of 12 Feb 2026 and 8-K of 13 Nov 2025, SEC filings via SEC-API.io

6 Ownership, Voting Power & Annual Meeting

Applied Materials has one class of common stock with one vote per share, and the ten largest positions identified in Form 13F filings (quarterly institutional holdings reports) at 30 June 2026 total 301.3m shares, 38.0% of 793.6m shares outstanding (10-Q Q3 FY2026). Directors and executive officers as a group hold 2.4m shares, below 1%.

Applied Materials major shareholders and voting power

Table 6.1 Beneficial ownership at 31 December 2025, common stock, one vote per share

Holder	Role	Shares	% of shares and votes, as filed
BlackRock, Inc.	5% holder; Schedule 13G/A filed 2 Feb 2024	76.8m	9.69%
The Vanguard Group	5% holder; Schedule 13G/A filed 13 Feb 2024	74.1m	9.35%
Gary E. Dickerson	President and CEO, director	1.4m	below 1%
Prabu G. Raja	President, Semiconductor Products Group	406,740	below 1%
Omkaram Nalamasu	Senior Vice President, Chief Technology Officer	122,402	below 1%
Aart J. de Geus	Director	111,042	below 1%
Timothy M. Deane	Senior Vice President, Applied Global Services	80,037	below 1%
Brice Hill	Senior Vice President, CFO	58,062	below 1%
Thomas J. Iannotti	Director	50,568	below 1%
Xun (Eric) Chen	Director	45,229	below 1%
Judy Bruner	Director	34,141	below 1%
Scott A. McGregor	Director	23,836	below 1%
Alexander A. Karsner	Director	16,108	below 1%
Rani Borkar	Director	9,199	below 1%
Kevin P. March	Director	5,939	below 1%
James R. Anderson	Director	806	below 1%
Directors and executive officers as a group	15 persons	2.4m	below 1%

Source: DEF 14A, accession 0001193125-26-027307, SEC filings via SEC-API.io

Proxy table takes both 5% holdings from Schedule 13G amendments filed in February 2024 and divides them by 792.7m shares outstanding at 31 December 2025.

Applied Materials 13F institutional holders and Schedule 13G filings

Figure 6.1 13F filings reporting Applied Materials and shares held, quarter ends Q3 2025 to Q2 2026

13F filings reporting the stock rose 46.8% from 2,451 to 3,599 over three quarters. Eight holder groups in Figure 6.1 are the Vanguard entities combined, State Street, Invesco, Capital Research Global Investors, Geode, JPMorgan, Morgan Stanley and T. Rowe Price.

Figure 6.2 Ten largest 13F positions identified at 30 June 2026, shares and % of shares outstanding

Table 6.2 Ten largest 13F positions identified at 30 June 2026 and the prior three quarter ends

Holder	30 Sep 2025	31 Dec 2025	31 Mar 2026	30 Jun 2026	% of shares outstanding
BlackRock, Inc.	74.4m	75.3m	n/a	80.2m	10.1%
Vanguard Capital Management	n/a	n/a	51.6m	51.8m	6.5%
State Street Corp	38.2m	37.9m	37.5m	38.2m	4.8%
Invesco Ltd.	8.0m	25.9m	26.4m	28.3m	3.6%
Capital Research Global Investors	14.9m	32.7m	29.5m	22.2m	2.8%
Geode Capital Management	20.9m	18.6m	21.9m	22.0m	2.8%
Vanguard Portfolio Management	n/a	n/a	17.3m	18.6m	2.3%
JPMorgan Chase & Co	6.0m	3.5m	4.9m	13.9m	1.7%
Morgan Stanley	11.1m	11.5m	11.8m	13.5m	1.7%
T. Rowe Price Associates	4.5m	5.4m	6.1m	12.6m	1.6%
The Vanguard Group, filer until Q4 2025	76.4m	76.8m	n/a	n/a	n/a

Source: 13F-HR and 13F-HR/A filings linked per holder; % on 793.6m shares from the 10-Q cover; SEC filings via SEC-API.io

Invesco figures for 31 December 2025 and 31 March 2026 include 17.9m and 16.7m shares added through 13F-HR/A filings of 15 July 2026 marked as new holdings (Q4 2025, Q1 2026).

Table 6.3 Schedule 13G filings on Applied Materials, 1 January 2024 to 10 October 2026; Schedule 13D filings: 0

Filed	Filer	Form	Event date	Shares	% of class	Sole voting power	Accession
29 Apr 2026	Vanguard Capital Management	SC 13G	31 Mar 2026	59.5m	7.49%	7.9m	0002100119-26-000140
26 Mar 2026	The Vanguard Group	SC 13G/A, amendment 11	13 Mar 2026	0	0%	0	0000102909-26-000678
13 Feb 2024	The Vanguard Group	SC 13G/A	29 Dec 2023	74.1m	8.92%	0	0001104659-24-020310
2 Feb 2024	BlackRock, Inc.	SC 13G/A	31 Dec 2023	76.8m	9.2%	69.1m	0001086364-24-006194

Source: Schedule 13G filings linked by accession number, SEC filings via SEC-API.io

Applied Materials annual meeting voting results 2026

Table 6.4 Annual meeting voting results, 12 March 2026

Item	Matter	Board position	For	Against	Abstain	Broker non votes	% for
1	Elect James R. Anderson	FOR	590.2m	8.3m	666,796	85.1m	98.6%
1	Elect Rani Borkar	FOR	597.0m	1.5m	626,246	85.1m	99.7%
1	Elect Judy Bruner	FOR	577.1m	21.1m	997,579	85.1m	96.5%
1	Elect Xun (Eric) Chen	FOR	587.8m	10.8m	652,724	85.1m	98.2%
1	Elect Aart J. de Geus	FOR	585.5m	13.0m	647,643	85.1m	97.8%
1	Elect Gary E. Dickerson	FOR	590.1m	8.4m	651,097	85.1m	98.6%
1	Elect Thomas J. Iannotti	FOR	555.4m	43.2m	637,190	85.1m	92.8%
1	Elect Alexander A. Karsner	FOR	561.5m	37.0m	647,941	85.1m	93.8%
1	Elect Kevin P. March	FOR	536.1m	62.1m	984,238	85.1m	89.6%
1	Elect Scott A. McGregor	FOR	591.6m	6.9m	650,328	85.1m	98.8%
2	Advisory vote on fiscal 2025 executive pay	FOR	552.5m	41.5m	5.2m	85.1m	92.2%
3	Ratify KPMG LLP as auditor for fiscal 2026	FOR	636.4m	46.8m	1.0m	0	93.0%

Source: 8-K Item 5.07, accession 0001193125-26-106339; board positions from the DEF 14A; SEC filings via SEC-API.io. % for is votes for over votes for and against for directors, and over votes for, against and abstain for items 2 and 3

Figure 6.3 Votes for as % of votes for and against, director elections 2026 and 2025

Shares represented were 684.3m, 86.2% of 793.7m entitled to vote. Kevin P. March received 89.6% for, and 97.0% in 2025. Shareholder proposals: 0 in 2026 and 0 in 2025.

Applied Materials CEO pay and pay ratio

Table 6.5 Executive compensation headline figures by fiscal year

Measure	FY2025	FY2024	FY2023
CEO total compensation, Gary E. Dickerson	$29.6m	$27.8m	$26.9m
of which stock awards	$26.9m	$24.9m	$24.0m
Median employee total compensation	$89,744	n/a	n/a
CEO pay ratio	330 to 1	n/a	n/a
Say on pay support at the following annual meeting	92.2%	91.4%	n/a

Source: DEF 14A; say on pay from 8-K Item 5.07 filings of 13 March 2026 and 10 March 2025; SEC filings via SEC-API.io

7 Insider Activity

Applied Materials insiders sold 9,225 shares for $4.45m in the open market after the Q3 FY2026 quarter end on 26 July 2026 and bought 0; over the twelve months to 10 October 2026 sales total 307,925 shares for $180.64m, 0.04% of 793.6m shares outstanding. Buy to sell ratio on open market transactions (Form 4 codes P and S) is 0.00. Filed in the period: 55 Forms 4, 1 Form 3 and 0 Forms 5 by 17 reporting persons; Forms 4 with the Rule 10b5-1 box checked: 0.

Insider buying and selling by month

Figure 7.1 Insider open market sales and purchases by month, Oct 2025 to Oct 2026

June 2026 carries 276,692 shares and $169.03m, 94% of twelve month sale value, from 6 insiders.

Table 7.1 Insider transactions by month, shares

Month	Sold (S)	Sale value	Sellers	Awards (A)	Withheld for tax (F)	Gifted (G)
Oct 2025	0	0	0	149,914	147,344	0
Nov 2025	8,000	$1.89m	1	0	0	45
Dec 2025	609	$0.16m	1	363,159	244,555	265
Jan 2026	0	0	0	0	2,215	0
Feb 2026	12,003	$4.48m	3	0	0	0
Mar 2026	0	0	0	6,669	0	0
Apr 2026	0	0	0	0	125	0
May 2026	1,396	$0.62m	2	0	0	17,855
Jun 2026	276,692	$169.03m	6	0	0	19,295
Jul 2026	0	0	0	0	125	0
Aug 2026	7,500	$3.59m	1	279	0	0
Sep 2026	1,000	$0.47m	1	0	0	0
Oct 2026	725	$0.39m	1	0	2,913	0
Total	307,925	$180.64m	9	520,021	397,277	37,460

Source: Forms 3 and 4 filed 10 Oct 2025 to 10 Oct 2026, SEC filings via SEC-API.io. Awards are RSUs and performance share units (PSUs); the period contains 0 option exercises (code M)

Insider sales by person

President and CEO Gary Dickerson sold 161,321 shares for $104.79m in June 2026, 58% of twelve month sale value, and reports 1,599,843 shares and units held afterwards.

Figure 7.2 Insider sale filings by date, average price and value

Table 7.2 Open market sales (code S) by Form 4 filing, latest first

Sale date	Insider	Role on Form 4	Code	Shares sold	Average price	Value	Held after sale	Form 4
2 Oct 2026	Adam Sanders	Corporate Controller, Chief Accounting Officer	S	725	$544.56	$0.39m	3,181	0001628280-26-065097
8 Sep 2026	Judy Bruner	Director	S	1,000	$465.00	$0.47m	25,544 (trust)	0001628280-26-061408
25 Aug 2026	Brice Hill	SVP, Chief Financial Officer	S	7,500	$479.25	$3.59m	128,613	0001628280-26-059277
29 to 30 Jun 2026	Gary Dickerson	President and CEO, director	S	78,321	$709.26	$55.55m	1,599,843	0001628280-26-046609
18 Jun 2026	Prabu Raja	President, Semiconductor Products Group	S	10,000	$633.53	$6.34m	346,642 (trust)	0001628280-26-044741
16 Jun 2026	Thomas Iannotti	Director	S	9,250	$599.77	$5.55m	40,559	0001628280-26-044050
15 to 16 Jun 2026	Omkaram Nalamasu	SVP, Chief Technology Officer	S	35,000	$592.98	$20.75m	146,916	0001628280-26-044048
15 to 16 Jun 2026	Gary Dickerson	President and CEO, director	S	83,000	$593.24	$49.24m	1,695,164	0001628280-26-044046
15 Jun 2026	Timothy Deane	SVP, Applied Global Services	S	8,621	$590.76	$5.09m	134,631	0001628280-26-044039
4 Jun 2026	Prabu Raja	President, Semiconductor Products Group	S	50,000	$505.28	$25.26m	356,642 (trust)	0001628280-26-041314
3 Jun 2026	Brice Hill	SVP, Chief Financial Officer	S	2,500	$498.86	$1.25m	136,113	0001628280-26-041310
26 May 2026	Judy Bruner	Director	S	1,128	$450.00	$0.51m	26,544 (trust)	0001628280-26-038923
22 May 2026	Adam Sanders	Corporate Controller, Chief Accounting Officer	S	268	$434.22	$0.12m	4,280	0001628280-26-038261
25 Feb 2026	Judy Bruner	Director	S	2,500	$391.71	$0.98m	26,089 (trust)	0001628280-26-012916
24 Feb 2026	Adam Sanders	Corporate Controller, Chief Accounting Officer	S	534	$379.16	$0.20m	4,625	0001628280-26-011307
23 Feb 2026	Judy Bruner	Director	S	3,969	$377.02	$1.50m	28,589 (trust)	0001628280-26-011308
17 Feb 2026	Brice Hill	SVP, Chief Financial Officer	S	5,000	$361.21	$1.81m	138,565	0001628280-26-009327
1 Dec 2025	Adam Sanders	Corporate Controller, Chief Accounting Officer	S	609	$255.53	$0.16m	4,413	0001628280-25-055159
25 Nov 2025	Teri Little	SVP, Chief Legal Officer	S	4,000	$238.24	$0.95m	84,351	0001628280-25-054205
19 Nov 2025	Teri Little	SVP, Chief Legal Officer	S	4,000	$234.08	$0.94m	88,351	0001628280-25-053663
Total				307,925	$586.63	$180.64m

Source: Forms 4 linked in the table, SEC filings via SEC-API.io. Held after sale is the holding line sold from, as reported, including unvested RSUs and PSUs at target; Judy Bruner and Prabu Raja sold from family trusts

Figure 7.3 Shares sold in 12 months against shares held after latest Form 4, by seller

Table 7.3 Sellers: twelve month sales, plan transactions and latest reported holding

Insider	Role	Sale filings	Shares sold	Sale value	Awards (A)	Withheld for tax (F)	Gifted (G)	Held directly	Held indirectly	Latest Form 4
Gary Dickerson	President and CEO, director	2	161,321	$104.79m	307,365	245,357	17,000	1,599,843	0	0001628280-26-046609
Prabu Raja	President, Semiconductor Products Group	2	60,000	$31.60m	83,646	66,236	95	100,663	346,642	0001628280-26-044741
Omkaram Nalamasu	SVP, Chief Technology Officer	1	35,000	$20.75m	28,802	20,307	15	146,916	0	0001628280-26-044048
Brice Hill	SVP, Chief Financial Officer	3	15,000	$6.65m	41,102	28,062	0	128,613	0	0001628280-26-059277
Thomas Iannotti	Director	1	9,250	$5.55m	741	0	950	39,809	1,500	0001628280-26-044050
Timothy Deane	SVP, Applied Global Services	1	8,621	$5.09m	27,831	21,000	1,545	130,462	0	0001628280-26-065093
Judy Bruner	Director	4	8,597	$3.45m	741	0	0	741	25,544	0001628280-26-061408
Teri Little	SVP, Chief Legal Officer	2	8,000	$1.89m	23,070	15,472	0	91,949	0	0001628280-25-058747
Adam Sanders	Corporate Controller, Chief Accounting Officer	4	2,136	$0.87m	1,070	843	0	3,181	0	0001628280-26-065097
Total		20	307,925	$180.64m	514,368	397,277	19,605

Source: Forms 4 filed 10 Oct 2025 to 10 Oct 2026, SEC filings via SEC-API.io. Holdings are those on each insider's latest Form 4 in the period

Table 7.4 Ten largest single sale transactions by value

Date	Insider	Shares	Price	Value	Held after	Form 4
29 Jun 2026	Gary Dickerson	50,332	$700.21	$35.24m	1,627,832	0001628280-26-046609
30 Jun 2026	Gary Dickerson	19,970	$735.22	$14.68m	1,599,873	0001628280-26-046609
4 Jun 2026	Prabu Raja	25,309	$504.66	$12.77m	381,333	0001628280-26-041314
16 Jun 2026	Gary Dickerson	15,755	$590.52	$9.30m	1,751,136	0001628280-26-044046
16 Jun 2026	Gary Dickerson	13,505	$596.82	$8.06m	1,702,884	0001628280-26-044046
4 Jun 2026	Prabu Raja	15,083	$505.51	$7.62m	366,250	0001628280-26-041314
15 Jun 2026	Gary Dickerson	11,273	$590.03	$6.65m	1,766,891	0001628280-26-044046
18 Jun 2026	Prabu Raja	10,000	$633.53	$6.34m	346,642	0001628280-26-044741
16 Jun 2026	Gary Dickerson	10,411	$592.18	$6.17m	1,731,539	0001628280-26-044046
29 Jun 2026	Gary Dickerson	7,989	$701.33	$5.60m	1,619,843	0001628280-26-046609

Source: Forms 4 linked in the table, SEC filings via SEC-API.io. Prices as reported; Forms 4 give a weighted average where a line was executed at several prices

Stock awards, tax withholding and gifts

Shares withheld for tax on vesting total 397,277 ($98.65m), 1.29 times the shares sold in the open market.

Figure 7.4 Insider transactions by Form 4 transaction code, shares or units

Table 7.5 Insider transactions by type

Type	Code	Transactions	Insiders	Shares or units	Value at reported price
Open market purchase	P	0	0	0	0
Open market sale	S	45	9	307,925	$180.64m
Shares withheld for tax on vesting	F	14	7	397,277	$98.65m
PSUs earned on performance goals	A	8	6	285,788	n/a
PSUs granted at target, 11 Dec 2025	A	6	6	140,318	n/a
RSUs granted to officers, 11 Dec 2025	A	7	7	86,780	n/a
RSUs granted to directors	A	11	10	7,135	n/a
Gift, shares disposed	G	8	6	37,460	n/a
Option exercise	M	0	0	0	0

Source: Forms 4 filed 10 Oct 2025 to 10 Oct 2026, SEC filings via SEC-API.io. PSUs earned include 149,914 units that vested on 26 October 2025 and 135,874 units earned on 11 December 2025. Gifts include 17,855 shares by director Aart de Geus on 21 May 2026 and 17,000 shares by Gary Dickerson on 16 June 2026

Form 144 notices of proposed sale and Form 3

Form 144 notices cover 347,968 shares at a stated market value of $202.72m, against 307,925 shares reported sold on Forms 4. Director Akash Palkhiwala filed a Form 3 with an event date of 27 August 2026 and 0 securities owned, and received 279 RSUs that day (Form 4).

Table 7.6 Form 144 notices filed 10 Oct 2025 to 10 Oct 2026, by person

Person for whose account	Relationship stated	Notices	Filed	Shares to be sold	Stated market value	Shares sold on Forms 4	Form 144
Gary Dickerson	Officer	2	15 to 29 Jun 2026	200,000	$129.00m	161,321	1, 2
Prabu Raja	Officer	1	4 Jun 2026	60,000	$30.24m	60,000	1
Omkaram Nalamasu	Officer	1	15 Jun 2026	35,000	$20.65m	35,000	1
Brice Hill	Officer	3	17 Feb to 25 Aug 2026	17,500	$6.63m	15,000	1, 2, 3
Thomas Iannotti	Director, Board Chair	1	16 Jun 2026	9,250	$5.55m	9,250	1
Timothy Deane	Officer	1	15 Jun 2026	8,621	$5.09m	8,621	1
Judy Bruner	Director	4	23 Feb to 8 Sep 2026	8,597	$3.45m	8,597	1, 2, 3, 4
Teri Little	Officer	1	19 Nov 2025	9,000	$2.11m	8,000	1
Total		14		347,968	$202.72m	307,925

Source: Forms 144 linked in the table, SEC filings via SEC-API.io. Adam Sanders (2,136 shares sold) filed 0 Forms 144

8 Risk Factors

Q3 FY2026 10-Q lists 25 risk factors in 9,186 words, (7.2)% against the FY2025 10-K, and replaces the subpoena disclosure carried since 2022 with a $253m export controls settlement that carries a suspended denial order for three years. 10 factors carry new substance since the FY2025 10-K, which itself added 1 factor (tariffs), reworded 16 and merged 2 into 1.

Applied Materials risk factor count and word count by category

Figure 8.1 Risk factor word count by category in five filings

Table 8.1 Risk factors and words by category as filed

Category	FY2024 10-K factors	FY2024 10-K words	FY2025 10-K factors	FY2025 10-K words	Q3 FY2026 10-Q factors	Q3 FY2026 10-Q words
Business and Industry Risks	12	6,355	12	5,484	12	5,240
Operational and Financial Risks	9	3,325	9	3,466	9	3,146
Legal, Compliance and Other Risks	4	1,004	4	944	4	800
Total	25	10,684	25	9,894	25	9,186

Source: FY2024 10-K, FY2025 10-K, Q3 FY2026 10-Q (Item 1A; words counted per factor heading and body); SEC filings via SEC-API.io

Risk factors added, reworded and dropped

Table 8.2 Status of each risk factor: FY2025 10-K against FY2024 10-K, and Q3 FY2026 10-Q against FY2025 10-K

Risk factor	Words FY2024 / FY2025 / Q3 FY2026	FY2025 10-K status	Q3 FY2026 10-Q status	What changed
Business and Industry Risks
Industry volatility and AI demand	278 / 289 / 320	Reworded	Reworded	FY2025 describes AI as "a significant demand driver" (FY2024: "a relatively new demand driver"); Q2 FY2026 adds that failing to meet customer demand may cost business or customer trust and that costs may be incurred ahead of demand that is then unrealized.
Global economy	576 / 327 / 274	Reworded	Unchanged	FY2025 adds tariffs and trade policies to the listed adverse conditions and removes the parts shortage passage; Q1 FY2026 shortens the wording.
Global business, export controls and China	1,596 / 1,246 / 1,307	Reworded	Reworded	Revenue outside United States was 86% in FY2024, 89% in FY2025 and 85% in Q3 FY2026; Q1 FY2026 replaces the open subpoena text with the $253m settlement and suspended denial order; Q2 FY2026 adds a sentence on conflict in the Middle East.
Trade policy and tariffs	0 / 400 / 400	New	Unchanged	New 400 word factor: tariffs raise input costs and customers' import costs, and China's 2025 export controls cover rare earth minerals used in certain products.
Customer concentration	359 / 334 / 228	Reworded	Unchanged	FY2025 names China, Taiwan and Korea (FY2024 also Japan); two customers were 19% and 15% of FY2025 revenue and 20% and 14% of revenue for nine months of FY2026.
Supply chain	995 / 780 / 680	Reworded	Reworded	FY2025 adds rare earth export restrictions, tariff uncertainty and supplier cybersecurity incidents as causes; Q2 FY2026 adds fixed costs from underutilized capacity and lower gross margin if expected demand is unrealized.
Industry factors including semiconductors	392 / 709 / 613	Reworded	Reworded	FY2025 merges two FY2024 factors (392 and 526 words) and removes the bullet on lower service revenue per wafer start in Korea and Taiwan; Q1 FY2026 adds the timing, level and technology of data center buildout driven by AI.
Semiconductor industry factors (FY2024 heading)	526 / 0 / 0	Dropped	Dropped	Heading removed in FY2025; content merged into the industry factors row above.
Competition and technology change	452 / 399 / 346	Reworded	Unchanged	FY2025 names the EPIC Center as a project to complete on schedule and on budget; company wide construction in progress was $2.04bn at Q3 FY2026 ($1.46bn at FY2025 year end).
Government incentives	192 / 191 / 185	Unchanged	Unchanged	Clawback, audit and compliance terms are carried over; capital expenditure incentives had reduced gross property, plant and equipment by $1.8bn at Q3 FY2026 ($1.2bn at FY2025 year end).
Display industry	385 / 193 / 187	Reworded	Unchanged	FY2025 cuts the text from 385 to 193 words in the year Display stopped being a separately reported segment.
New and related markets	303 / 297 / 366	Unchanged	Reworded	Q1 FY2026 adds that the company expects to continue "investing significant resources" and that failure of a target market or industry could affect results.
Use of AI	301 / 319 / 334	Reworded	Reworded	FY2025 adds reliance on third party AI providers; Q3 FY2026 adds AI agents that may disrupt business processes or lose intellectual property or critical data.
Operational and Financial Risks
Intellectual property	401 / 385 / 386	Unchanged	Unchanged	Sentences are shortened and the listed exposures are the same in all three filings.
Cybersecurity	719 / 698 / 596	Reworded	Reworded	FY2025 adds quantum computing as a threat to encryption; Q2 FY2026 adds operational technology systems, attacks enabled by large language models and automated attacks that shorten response time.
Acquisitions and divestitures	767 / 786 / 687	Reworded	Unchanged	FY2025 adds post closing investigations of transactions completed without notification, acquired trade control programs and government enforcement actions.
Key employees	166 / 175 / 164	Unchanged	Unchanged	FY2025 adds hiring and integrating workers in different countries; Q3 FY2026 cites immigration and work authorization requirements.
Tax law	485 / 622 / 557	Reworded	Reworded	FY2025 adds the One Big Beautiful Bill Act and a full valuation allowance on corporate alternative minimum tax credits ($407m; effective tax rate 24.5% against 12.0% in FY2024); Q1 FY2026 states that global minimum tax laws materially increase foreign taxes from Q1 FY2026.
Indebtedness	260 / 272 / 255	Reworded	Reworded	Senior notes cited: $6.2bn, $6.5bn and $6.5bn; revolving credit capacity cited: $1.5bn, $4.1bn and $4.0bn.
Information systems	173 / 170 / 153	Unchanged	Unchanged	Implementation risk for new enterprise systems is carried over in shorter sentences.
Impairment	182 / 186 / 182	Reworded	Unchanged	FY2025 states that impairment charges have been recorded; a $41m goodwill impairment was recognized in Q4 FY2025.
Dividends and repurchases	172 / 172 / 166	Unchanged	Unchanged	Text is carried over; $12.8bn of repurchase authorization remained at Q3 FY2026.
Legal, Compliance and Other Risks
Legal proceedings and investigations	232 / 238 / 214	Reworded	Reworded	FY2025 adds anti corruption and government contracting compliance; Q1 FY2026 removes the sentence on subpoenas covering China shipments, export controls and federal award applications.
Global regulation	202 / 158 / 158	Unchanged	Unchanged	The list of regulated areas is carried over with the sustainability and climate qualifier removed in FY2025.
Sustainability targets	356 / 334 / 235	Reworded	Unchanged	FY2025 removes the list of target areas (emissions, diversity and inclusion, human rights) and cites International Sustainability Standards Board standards in place of the SEC climate rule.
Environment, health and safety	214 / 214 / 193	Unchanged	Unchanged	FY2025 adds import and export to the product restrictions that a compliance failure could trigger.

Source: FY2024 10-K, FY2025 10-K, Q1 FY2026 10-Q, Q2 FY2026 10-Q, Q3 FY2026 10-Q; SEC filings via SEC-API.io

Figure 8.2 Word count of risk factors that changed by 40 words or more

Tariff mentions rose from 6 in the FY2024 10-K to 17 in the FY2025 10-K, and subpoena mentions fell from 5 to 2 after the settlement.

Figure 8.3 Mentions of selected terms in Item 1A risk factors

Export controls settlement and government investigations

BIS settlement equals 3.4% of nine month FY2026 operating income of $7.43bn. 10-Q states that a breach of its terms could end the suspension of the denial order and prohibit exports of certain products.

Table 8.3 Government investigations as disclosed

Filing	Filed	Disclosure
FY2024 10-K	13 Dec 2024	Multiple subpoenas since 2022 from the Department of Justice (DOJ), BIS and the SEC on certain China customer shipments and export controls compliance; subpoenas also covered certain federal award applications.
FY2025 10-K	12 Dec 2025	Same disclosure; Note 14 gives no estimate of a range of loss or penalties.
8-K	11 Feb 2026	DOJ and SEC informed the company that they closed their inquiries with no enforcement action; settlement agreement with BIS for a single payment of $252.5m plus internal audits, training and reporting mechanisms.
Q1 FY2026 10-Q	19 Feb 2026	Risk factor text rewritten around the settlement; the legal proceedings factor drops its subpoena sentence.
Q3 FY2026 10-Q	20 Aug 2026	$253m paid in full in Q2 FY2026 and recorded as a legal settlement charge; denial order is suspended and will be waived three years after the order date if audit requirements are completed on time.

Source: FY2024 10-K, FY2025 10-K, 8-K filed 11 February 2026, Q1 FY2026 10-Q, Q3 FY2026 10-Q; SEC filings via SEC-API.io

Market risk sensitivities and cybersecurity disclosure

Currency hedge sensitivity to a 10% adverse move rose to $301m at Q3 FY2026 from $177m at FY2025 year end. Item 1C of the FY2025 10-K reports zero cybersecurity incidents with a material effect and quarterly reports by the Chief Information Security Officer to the Audit Committee.

Figure 8.4 Market risk sensitivities at three balance sheet dates

Table 8.4 Item 7A market risk disclosures

Measure	27 Oct 2024	26 Oct 2025	26 Jul 2026
Available for sale investments, market value	$3.2bn	$3.2bn	$5.0bn
Fair value loss on investments, rates up 100 basis points	$36m	$36m	$49m
Long term senior notes, principal	$5.5bn	$6.5bn	$5.3bn
Long term senior notes, estimated fair value	$5.1bn	$6.2bn	$4.7bn
Fair value increase of notes, rates down 100 basis points	$428m	$462m	$390m
Fair value loss on currency hedges, 10% adverse move	$141m	$177m	$301m
Fair value loss on interest rate hedges, rates up 100 basis points	n/a	n/a	$34m

Source: FY2024 10-K and FY2025 10-K (Item 7A), Q3 FY2026 10-Q (Part I Item 3); SEC filings via SEC-API.io

9 Stock Price, Scenarios & Sensitivity

AMAT closed at $507.03 on 9 October 2026, 43.7x TTM diluted GAAP EPS of $11.60; the multiple at fiscal year end ranged from 11.9x to 26.9x for FY2021 to FY2025. Three sets of stated assumptions for FY2027 to FY2029 give arithmetic outcomes of $194, $613 and $1,110 per share at end FY2029.

Table 9.1 Share price range, price change and further TTM multiples

Measure	Value	Basis
52 week closing range	$209.95 to $723.00	Low on 10 October 2025, high on 30 June 2026
52 week intraday range	$203.40 to $739.67	Low on 14 November 2025, high on 30 June 2026
Change since October 2021 month end	271%	From $136.65
Change since 31 December 2025	97.3%	From $256.99
EV / operating income	43.1x	TTM operating income $9.14bn
FCF yield	1.4%	TTM FCF $5.62bn over market cap
Dividend yield	0.42%	Quarterly dividend of $0.53 per share, annualized

Source: Market data, 9 October 2026; 10-Q Q3 FY2026, 10-K FY2025; SEC filings via SEC-API.io. Price, market cap, EV and the main multiples are in Table 0.1. TTM net income includes $1.45bn of pretax gains on equity investments

Figure 9.1 AMAT month end share price, September 2021 to 9 October 2026

Table 9.2 Share price after the last four results releases

Release	Quarter	Revenue	Year on year	Diluted EPS	Close on release day	Next session close	Next session change	Change after five sessions
13 November 2025	Q4 FY2025	$6.80bn	(3.5)%	$2.38	$223.23	$226.01	1.2%	(1.3)%
12 February 2026	Q1 FY2026	$7.01bn	(2.1)%	$2.54	$328.39	$354.91	8.1%	14.3%
14 May 2026	Q2 FY2026	$7.91bn	11.4%	$3.51	$440.56	$436.62	(0.9)%	(3.0)%
13 August 2026	Q3 FY2026	$9.12bn	24.8%	$3.17	$534.54	$507.18	(5.1)%	(7.2)%

Source: 8-K of 13 November 2025, 8-K of 12 February 2026, 8-K of 14 May 2026, 8-K of 13 August 2026; Market data, 9 October 2026; SEC filings via SEC-API.io. All four releases followed the market close

Scenario analysis FY2027 to FY2029: worst, base and best case

Base case implied price of $613 equals the current price of $507.03 at revenue growth of 6.1% per year, at an exit P / E of 26.5x or at an operating margin of 28.5%, each changed alone.

Table 9.3 FY2026 estimate: nine months filed plus Q4 FY2026 guidance

Item	Nine months FY2026 filed	Q4 FY2026	FY2026 estimate	Basis of the Q4 FY2026 figure
Revenue	$24.04bn	$10.25bn	$34.29bn	Company guidance midpoint, range of $500m either side
Revenue growth, year on year	11.4%	50.7%	20.9%	Derived
Semiconductor Systems revenue	$18.15bn	$7.90bn	$26.05bn	Earnings call, 13 August 2026
Applied Global Services revenue	$5.00bn	$1.84bn	$6.84bn	Earnings call, 13 August 2026
Other revenue	$886m	$510m	$1.40bn	Earnings call, 13 August 2026
Gross margin (GAAP)	49.8%	50.3%	49.9%	Non GAAP gross margin of about 50.4% (earnings call, 13 August 2026) less $11m of acquisition items, the Q3 FY2026 amount
Operating income (GAAP)	$7.43bn	$3.56bn	$10.99bn	Non GAAP gross profit less non GAAP operating expenses of about $1.58bn (earnings call, 13 August 2026) and $21m of adjustments, the Q3 FY2026 amount
Operating margin (GAAP)	30.9%	34.8%	32.1%	Derived
Gains on equity investments, pretax	$927m	$0	$927m	Assumption
Effective tax rate	12.9%	12.9%	12.9%	Assumption: nine month rate
Diluted shares	799m	800m	799m	Assumption: Q3 FY2026 count
Diluted GAAP EPS	$9.22	$3.92	$13.14	Derived; interest income and expense at Q3 FY2026 amounts
Diluted EPS, equity investment gains set to zero	$8.21	$3.92	$12.13	Derived
FCF	$3.58bn	$2.62bn	$6.20bn	Assumption: Q3 FY2026 FCF margin of 25.6%

Source: 10-Q Q3 FY2026, 8-K Exhibit 99.1 of 13 August 2026; SEC filings via SEC-API.io. Company guidance for Q4 FY2026 non GAAP diluted EPS is $4.02, range of $0.20 either side. Nine month operating income includes a legal settlement charge of $253m

Table 9.4 Scenario assumptions and definitions

Input, FY2027 to FY2029	Worst	Base	Best	Basis
Starting point	FY2026 estimate	FY2026 estimate	FY2026 estimate	Table 9.3 and 800m diluted shares
WFE market growth, FY2027, FY2028, FY2029	3%, (12)%, (2)%	21.8%, 14.1%, 5%	28%, 20%, 12%	Assumption. Base case FY2027 and FY2028 apply the SEMI forecast for calendar 2027 and 2028 (Table 4.1) to fiscal years ending in October
Semiconductor Systems growth against market, points per year	(2)	0	2	Assumption. Segment revenue grows at the market rate plus the stated points
AGS revenue growth per year	6%	12%	15%	Assumption. Q3 FY2026 growth was 22%
Other revenue per year	$1.60bn	$1.60bn	$1.60bn	Assumption: $400m per quarter. Nine month FY2026 Other revenue was $886m
China share of revenue	20%	25%	22%	Assumption. Nine month FY2026 share was 28%
Gross margin	48.0%	50.5%	52.0%	Assumption. Q3 FY2026 gross margin was 50.3%
Operating margin (GAAP)	28.0%	34.5%	37.0%	Assumption. Q3 FY2026 operating margin was 33.7%
Gains and losses on equity investments	$0	$0	$0	Assumption
Interest income per year	$401m	$401m	$401m	Assumption: FY2026 estimate held constant
Interest expense per year	$274m	$274m	$274m	Assumption: FY2026 estimate held constant
Effective tax rate	13%	13%	13%	Assumption. Nine month FY2026 rate was 12.9%
FCF margin	17%	23%	26%	Assumption. TTM FCF margin was 18.2%
Share of FCF paid out as dividends and repurchases	80%	90%	100%	Assumption. Nine month FY2026 share was 65%
Dividend per share growth per year, from $2.05 in FY2026	15%	15%	15%	Assumption. March 2026 increase was 15%
Repurchase price per share	$507.03	$507.03	$507.03	Assumption: close on 9 October 2026
Shares issued under stock plans per year	5m	5m	5m	Assumption. Nine month FY2026 issuance was 4m
Exit P / E on FY2029 EPS	20x	32x	44x	Assumption. FY2021 to FY2025 average of October month end close over fiscal year diluted GAAP EPS is 19.5x, current TTM multiple is 43.7x and their midpoint is 31.6x
Net income	Derived	Derived	Derived	(Operating income plus interest income less interest expense) times (1 less tax rate)
Repurchases each year	Derived	Derived	Derived	FCF times payout share less dividends; shares retired equal repurchases over repurchase price
Diluted EPS	Derived	Derived	Derived	Net income over the average of opening and closing diluted shares
Implied price	Derived	Derived	Derived	FY2029 diluted EPS times exit P / E, undiscounted

Source: 10-Q Q3 FY2026, 8-K Exhibit 99.1 of 13 August 2026, 10-K FY2025; SEC filings via SEC-API.io; Market data, 9 October 2026; SEMI forecast of 14 July 2026 linked in Table 4.1

Table 9.5 FY2029 scenario outcomes

Outcome	Worst	Base	Best
FY2029 revenue	$31.47bn	$49.22bn	$59.10bn
Revenue growth per year, FY2026E to FY2029	(2.8)%	12.8%	19.9%
FY2029 Semiconductor Systems revenue	$21.72bn	$38.01bn	$47.09bn
FY2029 Applied Global Services revenue	$8.15bn	$9.62bn	$10.41bn
FY2029 China revenue (TTM $8.65bn)	$6.29bn	$12.31bn	$13.00bn
FY2029 gross profit	$15.11bn	$24.86bn	$30.73bn
FY2029 operating income	$8.81bn	$16.98bn	$21.87bn
FY2029 net income	$7.78bn	$14.88bn	$19.14bn
FY2029 FCF	$5.35bn	$11.32bn	$15.37bn
FCF, FY2027 to FY2029 cumulative	$16.75bn	$31.42bn	$40.14bn
Dividends, FY2027 to FY2029 cumulative	$6.55bn	$6.47bn	$6.42bn
Repurchases, FY2027 to FY2029 cumulative	$6.86bn	$21.80bn	$33.73bn
Diluted shares, end of FY2029	801m	772m	748m
Diluted share count change per year	0.1%	(1.2)%	(2.2)%
FY2029 diluted EPS	$9.71	$19.15	$25.22
Implied price, end FY2029	$194	$613	$1,110
Against close of $507.03	(62)%	21%	119%

Source: arithmetic outcomes of the assumptions in Table 9.4

Figure 9.2 Revenue and diluted EPS, FY2021 to FY2025 filed, FY2026 estimate and scenarios to FY2029

Table 9.6 Scenario paths by fiscal year

Case	Fiscal year	Revenue	Growth	Operating income	FCF	Dividends	Repurchases	Diluted shares, year end	Diluted EPS
Worst	FY2027	$35.16bn	2.6%	$9.85bn	$5.98bn	$1.89bn	$2.90bn	799m	$10.85
Worst	FY2028	$31.91bn	(9.2)%	$8.94bn	$5.43bn	$2.17bn	$2.17bn	800m	$9.86
Worst	FY2029	$31.47bn	(1.4)%	$8.81bn	$5.35bn	$2.49bn	$1.79bn	801m	$9.71
Base	FY2027	$40.99bn	19.6%	$14.14bn	$9.43bn	$1.89bn	$6.60bn	792m	$15.60
Base	FY2028	$46.38bn	13.2%	$16.00bn	$10.67bn	$2.15bn	$7.45bn	782m	$17.83
Base	FY2029	$49.22bn	6.1%	$16.98bn	$11.32bn	$2.44bn	$7.75bn	772m	$19.15
Best	FY2027	$43.33bn	26.4%	$16.03bn	$11.27bn	$1.89bn	$9.38bn	786m	$17.72
Best	FY2028	$51.96bn	19.9%	$19.23bn	$13.51bn	$2.13bn	$11.38bn	769m	$21.65
Best	FY2029	$59.10bn	13.7%	$21.87bn	$15.37bn	$2.40bn	$12.97bn	748m	$25.22

Source: arithmetic outcomes of the assumptions in Table 9.4

Critical factors behind the best case and demand drivers

Earnings call, 13 August 2026: management stated a plan to double quarterly system output from current levels by 2028 and a long term AGS growth rate in the mid teens.

Table 9.7 Best case factors and the filed data point for each

Factor	Filed data point	Best case input it supports
Q4 FY2026 revenue guidance	$10.25bn at midpoint, 51% above Q4 FY2025 and 12% above Q3 FY2026; four quarters at that level equal $41.00bn	Market growth of 28% in FY2027
Semiconductor Systems demand	Q3 FY2026 segment revenue $7.04bn, up 27% year on year; DRAM 29% of nine month segment revenue against 25% a year earlier	Market growth path and 2 points above market
Customer prepayments	Contract liabilities $3.27bn at 26 July 2026, up 27% from $2.57bn at 26 October 2025	Market growth path
Manufacturing capacity	Nine month capital expenditure $1.99bn against $1.48bn a year earlier; property, plant and equipment $5.61bn against $4.61bn at 26 October 2025	FY2029 Semiconductor Systems revenue of $47.09bn
Revenue outside China	United States revenue $1.37bn in Q3 FY2026, up 100% year on year; China $2.51bn, 28% of revenue against 35% a year earlier	China share of 22% with China revenue of $13.00bn
Services	AGS revenue $1.78bn in Q3 FY2026, up 22% year on year, at an operating margin of 30.1%	AGS growth of 15% per year
Gross margin	50.3% in Q3 FY2026 against 48.8% a year earlier; the 10-Q attributes the increase to higher revenue, higher average selling prices, lower material and manufacturing costs and product mix	Gross margin of 52.0%
Operating margin	33.7% in Q3 FY2026; Semiconductor Systems segment margin 37.7%	Operating margin of 37.0%
Capital return capacity	Repurchase authorization remaining $12.8bn; nine month cost of shares repurchased $1.14bn at an average of $343.16 per share and dividends $1.15bn; net cash $7.96bn	Payout of 100% of FCF and share count change of (2.2)% per year

Source: 10-Q Q3 FY2026, 8-K Exhibit 99.1 of 13 August 2026, 10-K FY2025; SEC filings via SEC-API.io

Sensitivity analysis: growth, exit multiple and operating margin

Exit P / E moves the base case implied price between $383 and $843, the market growth path between $424 and $700, and operating margin between $498 and $657. A China share of 15% with base case revenue outside China unchanged gives $538; a share of 30% gives $659.

Figure 9.3 Sensitivity of implied price and FY2029 EPS to growth, exit multiple and operating margin

Figure 9.4 Implied price range by input, each moved from worst case to best case value

Table 9.8 Filed history FY2021 to FY2025, FY2026 estimate and scenario inputs

Measure	FY2021	FY2022	FY2023	FY2024	FY2025	FY2026E	Worst	Base	Best
Revenue growth	34.1%	11.8%	2.8%	2.5%	4.4%	20.9%	(2.8)%	12.8%	19.9%
Gross margin	47.3%	46.5%	46.7%	47.5%	48.7%	49.9%	48.0%	50.5%	52.0%
Operating margin (GAAP)	29.9%	30.2%	28.9%	28.9%	29.2%	32.1%	28.0%	34.5%	37.0%
FCF margin	20.7%	17.9%	28.6%	27.6%	20.1%	18.1%	17.0%	23.0%	26.0%
Effective tax rate	13.0%	14.1%	11.1%	12.0%	24.5%	12.9%	13.0%	13.0%	13.0%
China share of revenue	33%	28%	27%	37%	30%	28%	20%	25%	22%
Gains on equity investments, pretax	$99m	$7m	$27m	$20m	$821m	$927m	$0	$0	$0
Dividends and repurchases, share of FCF	96%	151%	42%	67%	110%	65%	80%	90%	100%
Diluted share count change	n/a	(4.6)%	(3.6)%	(1.3)%	(3.1)%	(1.1)%	0.1%	(1.2)%	(2.2)%
Diluted EPS	$6.40	$7.44	$8.11	$8.61	$8.66	$12.13	$9.71	$19.15	$25.22
P / E, October month end close	21.4x	11.9x	16.3x	21.1x	26.9x	41.8x	20x	32x	44x

Source: 10-K FY2021, 10-K FY2023, 10-K FY2025, 10-Q Q3 FY2026, 8-K Exhibit 99.1 of 13 August 2026; Market data, 9 October 2026; SEC filings via SEC-API.io. Scenario columns show the annual input for FY2027 to FY2029, FY2029 EPS and the exit multiple. FY2026E China share, gains and payout cover the nine months filed; FY2026E EPS sets equity investment gains to zero and its P / E uses the 9 October 2026 close

Sources and method

Filings used: 10-K FY2025 and the 10-K filings for FY2021 to FY2024; 10-Q Q3 FY2026 and the 10-Q filings for Q1 and Q2 FY2026; DEF 14A of 2026; 8-K filings of 13 August 2026 (Q3 FY2026 results), 11 February 2026 (BIS settlement), 13 March 2026 (annual meeting votes) and 23 October 2025 (workforce reduction); Forms 3, 4 and 144, Form 13F and Schedule 13G filings; peer 10-K, 10-Q, 20-F and 6-K filings linked under each table.

SEC filing data retrieved through SEC-API.io.

Market data as of 9 October 2026. Peer and market research figures from SEMI, WSTS and the other named publishers carry their publication dates.

Earnings call material comes from public transcripts and is given in indirect speech with the call date.

Scenario figures are arithmetic outcomes of stated assumptions.

Sources appendix

Every filing referenced in this analysis, sorted by form and then by date. Each accession number links to the filing on sec.gov. Count: 162 filings.

Table A.1 Applied Materials, Inc. filings, with ownership filings by holders and insiders

Form	Period or filing date	Accession number
10-K	26 Oct 2025	0001628280-25-056742
10-K	27 Oct 2024	0000006951-24-000044
10-K	29 Oct 2023	0000006951-23-000041
10-K	30 Oct 2022	0000006951-22-000043
10-K	31 Oct 2021	0000006951-21-000043
10-Q	26 Jul 2026	0001628280-26-058235
10-Q	26 Apr 2026	0001628280-26-037227
10-Q	25 Jan 2026	0001628280-26-009694
10-Q	27 Jul 2025	0000006951-25-000037
10-Q	27 Apr 2025	0000006951-25-000024
10-Q	26 Jan 2025	0000006951-25-000011
10-Q	1 May 2022	0000006951-22-000022
10-Q	28 Jul 2013	0000006951-13-000034
8-K	27 Aug 2026	0001628280-26-059257
8-K	13 Aug 2026	0001628280-26-056699
8-K	14 May 2026	0001628280-26-035071
8-K	13 Mar 2026	0001193125-26-106339
8-K	12 Feb 2026	0001628280-26-007661
8-K	11 Feb 2026	0001628280-26-007444
8-K	13 Nov 2025	0001628280-25-051998
8-K	23 Oct 2025	0001628280-25-046107
8-K	2 Oct 2025	0001628280-25-043753
8-K	26 Sep 2025	0001628280-25-042933
8-K	19 Sep 2025	0001193125-25-209109
8-K	14 Aug 2025	0000006951-25-000032
8-K	15 May 2025	0000006951-25-000017
8-K	10 Mar 2025	0001193125-25-050933
8-K	27 Feb 2025	0001193125-25-039328
8-K	13 Feb 2025	0000006951-25-000005
8-K	14 Nov 2024	0000006951-24-000037
DEF 14A	28 Jan 2026	0001193125-26-027307
Schedule 13G	31 Mar 2026	0002100119-26-000140
Schedule 13G/A	13 Mar 2026	0000102909-26-000678
Schedule 13G/A	31 Dec 2023	0001086364-24-006194
Schedule 13G/A	29 Dec 2023	0001104659-24-020310
13F-HR	30 Jun 2026	0000019617-26-000325
13F-HR	30 Jun 2026	0000038777-26-000222
13F-HR	30 Jun 2026	0000053417-26-000052
13F-HR	30 Jun 2026	0000070858-26-000442
13F-HR	30 Jun 2026	0000072971-26-000304
13F-HR	30 Jun 2026	0000073124-26-000053
13F-HR	30 Jun 2026	0000080255-26-000519
13F-HR	30 Jun 2026	0000315066-26-002260
13F-HR	30 Jun 2026	0000354204-26-000866
13F-HR	30 Jun 2026	0000763212-26-000028
13F-HR	30 Jun 2026	0000850529-26-000006
13F-HR	30 Jun 2026	0000869178-26-000093
13F-HR	30 Jun 2026	0000886982-26-000519
13F-HR	30 Jun 2026	0000895421-26-000243
13F-HR	30 Jun 2026	0000902219-26-000311
13F-HR	30 Jun 2026	0000912938-26-000775
13F-HR	30 Jun 2026	0000914208-26-000343
13F-HR	30 Jun 2026	0000930413-26-002447
13F-HR	30 Jun 2026	0001104659-26-097217
13F-HR	30 Jun 2026	0001109448-26-000261
13F-HR	30 Jun 2026	0001140361-26-033080
13F-HR	30 Jun 2026	0001172661-26-003204
13F-HR	30 Jun 2026	0001172661-26-003278
13F-HR	30 Jun 2026	0001193125-26-351426
13F-HR	30 Jun 2026	0001214717-26-000008
13F-HR	30 Jun 2026	0001374170-26-000069
13F-HR	30 Jun 2026	0001390777-26-000087
13F-HR	30 Jun 2026	0001422848-26-000094
13F-HR	30 Jun 2026	0001422849-26-000113
13F-HR	30 Jun 2026	0001495115-26-000017
13F-HR	30 Jun 2026	0001562230-26-000107
13F-HR	30 Jun 2026	0001610520-26-000103
13F-HR	30 Jun 2026	0001752724-26-000057
13F-HR	30 Jun 2026	0002012383-26-003238
13F-HR	30 Jun 2026	0002100119-26-001527
13F-HR	30 Jun 2026	0002100121-26-001018
13F-HR	31 Mar 2026	0000080255-26-000381
13F-HR	31 Mar 2026	0000093751-26-000315
13F-HR	31 Mar 2026	0000315066-26-001390
13F-HR	31 Mar 2026	0000895421-26-000183
13F-HR	31 Mar 2026	0000914208-26-000193
13F-HR	31 Mar 2026	0000914208-26-000216
13F-HR	31 Mar 2026	0001214717-26-000006
13F-HR	31 Mar 2026	0001422848-26-000041
13F-HR	31 Mar 2026	0002100121-26-000861
13F-HR	31 Dec 2025	0000019617-26-000083
13F-HR	31 Dec 2025	0000080255-26-000231
13F-HR	31 Dec 2025	0000093751-26-000100
13F-HR	31 Dec 2025	0000102909-26-000031
13F-HR	31 Dec 2025	0000315066-26-000611
13F-HR	31 Dec 2025	0000914208-26-000071
13F-HR	31 Dec 2025	0000914208-26-000214
13F-HR	31 Dec 2025	0001214717-26-000003
13F-HR	31 Dec 2025	0001422848-26-000005
13F-HR	31 Dec 2025	0002012383-26-000920
13F-HR	30 Sep 2025	0000080255-25-000782
13F-HR	30 Sep 2025	0000093751-25-000651
13F-HR	30 Sep 2025	0000102909-25-000353
13F-HR	30 Sep 2025	0000914208-25-000430
13F-HR	30 Sep 2025	0001214717-25-000016
13F-HR	30 Sep 2025	0001422848-25-000223
13F-HR	30 Sep 2025	0002012383-25-002949
13F-HR/A	30 Jun 2026	0000093751-26-000583
13F-HR/A	31 Mar 2026	0000019617-26-000225
13F-HR/A	31 Mar 2026	0002100119-26-001311
13F-HR/A	31 Dec 2025	0000895421-26-000187
13F-HR/A	30 Sep 2025	0000019617-25-001093
13F-HR/A	30 Sep 2025	0000895421-26-000186
Form 3	27 Aug 2026	0001628280-26-059640
Form 4	5 Oct 2026	0001628280-26-065093
Form 4	2 Oct 2026	0001628280-26-065097
Form 4	8 Sep 2026	0001628280-26-061408
Form 4	27 Aug 2026	0001628280-26-059643
Form 4	25 Aug 2026	0001628280-26-059277
Form 4	30 Jun 2026	0001628280-26-046609
Form 4	18 Jun 2026	0001628280-26-044741
Form 4	17 Jun 2026	0001628280-26-044048
Form 4	16 Jun 2026	0001628280-26-044046
Form 4	16 Jun 2026	0001628280-26-044050
Form 4	15 Jun 2026	0001628280-26-044039
Form 4	4 Jun 2026	0001628280-26-041314
Form 4	3 Jun 2026	0001628280-26-041310
Form 4	26 May 2026	0001628280-26-038923
Form 4	22 May 2026	0001628280-26-038261
Form 4	25 Feb 2026	0001628280-26-012916
Form 4	24 Feb 2026	0001628280-26-011307
Form 4	23 Feb 2026	0001628280-26-011308
Form 4	17 Feb 2026	0001628280-26-009327
Form 4	23 Dec 2025	0001628280-25-058747
Form 4	1 Dec 2025	0001628280-25-055159
Form 4	25 Nov 2025	0001628280-25-054205
Form 4	19 Nov 2025	0001628280-25-053663
Form 144	8 Sep 2026	0001959173-26-006780
Form 144	25 Aug 2026	0001969223-26-000956
Form 144	29 Jun 2026	0001969223-26-000735
Form 144	16 Jun 2026	0001974078-26-000244
Form 144	15 Jun 2026	0001969223-26-000688
Form 144	15 Jun 2026	0001969223-26-000699
Form 144	15 Jun 2026	0001969223-26-000700
Form 144	4 Jun 2026	0001969223-26-000635
Form 144	3 Jun 2026	0001969223-26-000629
Form 144	26 May 2026	0001959173-26-003985
Form 144	25 Feb 2026	0001959173-26-001465
Form 144	23 Feb 2026	0001959173-26-001318
Form 144	17 Feb 2026	0001969223-26-000184
Form 144	19 Nov 2025	0001969223-25-000967

Table A.2 Filings of peers and other companies

Company	Form	Period or filing date	Accession number
ASML	20-F	31 Dec 2025	0001628280-26-011378
ASML	6-K	28 Jun 2026	0001628280-26-048235
ASML	6-K	29 Jun 2025	0001628280-25-034992
Entegris	10-K	31 Dec 2025	0001101302-26-000012
Entegris	10-Q	27 Jun 2026	0001101302-26-000150
Entegris	10-Q	28 Jun 2025	0001101302-25-000079
Intel	10-K	27 Dec 2025	0000050863-26-000011
Intel	10-Q	27 Jun 2026	0000050863-26-000157
KLA	10-K	30 Jun 2026	0000319201-26-000027
Lam Research	10-K	28 Jun 2026	0000707549-26-000037
MKS	10-K	31 Dec 2025	0001193125-26-066820
MKS	10-Q	30 Jun 2026	0001193125-26-337821
MKS	10-Q	30 Jun 2025	0001193125-25-175092
Micron	10-K	3 Sep 2026	0000723125-26-000023
Onto Innovation	10-K	3 Jan 2026	0001193125-26-066937
Onto Innovation	10-Q	30 Jun 2026	0001193125-26-338401
Onto Innovation	10-Q	28 Jun 2025	0000950170-25-105161
TSMC	20-F	31 Dec 2025	0001628280-26-025362
Teradyne	10-K	31 Dec 2025	0001193125-26-059002
Teradyne	10-Q	28 Jun 2026	0001193125-26-327715
Teradyne	10-Q	29 Jun 2025	0000950170-25-101248

This report is for information only and is not financial advice.

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