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Applied Materials AMAT Free cash flow margin

Free cash flow margin at other companies

KLA Corporation logo
KLA CorporationKLAC
30.7%+0.2pp
Lam Research logo
Lam ResearchLRCX
27.7%+5.6pp
Entegris logo
EntegrisENTG
15.6%+7.4pp
Amkor Technology logo
Amkor TechnologyAMKR
2.4%-1.7pp
Teradyne, Inc. logo
Teradyne, Inc.TER
14.6%-6.3pp
MKS Instruments logo
MKS InstrumentsMKSI
9.9%-3.4pp

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$470.75B+157%
Enterprise value$476.53B+151%
P/E55.3×+28.2×
P/S16.2×+9.7×

Profitability

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Gross margin49%+0.8pp
Operating margin28.6%-1.1pp
Net margin29.3%+5.3pp

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

Calculated from Applied Materials’s reported figures.

Based on trailing twelve months.

The official record: Applied Materials’s 10-Q, filed May 21, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Applied Materials's free cash flow margin?
Applied Materials (AMAT) reported free cash flow margin of 18.4% in Q1 2026.
How has Applied Materials's free cash flow margin changed year-over-year?
Applied Materials's free cash flow margin decreased by 11.8% year-over-year, from 20.9% to 18.4%.
What is the long-term trend for Applied Materials's free cash flow margin?
Over 4 years (2021 to 2025), Applied Materials's free cash flow margin has grown at a -0.9% compound annual growth rate (CAGR), from 85.9% to 82.8%.
What does free cash flow margin mean?
How much real, spendable cash each sales dollar generates after reinvestment.
How do you interpret free cash flow margin?
A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.
How does free cash flow margin compare across companies?
Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.