Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Applied Materials Inc., profitability ratios (quarterly data)
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).
- Gross Profit Margin
- The gross profit margin demonstrates a generally upward trend over the periods analyzed. Starting at 43.81% in early 2020, it gradually rises to reach 48.5% by mid-2025. There are minor fluctuations observed around late 2022 and early 2023, where the margin slightly decreases but then recovers, indicating sustained improvement in production efficiency or pricing power over time.
- Operating Profit Margin
- The operating profit margin shows significant growth from 23.2% in early 2020 to a peak near 31.8% in mid-2022. Following this peak, there is a modest decline and stabilization around 29% to 30%, suggesting the company encountered some increased operating costs or pressure on operating income but maintained strong operating profitability throughout the timeline.
- Net Profit Margin
- Net profit margin trends upwards from 18.83% in early 2020 to a high of around 27.2% by mid-2022. However, it subsequently declines to the low to mid-20% range by early 2025, with some short-term improvement towards the mid-2025 period. This pattern may reflect fluctuations in non-operating expenses, taxes, or other factors impacting the bottom line beyond operating performance, with profitability remaining solid but with some variability towards the later periods.
- Return on Equity (ROE)
- The return on equity exhibits a strong increasing trend through the first half of the timeline, rising from 32.64% in early 2020 to a peak above 58% by mid-2022. Post-peak, the ROE steadily decreases to around 35% by mid-2025, implying either reduced profitability relative to equity or changes in financial leverage. Despite the decline, the company maintains a high ROE, indicating efficient utilization of shareholder capital overall.
- Return on Assets (ROA)
- Return on assets increases markedly from 14.3% in early 2020 to its peak near 26.5% by mid-2022, suggesting improved asset efficiency. Following the peak, ROA trends downward gradually, ending near 20% by mid-2025, indicating some reduction in asset profitability but still reflecting strong asset utilization across the reporting periods.
Return on Sales
Return on Investment
Gross Profit Margin
Applied Materials Inc., gross profit margin calculation (quarterly data)
| 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Gross profit | 3,562) | 3,485) | 3,496) | 3,335) | 3,205) | 3,153) | 3,204) | 3,169) | 2,976) | 3,094) | 3,145) | 3,101) | 3,006) | 2,927) | 2,959) | 2,945) | 2,967) | 2,653) | 2,349) | 2,130) | 1,955) | 1,749) | 1,858) | |||||||
| Net revenue | 7,302) | 7,100) | 7,166) | 7,045) | 6,778) | 6,646) | 6,707) | 6,723) | 6,425) | 6,630) | 6,739) | 6,749) | 6,520) | 6,245) | 6,271) | 6,123) | 6,196) | 5,582) | 5,162) | 4,688) | 4,395) | 3,957) | 4,162) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Gross profit margin1 | 48.50% | 48.14% | 47.73% | 47.46% | 47.41% | 47.18% | 46.98% | 46.70% | 46.40% | 46.35% | 46.39% | 46.51% | 47.05% | 47.51% | 47.67% | 47.32% | 46.69% | 45.83% | 44.96% | 44.72% | 44.23% | 44.04% | 43.81% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 48.26% | 47.62% | 50.09% | 49.35% | 48.38% | 47.61% | 46.76% | 46.12% | 45.01% | 43.70% | 43.98% | 44.93% | 46.55% | 48.01% | 48.53% | 48.25% | 46.82% | 45.71% | 44.79% | — | — | — | — | |||||||
| Analog Devices Inc. | 60.15% | 58.76% | 57.16% | 57.08% | 57.85% | 59.84% | 62.47% | 64.01% | 65.23% | 65.69% | 65.62% | 62.70% | 58.63% | 58.33% | 57.81% | 61.83% | 68.04% | 67.36% | 66.37% | — | — | — | — | |||||||
| Broadcom Inc. | 66.83% | 66.09% | 64.70% | 63.03% | 63.90% | 65.05% | 67.06% | 68.93% | 68.28% | 67.71% | 66.98% | 66.55% | 65.68% | 64.42% | 62.95% | 61.36% | 60.18% | 58.98% | 57.54% | 56.58% | 55.70% | 55.21% | 55.32% | |||||||
| Intel Corp. | 35.58% | 29.76% | 31.67% | 32.66% | 34.67% | 41.42% | 41.49% | 40.04% | 38.14% | 38.27% | 38.34% | 42.61% | 46.56% | 49.85% | 54.32% | 55.45% | 56.27% | 55.59% | 54.62% | — | — | — | — | |||||||
| KLA Corp. | 60.56% | 59.68% | 59.75% | 59.97% | 59.57% | 59.76% | 59.44% | 59.81% | 60.16% | 60.69% | 61.23% | 61.00% | 60.86% | 60.77% | 60.27% | 59.93% | 59.38% | 58.80% | 58.43% | — | — | — | — | |||||||
| Lam Research Corp. | 48.03% | 47.60% | 47.47% | 47.32% | 46.84% | 45.23% | 44.80% | 44.62% | 44.65% | 45.31% | 45.74% | 45.69% | 45.93% | 46.30% | 46.19% | 46.53% | 46.49% | 46.59% | 46.43% | — | — | — | — | |||||||
| Micron Technology Inc. | 37.13% | 34.73% | 30.92% | 22.35% | 11.42% | -0.32% | -14.49% | -9.11% | 9.03% | 27.51% | 41.34% | 45.18% | 46.89% | 45.81% | 41.37% | 37.62% | 33.66% | 30.70% | 31.37% | — | — | — | — | |||||||
| NVIDIA Corp. | 75.86% | 75.98% | 75.29% | 72.72% | 69.85% | 64.62% | 56.31% | 56.93% | 57.84% | 60.45% | 65.26% | 64.93% | 64.40% | 63.76% | 62.43% | 62.34% | 62.62% | 62.84% | 63.47% | — | — | — | — | |||||||
| Qualcomm Inc. | 55.68% | 55.68% | 55.99% | 56.21% | 55.90% | 55.80% | 55.54% | 55.70% | 56.31% | 56.46% | 57.22% | 57.84% | 57.99% | 58.51% | 58.16% | 57.51% | 59.82% | 59.99% | 60.17% | — | — | — | — | |||||||
| Texas Instruments Inc. | 57.48% | 58.03% | 58.02% | 58.14% | 58.63% | 59.36% | 61.01% | 62.90% | 64.46% | 66.29% | 67.64% | 68.76% | 69.51% | 69.26% | 68.68% | 67.47% | 66.36% | 65.46% | 64.70% | — | — | — | — | |||||||
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).
1 Q3 2025 Calculation
Gross profit margin = 100
× (Gross profitQ3 2025
+ Gross profitQ2 2025
+ Gross profitQ1 2025
+ Gross profitQ4 2024)
÷ (Net revenueQ3 2025
+ Net revenueQ2 2025
+ Net revenueQ1 2025
+ Net revenueQ4 2024)
= 100 × (3,562 + 3,485 + 3,496 + 3,335)
÷ (7,302 + 7,100 + 7,166 + 7,045)
= 48.50%
2 Click competitor name to see calculations.
- Net Revenue Trend
- Net revenue demonstrates a consistent upward trajectory from early 2020 through the projected periods in 2025. Starting at 4,162 million USD in the first quarter of 2020, it increases to 6,739 million USD by the first quarter of 2023, reflecting robust growth. Despite minor fluctuations in certain quarters, such as a slight dip in mid-2023 and early 2024, the overall trend remains strongly positive, culminating in a forecasted revenue of 7,302 million USD by the third quarter of 2025.
- Gross Profit Evolution
- Gross profit follows a similar positive progression corresponding to the increases in net revenue. Initial gross profit recorded at 1,858 million USD increases steadily, with some variability in interim quarters, reaching 3,562 million USD as projected for the third quarter of 2025. The gross profit figures generally track with revenue growth, although some quarters reveal minor short-term fluctuations indicating possible changes in cost structures or sales mix.
- Gross Profit Margin Analysis
- The gross profit margin exhibits a clear upward trend over the periods observed. Beginning at 43.81% in early 2020, the margin consistently improves, surpassing 47% by mid-2021 and sustaining increases thereafter. Notably, the margin reaches approximately 48.5% by late 2025 projections. This improvement suggests enhanced operational efficiency, better cost management, or favorable pricing dynamics contributing to a higher proportion of revenue retained as gross profit.
- Overall Financial Performance Summary
- The financial data indicates sustained growth and improving profitability margins over nearly five years. Both revenue and gross profit increase substantially, accompanied by a rising gross profit margin that signals increasing efficiency or stronger market positioning. Minor quarterly variations notwithstanding, the consistent upward movement reflects positively on the company’s operational and financial health, suggesting effective management and favorable market conditions driving continued expansion and improved profit generation.
Operating Profit Margin
Applied Materials Inc., operating profit margin calculation (quarterly data)
| 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Income from operations | 2,233) | 2,169) | 2,175) | 2,046) | 1,942) | 1,912) | 1,967) | 1,971) | 1,802) | 1,911) | 1,970) | 1,994) | 1,924) | 1,894) | 1,976) | 2,014) | 2,013) | 1,579) | 1,283) | 1,283) | 1,108) | 932) | 1,042) | |||||||
| Net revenue | 7,302) | 7,100) | 7,166) | 7,045) | 6,778) | 6,646) | 6,707) | 6,723) | 6,425) | 6,630) | 6,739) | 6,749) | 6,520) | 6,245) | 6,271) | 6,123) | 6,196) | 5,582) | 5,162) | 4,688) | 4,395) | 3,957) | 4,162) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | 30.14% | 29.66% | 29.22% | 28.95% | 29.02% | 28.87% | 28.89% | 28.86% | 28.92% | 29.28% | 29.64% | 30.20% | 31.03% | 31.80% | 31.37% | 29.87% | 28.47% | 26.49% | 25.30% | 25.37% | 24.26% | 23.58% | 23.20% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 8.78% | 7.66% | 9.62% | 7.37% | 5.64% | 3.74% | 2.55% | 1.77% | -0.41% | -1.73% | 0.73% | 5.36% | 11.48% | 16.83% | 20.86% | 22.20% | 20.27% | 18.83% | 16.23% | — | — | — | — | |||||||
| Analog Devices Inc. | 24.61% | 22.71% | 20.76% | 21.56% | 21.63% | 24.23% | 28.34% | 31.07% | 33.43% | 33.06% | 32.15% | 27.29% | 20.49% | 20.42% | 18.87% | 23.12% | 31.59% | 30.06% | 28.83% | — | — | — | — | |||||||
| Broadcom Inc. | 37.72% | 35.94% | 32.35% | 26.10% | 27.93% | 30.84% | 36.50% | 45.25% | 45.00% | 45.19% | 44.23% | 42.84% | 40.47% | 37.37% | 34.35% | 31.03% | 28.16% | 24.83% | 20.81% | 16.80% | 15.27% | 14.85% | 15.90% | |||||||
| Intel Corp. | -4.46% | -22.84% | -20.57% | -21.99% | -17.52% | -0.83% | 0.89% | 0.17% | -6.86% | -7.01% | -6.16% | 3.70% | 12.16% | 18.88% | 25.87% | 24.62% | 25.93% | 26.00% | 26.17% | — | — | — | — | |||||||
| KLA Corp. | 38.10% | 35.37% | 34.78% | 34.10% | 33.27% | 34.30% | 37.20% | 38.06% | 39.00% | 39.86% | 40.05% | 39.67% | 39.30% | 38.90% | 37.26% | 35.97% | 34.43% | 28.42% | 27.28% | — | — | — | — | |||||||
| Lam Research Corp. | 30.85% | 29.50% | 28.89% | 28.61% | 28.03% | 27.08% | 28.42% | 29.69% | 30.76% | 31.76% | 31.71% | 31.24% | 31.18% | 31.60% | 31.06% | 30.64% | 29.55% | 28.68% | 28.02% | — | — | — | — | |||||||
| Micron Technology Inc. | 22.59% | 19.76% | 15.83% | 5.19% | -7.91% | -22.77% | -41.18% | -36.97% | -15.14% | 8.73% | 25.27% | 31.54% | 34.38% | 31.86% | 27.17% | 22.68% | 17.60% | 15.21% | 15.19% | — | — | — | — | |||||||
| NVIDIA Corp. | 62.71% | 61.87% | 59.85% | 54.12% | 45.94% | 33.04% | 17.37% | 15.66% | 20.79% | 26.93% | 33.69% | 37.31% | 35.34% | 33.36% | 28.62% | 27.18% | 27.17% | 27.13% | 29.41% | — | — | — | — | |||||||
| Qualcomm Inc. | 27.78% | 27.14% | 26.29% | 25.85% | 23.83% | 23.35% | 22.74% | 21.74% | 26.03% | 30.91% | 33.66% | 35.88% | 35.82% | 32.65% | 30.88% | 29.16% | 31.74% | 30.35% | 29.04% | — | — | — | — | |||||||
| Texas Instruments Inc. | 34.33% | 34.89% | 34.29% | 34.94% | 35.78% | 37.03% | 39.78% | 41.85% | 44.03% | 46.54% | 48.77% | 50.63% | 51.84% | 51.52% | 50.55% | 48.84% | 47.02% | 45.19% | 42.73% | — | — | — | — | |||||||
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).
1 Q3 2025 Calculation
Operating profit margin = 100
× (Income from operationsQ3 2025
+ Income from operationsQ2 2025
+ Income from operationsQ1 2025
+ Income from operationsQ4 2024)
÷ (Net revenueQ3 2025
+ Net revenueQ2 2025
+ Net revenueQ1 2025
+ Net revenueQ4 2024)
= 100 × (2,233 + 2,169 + 2,175 + 2,046)
÷ (7,302 + 7,100 + 7,166 + 7,045)
= 30.14%
2 Click competitor name to see calculations.
- Income from operations
- The income from operations exhibited a general upward trend from early 2020 through mid-2025. Starting at $1,042 million in January 2020, the figure experienced fluctuations but mostly increased, reaching a peak of $2,233 million by July 2025. Notable growth phases occurred between early 2021 and mid-2021, where income rose sharply from $1,283 million to $2,013 million. Afterward, income stabilized with minor fluctuations, maintaining a level above $1,900 million consistently from early 2022 onwards.
- Net revenue
- Net revenue showed a steady increase over the observed period. From $4,162 million in January 2020, there was a consistent decade-over-quarter growth, culminating in $7,302 million by July 2025. Despite occasional small declines or plateaus, such as a modest dip in early to mid-2023 and between early 2024 and mid-2025, the overall trajectory was positive. Significant jumps appeared notably in 2021 and early 2022, signaling periods of strong sales performance.
- Operating profit margin
- The operating profit margin generally improved throughout the period, advancing from 23.2% in January 2020 to above 30% by mid-2025. The margin rose steadily from the low 20% range in early 2020 to about 29.8% near the end of 2021. From early 2022 onward, it fluctuated around 29% to 31%, eventually reaching 30.14% by July 2025. This indicates an enhancement in operational efficiency and profitability relative to revenue, with margins stabilizing at a relatively high level in the later periods.
- Overall insights
- The data reflects robust financial growth characterized by increased net revenue and income from operations over the analyzed timeframe. The improving operating profit margin suggests better cost control or pricing strategies that enhanced profitability. Despite some short-term fluctuations, the consistent uptrend in core financial metrics points to sustained business expansion and operational effectiveness. The late stabilization of operating margins around 30% aligns with mature profitability in the company’s operations.
Net Profit Margin
Applied Materials Inc., net profit margin calculation (quarterly data)
| Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income | 1,779) | 2,137) | 1,185) | 1,731) | 1,705) | 1,722) | 2,019) | 2,004) | 1,560) | 1,575) | 1,717) | 1,591) | 1,606) | 1,536) | 1,792) | 1,712) | 1,716) | 1,330) | 1,130) | 1,131) | 841) | 755) | 892) | |||||||
| Net revenue | 7,302) | 7,100) | 7,166) | 7,045) | 6,778) | 6,646) | 6,707) | 6,723) | 6,425) | 6,630) | 6,739) | 6,749) | 6,520) | 6,245) | 6,271) | 6,123) | 6,196) | 5,582) | 5,162) | 4,688) | 4,395) | 3,957) | 4,162) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | 23.88% | 24.06% | 22.95% | 26.41% | 27.74% | 27.56% | 27.03% | 25.86% | 24.27% | 24.36% | 24.57% | 25.31% | 26.42% | 27.20% | 27.10% | 25.53% | 24.54% | 22.35% | 21.19% | 21.04% | 19.58% | 18.89% | 18.83% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 10.32% | 9.57% | 8.03% | 6.36% | 7.52% | 5.82% | 4.89% | 3.77% | 0.94% | -0.11% | 1.71% | 5.59% | 9.96% | 14.51% | 17.98% | 19.24% | 26.72% | 25.76% | 25.24% | — | — | — | — | |||||||
| Analog Devices Inc. | 18.85% | 18.65% | 16.75% | 17.35% | 17.07% | 20.45% | 24.34% | 26.94% | 29.23% | 28.16% | 27.27% | 22.88% | 17.00% | 16.84% | 15.18% | 19.00% | 26.15% | 25.16% | 23.99% | — | — | — | — | |||||||
| Broadcom Inc. | 31.59% | 22.64% | 18.47% | 11.43% | 10.88% | 24.10% | 29.93% | 39.31% | 39.25% | 39.06% | 37.19% | 34.62% | 31.96% | 29.76% | 27.47% | 24.54% | 22.90% | 19.11% | 16.01% | 12.39% | 10.70% | 10.97% | 11.64% | |||||||
| Intel Corp. | 0.37% | -38.64% | -36.19% | -35.32% | -29.42% | 1.77% | 7.36% | 3.11% | -3.11% | -1.71% | -5.06% | 12.71% | 19.13% | 26.03% | 31.68% | 25.14% | 26.89% | 23.91% | 23.93% | — | — | — | — | |||||||
| KLA Corp. | 31.99% | 29.58% | 28.92% | 28.15% | 27.19% | 27.98% | 30.51% | 32.27% | 33.01% | 33.77% | 33.28% | 36.06% | 36.41% | 36.57% | 36.52% | 30.04% | 28.77% | 22.52% | 21.76% | — | — | — | — | |||||||
| Lam Research Corp. | 27.19% | 26.49% | 26.02% | 25.68% | 25.35% | 24.15% | 25.08% | 25.88% | 26.08% | 26.91% | 26.96% | 26.73% | 27.13% | 27.78% | 27.07% | 26.72% | 26.07% | 24.85% | 23.60% | — | — | — | — | |||||||
| Micron Technology Inc. | 18.41% | 14.92% | 13.34% | 3.10% | -7.20% | -20.57% | -42.47% | -37.54% | -16.02% | 6.99% | 22.78% | 28.24% | 30.61% | 28.95% | 24.86% | 21.16% | 16.20% | 13.60% | 13.59% | — | — | — | — | |||||||
| NVIDIA Corp. | 55.69% | 55.04% | 53.40% | 48.85% | 42.09% | 31.59% | 18.52% | 16.19% | 20.85% | 26.03% | 32.02% | 36.23% | 33.81% | 32.33% | 27.66% | 25.98% | 25.89% | 25.94% | 28.18% | — | — | — | — | |||||||
| Qualcomm Inc. | 26.76% | 26.11% | 25.94% | 26.03% | 23.33% | 23.03% | 21.39% | 20.19% | 22.33% | 25.67% | 27.40% | 29.27% | 30.52% | 28.42% | 27.71% | 26.94% | 28.25% | 27.28% | 25.21% | — | — | — | — | |||||||
| Texas Instruments Inc. | 29.21% | 30.23% | 30.36% | 30.68% | 31.60% | 33.01% | 35.16% | 37.16% | 39.21% | 40.84% | 42.33% | 43.68% | 44.21% | 43.78% | 43.34% | 42.35% | 41.61% | 40.12% | 40.04% | — | — | — | — | |||||||
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).
1 Q3 2025 Calculation
Net profit margin = 100
× (Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025
+ Net incomeQ4 2024)
÷ (Net revenueQ3 2025
+ Net revenueQ2 2025
+ Net revenueQ1 2025
+ Net revenueQ4 2024)
= 100 × (1,779 + 2,137 + 1,185 + 1,731)
÷ (7,302 + 7,100 + 7,166 + 7,045)
= 23.88%
2 Click competitor name to see calculations.
The financial data reflects the quarterly performance over multiple years, highlighting key metrics such as net income, net revenue, and net profit margin.
- Net Income
-
Net income demonstrates an overall growth trend from early 2020 through 2025, with fluctuations that suggest some periods of volatility. Starting at 892 million USD in January 2020, net income generally rises, reaching peaks above 2000 million USD in late 2023 and early 2025. There are occasional declines or stabilization phases, notably in mid-2022 and throughout parts of 2024, indicating potential influences from market conditions or operational challenges. The significant jump observed in the quarter ending October 2023 (2004 million USD) and a subsequent peak in April 2025 (2137 million USD) points to strong profitability in those respective periods.
- Net Revenue
-
Net revenue reveals a consistent upward trajectory, demonstrating steady sales growth over the time span. Beginning just above 4.1 billion USD in early 2020, revenue increases to exceed 7.3 billion USD by the middle of 2025. While there are mild short-term fluctuations—such as a slight dip in early 2023—the general pattern indicates expanding market reach and business scaling. Revenue growth appears relatively stable and less volatile compared to net income, which may indicate effective revenue management and expanding operations.
- Net Profit Margin
-
The net profit margin displays a positive trend overall, highlighting improvements in operational efficiency or profitability management. Starting near 19% in early 2020, the margin increases steadily through 2021 and 2022, reaching a high above 27% in 2022 and maintaining values mostly above 24% thereafter. Minor decreases occur intermittently but the margin remains robust, fluctuating around 25% to 27% in most recent quarters. Notably, the margin declines somewhat during 2024, falling close to 23%, suggesting compression possibly due to increased costs or pricing pressures, but still reflects a relatively healthy profit ratio.
In summary, the data shows growth in revenue and net income over the observed periods, with net profit margins indicating strong and improving profitability, albeit with some short-term variations. The company appears to have enhanced its earnings capacity and operational efficiency, especially notable during peak periods in 2023 and early 2025, while maintaining consistent revenue growth throughout.
Return on Equity (ROE)
Applied Materials Inc., ROE calculation (quarterly data)
| 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income | 1,779) | 2,137) | 1,185) | 1,731) | 1,705) | 1,722) | 2,019) | 2,004) | 1,560) | 1,575) | 1,717) | 1,591) | 1,606) | 1,536) | 1,792) | 1,712) | 1,716) | 1,330) | 1,130) | 1,131) | 841) | 755) | 892) | |||||||
| Stockholders’ equity | 19,504) | 18,961) | 18,625) | 19,001) | 18,840) | 18,199) | 17,429) | 16,349) | 15,093) | 14,129) | 13,420) | 12,194) | 12,070) | 11,579) | 11,890) | 12,247) | 12,060) | 11,993) | 11,473) | 10,578) | 9,569) | 9,024) | 8,660) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | 35.03% | 35.64% | 34.06% | 37.77% | 39.54% | 40.14% | 41.07% | 41.94% | 42.69% | 45.93% | 48.06% | 53.51% | 55.06% | 58.35% | 55.09% | 48.08% | 44.00% | 36.95% | 33.62% | 34.21% | 33.30% | 32.31% | 32.64% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 5.44% | 4.75% | 3.85% | 2.85% | 3.20% | 2.39% | 1.99% | 1.53% | 0.38% | -0.05% | 0.72% | 2.41% | 4.17% | 5.67% | 6.13% | 42.18% | 55.62% | 48.63% | 44.51% | — | — | — | — | |||||||
| Analog Devices Inc. | 5.74% | 5.23% | 4.46% | 4.65% | 4.70% | 6.07% | 7.92% | 9.32% | 10.45% | 10.06% | 9.39% | 7.54% | 5.15% | 4.43% | 3.43% | 3.66% | 13.87% | 12.83% | 11.63% | — | — | — | — | |||||||
| Broadcom Inc. | 25.84% | 18.56% | 14.43% | 8.71% | 7.76% | 14.68% | 16.55% | 58.70% | 63.03% | 62.20% | 54.90% | 50.62% | 48.50% | 42.58% | 34.09% | 26.99% | 24.94% | 20.40% | 16.49% | 12.40% | 10.54% | 10.48% | 10.83% | |||||||
| Intel Corp. | 0.19% | -20.95% | -19.24% | -18.89% | -16.04% | 0.85% | 3.84% | 1.60% | -1.61% | -0.91% | -2.91% | 7.90% | 13.32% | 18.88% | 23.87% | 20.83% | 23.42% | 21.78% | 23.30% | — | — | — | — | |||||||
| KLA Corp. | 92.27% | 89.51% | 83.33% | 82.00% | 84.34% | 88.92% | 103.76% | 116.01% | 130.76% | 136.01% | 156.01% | 237.04% | 77.19% | 73.76% | 70.61% | 61.53% | 59.60% | 46.59% | 46.99% | — | — | — | — | |||||||
| Lam Research Corp. | 48.98% | 48.75% | 47.89% | 44.82% | 45.00% | 42.06% | 49.36% | 54.94% | 58.49% | 61.71% | 65.45% | 73.35% | 75.35% | 70.88% | 73.28% | 64.85% | 64.42% | 53.86% | 48.15% | — | — | — | — | |||||||
| Micron Technology Inc. | 12.27% | 9.61% | 8.30% | 1.72% | -3.48% | -8.59% | -16.02% | -13.22% | -6.41% | 3.41% | 12.55% | 17.41% | 20.12% | 18.86% | 16.04% | 13.34% | 9.77% | 7.86% | 7.51% | — | — | — | — | |||||||
| NVIDIA Corp. | 95.71% | 91.15% | 86.68% | 69.24% | 56.78% | 37.54% | 19.55% | 19.76% | 27.90% | 32.45% | 35.93% | 36.65% | 34.49% | 33.48% | 28.37% | 25.64% | 24.95% | 24.36% | 25.34% | — | — | — | — | |||||||
| Qualcomm Inc. | 42.55% | 39.82% | 39.27% | 38.60% | 35.31% | 34.27% | 33.67% | 33.51% | 41.68% | 53.52% | 62.58% | 71.81% | 80.15% | 83.73% | 88.12% | 90.88% | 112.56% | 108.05% | 91.17% | — | — | — | — | |||||||
| Texas Instruments Inc. | 30.33% | 30.73% | 29.70% | 28.39% | 28.75% | 30.86% | 34.78% | 38.53% | 42.70% | 48.22% | 54.16% | 60.02% | 61.52% | 60.86% | 58.62% | 58.27% | 60.23% | 60.30% | 60.73% | — | — | — | — | |||||||
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).
1 Q3 2025 Calculation
ROE = 100
× (Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025
+ Net incomeQ4 2024)
÷ Stockholders’ equity
= 100 × (1,779 + 2,137 + 1,185 + 1,731)
÷ 19,504 = 35.03%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in net income, stockholders’ equity, and return on equity (ROE) over the reported periods.
- Net Income
- Net income shows a general upward trend from early 2020 through late 2023, increasing from 892 million US dollars in January 2020 to a peak of 2004 million in October 2023. Although some fluctuations occur, such as a decline in early 2022 and a dip in early 2025, the overall pattern indicates growth in profitability. Notable spikes appear around mid-2021 and late 2023, suggesting periods of enhanced earnings performance.
- Stockholders’ Equity
- Stockholders’ equity consistently increased throughout the entire timeline, growing from 8660 million US dollars in January 2020 to 19504 million in July 2025. This steady growth reflects ongoing capital accumulation and retained earnings, supporting the firm’s enhanced equity base and possibly bolstering financial stability. Minor variations in the quarterly increases do not interrupt the general upward trajectory.
- Return on Equity (ROE)
- ROE levels are notably high throughout the periods analyzed, starting at 32.64% in January 2020 and reaching a peak of 58.35% in May 2022. After this peak, ROE gradually declines but remains robust above 30%, settling around mid-30s in the latest periods. This pattern indicates the company’s strong ability to generate returns on equity, though the peak and subsequent gradual decline may reflect changes in net income growth relative to the expanding equity base.
Overall, the company exhibits increasing net income and stockholders’ equity over the long term, corresponding with a generally high but slightly declining ROE after a mid-period peak. This suggests expanding financial resources and profitability, balanced by the effects of equity growth on return efficiency. The data portrays sound financial health with volatility in quarterly earnings and returns but a solid upward trend in equity capital.
Return on Assets (ROA)
Applied Materials Inc., ROA calculation (quarterly data)
| 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income | 1,779) | 2,137) | 1,185) | 1,731) | 1,705) | 1,722) | 2,019) | 2,004) | 1,560) | 1,575) | 1,717) | 1,591) | 1,606) | 1,536) | 1,792) | 1,712) | 1,716) | 1,330) | 1,130) | 1,131) | 841) | 755) | 892) | |||||||
| Total assets | 34,211) | 33,632) | 33,338) | 34,409) | 33,647) | 31,949) | 31,540) | 30,729) | 30,410) | 29,092) | 27,959) | 26,726) | 26,161) | 25,459) | 25,428) | 25,825) | 24,479) | 24,085) | 23,305) | 22,353) | 21,171) | 21,815) | 19,767) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | 19.97% | 20.09% | 19.03% | 20.86% | 22.14% | 22.86% | 22.69% | 22.31% | 21.19% | 22.31% | 23.07% | 24.41% | 25.40% | 26.54% | 25.76% | 22.80% | 21.68% | 18.40% | 16.55% | 16.19% | 15.05% | 13.37% | 14.30% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 4.30% | 3.79% | 3.11% | 2.37% | 2.62% | 1.99% | 1.64% | 1.26% | 0.31% | -0.04% | 0.58% | 1.95% | 3.35% | 4.64% | 5.07% | 25.46% | 35.59% | 32.14% | 28.70% | — | — | — | — | |||||||
| Analog Devices Inc. | 4.06% | 3.87% | 3.26% | 3.39% | 3.41% | 4.38% | 5.82% | 6.79% | 7.60% | 7.32% | 6.83% | 5.46% | 3.75% | 3.23% | 2.50% | 2.66% | 7.86% | 7.23% | 6.56% | — | — | — | — | |||||||
| Broadcom Inc. | 11.43% | 7.85% | 6.09% | 3.56% | 3.03% | 5.86% | 6.54% | 19.33% | 19.44% | 19.10% | 17.54% | 15.69% | 14.20% | 12.45% | 10.69% | 8.91% | 8.00% | 6.47% | 5.14% | 3.90% | 3.13% | 3.08% | 3.26% | |||||||
| Intel Corp. | 0.10% | -10.65% | -9.99% | -9.55% | -8.25% | 0.47% | 2.11% | 0.88% | -0.87% | -0.50% | -1.54% | 4.40% | 7.61% | 11.21% | 13.96% | 11.80% | 12.56% | 12.00% | 12.35% | — | — | — | — | |||||||
| KLA Corp. | 24.33% | 21.39% | 18.92% | 17.90% | 17.45% | 18.95% | 21.95% | 24.07% | 25.64% | 25.79% | 24.99% | 26.37% | 26.21% | 25.57% | 24.46% | 20.23% | 18.68% | 13.93% | 13.85% | — | — | — | — | |||||||
| Lam Research Corp. | 23.33% | 21.64% | 20.77% | 20.42% | 19.75% | 18.41% | 21.43% | 24.02% | 25.55% | 26.68% | 25.91% | 26.78% | 27.37% | 27.51% | 27.40% | 24.59% | 22.64% | 19.28% | 17.33% | — | — | — | — | |||||||
| Micron Technology Inc. | 7.94% | 6.40% | 5.43% | 1.12% | -2.32% | -5.73% | -10.78% | -9.08% | -4.43% | 2.42% | 9.11% | 13.11% | 15.18% | 14.17% | 12.02% | 9.96% | 7.38% | 5.91% | 5.59% | — | — | — | — | |||||||
| NVIDIA Corp. | 65.69% | 62.20% | 55.27% | 45.28% | 34.88% | 20.84% | 10.78% | 10.61% | 14.71% | 17.80% | 20.92% | 22.07% | 20.20% | 18.32% | 17.30% | 15.05% | 14.23% | 13.46% | 14.27% | — | — | — | — | |||||||
| Qualcomm Inc. | 21.10% | 19.94% | 18.99% | 18.39% | 16.52% | 15.77% | 14.89% | 14.17% | 17.58% | 21.80% | 23.54% | 26.39% | 27.35% | 25.19% | 23.32% | 21.93% | 23.74% | 21.58% | 17.95% | — | — | — | — | |||||||
| Texas Instruments Inc. | 14.41% | 14.43% | 14.44% | 13.51% | 14.06% | 15.16% | 16.93% | 20.12% | 22.44% | 24.85% | 28.25% | 32.16% | 34.25% | 34.69% | 32.51% | 31.48% | 31.45% | 32.64% | 31.44% | — | — | — | — | |||||||
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).
1 Q3 2025 Calculation
ROA = 100
× (Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025
+ Net incomeQ4 2024)
÷ Total assets
= 100 × (1,779 + 2,137 + 1,185 + 1,731)
÷ 34,211 = 19.97%
2 Click competitor name to see calculations.
The financial data over multiple quarters reveals several key trends related to net income, total assets, and return on assets (ROA) for the company.
- Net Income
- The net income shows a general upward trend from early 2020 through late 2023, with some fluctuations. Initially, net income ranged around 700 to 1100 million US dollars in the first few quarters of 2020, then gradually increased, reaching a peak of over 2000 million US dollars in October 2023. After this peak, there is notable volatility with declines and rebounds in subsequent quarters, particularly a decrease to 1185 million US dollars by January 2025 followed by another increase in the following quarters. This pattern suggests periods of strong profitability interspersed with some instability or variability in earnings.
- Total Assets
- Total assets exhibit a consistent and steady increase over the entire period. Starting from just under 20,000 million US dollars in early 2020, assets have progressively grown to over 34,000 million US dollars by mid-2025. This reflects substantial growth in the asset base, indicating ongoing investments or acquisitions, as well as potential business expansion. The growth in total assets appears stable without significant declines or volatility, highlighting a solid capital foundation.
- Return on Assets (ROA)
- ROA shows an overall improving trend from early 2020 until late 2022, rising from approximately 14.3% to a peak above 26%. This indicates increasing efficiency in generating profit from the assets employed. However, following this peak, ROA gradually declines through 2023 into early 2025, settling around 20%. Despite this decline, the ROA remains at relatively high levels compared to the beginning of the period. The decrease suggests some reduction in asset utilization efficiency or increased asset base not matched by proportional net income growth in recent quarters.
In summary, the company’s financial performance reveals solid growth in total assets, generally strong and increasing net income over most of the period with some recent volatility, and a peak followed by a moderate decline in return on assets. This pattern indicates strong historical profitability and asset growth, with some recent challenges in maintaining peak profitability relative to asset size.