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Applied Materials AMAT Operating margin

Operating margin at other companies

Lam Research logo
Lam ResearchLRCX
34.3%+3.4pp
Entegris logo
EntegrisENTG
14.7%-1.9pp
Amkor Technology logo
Amkor TechnologyAMKR
7.6%+1.3pp
Teradyne, Inc. logo
Teradyne, Inc.TER
26.5%+4.6pp
MKS Instruments logo
MKS InstrumentsMKSI
13.9%+0.1pp
Texas Instruments logo
Texas InstrumentsTXN
35.3%+1.0pp

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
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 operating margin?
Applied Materials (AMAT) reported operating margin of 28.6% in Q1 2026.
How has Applied Materials's operating margin changed year-over-year?
Applied Materials's operating margin decreased by 3.6% year-over-year, from 29.7% to 28.6%.
What is the long-term trend for Applied Materials's operating margin?
Over 4 years (2021 to 2025), Applied Materials's operating margin has grown at a 1.8% compound annual growth rate (CAGR), from 110.1% to 118.2%.
What does operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.