Applied Materials, Inc. (AMAT)
Applied Materials is the essential engine room of the tech world, building the complex machines that chipmakers use to manufacture the world's semiconductors.
Is Applied Materials, Inc. a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Essential role in the global semiconductor supply chain. Worth weighing: High valuation multiples suggest high expectations are already priced in.
Is this normal for this company?
Each figure against the range this same company has produced recently. Neither end of a range is the good end.
Share price divided by the earnings actually reported over the four most recent quarters. The range is the same calculation at each of this company's last few results, so roughly the past year.
Profit as a share of sales, from the company's own quarterly statements. The range covers the 5 quarters we hold, and the figure shown is its most recent one.
How these ranges are built
Every number here is the company's own reported figure, not a comparison with other companies. The ranges come from this company's own results and its share price. Where it reports in a different currency from the one its shares trade in, the price-to-earnings range is left out rather than mixing the two.
What does Applied Materials, Inc. do?
Think of Applied Materials as the 'toolmaker' for the digital age; they don't design the chips themselves, but they provide the highly specialised equipment required to print them. Income arrives from selling these sophisticated machines, plus the ongoing maintenance and software needed to keep them running. Global demand for new chip factories is the thing to track, since their success is tied to how much tech companies spend on expanding their manufacturing capacity.
On our factor screen it looks strongest on quality and momentum, and weakest on value.
- ✓Pays a dividend - about 0.4% a year
- ✓Growing - revenue up about 11% over the year
- ✓Very profitable - turns about 29% of sales into profit
- !High P/E of 49 - big growth is already priced in
- ✓Low debt - a sturdier balance sheet
- ✓Strong return on shareholder money (ROE 40%)
- Quality screens high
- Momentum screens high
- Value screens low
Does Applied Materials, Inc. pay a dividend?
Yes - Applied Materials, Inc. currently pays a dividend of about 0.4% a year, which is £4.10 a year for every £1,000 invested (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it. An ISA doesn't shelter the US tax on this one →
What do the numbers say about Applied Materials, Inc.'s dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
Most recent ex-dividend date: 21 May 2026. To receive a dividend you must already own the shares before the ex-dividend date; become a holder on or after it and the previous owner keeps that payment. Why the price usually falls that morning →
Does Applied Materials, Inc. have more cash or more debt?
It holds about $8.24B in cash against about $7.27B of debt - so it has net cash of about $973.00M. More cash than debt is a cushion: it does not need to borrow just to cover what it owes.
From the latest reported balance sheet. Cash and debt levels change, and some borrowing is normal - this is context, not a judgment.
What do Applied Materials, Inc.'s numbers mean?
How has it performed?
Growth of £1,000, the worst fall, and year by year
Over about 2 years to 2026-09-11. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Applied Materials, Inc. actually fallen?
Over the last 2 years of daily prices, Applied Materials, Inc. fell as much as −41% from a high to a later low. Falls like this are normal when you own a share.
Past falls are not a forecast - it can fall further, or recover.
How has it done year by year?
Calendar-year total return - the share price with dividends reinvested - from adjusted closing prices. The current year is only part-complete. Past returns are not a guide to the future.
A closer look at the numbers
Ownership, earnings history, where the money goes, and the outlook range
Does the share price tell you if it's cheap or expensive?
Who owns Applied Materials, Inc.?
About 85% of Applied Materials, Inc., or about 85 in every 100 shares, is held by big institutions such as pension and index funds. The rest, roughly 15%, is held by the public and smaller investors.
What this does and doesn't tell you
This is a recent snapshot of the share register, and it moves. We don't read anything into who owns what - a high institutional share is common for any large listed company and is not a signal about it.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
How much money does Applied Materials, Inc. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Where does each £100 of Applied Materials, Inc.'s sales go?
A rough split of the latest full-year figures: of every £100 of sales, about £51 covers making the product or service, £20 goes on running costs, tax and interest, and about £29 is left as profit. Margins vary a lot by industry, and one-off items can distort a single year.
When does Applied Materials, Inc. report earnings, and how did recent quarters go?
Applied Materials, Inc. is next scheduled to report on about 2026-11-12 - dates can move, and we don't predict results; this just tells you when to look.
‘Beat’ and ‘missed’ are against what analysts expected, not whether the business is doing well.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-08-13 | $3.39 | $3.50 | Beat +3% |
| 2026-05-14 | $2.69 | $2.86 | Beat +6% |
| 2026-02-12 | $2.21 | $2.38 | Beat +8% |
| 2025-11-13 | $2.09 | $2.17 | Beat +4% |
| 2025-08-14 | $2.36 | $2.48 | Beat +5% |
| 2025-05-15 | $2.31 | $2.39 | Beat +3% |
Across the last 6 quarters here, Applied Materials, Inc. came in ahead of what analysts expected 6 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Where these figures come from
Each quarter a company reports its results against a consensus of analyst forecasts. The figures here are reported versus expected earnings per share from published results; the expectation is that analyst consensus, not our view. Report dates are estimates and can move.
What are the scenarios for Applied Materials, Inc.?
An illustrative range for the year ahead — not a prediction or a price target.
What are the pros, cons and common questions?
The case each way, and the questions people ask
Long-term dominance in next-generation chip manufacturing technology
Significant loss of market share to emerging competitors
What are the pros and cons of Applied Materials, Inc.?
A balance check, not a score or verdict.
- Essential role in the global semiconductor supply chain
- Strong profit margins indicating a high-value product
- High return on equity: How much profit the company makes for each £1 shareholders have put in. Higher usually means a more efficient business. showing efficient use of capital
- High valuation multiples suggest high expectations are already priced in
- Very low dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone. offers little income for shareholders
- Business is highly sensitive to the cyclical: A business whose sales and profits rise and fall with the wider economy - booming in good times, sinking in downturns. Miners, carmakers and banks are classic examples. nature of the chip industry
- Geopolitical tensions affecting global trade and supply chains
- Potential for a slowdown in capital spending by major chipmakers
- High share price volatility compared to the broader market
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained decline in global semiconductor manufacturing investment
- Loss of technological leadership to a rival equipment manufacturer
Common questions about Applied Materials, Inc.
Does Applied Materials, Inc. pay a dividend?
Yes - Applied Materials, Inc. currently pays a dividend of about 0.4% a year. Dividends are a share of profit paid to holders; the yield moves with the price and payouts can be cut.
When does Applied Materials, Inc. report earnings next?
Applied Materials, Inc. is next scheduled to report results on about 2026-11-12. Report dates are estimates and can move; this is a diary note for when to look, not a forecast of the outcome.
More in Technology
Lam Research
SanDisk
NXP Semiconductors N.V.
Seagate Technology Holdings plc
Apple Inc.
TE Connectivity plc
Analog Devices, Inc.
Cisco Systems, Inc.Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.