Income StatementBalance SheetCash FlowSegments
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Applied Materials Business Segments

Business, geographic, and product segment breakdowns

Applied Materials generates $29.0B in annual revenue across 2 key segments: Applied Global Services ($6.4B), and Semiconductor Systems ($21.3B). The company-wide operating margin is 28.59%. Based on the Q2 2026 filing.

Applied Global Services (TTM)$6.4BSemiconductor Systems (TTM)$21.3B
Latest FilingQ2 2026
Report Date2026-05-21
Market Cap$343.12B
P/E Ratio40.33
ROE39.69%

Products & Services

Concentration risk, percentage

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Foundry, logic and other69.0%66.0%69.0%—62.0%67.0%
Dynamic random-access memory (DRAM)27.0%27.0%22.0%—34.0%29.0%
Flash memory (NAND)4.0%7.0%9.0%—4.0%4.0%

Geographic

Change

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Europe-20.0%-13.0%-53.0%—-33.0%38.0%
Southeast Asia54.0%-37.0%-54.0%—17.0%37.0%
China-25.0%-37.0%18.0%—-7.0%18.0%
United States21.0%-5.0%-35.0%—-28.0%16.0%
Japan-4.0%26.0%28.0%—-3.0%9.0%
Taiwan112.0%96.0%61.0%—46.0%8.0%
Korea35.0%58.0%5.0%—-13.0%1.0%

Concentration risk, percentage

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Europe4.0%4.0%2.0%—3.0%4.0%
Southeast Asia4.0%2.0%3.0%—5.0%2.0%

Revenue

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Taiwan$1.2B$2.0B$1.8B$1.8B$1.7B$2.2B
China$2.2B$1.8B$2.5B$2.0B$2.1B$2.1B
Korea$1.7B$1.6B$1.2B$1.2B$1.5B$1.6B
United States$917.0M$808.0M$683.0M$655.0M$656.0M$941.0M
Japan$540.0M$572.0M$713.0M$448.0M$525.0M$623.0M
Europe$330.0M$252.0M$160.0M$220.0M$221.0M$347.0M
Southeast Asia$286.0M$135.0M$195.0M$460.0M$335.0M$185.0M

Long-Lived Assets

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
CHINA———$8.0M——
Europe———$155.0M——
JAPAN———$6.0M——
KOREA, REPUBLIC OF———$9.0M——
Southeast Asia———$21.0M——
TAIWAN———$67.0M——
UNITED STATES———$5.1B——

Net revenue

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Outside North America$6.3B$6.3B$6.3B$6.3B——

Foreign statutory income tax rate

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Singapore4.3%4.3%4.3%4.3%——

Business Segments

Accounts receivable

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems$4.8B$4.9B—$3.7B$3.7B$4.8B
Applied Global Services$1.1B$1.2B—$1.3B$1.2B$1.3B

CapEx

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems$107.0M$118.0M——$76.0M$120.0M
Applied Global Services$4.0M$19.0M——$10.0M$14.0M

Costs of products sold

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems$2.6B$2.5B——$2.3B$2.7B
Applied Global Services$916.0M$944.0M——$1.0B$1.1B

D&A

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems$69.0M$73.0M——$81.0M$101.0M
Applied Global Services$12.0M$12.0M——$14.0M$16.0M

Goodwill

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems$2.6B$2.5B$2.5B$2.5B$2.5B$2.7B
Applied Global Services$964.0M$964.0M$1.0B$1.0B$964.0M$964.0M

Gross margin

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems53.4%53.5%——54.3%54.7%
Applied Global Services32.3%33.5%——34.4%34.7%

Gross Profit

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems$3.0B$2.9B——$2.8B$3.3B
Applied Global Services$437.0M$476.0M——$537.0M$577.0M

Inventories

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems$3.5B$3.7B—$3.4B$4.0B$4.3B
Applied Global Services$1.8B$1.8B—$2.3B$1.8B$1.9B

Legal settlement

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Applied Global Services————$0.0$0.0
Semiconductor Systems————$253.0M—

Operating Income (Loss)

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems$1.9B$1.8B$2.0B$1.5B$1.4B$2.1B
Applied Global Services$336.0M$378.0M$445.0M$454.0M$438.0M$487.0M

Operating margin

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems33.4%32.8%——27.8%35.1%
Applied Global Services24.8%26.6%——28.1%29.2%

Research, development and engineering

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems$734.0M$774.0M——$798.0M$865.0M
Applied Global Services$14.0M$18.0M——$18.0M$20.0M

Restructuring Charges

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Applied Global Services$0.0$0.0$0.0$0.0——
Semiconductor Systems$0.0$0.0$0.0$0.0——

Revenue

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems$5.6B$5.4B$5.4B$4.8B$5.1B$6.0B
Applied Global Services$1.4B$1.4B$1.6B$1.6B$1.6B$1.7B

SG&A

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems$380.0M$345.0M——$316.0M$307.0M
Applied Global Services$87.0M$80.0M——$81.0M$70.0M

Severance and other employee-related charges

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Applied Global Services————$0.0$0.0
Semiconductor Systems————$0.0$0.0

Concentration risk, percentage

SegmentQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Semiconductor Systems100.0%100.0%100.0%—100.0%100.0%