AMAT APPLIED MATERIALS INC /DE

Overview and Growth

In fiscal 2025, APPLIED MATERIALS INC /DE recorded $28.37B of revenue, net income of $7.00B, and an operating cash inflow of $7.96B. Revenue of $28.37B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 4.4% above fiscal 2024 revenue of $27.18B, marking a year-over-year increase. The company reported diluted EPS of $8.66, adding a shareholder-level measure to the absolute income figures considered below. The per-share result recorded a 0.6% increase from fiscal 2024 diluted EPS of $8.61. Asset turnover was 0.78x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $13.81B as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 48.7% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $8.29B, capturing profitability after direct costs and the operating expenses reflected in the statements. The operating result equaled 29.2% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $7.00B, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 24.7% margin after operating costs and the remaining recognized items. Pretax income was $9.27B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 32.7%, adding a pre-tax profitability layer between revenue and net income. The company recognized $2.27B of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 24.5%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

The company held $36.30B of assets against $15.88B of liabilities and $20.41B of equity, revealing how the asset base was financed. At period end, current assets of $20.88B compared with current liabilities of $8.00B, defining the company’s short-term resource position. At 2.61x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Reported cash and equivalents were $7.24B, separating immediately recognizable cash resources from the rest of the current-asset base. Measured only with cash and equivalents, coverage of current liabilities was 90.5%, excluding receivables and other current assets. The company carried $6.46B of total debt at period end, which frames its leverage and debt-service burden. The debt-to-equity relationship was 0.32x, showing how much debt the company carried for each unit of book equity. Debt represented 17.8% of total assets, placing borrowing in the context of the company’s full resource base. The liabilities-to-assets relationship was 43.8%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 19.9% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

The company reported $7.96B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.14x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $2.26B of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 28.4%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $5.70B, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 20.1% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 15.7%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Oct 26, 2025. Analysis generated Sep 24, 2026.