Applied Materials (AMAT) stock
Information Technology · Semiconductor Materials & Equipment
Applied Materials (AMAT) is a Semiconductor Materials & Equipment company in the Information Technology sector, headquartered in Santa Clara, California. As of October 23, 2026, AMAT closed at $377.24, a market capitalization of $299.38 billion, the 36th largest company in the S&P 500. Over the last twelve months it generated $30.84 billion in revenue (+25% year over year) and $5.62 billion in free cash flow. The stock trades at 32.5x trailing earnings and 20.4x forward earnings.
- 1-year total return: +66.0% (dividends reinvested)
- 5-year return: +23.7% a year
- 52-week range: $203.40 – $739.67
- Gross margin 49.4%, operating margin 33.7%
- Dividend yield: 0.56%, 8 straight years of increases
- FI Handbook report card: B+ across 10 metrics
- 12th largest of 75 Information Technology stocks in the S&P 500
AMAT price chart
1Y price change: +65.1% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| AMAT | -20.5% | +47.3% | +66.0% | +42.2% | +23.7% | +30.9% | +20.3% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1980.
AMAT key statistics
- Market cap
- $299.4B
- #36 in S&P 500
- P/E (TTM)
- 32.5x
- Forward P/E
- 20.4x
- EPS (TTM)
- $11.59
- Revenue (TTM)
- $30.8B
- +25%
- Free cash flow
- $5.6B
- Gross margin
- 49.4%
- Operating margin
- 33.7%
- Return on equity
- 41.1%
- Dividend yield
- 0.56%
- 52-week range
- $203.40 – $739.67
- Beta
- 1.59
- Price / sales
- 9.7x
- EV / EBITDA
- 29.3x
- Debt / equity
- 0.29x
- Employees
- 38,900
AMAT report card
B+Ten fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth24.8%A
- Gross margin49.4%B
- Operating margin33.7%A
- FCF margin18.2%B
- Return on equity41.1%A
- Net debt / EBITDA-0.2xA
- Forward P/E20.4xC
- PEG ratio0.8xA
- Shareholder yield2.2%C
- Share count change / yr-2.6%A
Applied Materials financials
Revenue went from $10.8B in fiscal 2016 to $28.4B in fiscal 2025, growing 11.3% a year.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $10.8B | $14.7B | $16.7B | $14.6B | $17.2B | $23.1B | $25.8B | $26.5B | $27.2B | $28.4B |
| Gross profit | $4.5B | $6.6B | $7.5B | $6.4B | $7.7B | $10.9B | $12.0B | $12.4B | $12.9B | $13.8B |
| Operating income | $2.2B | $3.9B | $4.5B | $3.4B | $4.4B | $6.9B | $7.8B | $7.7B | $7.9B | $8.3B |
| Net income | $1.7B | $3.5B | $3.0B | $2.7B | $3.6B | $5.9B | $6.5B | $6.9B | $7.2B | $7.0B |
| EPS (diluted) | $1.54 | $3.25 | $2.96 | $2.86 | $3.92 | $6.40 | $7.44 | $8.11 | $8.61 | $8.66 |
| Free cash flow | $2.3B | $3.4B | $3.2B | $2.8B | $3.4B | $4.8B | $4.6B | $7.6B | $7.5B | $5.7B |
| Buybacks | $1.9B | $1.2B | $5.3B | $2.4B | $649.0M | $3.8B | $6.1B | $2.2B | $3.8B | $4.9B |
| Dividends paid | $444.0M | $430.0M | $605.0M | $771.0M | $787.0M | $838.0M | $873.0M | $975.0M | $1.2B | $1.4B |
| Diluted shares | 1.1B | 1.1B | 1.0B | 945.0M | 923.0M | 919.0M | 877.0M | 845.0M | 834.0M | 808.0M |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into AMAT?
A reverse DCF asks what growth the current price requires. With an enterprise value of $297.5B and $5.6B of trailing free cash flow, Applied Materials needs to grow free cash flow about 36.1% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew 11.0% a year over the last five years.
P/E ratio history
Current 43.6x vs. median 20.3x (10th–90th percentile 13.1x–87.2x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
AMAT dividend
- Dividend yield
- 0.56%
- Annual dividend
- $2.12
- Years of increases
- 8
- 5-yr dividend growth
- 15.4%
- per year
- Payout ratio
- 16%
- Payments per year
- 4
Regular dividends per share by calendar year; special dividends excluded. Current year omitted until complete.
AMAT analyst price targets
36 analysts' average 12-month target is $627.83 (+66% vs. $377.24). Targets range from $358.00 to $900.00. 85% rate it a buy.
AMAT earnings
Next report: November 12, 2026. Applied Materials has beaten EPS estimates 8 quarters in a row. Last quarter's revenue was $9.1B (+25% year over year).
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Aug 13, 2026 | $3.39 | $3.50 | +3.1% |
| May 14, 2026 | $2.69 | $2.86 | +6.5% |
| Feb 12, 2026 | $2.21 | $2.38 | +7.9% |
| Nov 13, 2025 | $2.09 | $2.17 | +3.6% |
| Aug 14, 2025 | $2.36 | $2.48 | +5.1% |
| May 15, 2025 | $2.31 | $2.39 | +3.5% |
| Feb 13, 2025 | $2.30 | $2.38 | +3.7% |
| Nov 14, 2024 | $2.19 | $2.32 | +5.7% |
Stocks like AMAT
| Name | Today | 1Y | Mkt cap | P/E | |
|---|---|---|---|---|---|
 LRCX Lam Research | -0.02% | +57% | $288.0B | 34.3x | Compare |
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AMAT news
- Applied Materials Sinks 17% in a Week After a Forecast-Free Investor Day: “Tremendous Confidence” · Oct 24, 2026
- Applied Materials (AMAT) Stock Could Be 35% Above Fair Value After AI Manufacturing News · Oct 23, 2026
- Applied Materials Stock Is Down 48% From Its Peak. Here’s What Its 50%-Growth Inspection Business Means for Shares · Oct 23, 2026
- AMAT vs. LRCX: Which Stock Has an Edge in the WFE Space? · Oct 23, 2026
- Albert Invent Welcomes Applied Ventures as Investor · Oct 23, 2026
AMAT stock FAQ
What is AMAT's market cap?
Applied Materials's market capitalization is $299.38 billion as of October 23, 2026, ranking 36th in the S&P 500.
What is AMAT's P/E ratio?
AMAT trades at a trailing price-to-earnings ratio of 32.5x and a forward P/E of 20.4x. Its median P/E over the period we track is 20.3x.
Does AMAT pay a dividend?
Yes. Applied Materials pays $2.12 per share a year, a 0.56% yield. It has raised its dividend 8 years in a row. Dividends grew 15.4% a year over the last five years.
How much has AMAT stock returned?
Including reinvested dividends, AMAT returned +66.0% over one year, +23.7% a year over five years, +30.9% a year over ten years through October 23, 2026.
Is AMAT stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies Applied Materials must grow free cash flow about 36% a year for the next decade. Its free cash flow grew 11% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
What is the AMAT price target?
36 analysts cover AMAT with an average 12-month price target of $627.83, +66% from the current price. 85% of them rate it a buy.
When does AMAT report earnings?
Applied Materials is expected to report earnings on November 12, 2026. It has beaten EPS estimates 8 quarters in a row.
How many employees does Applied Materials have?
Applied Materials has about 38,900 full-time employees, or $792,725 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology