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Applied Materials, Inc. (AMAT) Operating Margin: 29.22%

Is Applied Materials, Inc.’s operating margin high or low?

Applied Materials, Inc.'s operating margin of 29.22% is in line with its 5-year average of 29.42%, near the low end of its 5-year range (28.86%–30.20%).

The operating margin for Applied Materials, Inc. (AMAT) is 29.22% as of Tuesday, June 9, 2026. It is above its 12-month average by 0.46% (29.09%).

AMAT Operating Margin Chart

AMAT Operating Margin
29.22%+0.93% 1Y
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AMAT Average Operating Margin Chart

AMAT Current vs Average Operating Margin Chart

AMAT Operating Margin Metrics

OPERATING MARGIN

29.22%

OPERATING MARGIN AVG TTM

29.09%

OPERATING MARGIN AVG 3Y

29.31%

OPERATING MARGIN AVG 5Y

29.42%

OPERATING MARGIN AVG 10Y

26.89%

OPERATING MARGIN AVG 15Y

22.43%

OPERATING MARGIN AVG 20Y

20.40%

CURRENT VS TTM AVG

+0.46%

CURRENT VS 3Y AVG

-0.30%

CURRENT VS 5Y AVG

-0.68%

CURRENT VS 10Y AVG

+8.65%

CURRENT VS 15Y AVG

+30.30%

CURRENT VS 20Y AVG

+43.20%

AMAT Competitors' Operating Margin

NAMEMARKET CAPOPERATING MARGINTTM3Y5Y
Applied Materials, Inc. (AMAT)29.22%29.09%29.31%29.42%
Lam Research Corporation (LRCX)$409.14B32.01%30.31%30.10%30.44%
Arm Holdings plc American Depositary Shares (ARM)$345.65B18.46%19.55%16.87%17.43%
Cisco Systems, Inc. (CSCO)$474.39B20.76%21.70%24.21%24.52%
Palantir Technologies Inc. (PLTR)$303.24B31.59%21.21%9.84%-15.79%
KLA Corporation (KLAC)$279.46B43.11%40.08%39.47%37.36%
Texas Instruments Incorporated (TXN)$262.68B34.06%34.50%40.37%41.85%
International Business Machines Corporation (IBM)$260.81B15.29%15.67%15.18%13.52%
Intel Corporation (INTC)$542.41B-0.04%-11.01%-4.54%1.29%
Marvell Technology, Inc. (MRVL)$233.47B16.33%1.92%-0.61%-3.16%

Operating Efficiency

Gross Margin

48.7%

Operating Margin

29.2%

Applied Materials, Inc. Operating Margin Formula & Definition

Operating Margin = Operating Income / Revenue

Operating margin is the percentage of revenue remaining after operating expenses, reflecting operating efficiency.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

Applied Materials, Inc. Operating Margin FAQ

What is the operating margin for Applied Materials, Inc. (AMAT)?
The operating margin for AMAT stock is 29.22%.
Is Applied Materials, Inc.'s operating margin high or low?
Applied Materials, Inc.'s operating margin of 29.22% is in line with its 5-year average of 29.42%, near the low end of its 5-year range (28.86%–30.20%).
What is the TTM average operating margin for Applied Materials, Inc. (AMAT)?
The TTM average operating margin for AMAT stock is 29.09%.
What is the 3Y average operating margin for Applied Materials, Inc. (AMAT)?
The 3Y average operating margin for AMAT stock is 29.31%.
What is the 5Y average operating margin for Applied Materials, Inc. (AMAT)?
The 5Y average operating margin for AMAT stock is 29.42%.
What is the 10Y average operating margin for Applied Materials, Inc. (AMAT)?
The 10Y average operating margin for AMAT stock is 26.89%.
What is the 15Y average operating margin for Applied Materials, Inc. (AMAT)?
The 15Y average operating margin for AMAT stock is 22.43%.
What is the 20Y average operating margin for Applied Materials, Inc. (AMAT)?
The 20Y average operating margin for AMAT stock is 20.40%.

Applied Materials, Inc. Operating Margin History

DATEOPERATING MARGIN
2025-10-2629.22%
2024-10-2728.95%
2023-10-2928.86%
2022-10-3030.20%
2021-10-3129.87%
2020-10-2525.37%
2019-10-2722.93%
2018-10-2826.88%
2017-10-2926.78%
2016-10-3019.88%
2015-10-2517.53%
2014-10-2616.75%
2013-10-275.75%
2012-10-2812.55%
2011-10-3022.80%
2010-10-3114.49%
2009-10-25-7.85%
2008-10-2616.67%
2007-10-2824.36%
2006-10-2915.80%
2005-10-3020.71%
2004-10-3122.01%
2003-10-26-7.01%
2002-10-274.15%
2001-10-2812.67%
2000-10-2930.82%
1999-10-3119.22%
1998-10-2517.14%
1997-10-2616.96%
1996-10-2722.40%

About Applied Materials, Inc.

Applied Materials, Inc. is a prominent provider of crucial manufacturing equipment, associated services, and software solutions. These offerings primarily cater to the semiconductor, display, and related high-technology industries. The company organizes its activities into three principal business segments: 1. Semiconductor Systems: This division is dedicated to the development, production, and sale of sophisticated manufacturing tools essential for fabricating semiconductor chips, also known as integrated circuits. Its comprehensive suite of technologies includes epitaxy, ion implantation, oxidation/nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective deposition and removal processes, in addition to precision metrology and inspection instruments. 2. Applied Global Services: This segment delivers integrated solutions aimed at maximizing the performance and productivity of manufacturing facilities and their equipment. Its services encompass providing spare parts, system upgrades, maintenance support, refurbished older-generation equipment, and advanced factory automation software for semiconductor, display, and other product lines. 3. Display and Adjacent Markets: This unit focuses on supplying products for the creation of various display technologies. This includes manufacturing solutions for liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display types, which are integral to a broad spectrum of consumer electronics such as televisions, computer monitors, laptops, personal computers, electronic tablets, and smartphones. Founded in 1967, Applied Materials, Inc. maintains its corporate headquarters in Santa Clara, California. The company boasts a significant international presence, conducting operations across the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe.

Santa Clara, CA
36,000 employees
Technology / Semiconductors
Sector
Technology
Industry
Semiconductors
CEO
Gary E. Dickerson