AMAT · News · 20261013N

Guidance / Outlook

APPLIED MATERIALS INC /DE · 2026-10-13 · Importance 100 · Surprise 100 · In source text

Applied Materials expects its revenue to double in the coming years by using AI tools for product development, quality control, productivity, and semiconductor-yield improvement without a comparable increase in headcount. The company expects wafer-fabrication-equipment spending to grow faster through 2030 than during the prior decade and targets more than two percentage points of WFE market-share gain from calendar 2025 to 2030. Through 2030, management targets approximately 54% non-GAAP gross margin and approximately 40% non-GAAP operating margin, and expects to distribute 80% to 100% of free cash flow to shareholders over time.

Key facts

• Applied targets a non-GAAP gross margin of approximately 54 percent and a non-GAAP operating margin of approximately 40 percent through 2030. source
• Applied committed to distribute 80 to 100 percent of free cash flow to shareholders over time. source
• At its investor day, Applied Materials declined to provide an industry spending forecast. source
• Applied Materials stock fell over 2% in Tuesday's premarket trading. source
• Applied Materials' stock was down 7.5% at $461.50, recovering from an earlier drop as much as 9% to $452.81. source
• Shares of Applied Materials fell approximately 5.7% to $469.13 following the unveiling of the EPIC Center. source
• Applied Materials shares fell for the sixth consecutive day, dropping 7% after the CEO laid out targets through 2030. source
• Shares of Applied Materials Inc. fell by 6.69% to $464.24 on Tuesday, marking its sixth consecutive day of losses. source

Impact estimates