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Applied Materials

China was Applied Materials' largest market in fiscal 2025, but sales there fell

Customers in China accounted for $8.5B of $28.4B in net revenue in the year to Oct 26, 2025. Total revenue rose 4.4%; sales to Taiwan rose 71.0%.

Prepared from SEC filings · Latest annual report: 10-K for FY2025 (filed Dec 12, 2025) · Latest quarter: 10-Q for the quarter ended Jul 26, 2026 (filed Aug 20, 2026) · Data pulled Oct 25, 2026

Key facts

Applied Materials (Nasdaq: AMAT) reported net revenue of $28.4B for fiscal 2025, the year ended Oct 26, 2025, up 4.4% from fiscal 2024. Net income was $7.0B, down 2.5%. In its latest 10-Q, for the quarter ended Jul 26, 2026, net revenue was $9.1B, up 24.8% from the same quarter a year earlier, and net income was $2.5B. The largest piece by segment was Semiconductor Systems, at 73% of fiscal 2025 net revenue. Sources: 10-K for fiscal 2025 (filed Dec 12, 2025) and 10-Q for the quarter ended Jul 26, 2026 (filed Aug 20, 2026).

Net revenue$28.4BFY2025 · +4.4% vs FY2024
Net income$7.0BFY2025 · −2.5% vs FY2024
Operating cash flow$8.0BFY2025 · −8.3% vs FY2024
Cash & equivalents$7.0Bat Jul 26, 2026 · −2.8% vs FY2025 end
Total debt$7.7Bat Jul 26, 2026 · +18.1% vs FY2025 end
Diluted shares808MFY2025 avg · −3.1% vs FY2024
Net revenue and net income, three fiscal yearsBy fiscal year, $bn
Net revenueNet income
Net revenue and net income by fiscal yearNet revenue FY2023: $26.5B26.5Net income FY2023: $6.9B6.9FY2023Net revenue FY2024: $27.2B27.2Net income FY2024: $7.2B7.2FY2024Net revenue FY2025: $28.4B28.4Net income FY2025: $7.0B7.0FY2025

Source: 10-K FY2025, filed Dec 12, 2025

Quarterly net revenue: fiscal 2026 vs a year earlierFiscal Q1–Q3, $bn (each quarter from that quarter's 10-Q)
FY2025FY2026
Quarterly net revenue, fiscal 2026 vs 2025FY2025 Q1: $7.2B7.2FY2026 Q1: $7.0B7.0Q1FY2025 Q2: $7.1B7.1FY2026 Q2: $7.9B7.9Q2FY2025 Q3: $7.3B7.3FY2026 Q3: $9.1B9.1Q3

Source: 10-Q filed Feb 19, 2026 · 10-Q filed May 21, 2026 · 10-Q filed Aug 20, 2026

How it makes money

FY2025 total by categorySemiconductor Systems: $20.8B (73%)Applied Global Services: $6.4B (23%)Corporate and other: $1.2B (4%)$28.4BFY2025 total

By segment, FY2025

  • LineAmountSharevs FY2024
  • Semiconductor Systems$20.8B73%+4.5%
  • Applied Global Services$6.4B23%+2.6%
  • Corporate and other$1.2B4%+13.9%

Source: 10-K FY2025, XBRL breakdown

Semiconductor Systems was 73% of FY2025 revenue and Applied Global Services 23%. By customer location, China was 30%, Taiwan 24%, Korea 20% and the United States 11%.

By segment: three-year mixShare of the total each fiscal year
Semiconductor SystemsApplied Global ServicesCorporate and other

Source: 10-K FY2025

By customer location, FY2025

China$8.5B30%−15.7%
Taiwan$6.9B24%+71.0%
Korea$5.6B20%+24.8%
United States$3.1B11%−19.8%
Japan$2.3B8%+5.5%
Southeast Asia$1.1B4%−5.7%
Europe$962M3%−33.3%

Share is of the FY2025 total; the last column is the change from FY2024.

What changed last quarter

How the quarter compared with a year earlier

Comparing Q3 FY2026 (May to Jul 2026) compared with Q3 FY2025 (May to Jul 2025)

Each pair of bars shows the dollar amount for both quarters. Longer bar, more money. Bars in a group share one scale.

Q3 FY2026Q3 FY2025

Company

Net revenue
$9.1B Q3 FY2026
$7.3B Q3 FY2025
24.8% increase
Net income
$2.5B Q3 FY2026
$1.8B Q3 FY2025
42.7% increase

Source: Applied Materials 10-Q for the quarter ended Jul 26, 2026, filed Aug 20, 2026

By segment

Semiconductor Systems
$7.0B Q3 FY2026
$5.6B Q3 FY2025
26.5% increase
Applied Global Services
$1.8B Q3 FY2026
$1.5B Q3 FY2025
21.7% increase

Source: Applied Materials 10-Q for the quarter ended Jul 26, 2026, filed Aug 20, 2026

  • Cash & equivalents $7.0B at Jul 26, 2026, vs $7.2B at FY2025 end.
  • Total debt $7.7B at Jul 26, 2026, vs $6.6B at FY2025 end.
  • Operating cash flow, first 9 months of fiscal 2026: $5.6B vs $5.1B a year earlier.

The bull case and the bear case

The bull case

  • Net revenue grew 4.4% in FY2025 to $28.4B. 10-K, FY2025
  • Revenue from customers in Taiwan rose 71.0% in FY2025 to $6.9B, and Korea rose 24.8%. 10-K, FY2025
  • Revenue in the quarter ended Jul 26, 2026 was $9.1B, up 24.8% on a year earlier, and net income rose 42.7% to $2.5B. 10-Q, quarter ended Jul 26, 2026
  • Diluted shares fell 3.1% in FY2025. 10-K, FY2025

The bear case

  • Revenue from customers in China fell 15.7% in FY2025 to $8.5B, and US revenue fell 19.8%. 10-K, FY2025
  • Net income fell 2.5% in FY2025 to $7.0B, and operating cash flow fell 8.3% to $8.0B. 10-K, FY2025
  • Applied Global Services grew only 2.6% in FY2025. 10-K, FY2025
  • The 10-K lists US export controls on sales to China, and the cyclical nature of chip industry spending, among its risks. 10-K, Item 1A

What optimists and skeptics tend to point to, each tied to a filing. Ticker Sage doesn't pick a side, and neither list is a reason to buy or sell.

What the company does

Applied Materials makes equipment that chipmakers use to deposit, etch, inspect and modify the materials on silicon wafers, and services that equipment.

Applied Materials reports two segments. Semiconductor Systems sells the machines used across chip manufacturing, such as deposition, etch, ion implantation and inspection tools. Applied Global Services provides spare parts, upgrades, service contracts and remanufactured equipment for the installed base of tools. A smaller display business is reported with corporate and other items.

Its customers are chip and display makers, mostly in Asia. Its fiscal year ends on the last Sunday of October, so FY2025 means the year to Oct 26, 2025.

Source: 10-K, Item 1 Business

Main risks the company lists

Our plain-English paraphrase of the risk factors in Applied Materials's latest 10-K. Read the original for the full list.

  1. Export controls and ChinaUS rules limit what it can sell to some Chinese customers, and China is a large market.
  2. Industry cyclesChipmakers' spending on equipment swings with demand for chips, and orders can drop quickly.
  3. Customer concentrationA few large chipmakers account for a large share of revenue.
  4. TechnologyIt must keep up with new chip designs and manufacturing methods, and rivals compete hard.
  5. Supply chainSome parts come from limited suppliers, and disruptions can delay shipments.
  6. InternationalMost revenue comes from outside the US, exposing it to trade tensions and currency moves.
  7. Cyber and legalCyberattacks, intellectual property disputes and investigations are listed risks.

Source: 10-K, Item 1A Risk Factors (the full list, in the company's words)

Three years of key numbers

Every number links to its filing; hover for the XBRL tag. A dash means the number isn't cleanly available, and we don't estimate it.

US$FY2023FY2024FY2025
Net revenue$26.5B$27.2B$28.4B
Net income$6.9B$7.2B$7.0B
Operating cash flow$8.7B$8.7B$8.0B
Cash & equivalents (year end)$6.1B$8.0B$7.2B
Total debt (year end)$5.6B$7.0B$6.6B
Diluted shares845M834M808M
  • Net revenue: Sales of chipmaking equipment, plus services, spares and display equipment.
  • Net income: Profit after all costs and taxes.
  • Operating cash flow: Cash the business brought in from its day-to-day operations during the year (cash flow statement).
  • Cash & equivalents: Cash and short-term investments that count as cash equivalents on the balance sheet. Excludes longer-dated marketable securities.
  • Total debt: Short-term commercial paper plus current and long-term debt, at carrying value.
  • Diluted shares: Weighted average shares outstanding for the year, including the effect of options and stock awards.

About these numbers

  • Customer location is where the customer's facility is, as Applied Materials reports it.
  • Corporate and other includes the display business and items not allocated to the two segments.
  • Total debt is short-term borrowings plus current and long-term debt at carrying value, as tagged in the filing.

Recent filings

FormFiledPeriod
10-QAug 20, 2026Jul 26, 2026
10-QMay 21, 2026Apr 26, 2026
10-QFeb 19, 2026Jan 25, 2026
DEF 14AJan 28, 2026Mar 12, 2026
10-KDec 12, 2025Oct 26, 2025

Latest filings

  1. Oct 55:59 PM ET

    Form 4

    Applied Materials Corp. Controller & CAO Adam Sanders reports selling 725 shares

    The filing reports 725 shares in an open-market or private sale (code S) at $544.56, about $394,807 in total; and 269 shares withheld to pay the exercise price or tax (code F).

  2. Oct 55:58 PM ET

    Form 4

    Applied Materials SVP Timothy M. Deane reports 2,644 shares withheld for taxes

    The filing reports 2,644 shares withheld to pay the exercise price or tax (code F).

All Applied Materials filings notes →

Common questions about Applied Materials

How does Applied Materials make money?

Applied Materials's net revenue was $28.4B in fiscal 2025. Semiconductor Systems was 73% of FY2025 revenue and Applied Global Services 23%. By customer location, China was 30%, Taiwan 24%, Korea 20% and the United States 11%. Source: 10-K for fiscal 2025, filed Dec 12, 2025.

What was Applied Materials's revenue in fiscal 2025?

$28.4B of net revenue for the fiscal year ended Oct 26, 2025, up 4.4% from $27.2B in fiscal 2024. Fiscal 2023 was $26.5B. Source: 10-K for fiscal 2025, filed Dec 12, 2025.

Is Applied Materials profitable?

Applied Materials reported net income of $7.0B for fiscal 2025, down 2.5% from $7.2B in fiscal 2024. That is a profit under US accounting rules (GAAP). In the quarter ended Jul 26, 2026, net income was $2.5B. The page's About these numbers section explains what is included. Source: 10-K for fiscal 2025, filed Dec 12, 2025.

What did Applied Materials report in its latest quarterly filing?

Net revenue was $9.1B in the quarter ended Jul 26, 2026, up 24.8% from $7.3B a year earlier. Net income was $2.5B, up 42.7% from $1.8B. Source: 10-Q for the quarter ended Jul 26, 2026, filed Aug 20, 2026.

How much cash and debt does Applied Materials have?

Applied Materials had $7.0B in cash and cash equivalents and $7.7B of total debt on Jul 26, 2026. Total debt here is short-term commercial paper plus current and long-term debt, at carrying value. Source: 10-Q filed Aug 20, 2026.

What are the main risks Applied Materials lists?

Applied Materials's 10-K for fiscal 2025, filed Dec 12, 2025, lists its risk factors in Item 1A. We group them into 7 areas: Export controls and China; industry cycles; customer concentration; technology; supply chain; international; cyber and legal. The first: US rules limit what it can sell to some Chinese customers, and China is a large market. Source: 10-K, Item 1A Risk Factors.

Where do these Applied Materials numbers come from?

From Applied Materials's own SEC filings: the 10-K for fiscal 2025 (filed Dec 12, 2025) and the 10-Q for the quarter ended Jul 26, 2026 (filed Aug 20, 2026), read through the SEC's public XBRL data. Each number on this page links to its filing. Methodology explains how fiscal years and missing numbers are handled.

Disclosures

Editor holdings in AMAT
The editor holds no position in Applied Materials (AMAT). As of Oct 25, 2026.
Trading rule
The editor does not buy or sell AMAT from 3 days before to 3 days after this page is published or substantively updated.
Compensation
Nobody paid for this page. No affiliate links on this page.
Sources
The company's SEC filings, linked next to each number or, for charts, in the source line under them.
Last updated
Oct 25, 2026

General education, the same for every reader. Not a recommendation to buy, sell or hold AMAT, and it doesn't consider your situation.

Compare with peers

CompanyFiscal yearRevenueRevenue growthNet income
Applied MaterialsAMATFY2025$28.4B+4.4%$7.0B
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Each row is that company’s latest fiscal year from its own 10-K, using its own revenue and net income lines. Fiscal years end in different months, and line definitions differ (banks, insurers and oil companies count revenue differently), so this is a rough side-by-side, not a like-for-like comparison.

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New to filings? Learn lists the first explainer topics. Methodology & Disclosures covers where every number comes from.