Applied Materials, Inc.
AMAT Technology Semiconductor Equipment & Materials
Applied Materials, Inc.’s revenue for fiscal 2025 (year ended October 2025) was $28.4 billion, up 4.39% from fiscal 2024. In the quarter to July 2026, revenue grew 24.8%, EPS grew 43.5%, free cash flow grew 13.7% and total debt rose 4.50%, each against the same quarter a year earlier. Member of the S&P 500 and Nasdaq 100; dividend growth for ten consecutive years, revenue growth for five.
Follow AMAT
Applied Materials, Inc. (AMAT) Altman Z-score
Applied Materials, Inc.'s Altman Z-score for fiscal 2025 is 11.17, in the safe zone (above 2.99).
Altman Z-score, annual
Embed this chart
Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 11.17 | 1.31 |
| FY2024 | 9.86 | 1.08 |
| FY2023 | 8.78 | 1.31 |
| FY2022 | 7.47 | (2.00) |
| FY2021 | 9.47 | 3.11 |
| FY2020 | 6.36 | 0.03 |
| FY2019 | 6.33 | 0.58 |
| FY2018 | 5.75 | (1.14) |
| FY2017 | 6.89 | 1.18 |
| FY2016 | 5.71 | 1.42 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.35 | — | 0.43 | |
| Retained earnings / total assets | 1.52 | — | 2.13 | |
| EBIT / total assets | 0.23 | — | 0.75 | |
| Market value of equity / total liabilities | 11.80 | — | 7.08 | |
| Sales / total assets | 0.78 | — | 0.78 | |
| Altman Z-score | Safe zone | 11.17 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 10.17 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| LRCX Lam Research Corporation compare | 34.2× |
| KLAC KLA Corporation compare | 23.1× |
| ONTO Onto Innovation Inc. compare | 19.0× |
| TER Teradyne, Inc. compare | 15.1× |
| AMAT Applied Materials, Inc. | 11.2× |
| ASML ASML Holding N.V. compare | 9.1× |
| AMKR Amkor Technology, Inc. compare | 3.4× |
| ENTG Entegris, Inc. compare | 2.7× |
| Q Qnity Electronics, Inc. compare | 2.2× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets
More on AMAT
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- Piotroski F-score
- Beneish M-score
- The full statement