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Applied Materials AMAT Semiconductor Systems — Research, development and engineering

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Applied Global Services
$20M+11.1%

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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:ResearchAndDevelopmentExpense.

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, 2026Semiconductor Systems / (In millions, except percentages)Applied Global Services / (In millions, except percentages)Other / (In millions, except percentages)Total
Gross profit$3,264$577$106$3,947
Gross margin54.7%34.7%49.9%
Operating expenses:
Research, development and engineering865201421,027
Selling, general and administrative3077020397
Operating income (loss)$2,092$487$(56)$2,523
Operating margin35.1%29.2%31.9%
Depreciation and amortization$101$16$18$135

Item 1. Financial Statements (Unaudited)

FAQ

What is Applied Materials's semiconductor systems — research, development and engineering?
Applied Materials (AMAT) reported semiconductor systems — research, development and engineering of $865M in Q1 2026.
How has Applied Materials's semiconductor systems — research, development and engineering changed year-over-year?
Applied Materials's semiconductor systems — research, development and engineering increased by 11.8% year-over-year, from $774M to $865M.
What does semiconductor systems — research, development and engineering mean?
This represents the expenses incurred for research, development, and engineering activities specifically allocated to the Semiconductor Systems segment. It reflects the investment in innovation, new product development, and technological advancements required to maintain market leadership. High investment is typically necessary to stay competitive in the WFE industry.

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