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Applied Materials Inc

appliedmaterials.com

What Do They Do?

Builds equipment for making semiconductor chips and provides services and factory software to semiconductor manufacturers.

How Do They Make Money?

Chipmakers buy equipment and spare parts, with most payment due within a set period after shipment and some due upon technical acceptance. Service agreements are provided over time, typically within 12 months, and payment is generally due after service is performed.

revenue

Segment	Share	Revenue	How money arrives
Semiconductor Systems Sold outright	73% FY2022: 73%		Sold outright
Applied Global Services	23% FY2022: 22%

Who Are Their Customers?

Semiconductor wafer and chip makers and other electronic-device manufacturers buy equipment, services and spare parts directly.

Customers above 10% of revenue, FY2025

of revenue from two customers (19%, 15%)

FY2023: 34% from two customers

Do Revenues Turn Into Profits?

Yes. It kept 25 cents of every revenue dollar as net income in FY2025 and turned 20 cents into free cash flow.

Operating income, FY2025

29% of revenue

▲ +5% vs FY2024 ($7.9B, 29%)

Net income, FY2025

25% of revenue

▼ −2% vs FY2024 ($7.2B, 26%)

Free cash flow, FY2025

20% of revenue

▼ −24% vs FY2024 ($7.5B, 28%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q3 FY2026, the three months to Jul 26, 2026

Revenue: ▲ +25%; vs $7.3B in Q3 FY2025
Net income: ▲ +43%; vs $1.8B in Q3 FY2025

Semiconductor Systems share of revenue vs 76.2% in Q3 FY2025

Growing. Revenue grew 23% in 4 years, from $23.1B in FY2021 to $28.4B in FY2025, about 5% a year.

Revenue over time

Semiconductor Systems Applied Global Services Display and Adjacent Markets Display

$50B$25B$0

FY2021 FY2022 FY2023 FY2024 FY2025