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Applied Materials AMAT Standard Product Warranty Accrual

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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$418.8B+193%
Enterprise value$424.57B+186%
P/E49.2×+28.3×
P/S14.4×+9.4×

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:ProductWarrantyAccrualClassifiedCurrent.

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
Line itemApril 26,2026October 26,2025
Accounts Payable and Accrued Expenses
Accounts payable$2,197$1,978
Compensation and employee benefits9661,221
Warranty326346
Dividends payable421365
Income taxes payable357380
Operating lease liabilities, current11491
Restructuring reserve23165

Item 1. Financial Statements (Unaudited)

FAQ

What is Applied Materials's standard product warranty accrual?
Applied Materials (AMAT) reported standard product warranty accrual of $326M in Q1 2026.
How has Applied Materials's standard product warranty accrual changed year-over-year?
Applied Materials's standard product warranty accrual decreased by 11.9% year-over-year, from $370M to $326M.
What is the long-term trend for Applied Materials's standard product warranty accrual?
Over 5 years (2020 to 2025), Applied Materials's standard product warranty accrual has grown at a 11.5% compound annual growth rate (CAGR), from $201M to $346M.

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