Applied Materials Inc. (AMAT) stock — is it a good business?

Applied Materials Inc. (AMAT) stock — is it a good business? — InspectStocks

Just reported

Q3 FY2026 results

From Applied Materials's results release of November 12, 2026; its quarterly report has since been filed.

Revenue
Actual
$9.12B
+25% y/y
+15% q/q
Guided
—
No guide given
EPS, GAAP
Actual
$3.17
+43% y/y
-9.7% q/q
Guided
—
No guide given
EPS, adjusted: $4.16
Operating income, GAAP
Actual
$3.08B
+38% y/y
+22% q/q
Guided
—
No guide given

Set against the company's own guidance and the same quarter a year earlier, not analysts' estimates, which we do not hold. Adjusted figures are the company's own non-GAAP measures, as stated in the release.

The full earnings report →

How it makes money

Semiconductor Systems equipment77%
Applied Global Services20%

Shares of revenue are estimates for three months ended July 26, 2026, not figures from a filing.

Competes with

LRCXLam Research Corporation
A
Size
$292B
Margin
32.3%
KLACKLA Corporation
A
Size
$204.9B
Margin
36.2%
TOELYTokyo Electron Limited

What it sells6

Patterning equipment
Machines and processes that form the tiny patterns used to make chip structures.
Deposition and epitaxy equipment
Machines that add thin layers of material to a chip wafer; epitaxy grows a carefully controlled crystal layer.
Etch and materials-modification equipment
Machines that remove selected material or change its properties as chip structures are built.

Show 3 more

Metrology and inspection equipment
Optical and electron-beam machines that measure and inspect chip features during production to help find defects.
Advanced packaging equipment
Machines that connect separate chip pieces into a finished package; examples include plating and polishing equipment.
Factory services, parts and software
Field service, replacement parts and factory-automation software for semiconductor and other equipment. On its Q3 fiscal 2026 call, the company said more than 37,000 (Q3 fiscal 2026 call, high) equipment chambers were connected to its AIx software.

Who buys it3

Semiconductor manufacturers that make chips for other companies or design and manufacture their own chips; they buy production equipment directly from Applied Materials.
Chip factories that buy service agreements, replacement parts and factory software, either as recurring agreements or as needed.
Manufacturers of display products that buy display-industry manufacturing equipment.

What it stands on, and what could break it

What the business leans on

1Equipment sales depend on semiconductor manufacturers' factory investment plans, which can change with chip demand, factory use and production technology changes.
2Two customers accounted for notable portions of fiscal 2025 revenue, making the company sensitive to large customers changing orders or spending.
3Some important parts come from a single qualified supplier or a limited group of suppliers.
4Service and replacement-parts demand depends in part on the size and use of Applied Materials' installed base of equipment.
5United States export rules affect which products and services the company can provide to some customers, including in China.

What could go wrong

1Chipmakers can delay or reduce factory equipment spending as demand, production levels or technology plans change; customers may also delay deliveries or cancel some orders before shipment.
2Changing export controls, tariffs and trade disputes can restrict sales to customers in certain countries and affect the cost or competitiveness of products.
3The company has a concentrated customer base and relies on some single-source or limited-source suppliers for key parts, so customer cutbacks or supply interruptions can affect deliveries and results.

Full financial statements →

About Applied Materials Inc.

Applied Materials makes equipment that chipmakers use to form patterns, build chip structures and wiring, inspect production, and connect chips together. It also sells replacement parts, factory software, and services to keep equipment running and help chip factories improve production. Its customers include semiconductor manufacturers and companies that make display products.

Head office: Santa Clara, California
Founded: 1967 (incorporated)
Employees: approximately 36,500 (October 26, 2025, high)
Listed on: Nasdaq
Financial year ends: The last Sunday in October

Built from Applied Materials Inc.’s own filings with the U.S. Securities and Exchange Commission (SEC). Figures are as reported, with per-share history restated onto today’s share basis. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.

Just reported

Q3 FY2026 results

From Applied Materials's results release of November 12, 2026; its quarterly report has since been filed.

Revenue
Actual
$9.12B
+25% y/y
+15% q/q
Guided
—
No guide given
EPS, GAAP
Actual
$3.17
+43% y/y
-9.7% q/q
Guided
—
No guide given
EPS, adjusted: $4.16
Operating income, GAAP
Actual
$3.08B
+38% y/y
+22% q/q
Guided
—
No guide given

The full earnings report →

Keep exploring

The themes Applied Materials is part of, the highest-graded companies in its industry, and the companies in its sector whose grade rose recently.

The theme it is part of

Highest-graded in Semiconductor Equipment and Materials

Graded A or B and worth $2B or more: A first, then the largest.

Grade rose recently in Technology

Rose to A or B on a filing in the last 90 days, worth $2B or more: largest first.

How it makes money

Semiconductor Systems equipment77%
Applied Global Services20%

Shares of revenue are estimates for three months ended July 26, 2026, not figures from a filing.

Competes with

LRCXLam Research Corporation
A
Size
$292B
Margin
32.3%
KLACKLA Corporation
A
Size
$204.9B
Margin
36.2%
TOELYTokyo Electron Limited

What it sells6

Patterning equipment
Machines and processes that form the tiny patterns used to make chip structures.
Deposition and epitaxy equipment
Machines that add thin layers of material to a chip wafer; epitaxy grows a carefully controlled crystal layer.
Etch and materials-modification equipment
Machines that remove selected material or change its properties as chip structures are built.

Show 3 more

Metrology and inspection equipment
Optical and electron-beam machines that measure and inspect chip features during production to help find defects.
Advanced packaging equipment
Machines that connect separate chip pieces into a finished package; examples include plating and polishing equipment.
Factory services, parts and software
Field service, replacement parts and factory-automation software for semiconductor and other equipment. On its Q3 fiscal 2026 call, the company said more than 37,000 (Q3 fiscal 2026 call, high) equipment chambers were connected to its AIx software.

Who buys it3

Semiconductor manufacturers that make chips for other companies or design and manufacture their own chips; they buy production equipment directly from Applied Materials.
Chip factories that buy service agreements, replacement parts and factory software, either as recurring agreements or as needed.
Manufacturers of display products that buy display-industry manufacturing equipment.

What it stands on, and what could break it

What the business leans on

1Equipment sales depend on semiconductor manufacturers' factory investment plans, which can change with chip demand, factory use and production technology changes.
2Two customers accounted for notable portions of fiscal 2025 revenue, making the company sensitive to large customers changing orders or spending.
3Some important parts come from a single qualified supplier or a limited group of suppliers.
4Service and replacement-parts demand depends in part on the size and use of Applied Materials' installed base of equipment.
5United States export rules affect which products and services the company can provide to some customers, including in China.

What could go wrong

1Chipmakers can delay or reduce factory equipment spending as demand, production levels or technology plans change; customers may also delay deliveries or cancel some orders before shipment.
2Changing export controls, tariffs and trade disputes can restrict sales to customers in certain countries and affect the cost or competitiveness of products.
3The company has a concentrated customer base and relies on some single-source or limited-source suppliers for key parts, so customer cutbacks or supply interruptions can affect deliveries and results.

Full financial statements →

About Applied Materials Inc.

Head office: Santa Clara, California
Founded: 1967 (incorporated)
Employees: approximately 36,500 (October 26, 2025, high)
Listed on: Nasdaq
Financial year ends: The last Sunday in October

Q3 FY2026 results

Revenue

EPS, GAAP

Operating income, GAAP

How it makes money

Competes with

What it sells6

Who buys it3

What it stands on, and what could break it

What the business leans on

What could go wrong

About Applied Materials Inc.

Q3 FY2026 results

Revenue

EPS, GAAP

Operating income, GAAP

Keep exploring

The theme it is part of

Highest-graded in Semiconductor Equipment and Materials

Grade rose recently in Technology

How it makes money

Competes with

What it sells6

Who buys it3

What it stands on, and what could break it

What the business leans on

What could go wrong

About Applied Materials Inc.

Keep exploring

The theme it is part of

Highest-graded in Semiconductor Equipment and Materials

Grade rose recently in Technology

Applied Materials Inc.

Chip-making equipment

Growth & cash — 3 of 5

Business trend

Share price and grade over time

Q3 FY2026 results

Revenue

EPS, GAAP

Operating income, GAAP

How it makes money

Competes with

What it sells6

Who buys it3

What it stands on, and what could break it

What the business leans on

What could go wrong

About Applied Materials Inc.

Q3 FY2026 results

Revenue

EPS, GAAP

Operating income, GAAP

Keep exploring

The theme it is part of

Highest-graded in Semiconductor Equipment and Materials

Grade rose recently in Technology

How it makes money

Competes with

What it sells6

Who buys it3

What it stands on, and what could break it

What the business leans on

What could go wrong

About Applied Materials Inc.

Keep exploring

The theme it is part of

Highest-graded in Semiconductor Equipment and Materials

Grade rose recently in Technology

Applied Materials Inc.

Past performance

Chip-making equipment

Growth & cash — 3 of 5

Business trend

Share price and grade over time