Applied Materials, Inc. (AMAT) AI Stock Analysis

Applied Materials, Inc. provides manufacturing equipment, services, and software for the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. Semiconductor Systems develops equipment for fabricating semiconductor chips, including epitaxy, ion implantation, rapid thermal processing, chemical vapor deposition, and metrology tools. Applied Global Services provides spares, upgrades, remanufactured equipment, and factory automation software to enhance factory performance. Display and Adjacent Markets delivers manufacturing solutions for liquid crystal displays and organic light-emitting diodes used in consumer electronics.

Revenue increased from $23.06B in FY2021 to $28.37B in FY2025, representing a 5-year revenue CAGR of 10.5%. Annual net income moved from $5.89B in FY2021 to $7.00B in FY2025, while gross margin expanded from 47.3% to 48.7%. Operating margin was 29.2% in FY2025, compared to 29.9% in FY2021. For the trailing twelve months, revenue reached $30.84B with a profit margin of 30.0% and an operating margin of 33.7%. In the latest quarter ended July 31, 2026, quarterly revenue grew 24.8% year-over-year, and quarterly earnings grew 42.8% year-over-year.

As of July 31, 2026, Applied Materials held $9.23B in cash and short-term investments against total debt of $7.35B, resulting in net cash of $1.89B. The company reported shareholders' equity of $25.63B and total assets of $43.52B, alongside a current ratio of 2.42 and a debt-to-equity ratio of 0.29. In FY2025, operating cash flow stood at $7.96B and free cash flow was $5.70B. Cash capital allocation in FY2025 included $2.26B in capital expenditures, $4.89B in share buybacks, and $1.38B in dividends paid.

At a share price of $409.29, Applied Materials trades at a trailing P/E of 35.3x and a forward P/E of 23.4x, compared to 43.3x and 25.7x for the median of its Nasdaq-100 Technology peers. The company's price-to-sales ratio is 10.5x, below the peer median of 12.4x, and its EV/EBITDA is 28.6x, below the peer median of 32.8x. Its PEG ratio is 0.83. Over the past year, AMAT generated a return of 80.7%, outpacing the S&P 500 (SPY) return of 16.8%. Over five years, the stock returned 224.2% versus 83.0% for the S&P 500.

Applied Materials pays a quarterly dividend with an annual forward dividend of $2.12 per share, representing a dividend yield of 0.52%. The payout ratio is 18.1%, and dividends have been paid for 22 consecutive years. Over the past 5 years, dividend growth has annualized at 15.4%. The company's last ex-dividend date is November 19, 2026.

Among covering analysts, 29 rate the stock a Strong Buy, 4 rate it a Buy, and 7 rate it a Hold, with 0 Sell or Strong Sell ratings. The mean price target is $627.83, which is 53.4% above the last close of $409.29. For the current fiscal year ending October 31, 2026, consensus estimates project revenue of $34.26B and EPS of $12.79, reflecting 35.7% EPS growth. Applied Materials has beaten EPS estimates in each of the last 4 quarters, and its next earnings date is November 12, 2026.

This page is an AI-written research summary of Applied Materials, Inc. (AMAT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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