Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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Applied Materials Inc., consolidated income statement
US$ in millions
Based on: 10-K (reporting date: 2025-10-26), 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25).
- Revenue and Profitability Trends
- The company exhibited a consistent increase in net revenue over the six-year period, growing from $17,202 million in 2020 to $28,368 million in 2025. Correspondingly, gross profit improved steadily, rising from $7,692 million to $13,808 million. This indicates effective revenue growth accompanied by maintained or improved gross margin levels.
- Cost of Products Sold
- Cost of products sold increased from $9,510 million in 2020 to $14,560 million in 2025, which is less steep than the revenue increase. This suggests a possible improvement in cost efficiency or economies of scale, contributing positively to gross profit expansion.
- Operating Expenses
- Operating expenses, encompassing research, development and engineering (R&D), marketing and selling, general and administrative expenses, showed a rising trend. R&D expenses increased from $2,234 million to $3,570 million, reflecting significant investment in innovation. Marketing and selling expenses rose from $526 million to $858 million, and general and administrative expenses grew from $567 million to $910 million (noting a slight dip in 2025 compared to 2024). The overall operating expenses rose from $3,327 million to $5,519 million. This escalation aligns with business expansion but may pressure operating margins.
- Restructuring and One-Time Charges
- Restructuring charges appeared intermittently, with notable expenses of $157 million in 2021 and $181 million in 2025, and a positive adjustment of $4 million in 2022. A one-time deal termination fee of $154 million was recorded in 2021, impacting that year's financials. These irregular charges should be considered when analyzing operational efficiency and trends.
- Income from Operations and Net Income
- Income from operations showed substantial growth, increasing from $4,365 million in 2020 to $8,289 million in 2025, approximately doubling over the period. Net income followed a generally positive trajectory, rising from $3,619 million in 2020 to a peak of $7,177 million in 2024, then slightly declining to $6,998 million in 2025. The slight dip in the final year suggests possible challenges impacting profitability.
- Interest and Other Income/Expense
- Interest expense remained relatively stable, increasing modestly from $240 million to $269 million, which suggests steady debt levels or borrowing costs. In contrast, interest and other income (expense), net, showed notable growth, particularly after 2022, surging from $39 million to $1,251 million by 2025. This significant increase in non-operating income positively influenced overall profitability.
- Income Before Taxes and Tax Provision
- Income before income taxes rose significantly from $4,166 million in 2020 to $9,271 million in 2025, reflecting strong profitability growth. However, the provision for income taxes did not display a consistent pattern; it increased from $547 million to $2,273 million, with some fluctuations in interim years. The sharp increase in tax provision in 2025 contributed to the minor decrease in net income despite higher pre-tax earnings.
- Summary of Financial Health
- Overall, the company demonstrated robust growth in revenue and operating profitability between 2020 and 2025, supported by sustained investments in R&D and controlled increases in operating expenses. The increase in non-operating income enhanced total earnings, although irregular charges and rising tax expenses introduced some variability in the final net income figures. The trends suggest a strong operational foundation with investments aimed at future growth, tempered by occasional one-time costs and increased tax burdens.