Stock Analysis on Net
Stock Analysis on Net

Applied Materials Inc. (NASDAQ:AMAT)

Common-Size Income Statement 
Quarterly Data

Applied Materials Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jul 27, 2025 Apr 27, 2025 Jan 26, 2025 Oct 27, 2024 Jul 28, 2024 Apr 28, 2024 Jan 28, 2024 Oct 29, 2023 Jul 30, 2023 Apr 30, 2023 Jan 29, 2023 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Jan 30, 2022 Oct 31, 2021 Aug 1, 2021 May 2, 2021 Jan 31, 2021 Oct 25, 2020 Jul 26, 2020 Apr 26, 2020 Jan 26, 2020 Oct 27, 2019 Jul 28, 2019 Apr 28, 2019 Jan 27, 2019
Net revenue 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of products sold -51.22 -50.92 -51.21 -52.66 -52.71 -52.56 -52.23 -52.86 -53.68 -53.33 -53.33 -54.05 -53.90 -53.13 -52.81 -51.90 -52.11 -52.47 -54.49 -54.56 -55.52 -55.80 -55.36 -56.47 -56.29 -56.77 -55.64
Gross profit 48.78% 49.08% 48.79% 47.34% 47.29% 47.44% 47.77% 47.14% 46.32% 46.67% 46.67% 45.95% 46.10% 46.87% 47.19% 48.10% 47.89% 47.53% 45.51% 45.44% 44.48% 44.20% 44.64% 43.53% 43.71% 43.23% 44.36%
Research, development and engineering -12.34 -12.58 -11.99 -12.18 -12.33 -11.81 -11.24 -11.74 -11.94 -11.69 -11.44 -10.76 -10.81 -10.98 -10.43 -10.16 -10.33 -11.05 -11.74 -11.95 -13.01 -13.90 -13.26 -13.72 -14.46 -14.35 -13.75
Marketing and selling -3.07 -3.04 -2.87 -3.05 -3.02 -3.14 -3.09 -2.86 -3.00 -2.93 -2.92 -2.71 -2.76 -2.77 -2.66 -2.53 -2.57 -2.65 -2.85 -2.79 -2.96 -3.29 -3.24 -3.44 -3.59 -3.76 -3.49
General and administrative -2.79 -2.92 -3.57 -3.07 -3.28 -3.72 -4.12 -3.23 -3.33 -3.23 -3.07 -2.93 -3.02 -2.79 -2.65 -2.53 -2.50 -2.67 -3.12 -3.33 -3.30 -3.46 -3.10 -3.36 -3.14 -3.19 -2.93
Severance and related charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.06 0.02 0.00 -0.11 -2.94 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Deal termination fee 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -2.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating expenses -18.20% -18.54% -18.43% -18.30% -18.63% -18.67% -18.44% -17.82% -18.27% -17.84% -17.44% -16.40% -16.60% -16.54% -15.68% -15.20% -15.40% -19.24% -20.65% -18.07% -19.27% -20.65% -19.61% -20.51% -21.20% -21.31% -20.17%
Income from operations 30.58% 30.55% 30.35% 29.04% 28.65% 28.77% 29.33% 29.32% 28.05% 28.82% 29.23% 29.55% 29.51% 30.33% 31.51% 32.89% 32.49% 28.29% 24.85% 27.37% 25.21% 23.55% 25.04% 23.02% 22.52% 21.93% 24.19%
Interest expense -0.90 -0.96 -0.89 -0.94 -0.93 -0.89 -0.88 -0.86 -0.93 -0.92 -0.88 -0.84 -0.86 -0.93 -0.91 -0.93 -0.92 -1.09 -1.18 -1.26 -1.39 -1.54 -1.42 -1.57 -1.63 -1.70 -1.60
Interest and other income (expense), net 5.42 3.11 0.11 -1.21 1.20 2.12 5.89 3.85 1.00 -1.10 0.74 0.18 -0.11 0.45 0.10 0.80 0.39 0.48 0.35 0.41 -0.16 0.18 0.53 0.93 1.07 1.22 1.07
Income before income taxes 35.10% 32.70% 29.57% 26.90% 28.92% 30.00% 34.34% 32.31% 28.11% 26.80% 29.10% 28.88% 28.54% 29.85% 30.70% 32.76% 31.96% 27.68% 24.02% 26.51% 23.66% 22.19% 24.15% 22.38% 21.95% 21.45% 23.66%
Provision for income taxes -10.74 -2.61 -13.03 -2.33 -3.76 -4.09 -4.23 -2.50 -3.83 -3.05 -3.62 -5.30 -3.91 -5.25 -2.12 -4.80 -4.26 -3.85 -2.13 -2.39 -4.53 -3.11 -2.72 -3.78 -5.92 -2.63 -3.12
Net income 24.36% 30.10% 16.54% 24.57% 25.15% 25.91% 30.10% 29.81% 24.28% 23.76% 25.48% 23.57% 24.63% 24.60% 28.58% 27.96% 27.70% 23.83% 21.89% 24.13% 19.14% 19.08% 21.43% 18.59% 16.03% 18.82% 20.54%

Based on: 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-10-25), 10-Q (reporting date: 2020-07-26), 10-Q (reporting date: 2020-04-26), 10-Q (reporting date: 2020-01-26), 10-K (reporting date: 2019-10-27), 10-Q (reporting date: 2019-07-28), 10-Q (reporting date: 2019-04-28), 10-Q (reporting date: 2019-01-27).

Cost of Products Sold and Gross Profit
Over the examined period, the cost of products sold as a percentage of net revenue generally declined from approximately -55.64% to near -51.22%, indicating a moderate improvement in cost efficiency. Correspondingly, the gross profit margin showed a positive trend, increasing from about 44.36% to nearly 48.78%, reflecting enhanced profitability at the gross operating level.
Research, Development, and Engineering Expenses
This expense category demonstrated a gradual decrease in intensity relative to net revenue, decreasing from around -13.75% to roughly -12.34%. Despite some fluctuations, the general decline suggests improved cost management or scaling effects in research and development activities over time.
Marketing and Selling Expenses
Marketing and selling expenses as a percentage of net revenue remained relatively stable, oscillating between approximately -3.59% and -3.07%. This stability indicates consistent investment in marketing efforts relative to revenue throughout the periods analyzed.
General and Administrative Expenses
The general and administrative expenses showed slight variation but were generally stable, fluctuating around -3%. Notably, a peak expense level occurred around the early 2024 period, rising temporarily to -4.12% before settling back to lower levels. This could reflect episodic administrative costs or organizational changes.
Severance and Related Charges and Deal Termination Fees
These special charges appeared sporadically, with severance and related charges noted between late 2020 and early 2021, hitting a peak of almost -2.94%, then quickly tapering off. Deal termination fees were observed as a one-time impact near the end of 2020 at about -2.76%. These items represent non-recurring expenses impacting the operating results during those quarters.
Operating Expenses
Operating expenses as a proportion of net revenue decreased from approximately -20.17% to around -18.2%, indicating an overall improvement in operational cost control or efficiencies achieved during the period.
Income from Operations
There was a notable upward trend in operating income, increasing from roughly 24.19% to over 30% of net revenue. This reflects improved operational profitability, likely driven by cost management measures and enhanced gross margins.
Interest Expense
Interest expenses showed a consistent decline relative to net revenue, moving from about -1.6% to near -0.9%, signaling reduced debt-related costs or improved financing terms.
Interest and Other Income (Expense), Net
This item exhibited considerable volatility over the timeline, including several quarters with negative net figures, but a markedly significant increase occurred in the latter periods, peaking as high as 5.89%. Such fluctuations suggest variability in non-operating income sources or financial activities.
Income Before Income Taxes
Income before taxes consistently rose from about 23.66% to over 35% of net revenue in the most recent periods, paralleling increases in operating income and net non-operating income, indicating strong overall profitability growth.
Provision for Income Taxes
The tax provision as a percentage of net revenue was somewhat erratic, ranging from about -2.12% to spikes near -13.03%, which may indicate changes in tax rates, deferred tax assets or liabilities, or tax strategies influencing effective tax rates.
Net Income
Net income showed a generally positive progression, increasing from around 20.54% early on to a peak near 30.1%, although some declines occurred in interim periods. The overall upward trend suggests strengthened net profitability, reflective of improved operational efficiency, favorable financing costs, and effective tax management.