Short answer
Applied Materials (AMAT) filed its Q1 2026 10-Q quarterly report on Feb 19, 2026 for the quarter ended Jan 25, 2026. Quarterly revenue was $7.0B (down 2.1% year over year) with net income of $2.0B.
Q1 2026 key financials · XBRL
- Revenue
- $7.0B
- −2.1% YoY
- Net income
- $2.0B
- +71.0% YoY
- Operating margin
- 26.1%
- Gross margin
- 49.0%
- EPS (diluted)
- $2.54
- +75.2% YoY
Source: XBRL data from the Applied Materials (AMAT) Q1 2026 10-Q on SEC EDGAR. USD.
Applied Materials Q1 2026 10-Q analysis
AI summary of MD&A and risk factor updates
Management Discussion & Analysis
- Revenue $7.01B, down 2% YoY vs $7.17B, primarily due to lower Semiconductor Systems sales partly offset by higher Applied Global Services revenue
- Operating margin 26.1% vs 30.4% YoY, down 4.3 points due to legal settlement charge, lower revenue, and increased RD&E expenses
- Best segment: Applied Global Services revenue up 15% to $1.56B with operating margin improving to 28.1% from 24.8% YoY; worst: Semiconductor Systems revenue down 8% to $5.14B, operating margin declined to 27.8% from 33.4% YoY
- Cash from operations $1.69B; capital expenditures $646M; stock repurchases $337M; cash dividends $365M; total cash, cash equivalents and investments increased to $13.48B from $12.9B
- Management highlights stronger DRAM spending, shift to subscription services in AGS, export control compliance settlement, and expects continued dividends with $13.6B stock repurchase capacity remaining
Risk Factors
- New legal risk: $253M settlement with U.S. Commerce over China export control violations signed Feb 11, 2026, with ongoing compliance obligations
- Material update on trade risks: Expanded U.S. export license rules and entity list for China impacting market access and increasing regulatory complexity
- Most impactful compliance risk: Evolving global export regulations and U.S. restrictions on semiconductor technology sales to China may limit sales and increase competition
- Operational risk: Supply chain disruptions from geopolitical tensions, rare earth export restrictions by China, and semiconductor component shortages risk delivery delays
- Financial risk: $6.5B senior unsecured notes outstanding, risk of repurchase upon change of control and downgrade; $4.1B credit facilities currently unused but available
Generated from the filing text; verify against the original. 10-K vs 10-Q vs 8-K
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