AMAT Filings — Applied Materials Inc /de - FilingSpy
AMAT
Applied Materials Inc /de
A maker of the machines that build microchips, Applied Materials engineers the equipment and software used to fabricate nearly every chip in the world, from smartphone processors to memory chips, selling to foundries and memory makers. Founded in 1967 by Michael McNeilly, it began by supplying the specialized tools that chipmakers once built for themselves, and its name reflects its original job of "applying" chemical materials to silicon wafers—even its early logo featured a flask. Based in Santa Clara, it is one of the world's largest semiconductor equipment companies, with its tools supporting everything from transistors to advanced packaging.
Revenue rose 25% to $9.1B and gross margin crossed 50% for the first time in the reported series.
crossed 50% for the first time in the reported series. rose 25% to $9.1B and rose 38% to $3.1B as grew 27% on leading-edge foundry/logic and DRAM demand. The company is now growing at its fastest quarterly pace in the series, with the main open question being whether that demand holds.
Key takeaways
reached 50.3%, up 1.5 points , on higher , higher average selling prices, lower material and manufacturing costs, and favorable product mix.
rose 27% on stronger foundry/logic demand for leading-edge technologies and higher DRAM investments, partially offset by lower trailing-edge logic demand in the nine-month period.
rose 22% on higher long-term service agreement revenue and customer spares spending.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 revenue rose 25% to $9.1B with gross margin up 1.5 points to 50.3%.
⌄
Total rose 25% in Q3 to $9,115M and 11% in the first nine months to $24,037M, led by growth of 27% and 10%, respectively.
rose 38% to $3,075M, with widening 3.2 points to 33.7%.
was $3,037M in the quarter, up 15% and up from $845M in Q2, while rose to $2,330M from $210M in the prior quarter.
The company holds $6.5B in senior unsecured notes and faces change-of-control obligations if the notes are downgraded below .
What changed
Q2 FY2026 flagged after the 10% rebound to confirm DRAM and foundry/logic demand holds — Q3 delivered 27% growth, the fastest in the reported series.
Q2 FY2026 flagged next-quarter after the 80.2% drop to $210M — Q3 free cash flow rose to $2,330M, up from $210M sequentially.
Q2 FY2026 flagged the as global minimum tax and OBBBA deferred-asset limits take effect — Q3 rose 43% to $2,538M, with at $3.17.
Q2 FY2026 flagged China and further export-control actions after the $253M BIS settlement — the risk factors in this filing state export restrictions have already limited markets and revenue, and tariff increases including China's rare-earth export controls raise costs and disrupt supply chains.
What to watch
Q4 FY2026 against the 27% Q3 growth rate to see if leading-edge foundry/logic and DRAM demand holds.
Next-quarter against the 50.3% Q3 level to see if the pricing and cost tailwinds persist.
China and any further export-control or tariff actions after the BIS settlement and rare-earth export controls.
in Q4 as global minimum tax rules and OBBBA deferred-asset limits continue to take effect.
was driven by stronger foundry/logic demand for leading-edge technologies and higher DRAM investments, partially offset by lower trailing-edge logic demand in the nine-month period.
AGS rose 22% in Q3 and 18% in the nine months on higher long-term service agreement revenue and customer spares spending.
increased to 50.3% in Q3 and 49.8% in the nine months on higher , higher average selling prices, lower material and manufacturing costs, and favorable product mix.
rose to $3,075M in Q3 and $7,429M in the nine months; the nine-month period included a $253M export-controls legal settlement charge and $12M of .
was $5,568M for the nine months, with $2.0B of , $1.2B of stock repurchases, and $1.2B of dividends paid; total cash and investments were $14.5B at quarter-end.
Quantitative and Qualitative Disclosures About Market Risk
Company reports interest-rate and foreign-currency exposures, with sensitivity estimates for investments, debt, and hedging contracts.
⌄
totaled about $5.0 billion at July 26, 2026; a 100 rate increase would cut their by roughly $49 million.
Long-term senior unsecured notes had $5.3 billion in aggregate principal and an estimated of $4.7 billion, excluding associated .
A 100 decrease in rates would raise the of the long-term senior notes by approximately $390 million at July 26, 2026.
The company uses or to mitigate benchmark-rate impacts on and cash flows; a 100 rate increase would reduce the of these hedging contracts by $34 million.
Foreign currency exposure includes Japanese yen, Israeli shekel, euro, and Taiwanese dollar, with hedges used to reduce but not eliminate exchange-rate impacts.
A hypothetical 10% adverse move in foreign exchange rates versus the U.S. dollar would decrease the of foreign currency hedging contracts by $301 million at July 26, 2026.
The company uses foreign currency forward and option contracts to hedge anticipated non-U.S. dollar revenues and expenses within the next 24 months and states it does not use them for trading or speculative purposes.
The information set forth under “Legal Matters” in Note 13 of the Notes to Consolidated Condensed Financial Statements is incorporated herein by reference. See also “Risk Factors – Legal, Compliance, and Other Risks – We are exposed to risks related to legal proceedings, claims…
⌄
The information set forth under “Legal Matters” in Note 13 of the Notes to Consolidated Condensed Financial Statements is incorporated herein by reference. See also “Risk Factors – Legal, Compliance, and Other Risks – We are exposed to risks related to legal proceedings, claims and investigations.” in Part II, Item 1A, “Risk Factors.”
46
Table of Contents
Export controls, tariffs, AI-driven demand swings, and customer concentration dominate the risk landscape for Q3 FY2026.
⌄
U.S. export restrictions on semiconductor technology sold to China have already limited markets and , and the company paid BIS $253 million in Q2 FY2026 to settle an export-controls inquiry.
Tariff increases and trade disputes, including China's rare-earth export controls, raise costs, disrupt supply chains, and could reduce customer demand for the company's products.
AI is a major demand driver but makes forecasting difficult; misjudging demand could lead to excess , underutilized capacity, and margin pressure.
A highly concentrated customer base, especially in China, Taiwan, and Korea, exposes results to volatility from a single customer's order changes or financial deterioration.
Global minimum tax rules materially increased foreign taxes starting in Q1 FY2026, and the One Big Beautiful Bill Act may impair use of certain .
The company holds $6.5 billion in and faces change-of-control obligations if the notes are downgraded below .