How has Applied Materials's semiconductor systems — gross profit changed year-over-year?

Applied Materials's semiconductor systems — gross profit increased by 13.0% year-over-year, from $2.89B to $3.26B.

What does semiconductor systems — gross profit mean?

This is the difference between the Semiconductor Systems segment revenue and the direct costs of products sold. It measures the core profitability of the manufacturing operations before accounting for operating expenses. It reflects the company's pricing power and manufacturing cost control.

Applied Materials (AMAT) Semiconductor Systems — Gross Profit

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Other segment segments

Applied Global Services

$577M+21.2%

Similar metrics at other companies

MCHPSemiconductor products — Gross Profit

$896.3M+64.9%

FORMSystems — Gross Profit

$10.6M-31.7%

SMTCTotal Semiconductor Products — Gross Profit

$123.15M+17.7%

ASYSSemiconductor Fabrication Solutions — Gross Profit

$2.19M-22.1%

TRTSemiconductor Backend Solutions — Gross Profit

$1.97M+37.4%

RKLBSpace Systems — Gross Profit

$48.27M+72.2%

Other financials

Income statement

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Revenue$7.9B+11.4%

Gross profit$3.9B+13.3%

Operating income$2.5B+16.3%

Net income$2.8B+31.3%

EPS (diluted)$3.51+33.5%

Balance sheet

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Cash & equivalents$1.5B+4.0%

Total debt$7.3B+9.0%

Total equity$23.9B+26.1%

Total assets$40.3B+19.8%

Cash flow

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Operating cash flow$845.0M-46.2%

CapEx$635.0M+24.5%

Free cash flow$210.0M-80.2%

Valuation

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Market cap$424.16B+197%

Enterprise value$429.94B+190%

P/E49.9×+28.9×

P/S14.6×+9.6×

Profitability

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Gross margin49%+0.8pp

Operating margin28.6%-1.1pp

Net margin29.3%+5.3pp

FCF margin18.4%-2.5pp

Returns & leverage

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Return on equity39.7%+3.3pp

Debt / equity0.3×0.0×

Current ratio2.5×0.0×

Where this comes from

Reported directly by Applied Materials in its filing.

Tagged under the XBRL concept us-gaap:GrossProfit.

The source filing: Applied Materials’s 10-Q, filed May 21, 2026.

Filed: May 21, 2026, 4:01 PM EDT
Fiscal quarter: Q2 FY2026
Calendar quarter: Q2 2026
Accession: 0001628280-26-037227

Three Months Ended April 26, 2026	Semiconductor Systems / (In millions, except percentages)	Applied Global Services / (In millions, except percentages)	Other / (In millions, except percentages)	Total
Revenue	$5,965	$1,665	$280	$7,910
Cost of products sold	2,701	1,088	174	3,963
Gross profit	$3,264	$577	$106	$3,947
Gross margin	54.7%	34.7%		49.9%
Operating expenses:
Research, development and engineering	865	20	142	1,027
Selling, general and administrative	307	70	20	397
Operating income (loss)	$2,092	$487	$(56)	$2,523

Item 1. Financial Statements (Unaudited)

FAQ

What is Applied Materials's semiconductor systems — gross profit?: Applied Materials (AMAT) reported semiconductor systems — gross profit of $3.26B in Q1 2026.
How has Applied Materials's semiconductor systems — gross profit changed year-over-year?: Applied Materials's semiconductor systems — gross profit increased by 13.0% year-over-year, from $2.89B to $3.26B.
What does semiconductor systems — gross profit mean?: This is the difference between the Semiconductor Systems segment revenue and the direct costs of products sold. It measures the core profitability of the manufacturing operations before accounting for operating expenses. It reflects the company's pricing power and manufacturing cost control.