Short answer
Applied Materials (AMAT) filed its fiscal 2025 10-K annual report with the SEC on Dec 12, 2025. It reported revenue of $28.4B (+4.4% year over year) and net income of $7.0B.
- Top risk flagged: U.S. export control regulations on semiconductor tech to China, including expanded licensing and "Entity List" restrictions, limiting market access and increasing compliance costs
FY2025 key financial metrics · XBRL
- Revenue
- $28.4B
- +4.4% YoY
- Net income
- $7.0B
- −2.5% YoY
- Operating margin
- 29.2%
- +0.3 pp YoY
- Gross margin
- 48.7%
- +1.2 pp YoY
- EPS (diluted)
- $8.66
- +0.6% YoY
- ROE
- 34.3%
- −3.5 pp YoY
- Operating cash flow
- $8.0B
- −8.3% YoY
Source: XBRL data from the Applied Materials (AMAT) FY2025 10-K on SEC EDGAR. USD.
Applied Materials FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: manufacturing equipment, services, and software for semiconductor, display, and related industries
- Increased R&D spend to $3.57B in FY2025, up 10.5% YoY, reflecting investment in technology development
- Property, plant, and equipment net increased 38% to $4.61B, indicating capital expansion in manufacturing capacity
- Net revenue $28.37B in FY2025, up 4.4% YoY; gross profit rose to $13.81B, signaling steady operational growth
- Significant stock repurchases totaling $4.89B in FY2025, notably higher than prior years, reducing outstanding shares to 793 million
Management Discussion & Analysis
- Revenue $28.37B, up 4% YoY ($1.19B), driven by Semiconductor Systems +4% ($887M) and AGS +3% ($160M)
- Operating margin 29.2% vs 28.9%, driven by Semiconductor Systems margin 35.5% vs 35.1%, AGS margin down 28.1% vs 29.1%
- Best segment: Semiconductor Systems $7.38B operating income, +6%; Worst segment: AGS $1.79B operating income, -1%
- Cash flow: Operating $7.96B, Investing $(2.78)B capex $2.3B, Financing $(5.98)B including $4.9B buybacks, $1.4B dividends
- Outlook: Continued strong semiconductor equipment demand; risks from export regulations, trade policies; investing in technology, new market expansion
Risk Factors
- U.S. export control regulations on semiconductor tech to China, including expanded licensing and "Entity List" restrictions, limiting market access and increasing compliance costs
- Geopolitical risk from 89% net revenue outside U.S., especially China, Taiwan, and Korea, exposed to trade restrictions, tariffs, and export license delays
- Supply chain vulnerability to rare earth mineral export controls by China in 2025, impacting critical materials for manufacturing and risking production delays
- Competitive threat from local Chinese and Korean companies favored by domestic policies promoting local semiconductor industries
- Customer concentration risk with a limited number of major customers predominantly in China, Taiwan, Korea, increasing revenue volatility and bad debt exposure
Generated from the filing text; verify against the original. How to read a 10-K
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