How does Applied Materials (AMAT) make money?

Applied Materials (AMAT) generates revenue primarily from Semiconductor Systems, which accounted for 71.6% of total revenue in TTM through Q2 2026. The company reported $29B in revenue and converted 29.3% of it into net profit, equivalent to roughly $8.51B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Applied Materials (AMAT)?

Applied Materials (AMAT) reported a gross profit margin of 49% in TTM through Q2 2026, equivalent to $14.2B in gross profit on $29B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Applied Materials (AMAT)?

Applied Materials (AMAT) reported an operating profit margin of 29.5% in TTM through Q2 2026, equivalent to $8.56B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Applied Materials (AMAT)?

Applied Materials (AMAT) reported a net profit margin of 29.3% in TTM through Q2 2026, equivalent to $8.51B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Applied Materials (AMAT) profitable?

Yes. Applied Materials (AMAT) reported $8.51B in net income for TTM through Q2 2026, with a net profit margin of 29.3%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Applied Materials (AMAT) invest in research and development?

Applied Materials (AMAT) invested $3.77B in research and development during TTM through Q2 2026, roughly 13.0% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Applied Materials (AMAT) spend on capital expenditures?

Applied Materials (AMAT) spent $2.03B on capital expenditures (CapEx) during TTM through Q2 2026, roughly 7.0% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Applied Materials (AMAT) generate?

Applied Materials (AMAT) generated $5.97B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 20.6%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Applied Materials (AMAT)?

Applied Materials (AMAT) had an effective tax rate of 18.1% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Applied Materials (AMAT)?

Applied Materials (AMAT) reports revenue across 4 reportable product segments, led by Semiconductor Systems at 71.6% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Applied Materials (AMAT) generate most of its revenue?

CHINA is the largest geographic market for Applied Materials (AMAT), accounting for 30% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Applied Materials Makes Money: 2026 Visual Revenue Map

Applied Materials (AMAT) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending April 26, 2026 (reported May 21, 2026).

Applied Materials (AMAT) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Applied Materials (AMAT), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Semiconductor Systems	$20.8B	71.6%
Applied Global Services	$6.3B	21.7%
Corporate & Other	$1.68B	5.8%
Display and Adjacent Markets	$257M	0.9%
Total	$29B	100%

Semiconductor Systems$20.8B
Applied Global Services$6.3B
Corporate & Other$1.68B
Display and Adjacent Markets$257M
Total$29B

Applied Materials (AMAT) Revenue by Geography — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Applied Materials (AMAT), TTM through Q2 2026
Region	Revenue (USD)	% of total
CHINA	$8.69B	30%
TAIWAN, PROVINCE OF CHINA	$7.55B	26%
KOREA, REPUBLIC OF	$5.41B	18.6%
UNITED STATES	$2.94B	10.1%
JAPAN	$2.31B	8%
Southeast Asia	$1.18B	4%
Europe	$948M	3.3%
Total	$29B	100%

CHINA
TAIWAN, PROVINCE OF CHINA
KOREA, REPUBLIC OF
UNITED STATES
JAPAN
Southeast Asia
Europe
Total

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Applied Materials (AMAT) reports revenue across 4 reportable product segments; the largest segment was Semiconductor Systems at 71.6%, followed by Applied Global Services (21.7%) and Corporate & Other (5.8%). Geographically, CHINA accounted for 30% of revenue, followed by TAIWAN, PROVINCE OF CHINA (26%) and KOREA, REPUBLIC OF (18.6%).

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