Applied Materials (AMAT) 10-K risk factor changes: FY2025 vs FY2024

[removed: We are a supplier to] [added: The industries in which we operate, including] the global semiconductor [removed: and display and related industries, which historically] [added: industry,] have [added: historically] been cyclical and are subject to volatility in customer demand.

[removed: Factors that impact demand] [added: Demand] for our products and services [removed: include] [added: is impacted by] technology inflections and advances in fabrication processes, new and emerging technologies and market drivers, [removed: such as demand for high-bandwidth memory and other forms of advanced packaging and technologies related to artificial intelligence and data center computing,] production capacity relative to demand for semiconductor chips and electronic devices, end-user demand, [added: the timing of] customers’ [added: investment in new or expanded fabrication plants, customers’] capacity utilization, production volumes, access to affordable capital, business and consumer buying patterns and general economic and political conditions.

To meet rapidly changing demand, we must accurately forecast demand and effectively manage our resources, investments, production capacity, supply chain, workforce, [removed: inventory,] [added: inventory] and other components of our business.

[removed: Uncertain] [added: Our business and the industries in which we operate can be impacted by uncertain] or adverse economic and business conditions, including uncertainties and volatility in the financial markets, national debt, fiscal or monetary concerns, inflation and changes in interest rates, bank failures, [added: tariffs] and [removed: economic recession, could materially] [added: trade policies] and [removed: adversely impact our operating results.][added: economic recession.]

[removed: Decreases in spending and demand] [added: These conditions] have caused, and may in the future cause, our customers to [removed: push out,] [added: delay,] cancel or refrain from purchasing our equipment or services, which could negatively impact demand for our products and services, reduce our [removed: backlog, increase our inventory, and materially] [added: backlog] and [removed: adversely impact] [added: increase] our [removed: operating results.][added: inventory.]

[removed: Increases] [added: Volatility] in demand for [added: our products and worldwide demand for] semiconductor chips and electronic devices [removed: have caused,] [added: can impact our suppliers’ ability to meet our demand requirements] and [removed: may] [added: has] in the [removed: future cause,] [added: past resulted in] a shortage of [removed: parts and] [added: parts,] materials [added: and services] needed to manufacture our products.

[removed: Such] [added: These] shortages, [removed: and shipment] [added: as well as] delays [added: in and unpredictability of shipments] due to transportation [removed: capacity and] interruptions, [removed: have adversely impacted, and] may [removed: in the future] adversely [removed: impact,] [added: impact] our [removed: suppliers’] [added: manufacturing operations and our] ability to meet [removed: our requirements.][added: customer demand.]

[removed: Uncertain or adverse economic and market conditions, difficulties in obtaining capital, increased costs or reduced profitability] [added: Customers] may [removed: cause some customers to] [added: also] scale back operations, exit businesses, merge with other manufacturers, or file for [removed: bankruptcy protection and potentially cease operations,] [added: bankruptcy,] which can [added: reduce our revenue and] result in [removed: lower sales,] additional inventory or bad debt expense.

[removed: These conditions] [added: Other equipment manufacturers] may also [removed: lead to consolidation] [added: consolidate] or [added: form] strategic [removed: alliances among other equipment manufacturers,] [added: alliances,] which could adversely affect our ability to [removed: compete effectively.][added: compete.]

Even during periods of economic uncertainty or lower demand, we must continue to invest in research and development and maintain a global business infrastructure to compete effectively and support our [removed: customers, which can have a negative impact on our operating results.][added: customers.]

[removed: The risks to our] [added: Our] investment portfolio [added: is subject to general credit, liquidity, market and interest rate risks, which] may be exacerbated [removed: if financial market conditions deteriorate due to] [added: by] rising inflation, rising interest rates, bank failures or economic recession and the value and liquidity of [removed: the investment] [added: our] portfolio and returns on pension assets could be negatively impacted and lead to impairment charges.

[removed: If] [added: We also maintain cash balances in various bank accounts globally and if] any of these financial institutions become insolvent, it could limit our ability to access [added: our] cash [removed: in the affected accounts, which could] [added: and] affect our ability to manage our operations.

In fiscal [removed: 2024,] [added: 2025,] approximately [removed: 86%] [added: 89%] of our net revenue was to customers in regions outside the United States.

As a result of the global nature of our operations, [added: we are subject to a number of factors that could have an adverse impact on] our [removed: business performance] [added: business, financial condition] and results of [removed: operations may be adversely affected by a number of factors, including:][added: operations.]

- political instability, social unrest, terrorism, acts of war or other geopolitical [removed: turmoil, such as the conflict in the Middle East,] [added: turmoil] in locations where we [removed: have operations, suppliers] or [removed: sales,] [added: our customers] or [removed: that may influence the value chain of the industries we serve;][added: suppliers have operations;]

[removed: -] [added: These factors include global] political and social [removed: attitudes, laws, rules, regulations and] [added: conditions, such as] policies [added: or regulations] within countries, including in China, the United [removed: States,] [added: States] and countries in Europe and Asia, that favor domestic companies over non-domestic companies, including efforts to promote the development and growth of local competitors [removed: and reduce dependence on foreign semiconductor equipment and manufacturing capabilities through policies and financial incentives;][added: to us, or regarding national, commercial or security issues.]

[removed: - geographically diverse operations and projects, and] [added: Other factors include geopolitical turmoil, acts of war or social unrest;] our ability to maintain appropriate business processes, procedures and internal [removed: controls, and comply with environmental, health and safety, anti-corruption and other regulatory requirements;][added: controls in our geographically diverse operations; delays or restrictions]

A majority of our products and services are delivered to customers in jurisdictions outside of the United States, including China, [removed: Taiwan, Korea] [added: Taiwan] and [removed: Japan.][added: Korea.]

There is inherent risk, based on the complex relationships among the United States and the countries in which we conduct our business, that political, [removed: diplomatic,] [added: diplomatic] and national security factors can lead to global trade restrictions and changes in trade policies and export regulations that affect the semiconductor industry.

The United States and other countries have imposed and may continue to impose new trade restrictions and export regulations, have levied tariffs and taxes on certain [removed: goods,] [added: goods] and could significantly increase [added: or impose new] tariffs on a broad array of goods.

Trade restrictions and export regulations, or [removed: increases in] [added: increased or new] tariffs and additional taxes, including any retaliatory measures, can negatively impact end-user demand and customer investment in semiconductor equipment, increase our supply chain complexity and our manufacturing costs, decrease margins, reduce the competitiveness of our products, or restrict our ability to sell products, provide services or purchase necessary equipment and supplies, any or all of which could have a material and adverse effect on our business, results of operations, or financial condition.

Over the past several years, the U.S. government announced additional export regulations for U.S. semiconductor technology sold in China, including wafer fabrication equipment and related parts and services, with disparate impact on companies in different jurisdictions, which have limited the market for certain of our products and services, adversely impacted our [removed: revenues,] [added: revenues] and increased our exposure to foreign and Chinese domestic competition.

The U.S. Department of Commerce [removed: has promulgated regulations expanding] [added: expanded] export license requirements for U.S. companies that sell certain products or provide certain services to entities in China whose actions or functions are intended to support military end uses, eliminated certain export license exceptions [removed: that applied to] [added: for] exports of certain items to China, added certain Chinese companies to its “Entity List,” making those companies subject to additional licensing requirements, and expanded licensing requirements for exports to China of items for use in the development or production of integrated circuits and certain technologies.

The U.S. government may also continue to add customers to its “Entity [removed: List” or] [added: List,”] promulgate additional restrictions, or take measures that could disrupt our product shipments or the provision of services to certain customers.

For example, since 2022, we have received multiple subpoenas from government authorities requesting information relating to certain China customer shipments and export controls compliance, including from the U.S. Department of Justice, the U.S. Commerce Department Bureau of Industry and [removed: Security,] [added: Security] and the U.S. Securities and Exchange Commission.

[removed: As a result, the actions of even a single] [added: Our] customer [removed: or] [added: base is geographically concentrated, particularly in China, Taiwan and Korea, and] export regulations that apply to customers in certain countries, such as those in China, have exposed and can further expose our business and operating results to greater volatility.

The mix and type of [removed: customers,] [added: customers] and sales to any single customer, including as a result of changes in government policy, have varied and may vary significantly [removed: from quarter to quarter and from year to year, and have had,] [added: over time] and may continue to [removed: have,] [added: have] a significant impact on our operating results.

If customers do not place orders, or they substantially reduce, delay or cancel [removed: orders (including as a result of uncertain or adverse economic conditions, our inability to fulfill orders due to export regulations, shortage of parts, transportation capacity/interruptions or any other reason),] [added: orders,] we may not be able to replace the business, which may have a material and adverse impact on our results of operations and financial condition.

Supply chain constraints may increase costs of logistics and parts for our products and may cause us to pass on increased costs to our customers, which may lead to reduced demand for our [removed: products and materially and adversely impact our operating results.][added: products.]

Supply chain disruptions have in the past caused, and may from time to time cause, delays in our equipment production and delivery schedules, which can lead to our business [removed: performance becoming significantly dependent on quarter-end production and delivery schedules, and could have an adverse impact on our operating and financial results.]

[removed: Cybersecurity] [added: - cybersecurity] incidents affecting our [removed: suppliers could impact our] supply [removed: chain.][added: chain;]

- volatility in the availability and cost of parts, commodities, energy and shipping related to our products, including increased costs due to rising inflation or interest rates or other market [removed: conditions;][added: conditions, as well as uncertainties arising from the imposition of tariffs and any retaliatory measures;]

- limited availability of [added: critical materials and minerals, including due to Chinese government restrictions on the export of certain rare earth minerals implemented in 2025, which could be expanded in the future, and limited] feasible alternatives to materials subject to existing or proposed regulations to limit their use (such as hydrofluorocarbons and per- and polyfluoroalkyl substances), which are found in parts, components, process chemicals and other materials supplied to us or used in the manufacturing or operations of our products; [added: and]

If a supplier fails to meet our requirements concerning quality, cost, intellectual property [removed: protection, socially-responsible and sustainable business practices,] [added: protection] or other performance factors, or does not meet regulatory requirements applicable to our supply chain, we may transfer our business to alternative [removed: sources.][added: sources, which could result in manufacturing delays, additional costs or other difficulties, and impair our ability to protect, enforce and extract the full value of our intellectual property rights and the intellectual property rights of our customers and other third parties.]

[removed: These outcomes] could have [removed: a material and] [added: an] adverse impact on our [removed: business and] competitive position and [removed: subject us to legal proceedings and claims.][added: business.]

If we need to rapidly increase our business and manufacturing capacity to meet increases in demand or expedited shipment schedules, this may strain our manufacturing and supply chain [removed: operations,] [added: operations] and negatively impact our working capital.

If we purchase or commit to purchase inventory in anticipation of customer demand that does not materialize, or [removed: such] [added: the] inventory is rendered obsolete by the rapid pace of technological change, or if customers reduce, delay or cancel orders, we may incur excess or obsolete inventory charges.

We are exposed to various factors that impact the industries in which we [removed: operate.][added: operate, including factors specific to the semiconductor industry.]

The [removed: global semiconductor, display and related] industries [added: in which we operate] are characterized by factors that impact demand for and the profitability of our products and services and our operating [removed: results, including:][added: results.]

- [removed: the nature, timing and degree of visibility of] changes in demand for semiconductor chips and electronic devices, including those related to fluctuations in consumer buying patterns tied to general economic or geopolitical conditions, seasonality or the introduction of new [removed: products, and the effects of these changes on customers’ businesses and on demand for our] products;

Artificial intelligence (AI) and technologies related to AI are a significant demand driver for the industries we serve.

AI is evolving rapidly and the expected timing and amount of investments related to AI can change significantly.

As a result, it is difficult to accurately forecast demand for our products related to AI.

These conditions make it more difficult to accurately forecast operating and financial results and make business and investment decisions.

The consequences of these conditions could have an adverse effect on our business, financial condition and results of operations.

on personnel travel and in shipping materials or products; our ability to develop relationships with local customers, suppliers and governments; performance of our geographically diverse third-party providers; impacts of regional or global health epidemics, natural disasters and extreme and chronic weather events; fluctuations in interest rates and currency exchange rates; as well as other factors discussed in this Risk Factors section.

Any of these factors may have an adverse impact on our business and manufacturing operations or demand for our products and services, and our performance and results of operations may be adversely affected.

We are exposed to risks and uncertainty related to changes in trade policies, and increased tariffs and trade disputes.

Our business, financial condition and results of operations may be adversely affected by uncertainty and changes in trade policies, including tariffs, and trade disputes between the United States and other countries.

The United States has announced changes to its trade policy, including increased tariffs on imports.

These actions have caused substantial uncertainty and have resulted in retaliatory measures, including new tariffs on U.S. goods imposed by China and other countries.

Some of these actions have been followed by announcements of limited exemptions and temporary pauses and trade frameworks with certain countries.

A significant number of our customers and suppliers are located outside of the United States.

Increases in tariffs increase our costs and can negatively impact our margins and reduce the competitiveness of our products due to the increase in the cost of importing materials, parts and components used in manufacturing our products.

Tariffs can also increase supply chain complexity and may make it more difficult to purchase necessary equipment and supplies to manufacture our products.

Increases in tariffs, including reciprocal and sector-based tariffs, also increase the cost to our customers of importing our products, which could harm customer demand for our products.

Uncertainty or volatility with respect to tariffs and trade disputes may also make it difficult for us and our customers and suppliers to make and execute business and capital equipment investment plans; lead to global or regional inflation and economic recession and reduce demand for semiconductor chips and electronic devices; cause our customers to delay or cancel orders or negatively impact our competitive position; impede our ability to purchase materials, including critical materials and minerals, and disrupt supply chain and logistics.

For example, in 2025 the Chinese government implemented export controls on the export of rare earth minerals that are used in certain of our products and may implement additional controls in the future.

We may take actions to mitigate the impact of increases in tariffs and changes in trade policies, but there can be no assurance that we will be successful, and any such actions could result in additional costs, manufacturing delays or other difficulties, as well as additional risks, and may not be effective.

Any or all of these factors may have a material and adverse impact on our business, financial condition and results of operations.

As a result, the actions of even a single customer have exposed and can further expose our business and operating results to greater volatility.

performance becoming significantly dependent on quarter-end production and delivery schedules.

- impacts of natural disasters, extreme and chronic weather events, regional or global health epidemics, or other events beyond our control.

Any of these events impacting our supply chain could affect our ability to meet our customers’ demand, result in higher costs to us and have an adverse effect on customer relationships and our business, financial condition and results of operations.

- the importance of specialty markets (such as internet of things, communications, automotive, power and sensors) that use process technologies that have a low barrier to entry;

The development, introduction and

Demand for and the profitability of our display products and services is impacted by the foregoing industry factors, as well as the introduction of and rate of transition to new types of display technologies, our ability to anticipate and adapt to technology transitions and inflections, and the expansion of display manufacturing facilities in China.

We also utilize third-party providers of AI capabilities, and our ability to implement AI successfully in our business operations relies on our continued access to third-party providers and safeguards implemented by them.

The techniques used by threat actors to identify vulnerabilities and craft cybersecurity attacks change frequently and may increasingly involve the use of new technologies, including AI and quantum computing.

Advances in quantum computing have the potential to undermine current encryption standards and may allow threat actors to circumvent existing protective measures.

Divestitures involve additional risks and uncertainties, such as our ability to sell these businesses at a price and on terms that are satisfactory and in a

Additionally, on July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act (OBBBA).

Key tax provisions of the OBBBA are designed to accelerate tax deductions, but that may have a detrimental impact on our ability to use certain deferred tax assets.

For example, as a result of the acceleration of certain tax deductions under the OBBBA, we are unable to forecast utilization of our existing corporate alternative minimum tax (CAMT) credit deferred tax asset.

We have recorded a full valuation allowance against the CAMT credit deferred tax asset, which increased our effective tax rate and provision for income taxes in fiscal 2025.

The amount of the valuation allowance may be adjusted in future quarters if estimates of our future taxable income change.

We continue to monitor developments and evaluate the impact, if any, of enacted and proposed changes in the tax laws on our results of operations and cash flows.

The adoption and effective dates of changes in the tax laws vary by country and could increase tax complexity and uncertainty and may adversely affect our provision for income taxes in future years.

We have been granted additional conditional reduced tax rates in Singapore that expire beginning in fiscal 2030.

Under the indenture governing the senior unsecured notes, we may be required to offer to repurchase the notes at a price equal to

Artificial intelligence is evolving rapidly and is a relatively new demand driver for semiconductors and semiconductor equipment, and it is difficult to accurately forecast such demand.

Markets for our semiconductor and display equipment and services depend largely on business and consumer spending and demand for semiconductor chips and electronic devices.

Uncertain or adverse economic and business conditions could result in decreases in business and consumer spending and demand.

Accelerated digital transformation may further increase demand and exacerbate shortages and strain our manufacturing capacity, which may adversely impact our ability to meet customer demand and have an adverse impact on our revenues, operating results and financial condition.

Economic and industry uncertainty may impair the ability of suppliers to deliver parts and negatively affect our ability to manage operations and deliver products.

Uncertain economic and industry conditions and supply chain challenges make it more difficult to accurately forecast operating results, make business decisions, and identify and prioritize the risks that may affect our businesses, sources and uses of cash, financial condition and results of operations.

If we do not appropriately manage our business operations it could have a material and adverse impact on our business performance and financial condition.

We maintain an investment portfolio that is subject to general credit, liquidity, market and interest rate risks.

We also maintain cash balances in various bank accounts globally to fund normal operations.

- uncertain or adverse global economic, political and business conditions and demand;

- global trade issues and changes in and uncertainties with respect to trade and export regulations, trade policies and sanctions, tariffs, and international trade disputes, including new and changing export regulations and their impact on our ability to export products and provide services to customers;

- positions taken by governmental agencies regarding national, commercial or security issues posed by the development, sale or export of certain products, technologies and raw materials, including critical materials and critical minerals;

- cybersecurity incidents;

- efforts to influence us to conduct more or less of our operations and sourcing in a particular country;

- different and changing local, regional, national or international laws and regulations, including contract, intellectual property, cybersecurity, data privacy, labor, tax, and import/export laws, and the interpretation and application of laws and regulations;

- ineffective or inadequate legal protection of intellectual property rights in certain countries;

- interruptions to our or our suppliers’ supply chain;

- the availability of raw materials, including critical materials and critical minerals, and increases and volatility of commodity, energy and shipping costs;

- delays or restrictions on personnel travel and in shipping materials or products;

- challenges in hiring and integrating workers in different countries, and in effectively managing a diverse workforce with different experience levels, languages, cultures, customs, business practices and worker expectations, and differing employment practices and labor issues;

- the ability to develop relationships with local customers, suppliers and governments;

- fluctuations in interest rates and currency exchange rates, including the relative strength or weakness of the U.S. dollar against the Japanese yen, Israeli shekel, euro, Taiwanese dollar, Singapore dollar, Chinese yuan or Korean won;

- the need to provide technical support in different locations around the world;

- performance of geographically diverse third-party providers, including certain engineering, software development, manufacturing, information technology and other functions;

- service interruptions from utilities, transportation, data hosting or telecommunications providers;

- impacts of natural disasters and extreme and chronic weather events on our operations and those of our customers and suppliers, which may be exacerbated by climate change;

- regional or global health epidemics;

- the increasing need for a mobile workforce and travel to different regions; and

- uncertainties with respect to economic growth rates in various countries, including for the manufacture and sale of semiconductors and displays in the developing economies of certain countries.

Our customer base is geographically concentrated, particularly in China, Taiwan, Korea and Japan.

Increases in demand for our products and worldwide demand for semiconductor chips and electronic devices can impact our suppliers’ ability to meet our demand requirements, and have in the past resulted in, and may from time to time result in, a shortage of parts, materials and services needed to manufacture our products.

Such shortages, as well as delays in and unpredictability of shipments due to transportation interruptions, have adversely impacted, and may continue to adversely impact, our manufacturing operations and our ability to meet customer demand.

Volatility of demand for equipment can also increase our and our suppliers’ capital, technical, operational and other risks, and may cause some suppliers to exit businesses, or scale back or cease operations, which could impact our ability to meet customer demand.

Such incidents have caused, and may from time to time cause, difficulties and delays in our ability to obtain parts, materials and services needed to manufacture our products and provide services, and have adversely impacted, and may from time to time adversely impact, our manufacturing operations, our ability to meet customer demand, and our operating results.

Failure to timely recover from such delays could materially and adversely affect our business, financial condition and results of operations, and may also cause our business and financial outlook to be inaccurate.

- political instability, social unrest, terrorism, acts of war or other geopolitical turmoil, such as the conflict in the Middle East, in locations where we or our customers or suppliers have manufacturing, research, engineering or other operations;

- information technology or infrastructure failures within our operations or those of a third-party supplier or service provider, including failures caused by cybersecurity incidents; impacts of natural disasters, extreme and chronic weather events (which may be exacerbated by climate change), or other events beyond our control (such as earthquakes, utility interruptions, tsunamis, hurricanes, typhoons, floods, storms or fires); and

- regional or global health epidemics.

Transferring business to alternative suppliers could result in manufacturing delays, additional costs or other difficulties, and may impair our ability to protect, enforce and extract the full value of our intellectual property rights, and the intellectual property rights of our customers and other third parties.

If we are unable to meet our customers’ demand for a prolonged period due to our inability to obtain certain parts or components from suppliers on a timely basis or at all, our business, results of operations and customer relationships could be adversely impacted.

The following section generally discusses [removed: 2024] [added: 2025] and [removed: 2023] [added: 2024] items and year-to-year comparisons between [removed: 2024] [added: 2025] and [removed: 2023.][added: 2024.]

Discussions of [removed: 2023] [added: 2024] items and year-to-year comparisons between [removed: 2023] [added: 2024] and [removed: 2022] [added: 2023] that are not included in this Form 10-K can be found in [removed: "Management's] [added: “Management's] Discussion and Analysis of Financial Condition and Results of [removed: Operations"] [added: Operations”] in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended October [removed: 29, 2023,] [added: 27, 2024,] filed on December [removed: 15, 2023.][added: 13, 2024.]

We provide equipment, services and software to the [removed: semiconductor, display,] [added: semiconductor] and related industries.

Our customers include manufacturers of semiconductor wafers and [removed: chips, liquid crystal and organic light-emitting diode (OLED) displays,] [added: chips] and other electronic devices.

Each of our segments is subject to variable industry conditions, as demand for equipment and services can change depending on supply and demand for [removed: chips, display technologies] [added: chips] and other electronic devices, as well as other factors, such as global economic, political and market conditions, and the nature and timing of technological advances in fabrication processes.

Our strategic priorities include developing products that help solve customers’ challenges at technology [removed: inflections;] [added: inflections, growing our service business, and] expanding our served market opportunities in the semiconductor [removed: and display industries; and growing our service business.][added: industry.]

We operate in [removed: three] [added: two] reportable segments: Semiconductor [removed: Systems,] [added: Systems and] Applied Global Services® [removed: (AGS), and Display.][added: (AGS).]

A summary of financial information for each reportable segment is found in Note [removed: 14] [added: 15] of Notes to Consolidated Financial Statements.

Our results are driven primarily by customer spending on capital equipment and services to support key technology transitions or to increase production volume in response to worldwide demand for [removed: semiconductors and displays.][added: semiconductors.]

Spending by semiconductor customers, which include companies that operate in the foundry, logic, memory, and other semiconductor chip markets, is driven by demand for products such as smartphones, mobile devices, personal [removed: computers,] [added: computers (PC),] servers for artificial intelligence (AI) and data centers, automobiles, clean energy, storage, and other products, and the nature and timing of technological advances in fabrication processes.

The growth of data and emerging end-market drivers such as AI, the internet of things, [removed: 5G networks, electric] [added: robotics] and [removed: autonomous] [added: smart] vehicles [removed: and augmented and virtual reality] are also creating the next wave of growth for the industry.

The AGS segment provides services, spares and factory automation software to customer fabrication plants globally to help customers optimize performance of our large, global installed base of [removed: semiconductor, display] [added: semiconductor] and other equipment.

The AGS segment also includes [removed: 200mm] [added: 200 millimeter (200mm)] and other equipment, which is shipped to many customers globally that serve the non-leading-edge end markets.

The Corporate and Other category includes revenues and costs of product [removed: sold from other products,] [added: not included in our reportable segments,] as well as certain operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level.

These operating expenses include costs for certain management, finance, legal, human [removed: resource,] [added: resources,] and RD&E functions performed at the corporate level; and unabsorbed information technology and occupancy.

In addition, we do not allocate to our reportable segments [removed: severance, asset impairment and any associated] charges [removed: related to] [added: associated with] restructuring actions, [added: such as employee severance costs and asset impairment charges,] unless [removed: these] [added: the restructuring] actions pertain to a specific reportable segment.

For a description of these risks, see the risk [removed: factor] [added: factors] entitled “*Business and Industry Risks - Global trade issues and changes in and uncertainties with respect to trade policies and export regulations, including import and export license requirements, trade sanctions, tariffs and international trade disputes, have adversely impacted and could further adversely impact our business and operations, and reduce the competitiveness of our products and services relative to local and global competitors*” [added: and “*Business and Industry Risks - We are exposed to risks and uncertainty related to changes] in [added: trade policies, and increased tariffs and trade disputes* ” in] Part I, Item 1A, “Risk Factors.”

Our fiscal [removed: 2024] [added: 2025] and [removed: 2023] [added: 2024] each contained 52 weeks.

The following table presents certain significant measurements for the periods [removed: indicated:][added: presented:]

| | | | [removed: 2024] [added: 2025] | | | | | | [removed: 2023] [added: 2024] | | | | | | | | | | | | [removed: 2024] [added: 2025] over [removed: 2023] [added: 2024] | | | | | | | | |

| Net revenue | | | $ | [removed: 27,176] [added: 28,368] | | | | | $ | [removed: 26,517] [added: 27,176] | | | | | | | | | | | $ | [removed: 659] [added: 1,192] | | | | | | | |

| Gross margin | | | [removed: 47.5] [added: 48.7] | | % | | | | [removed: 46.7] [added: 47.5] | | % | | | | | | | | | | [removed: 0.8] [added: 1.2] points | | | | | | | | |

| Operating income | | | $ | [removed: 7,867] [added: 8,289] | | | | | $ | [removed: 7,654] [added: 7,867] | | | | | | | | | | | $ | [removed: 213] [added: 422] | | | | | | | |

| Operating margin | | | [removed: 28.9] [added: 29.2] | | % | | | | 28.9 | | % | | | | | | | | | | [removed: —] [added: 0.3] points | | | | | | | | |

| Net income | | | $ | [removed: 7,177] [added: 6,998] | | | | | $ | [removed: 6,856] [added: 7,177] | | | | | | | | | | | $ | [removed: 321] [added: (179)] | | | | | | | |

| Earnings per diluted share | | | $ | [removed: 8.61] [added: 8.66] | | | | | $ | [removed: 8.11] [added: 8.61] | | | | | | | | | | | $ | [removed: 0.50] [added: 0.05] | | | | | | | |

| | | | [removed: 2024] [added: 2025] | | | | | | | | | | | | | | | | | | [removed: 2023] [added: 2024] | | | | | | | | | | | | | | | | | | | | | | | | [removed: 2024] [added: 2025] over [removed: 2023] [added: 2024] | | | | | | | | | | | | | | |

| Semiconductor Systems | | | $ | [removed: 19,911] [added: 20,798] | | | | | 73% | | | | | | | | | | | | $ | [removed: 19,698] [added: 19,911] | | | | | [removed: 74%] [added: 73%] | | | | | | | | | | | | | | | | | | | | | | | | [removed: 1] [added: 4] | | % | | | | | | |

| Applied Global Services | | | [removed: 6,225] [added: 6,385] | | | | | | 23% | | | | | | | | | | | | [removed: 5,732] [added: 6,225] | | | | | | [removed: 22%] [added: 23%] | | | | | | | | | | | | | | | | | | | | | | | | [removed: 9] [added: 3] | | % | | | | | | |

| Corporate and Other | | | [removed: 155] [added: 1,185] | | | | | | [removed: 1%] [added: 4%] | | | | | | | | | | | | [removed: 219] [added: 1,040] | | | | | | [removed: 1%] [added: 4%] | | | | | | | | | | | | | | | | | | | | | | | | [removed: (29)] [added: 14] | | % | | | | | | |

| Total | | | $ | [removed: 27,176] [added: 28,368] | | | | | 100% | | | | | | | | | | | | $ | [removed: 26,517] [added: 27,176] | | | | | 100% | | | | | | | | | | | | | | | | | | | | | | | | [removed: 2] [added: 4] | | % | | | | | | |

| Foundry, logic and other | | | [removed: 68] [added: 67] | | % | | | | [removed: 77] [added: 68] | | % | | | | | | |

| Dynamic random-access memory (DRAM) | | | [removed: 28] [added: 26] | | % | | | | [removed: 17] [added: 28] | | % | | | | | | |

| Flash memory [added: (NAND)] | | | [removed: 4] [added: 7] | | % | | | | [removed: 6] [added: 4] | | % | | | | | | |

Net revenue in fiscal [removed: 2024] [added: 2025] increased as compared to the prior year.

Gross margin increased primarily driven by [removed: lower material, freight, logistics, and manufacturing costs,] [added: higher net revenue,] favorable changes in customer and product [removed: mix and lower depreciation expense as a result of changes in certain assets’ useful lives effective as of the beginning of fiscal 2024, partially offset by] [added: mix,] an increase in [removed: labor] [added: average selling prices, and lower material and manufacturing] costs.

Semiconductor Systems net revenue increased in fiscal [removed: 2024] [added: 2025] as compared to the prior year as customers continued to make strategic investments in new capacity and new technology transitions.

Foundry and logic customers’ spending [removed: decreased] [added: in fiscal 2025 increased] driven primarily by [removed: lower] [added: higher] customer investments in leading-edge manufacturing [removed: technologies, partially offset by increased customer investments in non-leading edge manufacturing] technologies.

Memory customers’ spending in fiscal [removed: 2024] [added: 2025] was higher due to increased [added: customer] investments in [removed: DRAM technology transitions.][added: NAND fabrication equipment upgrades.]

Our AGS net revenue in fiscal [removed: 2024] [added: 2025] increased [added: compared to the prior year] primarily due to [removed: an increase in net revenue associated with] [added: higher customer spending on] long-term service agreements and [removed: customer spending on] spares, partially offset by lower customer spending on 200mm equipment.

As of October 26, 2025, management no longer considers Display a significant operating segment for separate reporting purposes.

The financial results of our other operating segments that do not meet the requirements for a reportable segment, including our Display operating segment, are included in Corporate and Other.

Prior-year Corporate and Other balances have been recast to include Display financial results.

Effective the first quarter of fiscal 2026, our 200mm equipment business will be moved to our Semiconductor Systems segment.

Also, the United States has announced changes to its trade policy, including increased tariffs on imports.

These actions have caused substantial uncertainty and have resulted in retaliatory measures, including new tariffs on U.S. goods imposed by China and other countries.

Some of these actions have been followed by announcements of limited exemptions and temporary pauses.

| | | | 2025 | | | | | | 2024 | | | | | | | | |

We believe device refresh cycles, such as those for PCs and smartphones, will also contribute to the next wave of growth.

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Total | | | $ | 28,368 | | | | | 100% | | | | | | | | | | | | $ | 27,176 | | | | | 100% | | | | | | | | | | | | | | | | | | | | | | | | 4 | | % | | | | | | |

| | | | 2025 | | | | | | 2024 | | | | | | | | | | | | 2025 over 2024 | | | | | | | | |

| Restructuring charges | | | $ | 181 | | | | | $ | — | | | | | | | | | | | $ | 181 | | | | | | | |

General and administrative expenses in fiscal 2025 decreased primarily due to lower spending on professional services, partially offset by an impairment of goodwill of $41 million recognized during the fourth quarter of fiscal 2025.

In the fourth quarter of fiscal 2025, we approved a workforce reduction plan (Fiscal 2025 Restructuring Plan) to position us for continued growth as a more competitive and productive organization and expect approximately 4% of our global workforce to be impacted under this plan.

In the fourth quarter of fiscal 2025, we recognized $181 million of restructuring charges consisting primarily of severance and other employment termination benefits to be paid in cash, and other non-cash related charges.

We expect to complete the plan in fiscal 2026.

| | | | 2025 | | | | | | 2024 | | | | | | | | | | | | 2025 over 2024 | | | | | | | | |

| | | | 2025 | | | | | | 2024 | | | | | | | | | | | | 2025 over 2024 | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

Our effective tax rate for fiscal 2025 was higher than the prior fiscal year primarily due to a $659 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore and the recognition of a $407 million valuation allowance against deferred tax assets related to corporate alternative minimum tax (CAMT) credits.

These credits are not expected to be realized as a result of changes in the timing of future tax deductions, following the enactment of the One Big Beautiful Bill Act.

No prudent and feasible tax-planning strategies are currently available.

The amount of the valuation allowance may be adjusted in future quarters if estimates of future taxable income change.

| | | | 2025 | | | | | | 2024 | | | | | | | | | | | | 2025 over 2024 | | | | | | | | | | | | | | | | | | | | |

| Corporate and Other | | | (882) | | | | | | (926) | | | | | | | | | | | | 44 | | | | | | 5 | | % | | | | | | | | | | | | |

| Total | | | $ | 8,289 | | | | | $ | 7,867 | | | | | | | | | | | $ | 422 | | | | | 5 | | % | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

AGS’ operating margin for fiscal 2025 decreased compared to the same periods in the prior year primarily due to a decrease in 200mm equipment net revenue, higher expense related to an increase in headcount to support business growth, and higher excess and obsolete inventory charges, partially offset by higher net revenue from services and spares.

*Targeted Improvements to the Accounting for Internal-Use Software.* In September 2025, the Financial Accounting Standards Board (FASB) issued an accounting standard update to increase the operability of the recognition guidance considering different methods of software development by replacing the current stage-based capitalization model with a principles-based approach.

Under the new guidance, costs are capitalized once management authorizes and commits to funding the software project, it is probable that the project will be completed and the software will be used to perform the function intended.

*Measurement of Credit Losses for Accounts Receivable and Contract Assets*.

In July 2025, the FASB issued an accounting standard update to provide a practical expedient that simplifies the calculation of expected credit losses (Topic 326).

The practical expedient allows an entity to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset, therefore, an entity will no longer need to develop reasonable and supportable forecasts of future economic conditions.

Although this guidance will simplify our process of calculating expected credit losses on accounts receivable and contract assets, we do not expect this guidance to materially impact our consolidated financial statements or related disclosures.

This authoritative guidance will be effective for us beginning with our annual reporting for fiscal year 2026.

| | | | 2025 | | | | | | 2024 | | | | | | | | |

Cash provided by operating activities in fiscal 2025 was lower primarily due to higher payments for income taxes and inventory.

Net proceeds from asset sale were $33 million, and net cash paid for acquisition was $29 million in fiscal 2025.

The Display segment encompasses products for manufacturing liquid crystal and OLED displays, and other display technologies for TVs, monitors, laptops, personal computers (PC), tablets, smart phones, other consumer-oriented devices, equipment upgrades and solar energy cells.

The segment is focused on expanding its presence through technologically-differentiated equipment and products that provide customers with improved performance and yields.

Display segment growth depends primarily on consumer demand for increasingly larger and more advanced TVs and high-resolution displays for mobile devices and information technology (IT) products, including laptops, monitors and tablets, as well as new form factors, including thin, light, curved and flexible displays, and new applications such as augmented and virtual reality.

The timing of customer investment in manufacturing equipment is also affected by the timing of next-generation process development and of capacity expansion to meet end-market demand.

Effective in the first quarter of fiscal 2024, management began including share-based compensation expense in the evaluation of reportable segments' performance.

Prior-year numbers have been recast to conform to the current-year presentation.

| Display | | | 885 | | | | | | 3% | | | | | | | | | | | | 868 | | | | | | 3% | | | | | | | | | | | | | | | | | | | | | | | | 2 | | % | | | | | | |

| | | | 2024 | | | | | | 2023 | | | | | | | | |

Our Display net revenue increased in fiscal 2024 compared to the prior year primarily due to higher customer investments in display fabrication equipment for IT products including laptops, monitors and tablets, partially offset by lower customer investments in display fabrication equipment for TVs.

Net revenue increased from customers in China in fiscal 2024 primarily due to investments in semiconductor equipment and spending on spares and services, partially offset by a decrease in investments in 200mm equipment.

Net revenue from customers in Taiwan decreased primarily due to lower investments in semiconductor equipment and spares, offset by higher spending on services.

The changes in net revenue from customers in all other regions for fiscal 2024 primarily reflected changes in investment and spending on semiconductor equipment and services.

Areas of investment in Semiconductor Systems include etch, deposition, metrology and inspection, patterning, packaging and other technologies to improve chip performance, power, area, cost and time-to-market.

In Display, RD&E investments were focused on expanding our market opportunity with new display technologies.

General and administrative expenses in fiscal 2024 increased primarily due to the increases in share-based compensation expense and professional fees.

Our effective tax rate for fiscal 2024 was higher than the prior fiscal year primarily due to lower tax credits in fiscal 2024, partially offset by higher proportion of pre-tax income in lower tax jurisdictions in fiscal 2024.

| Display | | | 51 | | | | | | 114 | | | | | | | | | | | | (63) | | | | | | (55) | | % | | | | | | | | | | | | |

| Corporate and Other | | | (977) | | | | | | (868) | | | | | | | | | | | | (109) | | | | | | 13 | | % | | | | | | | | | | | | |

| Total | | | $ | 7,867 | | | | | $ | 7,654 | | | | | | | | | | | $ | 213 | | | | | 3 | | % | | | | | | | | | | | | |

| Display | | | 5.8 | | % | | | | 13.1 | | % | | | | | | | | | | (7.3) points | | | | | | | | | | | | | | | | | | | | |

AGS’ operating margin for fiscal 2024 increased primarily due to the increase in net revenue and a favorable change in product mix.

Display’s operating margin for fiscal 2024 decreased primarily due to unfavorable changes in product mix.

*Improvements to Reportable Segment Disclosures*.

In November 2023, the FASB issued an accounting standard update to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses (Topic 280).

The standard requires interim and annual disclosure of significant segment expenses that are regularly provided to the chief operating decision-maker (CODM) and included within the reported measure of a segment’s profit or loss, requires interim disclosures about a reportable segment’s profit or loss and assets that are currently required annually, requires disclosure of the position and title of the CODM, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss and contains other disclosure requirements.

*Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.* In June 2022, the FASB issued an accounting standard update which clarifies how the fair value of equity securities subject to contractual sale restrictions is determined (Topic 820).

The amendment clarifies that a contractual sale restriction should not be considered in measuring fair value.

It also requires certain qualitative and quantitative disclosures related to equity securities subject to contractual sale restrictions.

We will adopt this guidance in the first quarter of fiscal 2025.

The adoption of this guidance is not expected to have a significant impact on our consolidated financial statements.

Cash provided by operating activities in fiscal 2024 remained relatively flat primarily due to lower collections of customer receivable balances, partially offset by lower payments to vendors and higher net income.

Net cash paid for acquisitions in fiscal 2023 was $25 million.

We have credit facilities for unsecured borrowings in various currencies of up to $1.6 billion, of which $1.5 billion is comprised of a committed revolving credit agreement (Revolving Credit Agreement) with a group of banks.

The commercial paper program is backstopped by the Revolving Credit Agreement and borrowings under the Revolving Credit Agreement reduce the amount of commercial paper notes we can issue.

The transition tax expense is payable in installments over eight years, with eight percent due in each of the first five years starting with fiscal 2018.

As of October 27, 2024, we had $459 million of total payments remaining, payable in installments in the next two years.

Investments related to the 25% investment tax credit reduced our income taxes payable by $170 million as of October 27, 2024.

On August 16, 2022, the U.S. government enacted the Inflation Reduction Act.

The Inflation Reduction Act introduced a new 15% corporate minimum tax, based on adjusted financial statement income of certain large corporations.

Applicable corporations are allowed to claim a credit for the minimum tax paid against regular tax in future years.

*Available-for-sale Debt Securities -* The market value of our investments in available-for-sale securities was approximately $3.2 billion at October [removed: 27, 2024.][added: 26, 2025.]

An immediate hypothetical 100 basis point increase in interest rates would result in a decrease in the fair value of investments as of October [removed: 27, 2024] [added: 26, 2025] of approximately $36 million.

*Debt -* At October [removed: 27, 2024,] [added: 26, 2025,] the aggregate principal of long-term senior unsecured notes issued by us was [removed: $5.5] [added: $6.5] billion with an estimated fair value of [removed: $5.1] [added: $6.2] billion.

A hypothetical decrease in interest rates of 100 basis points would result in an increase in the fair value of our long-term senior notes issuances of approximately [removed: $428] [added: $462] million at October [removed: 27, 2024.][added: 26, 2025.]

A hypothetical 10% adverse change in foreign currency exchange rates relative to the U.S. Dollar would result in a decrease in the fair value of these hedging contracts of [removed: $141] [added: $177] million at October [removed: 27, 2024.][added: 26, 2025.]

Applied Materials, Inc. is the leader in the materials engineering solutions used to produce virtually every semiconductor [removed: and advanced display] in the world.

We are experts in the design, development, production, and servicing of the critical wafer fabrication [removed: and display fabrication] tools our customers need to manufacture [removed: semiconductors and displays.][added: semiconductors.]

Our customers’ products are used [removed: in a wide variety of products such as] [added: across] personal computing devices, mobile phones, artificial intelligence (AI) and data center servers, automobiles, connected devices, industrial applications and consumer electronics.

Semiconductors provide the foundation for advances in technology that are reshaping the global economy, including artificial intelligence, [added: the] internet of things, robotics, electric and autonomous vehicles, and clean energy.

We operate in [removed: three] [added: two] reportable segments: Semiconductor [removed: Systems,] [added: Systems and] Applied Global Services® [removed: (AGS), and Display.][added: (AGS).]

A summary of financial information for each reportable segment is found in Note [removed: 14] [added: 15] of Notes to Consolidated Financial Statements.

Our Semiconductor Systems segment designs, develops, manufactures and sells a wide range of [removed: primarily 300mm] equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs).

Our equipment helps customers improve the power, performance, yield and costs of [removed: the] semiconductor devices.

Our advanced packaging systems use our materials engineering expertise to allow customers to connect multiple chips together through heterogeneous integration, enabling them to advance the technology roadmap beyond a single [removed: chip.][added: chip, leading to performance and energy-efficiency improvements.]

Our Semiconductor Systems sales are to customers that serve the following markets: foundry, logic and other; [removed: DRAM;] [added: dynamic random access memory (DRAM); and] flash [removed: memory.][added: memory (NAND).]

Leading-edge represents customers that are producing on the most advanced technology [removed: nodes.][added: nodes, defined as 7 nanometers and smaller.]

][added: Slide.jpg](https://www.sec.gov/Archives/edgar/data/6951/000162828025056742/amat-20251026_g2.jpg)]

[removed: The] [added: Our] AGS segment provides services, spares and factory automation software to customer fabrication plants globally.

[removed: The] [added: Through October 26, 2025, our] AGS segment also [removed: manufactures] [added: manufactured] and [removed: sells 200mm] [added: sold 200 millimeter (200mm)] and other [removed: equipment, which is shipped] [added: equipment] to customers globally that serve non-leading-edge markets.

AGS’s transactional and subscription service products, spares and factory automation software is purchased by customers to optimize the performance of our large, global installed base of [removed: semiconductor, display] [added: semiconductor] and other equipment.

Customer demand is fulfilled through a global distribution system [removed: in more than 200 locations] and trained field engineers located near customer sites to support our [removed: semiconductor, display] [added: semiconductor] and other equipment worldwide.

Backlog by reportable segment as of October [removed: 27, 2024 and October 29, 2023] [added: 26, 2025] was as follows:

| Semiconductor Systems | | | | | | | | | | | | | | | | | | $ | [removed: 8,259] [added: 7,105] | | | | | [removed: 52] [added: 47] | | % | | | | [removed: $] | [removed: 11,127] | | | | | [removed: 65] | | [removed: %] |

| Applied Global Services | | | | | | | | | | | | | | | | | | [removed: 6,767] [added: 7,141] | | | | | | [removed: 43] [added: 48] | | % | | | | [removed: 5,162] | | | | | | [removed: 30] | | [removed: %] |

| Corporate and Other | | | | | | | | | | | | | | | | | | [removed: 20] [added: 756] | | | | | | [removed: —] [added: 5] | | % | | | | [removed: 49] | | | | | | [removed: —] | | [removed: %] |

| Total | | | | | | | | | | | | | | | | | | [removed: $] [added: 15,002] | [removed: 15,873] | | | | | 100 | | % | | | | [removed: $] | [removed: 17,171] | | | | | [removed: 100] | | [removed: %] |

Of the total backlog as of October [removed: 27, 2024,] [added: 26, 2025,] approximately 31% is not reasonably expected to be filled within the next 12 months.

Our backlog is subject to change, including the [removed: potential for customer changes such as] [added: addition of] new [removed: orders] [added: orders, potential amendments] or [removed: cancellations,] [added: cancellations of existing orders,] and changes in export rules and regulations.

Our supply chain strategy commits to adhere to ethical labor practices, responsible minerals sourcing, Responsible Business Alliance and SEMI guidelines, and the Applied Materials Standards of Business [removed: Conduct as defined in our Environmental, Social and Governance (ESG) commitment.][added: Conduct.]

Our significant investments in [removed: research, development and engineering (RD&E)] [added: RD&E] must generally enable us to deliver new products and technologies before the emergence of strong demand, thus allowing customers to incorporate these products into their manufacturing plans during early-stage technology selection.

Our business is based on capital equipment investments by major [removed: semiconductor, display] [added: semiconductor] and other manufacturers, and is subject to significant variability in customer demand for our products.

Customers’ expenditures depend on many factors, including: general economic conditions; anticipated market demand and pricing for [removed: semiconductors, display technologies] [added: semiconductors] and other electronic devices; the development of new technologies; customers’ factory utilization; capital resources and financing; trade policies and export regulations; and government incentives.

Information on net revenue to unaffiliated customers and long-lived assets attributable to our geographic regions is included in Note [removed: 14] [added: 15] of Notes to Consolidated Financial Statements.

The growth of data and emerging end-market drivers such as artificial intelligence, the internet of things, [removed: 5G networks,] [added: robotics and] smart vehicles [removed: and augmented and virtual reality] are also creating the next wave of growth for the industry.

The products and services offered by the AGS segment enhance those of the Semiconductor Systems [removed: and Display segments,] [added: segment,] particularly in markets with demanding global service requirements.

We have more than [removed: 22,000] [added: 23,500] active patents in the United States and other countries, and additional applications are pending for new inventions.

These regulations, which differ among jurisdictions, include those related to financial and other disclosures, accounting standards, securities, corporate governance, public procurement and public funding, intellectual property, tax, trade (including import, export and customs), antitrust, cybersecurity, environment (including those related to sustainability and climate), health and [removed: safety] [added: safety,] employment, immigration and travel regulations, human rights, privacy, data protection and localization, and anti-corruption.

*See “Risk Factors – Legal, [removed: Compliance,] [added: Compliance] and Other Risks – We are exposed to risks related to the global regulatory environment” for further details.*

*See “Risk Factors – Business and Industry Risks – Global trade issues and changes in and uncertainties with respect to trade policies and export regulations, including import and export license requirements, trade sanctions, tariffs and international trade disputes, have adversely impacted and could further adversely impact our business and operations, and reduce the competitiveness of our products [added: and services] relative to local and global competitors” for further details.*

*See also “Risk Factors – [removed: Risks Related to] Legal, [removed: Compliance,] [added: Compliance] and Other Risks – We are subject to risks associated with environmental, health and safety regulations”* *for further details.*

Our provision for income taxes, effective tax rate and financial results [removed: could] [added: can] be [added: and are] affected by numerous factors, including changes in applicable tax laws, interpretations of applicable tax laws, amount and composition of pre-tax income in jurisdictions with differing tax rates, and valuation of deferred tax assets.

For additional discussions regarding the impact of compliance with income tax laws and regulations on our business and operations, *see also “Management’s Discussion and Analysis of Financial Condition and Results of Operations– Results of Operations – Income Taxes” and Note [removed: 12] [added: 13] of the Notes to the Consolidated Financial Statements.*

We invest in our employees by providing quality training and learning opportunities, a compelling career path, [removed: promoting inclusion, equity] [added: building a connected] and [removed: diversity,] [added: highly engaged culture,] and upholding a high standard of ethics and respect for human rights.

As of October [removed: 27, 2024,] [added: 26, 2025,] we employed approximately [removed: 35,700] [added: 36,500] regular full-time [removed: employees,] [added: employees spanning 25 countries,] of whom approximately [removed: 45%, 43%] [added: 46%, 42%] and 12% resided in the Asia-Pacific region, North America, and Europe/Middle East, respectively.

We therefore strive to provide fair and equal opportunity for career development and advancement to all our employees and [removed: incorporate respect for diverse backgrounds] [added: to build a connected] and [removed: perspectives into our] [added: highly engaged] culture [removed: at every level – from strategy and policy down to everyday interactions.][added: where all of our employees feel they belong.]

We are well positioned to address the increasing complexity in manufacturing semiconductors, by leveraging the semiconductor capital equipment industry’s most comprehensive portfolio of products to connect and co-optimize our technologies.

This enables our customers to evolve their semiconductor technology roadmaps and achieve superior results in their products.

Effective the first quarter of fiscal 2026, our 200mm equipment business will be moved to our Semiconductor Systems segment.

Other

We also manufacture products and serve customers in certain other industries, including manufacturing equipment for the display industry.

The financial results of our businesses that are not included in our Semiconductor Systems segment or our AGS segment, such as our display business, are reported in the Corporate and Other category.

| | | | | | | | | | | | | 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

During fiscal 2025, two customers accounted for approximately 19% and 15%, respectively, of our net revenue.

Connected and Collaborative Culture

We value great talent and having employees with a broad mix of perspectives, skills and experiences.

We seek to cultivate a culture that reflects our values – being the Most Valued Partner, being part of a Winning Team, operating with Responsibility & Integrity, and achieving World Class Performance.

We have the semiconductor capital equipment industry’s most comprehensive portfolio of products.

This breadth allows us the ability to connect and co-optimize technologies across our portfolio, enabling our customers to achieve superior results as manufacturing semiconductors and displays is becoming increasingly complex.

Display

Display segment is comprised primarily of products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for TVs, monitors, laptops, personal computers (PCs), tablets, smartphones, and other consumer-oriented devices.

While similarities exist between the technologies utilized in semiconductor and display fabrication, the most significant differences are in the size and composition of the substrate.

Substrates used to manufacture display panels and other devices are typically glass, although newer flexible materials are entering the market.

Display segment growth depends primarily on consumer demand for increasingly larger and more advanced TVs and high-resolution displays for mobile devices and information technology (IT) products, including laptops, monitors and tablets, as well as new form factors, including thin, light, curved and flexible displays, and new applications such as augmented and virtual reality.

In addition to display applications, the segment’s Chemical Vapor Deposition (CVD) technology is used to manufacture solar energy cells.

The expertise that we have in materials engineering on large glass substrates is synergistic with the advanced packaging business in the Semiconductor Products Group, as there is a trend in the industry to utilize various types of substrates, including glass.

| | | | | | | | | | | | | 2024 | | | | | | | | | | | | 2023 | | | | | | | | | | | | | | |

| Display | | | | | | | | | | | | | | | | | | 827 | | | | | | 5 | | % | | | | 833 | | | | | | 5 | | % |

As a result of new export rules and regulations issued in December 2024, backlog as of October 27, 2024 is expected to be reduced by approximately $549 million.

This reduction would have resulted in total backlog as of October 27, 2024 of $15.3 billion, of which approximately 31% would not have been reasonably expected to be filled within 12 months.

The following companies accounted for at least 10 percent of our net revenue for the following fiscal years for products and services in multiple reportable segments.

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | 2024 | | | | | | 2023 | | | | | | | | |

| Samsung Electronics Co., Ltd. | | | 12% | | | | | | 15% | | | | | | | | |

| Taiwan Semiconductor Manufacturing Company Limited | | | 11% | | | | | | 19% | | | | | | | | |

Products in the Display segment are generally subject to strong competition from a number of major competitors primarily in Asia.

We hold established market positions with our technically-differentiated LCD and OLED manufacturing solutions for PECVD, color filter PVD, PVD array, PVD touch panel, and TFT array testing, although our market position could change quickly due to customers’ evolving requirements.

Important factors affecting the competitive position of our Display products include: industry trends, our ability to innovate and develop new products, and the extent to which our products are technically-differentiated, as well as which customers within a highly concentrated customer base are making capital equipment investments and our existing position at these customers.

Our team spans 24 countries, reflecting various cultures, back grounds, race, color, national origin, religion, sex, sexual orientation, gender identity, ages, and disability, veteran and military status.

Culture of Inclusion

We value great talent and different perspectives, knowing that diversity is one of our greatest strengths.

We expect that our commitment to strengthening our culture of inclusion will broaden the diversity of our workplace and help us build a culture that benefits everyone.

In recent years, we continued to make progress in our culture of inclusion journey, including, among other things, increasing female representation in the United States and global workforce, and increasing minority representation in the United States.

As of October 27, 2024, our global workforce was 79.2% male and 20.6% female, and 19.8% of our workforce in the United States was composed of underrepresented minorities.

The information set forth under “Legal Matters” in Note [removed: 13] [added: 14] of Notes to Consolidated Financial Statements is incorporated herein by reference.

*See also “Risk Factors – [removed: Risks Related to] Legal, [removed: Compliance,] [added: Compliance] and Other Risks –* *We are exposed to risks related to legal proceedings, claims and investigations.”*

For the fiscal year ended October [removed: 27, 2024][added: 26, 2025]

[removed: ][added: ]

Aggregate market value of the voting stock held by non-affiliates of the registrant as of April [removed: 28, 2024,] [added: 27, 2025,] based upon the closing sale price reported by the Nasdaq Global Select Market on that date: [removed: $167,928,935,720][added: $121,318,219,350]

Number of shares outstanding of the registrant’s Common Stock, $0.01 par value, as of December [removed: 6, 2024: 813,684,638][added: 5, 2025: 792,943,366]

Portions of Part III will be provided in accordance with Instruction G(3) to Form 10-K no later than February [removed: 24, 2025.][added: 23, 2026.]

Examples of forward-looking statements include those regarding our future financial or operating results, customer demand and spending, end-user demand, [removed: our and market and industry] trends and [removed: outlooks,] [added: outlooks in our markets and industries,] cash flows and cash deployment strategies, declaration of dividends, share repurchases, business strategies and priorities, costs and cost controls, products, competitive positions, management’s plans and objectives for future operations, research and development, acquisitions, investments and divestitures, growth opportunities, restructuring and severance activities, backlog, working capital, liquidity, investment portfolio and policies, taxes, supply chain, manufacturing, properties, legal matters, claims and proceedings, and other statements that are not historical facts, as well as their underlying assumptions.

FORM 10-K FOR THE FISCAL YEAR ENDED OCTOBER [removed: 27, 2024][added: 26, 2025]

| Item 1: | | | [removed: [Business](#i0d6bd66919e44bd99f34a0fc0f2df298_16)] [added: [Business](#ief7b1ab156f2478b9e799f9c65cd90f8_16)] | | | [removed: [4](#i0d6bd66919e44bd99f34a0fc0f2df298_16)] [added: [4](#ief7b1ab156f2478b9e799f9c65cd90f8_16)] | | |

| Item 1A: | | | [Risk [removed: Factors](#i0d6bd66919e44bd99f34a0fc0f2df298_19)] [added: Factors](#ief7b1ab156f2478b9e799f9c65cd90f8_19)] | | | [removed: [13](#i0d6bd66919e44bd99f34a0fc0f2df298_19)] [added: [11](#ief7b1ab156f2478b9e799f9c65cd90f8_19)] | | |

| Item 1B: | | | [Unresolved Staff [removed: Comments](#i0d6bd66919e44bd99f34a0fc0f2df298_22)] [added: Comments](#ief7b1ab156f2478b9e799f9c65cd90f8_22)] | | | [removed: [27](#i0d6bd66919e44bd99f34a0fc0f2df298_22)] [added: [23](#ief7b1ab156f2478b9e799f9c65cd90f8_22)] | | |

| Item 1C: | | | [removed: [Cybersecurity](#i0d6bd66919e44bd99f34a0fc0f2df298_1360)] [added: [Cybersecurity](#ief7b1ab156f2478b9e799f9c65cd90f8_25)] | | | [removed: [27](#i0d6bd66919e44bd99f34a0fc0f2df298_1360)] [added: [23](#ief7b1ab156f2478b9e799f9c65cd90f8_25)] | | |

| Item 2: | | | [removed: [Properties](#i0d6bd66919e44bd99f34a0fc0f2df298_25)] [added: [Properties](#ief7b1ab156f2478b9e799f9c65cd90f8_28)] | | | [removed: [28](#i0d6bd66919e44bd99f34a0fc0f2df298_25)] [added: [24](#ief7b1ab156f2478b9e799f9c65cd90f8_28)] | | |

| Item 3: | | | [Legal [removed: Proceedings](#i0d6bd66919e44bd99f34a0fc0f2df298_28)] [added: Proceedings](#ief7b1ab156f2478b9e799f9c65cd90f8_31)] | | | [removed: [29](#i0d6bd66919e44bd99f34a0fc0f2df298_28)] [added: [25](#ief7b1ab156f2478b9e799f9c65cd90f8_31)] | | |

| Item 4: | | | [Mine Safety [removed: Disclosures](#i0d6bd66919e44bd99f34a0fc0f2df298_31)] [added: Disclosures](#ief7b1ab156f2478b9e799f9c65cd90f8_34)] | | | [removed: [29](#i0d6bd66919e44bd99f34a0fc0f2df298_31)] [added: [25](#ief7b1ab156f2478b9e799f9c65cd90f8_34)] | | |

| Item 5: | | | [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#i0d6bd66919e44bd99f34a0fc0f2df298_37)] [added: Securities](#ief7b1ab156f2478b9e799f9c65cd90f8_40)] | | | [removed: [30](#i0d6bd66919e44bd99f34a0fc0f2df298_37)] [added: [26](#ief7b1ab156f2478b9e799f9c65cd90f8_40)] | | |

| Item 6: | | | [removed: [\[Reserved\]](#i0d6bd66919e44bd99f34a0fc0f2df298_40)] [added: [\[Reserved\]](#ief7b1ab156f2478b9e799f9c65cd90f8_43)] | | | [removed: [31](#i0d6bd66919e44bd99f34a0fc0f2df298_40)] [added: [27](#ief7b1ab156f2478b9e799f9c65cd90f8_43)] | | |

| Item 7: | | | [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#i0d6bd66919e44bd99f34a0fc0f2df298_43)] [added: Operations](#ief7b1ab156f2478b9e799f9c65cd90f8_46)] | | | [removed: [32](#i0d6bd66919e44bd99f34a0fc0f2df298_43)] [added: [28](#ief7b1ab156f2478b9e799f9c65cd90f8_46)] | | |

| Item 7A: | | | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#i0d6bd66919e44bd99f34a0fc0f2df298_61)] [added: Risk](#ief7b1ab156f2478b9e799f9c65cd90f8_64)] | | | [removed: [44](#i0d6bd66919e44bd99f34a0fc0f2df298_61)] [added: [39](#ief7b1ab156f2478b9e799f9c65cd90f8_64)] | | |

| Item 8: | | | [Financial Statements and Supplementary [removed: Data](#i0d6bd66919e44bd99f34a0fc0f2df298_64)] [added: Data](#ief7b1ab156f2478b9e799f9c65cd90f8_67)] | | | [removed: [44](#i0d6bd66919e44bd99f34a0fc0f2df298_64)] [added: [39](#ief7b1ab156f2478b9e799f9c65cd90f8_67)] | | |

| Item 9: | | | [Changes in and Disagreements with Accountants on Accounting and Financial [removed: Disclosure](#i0d6bd66919e44bd99f34a0fc0f2df298_67)] [added: Disclosure](#ief7b1ab156f2478b9e799f9c65cd90f8_70)] | | | [removed: [44](#i0d6bd66919e44bd99f34a0fc0f2df298_67)] [added: [39](#ief7b1ab156f2478b9e799f9c65cd90f8_70)] | | |

| Item 9A: | | | [Controls and [removed: Procedures](#i0d6bd66919e44bd99f34a0fc0f2df298_70)] [added: Procedures](#ief7b1ab156f2478b9e799f9c65cd90f8_73)] | | | [removed: [45](#i0d6bd66919e44bd99f34a0fc0f2df298_70)] [added: [40](#ief7b1ab156f2478b9e799f9c65cd90f8_73)] | | |

| Item 9B: | | | [Other [removed: Information](#i0d6bd66919e44bd99f34a0fc0f2df298_73)] [added: Information](#ief7b1ab156f2478b9e799f9c65cd90f8_76)] | | | [removed: [45](#i0d6bd66919e44bd99f34a0fc0f2df298_73)] [added: [40](#ief7b1ab156f2478b9e799f9c65cd90f8_76)] | | |

| Item 9C: | | | [Disclosure Regarding Foreign Jurisdictions that Prevent [removed: Inspections](#i0d6bd66919e44bd99f34a0fc0f2df298_76)] [added: Inspections](#ief7b1ab156f2478b9e799f9c65cd90f8_79)] | | | [removed: [45](#i0d6bd66919e44bd99f34a0fc0f2df298_76)] [added: [40](#ief7b1ab156f2478b9e799f9c65cd90f8_79)] | | |

| Item 10: | | | [Directors, Executive Officers and Corporate [removed: Governance](#i0d6bd66919e44bd99f34a0fc0f2df298_85)] [added: Governance](#ief7b1ab156f2478b9e799f9c65cd90f8_88)] | | | [removed: [46](#i0d6bd66919e44bd99f34a0fc0f2df298_85)] [added: [41](#ief7b1ab156f2478b9e799f9c65cd90f8_88)] | | |

| Item 11: | | | [Executive [removed: Compensation](#i0d6bd66919e44bd99f34a0fc0f2df298_88)] [added: Compensation](#ief7b1ab156f2478b9e799f9c65cd90f8_91)] | | | [removed: [46](#i0d6bd66919e44bd99f34a0fc0f2df298_88)] [added: [41](#ief7b1ab156f2478b9e799f9c65cd90f8_91)] | | |

| Item 12: | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#i0d6bd66919e44bd99f34a0fc0f2df298_91)] [added: Matters](#ief7b1ab156f2478b9e799f9c65cd90f8_94)] | | | [removed: [47](#i0d6bd66919e44bd99f34a0fc0f2df298_91)] [added: [42](#ief7b1ab156f2478b9e799f9c65cd90f8_94)] | | |

| Item 13: | | | [Certain Relationships and Related Transactions, and Director [removed: Independence](#i0d6bd66919e44bd99f34a0fc0f2df298_94)] [added: Independence](#ief7b1ab156f2478b9e799f9c65cd90f8_97)] | | | [removed: [48](#i0d6bd66919e44bd99f34a0fc0f2df298_94)] [added: [43](#ief7b1ab156f2478b9e799f9c65cd90f8_97)] | | |

| Item 14: | | | [Principal Accounting Fees and [removed: Services](#i0d6bd66919e44bd99f34a0fc0f2df298_97)] [added: Services](#ief7b1ab156f2478b9e799f9c65cd90f8_100)] | | | [removed: [48](#i0d6bd66919e44bd99f34a0fc0f2df298_97)] [added: [43](#ief7b1ab156f2478b9e799f9c65cd90f8_100)] | | |

| Item 15: | | | [Exhibits, Financial Statement [removed: Schedules](#i0d6bd66919e44bd99f34a0fc0f2df298_103)] [added: Schedules](#ief7b1ab156f2478b9e799f9c65cd90f8_106)] | | | [removed: [49](#i0d6bd66919e44bd99f34a0fc0f2df298_103)] [added: [44](#ief7b1ab156f2478b9e799f9c65cd90f8_106)] | | |

| Item 16: | | | [Form 10-K [removed: Summary](#i0d6bd66919e44bd99f34a0fc0f2df298_103)] [added: Summary](#ief7b1ab156f2478b9e799f9c65cd90f8_106)] | | | [removed: [49](#i0d6bd66919e44bd99f34a0fc0f2df298_103)] [added: [44](#ief7b1ab156f2478b9e799f9c65cd90f8_106)] | | |

| | | | [Signatures](#ief7b1ab156f2478b9e799f9c65cd90f8_175) | | | [87](#ief7b1ab156f2478b9e799f9c65cd90f8_175) | | |

| | | | [Signatures](#i0d6bd66919e44bd99f34a0fc0f2df298_181) | | | [88](#i0d6bd66919e44bd99f34a0fc0f2df298_181) | | |

We conduct assessments based on the National Institute of Standards and Technology Cybersecurity [removed: (“NIST”)] [added: (NIST)] Framework to evaluate our program, and we engage third-parties for assistance and to independently assess, proactively [removed: monitor,] [added: monitor] and provide an external view of our cybersecurity program.

Our cybersecurity risk management program is integrated with our enterprise risk management [removed: (“ERM”)] [added: (ERM)] program, and information about cybersecurity risks and our cybersecurity risk management program is reviewed as part of our ERM program, sharing common risk governance and reporting processes that apply across our ERM program.

Our Chief Information Security Officer [removed: (“CISO”),] [added: (CISO),] who has [removed: more than 20 years of] [added: extensive] experience in [added: cybersecurity and] information security management, is primarily responsible for managing our cybersecurity risk management program, cybersecurity incident response plan and escalation protocols, and reports at least quarterly to the Audit Committee and at least annually to the full Board on our cybersecurity, data and intellectual property security programs, policies, risks and controls.

The CISO reports to our Chief Information [removed: Officer (“CIO”),] [added: Officer,] who [removed: has more than 30 years of experience in information technology and] is responsible for administering secure and scalable security [removed: infrastructure.][added: infrastructure and reports to our Chief Digital Officer, each of whom has extensive experience in information technology.]

The CIO reports to our Chief Digital Officer, who has more than 37 years of experience in information technology.

We own and lease facilities throughout the world for use as offices, manufacturing facilities, warehouses, and research and development centers, primarily in the United States, [removed: Taiwan,] Singapore, [added: Taiwan, Israel,] China, [removed: Israel] and India.

As of October [removed: 27, 2024,] [added: 26, 2025,] we owned and leased approximately [removed: 9.0] [added: 9.1] million square feet and [removed: 4.9] [added: 5.3] million square feet of space, respectively.

Our products are manufactured primarily in the United States, Singapore, [removed: Israel] [added: Taiwan] and [removed: Taiwan.][added: Israel.]

As of December [removed: 6, 2024,] [added: 5, 2025,] there were [removed: 2,692] [added: 2,626] registered holders of our common stock.

Information regarding quarterly cash dividends declared on our common stock during fiscal [removed: 2024, 2023] [added: 2025, 2024] and [removed: 2022] [added: 2023] may be found under “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition, Liquidity and Capital Resources”.

The performance graph below shows the five-year cumulative total stockholder return on our common stock during the period from October [removed: 27, 2019] [added: 25, 2020] through October [removed: 27, 2024.][added: 26, 2025.]

The comparison assumes $100 was invested on October [removed: 27, 2019] [added: 25, 2020] in our common stock and in each of the foregoing indices and assumes reinvestment of dividends, if any.

The graph below assumes that the value of the investment in our common stock and in each of the indexes was $100 at October [removed: 27, 2019,] [added: 25, 2020,] and that all dividends were reinvested.

[removed: ][added: ]

Copyright© [removed: 2024] [added: 2025] Standard & Poor’s, a division of S&P global.

| | | | [removed: 10/27/2019] [added: 10/25/2020] | | | | | | [removed: 10/25/2020] [added: 10/31/2021] | | | | | | [removed: 10/31/2021] [added: 10/30/2022] | | | | | | [removed: 10/30/2022] [added: 10/29/2023] | | | | | | [removed: 10/29/2023] [added: 10/27/2024] | | | | | | [removed: 10/27/2024] [added: 10/26/2025] | | |

In March [removed: 2023,] [added: 2025,] our Board of Directors approved a common stock repurchase program authorizing $10.0 billion in repurchases, which supplemented the [removed: previously existing $6.0] [added: previous $10.0] billion authorization approved in March [removed: 2022.][added: 2023.]

At October [removed: 27, 2024,] [added: 26, 2025,] approximately [removed: $8.9] [added: $14.0] billion remained available for future stock repurchases under the repurchase program.

The following table provides information as of October [removed: 27, 2024] [added: 26, 2025] with respect to the shares of common stock repurchased by us during the fourth quarter of fiscal [removed: 2024] [added: 2025] pursuant to the foregoing Board authorization.

| Applied Materials | | | 100.00 | | | | | | 226.06 | | | | | | 149.67 | | | | | | 221.11 | | | | | | 316.48 | | | | | | 392.09 | | |

| S&P 500 Index | | | 100.00 | | | | | | 134.88 | | | | | | 116.04 | | | | | | 124.53 | | | | | | 178.22 | | | | | | 211.12 | | |

| PHLX Semiconductor Index | | | 100.00 | | | | | | 148.13 | | | | | | 105.92 | | | | | | 142.27 | | | | | | 232.14 | | | | | | 313.53 | | |

| (July 28, 2025 to August 24, 2025) | | | 3.0 | | | | | | $ | 170.20 | | | | | $ | 503 | | | | | 3.0 | | | | | | $ | 14,329 | |

| (August 25, 2025 to September 21, 2025) | | | 1.6 | | | | | | $ | 163.59 | | | | | 254 | | | | | | 1.6 | | | | | | $ | 14,075 | |

| (September 22, 2025 to October 26, 2025) | | | 0.4 | | | | | | $ | 217.41 | | | | | 99 | | | | | | 0.4 | | | | | | $ | 13,976 | |

| Total | | | 5.0 | | | | | | $ | 172.46 | | | | | $ | 856 | | | | | 5.0 | | | | | | | | |

| Applied Materials | | | 100.00 | | | | | | 110.92 | | | | | | 250.74 | | | | | | 166.02 | | | | | | 245.26 | | | | | | 351.03 | | |

| S&P 500 Index | | | 100.00 | | | | | | 116.84 | | | | | | 157.60 | | | | | | 135.57 | | | | | | 145.49 | | | | | | 208.23 | | |

| PHLX Semiconductor Index | | | 100.00 | | | | | | 145.68 | | | | | | 215.80 | | | | | | 154.30 | | | | | | 207.26 | | | | | | 338.18 | | |

| (July 29, 2024 to August 25, 2024) | | | 1.5 | | | | | | $ | 195.93 | | | | | $ | 292 | | | | | 1.5 | | | | | | $ | 10,030 | |

| (August 26, 2024 to September 22, 2024) | | | 2.6 | | | | | | $ | 187.33 | | | | | 492 | | | | | | 2.6 | | | | | | $ | 9,538 | |

| (September 23, 2024 to October 27, 2024) | | | 3.5 | | | | | | $ | 191.41 | | | | | 669 | | | | | | 3.5 | | | | | | $ | 8,869 | |

| Total | | | 7.6 | | | | | | $ | 190.89 | | | | | $ | 1,453 | | | | | 7.6 | | | | | | | | |

Based on that evaluation, our management concluded that our internal control over financial reporting was effective as of October [removed: 27, 2024.][added: 26, 2025.]

KPMG LLP, an independent registered public accounting firm, has audited the consolidated financial statements included in this Form 10-K and, as part of the audit, has issued a report, included herein, on the effectiveness of our internal control over financial reporting as of October [removed: 27, 2024.][added: 26, 2025.]

During the fourth quarter of fiscal [removed: 2024,] [added: 2025,] there were no changes in the internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

During the three months ended October [removed: 27, 2024,] [added: 26, 2025,] no director or officer, as defined in Rule 16a-1(f), adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Regulation S-K Item 408.

Except for the information regarding executive officers required by Item 401 of Regulation S-K (which is included in Part I, Item 1 of this Annual Report on Form 10-K, under “Information about our Executive Officers”), and code of ethics and insider trading policy (which are set forth below), the information required by this item will be provided in accordance with Instruction G(3) to Form 10-K no later than February [removed: 24, 2025.][added: 23, 2026.]

The information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February [removed: 24, 2025.][added: 23, 2026.]

Except for the information regarding securities authorized for issuance under equity compensation plans (which is set forth below), the information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February [removed: 24, 2025.][added: 23, 2026.]

The following table summarizes information with respect to equity awards under our equity compensation plans as of October [removed: 27, 2024:][added: 26, 2025:]

| Equity compensation plans approved by security holders | | | [removed: 10] [added: 9] | | | | | | | | | $ | — | | | | | [removed: 31] [added: 25] | | | (3) | | |

| Total | | | [removed: 10] [added: 9] | | | | | | | | | $ | — | | | | | [removed: 31] [added: 25] | | | | | |

(1)Includes only restricted stock units and performance share units outstanding under our equity compensation plans, as no options, stock warrants or other rights were outstanding as of October [removed: 27, 2024.][added: 26, 2025.]

(3)Includes [removed: 10] [added: 8] million shares of our common stock available for future issuance under the Applied Materials, Inc. Omnibus Employees’ Stock Purchase Plan.

Of these [removed: 10] [added: 8] million shares, 1 million are subject to purchase during the purchase period in effect as of October [removed: 27, 2024.][added: 26, 2025.]

The information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February [removed: 24, 2025.][added: 23, 2026.]

The information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February [removed: 24, 2025.][added: 23, 2026.]

| | | | [Report of Independent Registered Public Accounting [removed: Firm](#i0d6bd66919e44bd99f34a0fc0f2df298_106)] [added: Firm](#ief7b1ab156f2478b9e799f9c65cd90f8_109)] | | | [removed: [50](#i0d6bd66919e44bd99f34a0fc0f2df298_106)] [added: [45](#ief7b1ab156f2478b9e799f9c65cd90f8_109)] | | |

| | | | [Consolidated Statements of [removed: Operations](#i0d6bd66919e44bd99f34a0fc0f2df298_112)] [added: Operations](#ief7b1ab156f2478b9e799f9c65cd90f8_112)] | | | [removed: [52](#i0d6bd66919e44bd99f34a0fc0f2df298_112)] [added: [47](#ief7b1ab156f2478b9e799f9c65cd90f8_112)] | | |

| | | | [Consolidated Statements of Comprehensive [removed: Income](#i0d6bd66919e44bd99f34a0fc0f2df298_115)] [added: Income](#ief7b1ab156f2478b9e799f9c65cd90f8_115)] | | | [removed: [53](#i0d6bd66919e44bd99f34a0fc0f2df298_115)] [added: [48](#ief7b1ab156f2478b9e799f9c65cd90f8_115)] | | |

| | | | [Consolidated Balance [removed: Sheets](#i0d6bd66919e44bd99f34a0fc0f2df298_118)] [added: Sheets](#ief7b1ab156f2478b9e799f9c65cd90f8_118)] | | | [removed: [54](#i0d6bd66919e44bd99f34a0fc0f2df298_118)] [added: [49](#ief7b1ab156f2478b9e799f9c65cd90f8_118)] | | |

| | | | [Consolidated Statements of Stockholders’ [removed: Equity](#i0d6bd66919e44bd99f34a0fc0f2df298_121)] [added: Equity](#ief7b1ab156f2478b9e799f9c65cd90f8_121)] | | | [removed: [55](#i0d6bd66919e44bd99f34a0fc0f2df298_121)] [added: [50](#ief7b1ab156f2478b9e799f9c65cd90f8_121)] | | |

| | | | [Consolidated Statements of Cash [removed: Flows](#i0d6bd66919e44bd99f34a0fc0f2df298_124)] [added: Flows](#ief7b1ab156f2478b9e799f9c65cd90f8_124)] | | | [removed: [56](#i0d6bd66919e44bd99f34a0fc0f2df298_124)] [added: [51](#ief7b1ab156f2478b9e799f9c65cd90f8_124)] | | |

| | | | [Notes to Consolidated Financial [removed: Statements](#i0d6bd66919e44bd99f34a0fc0f2df298_127)] [added: Statements](#ief7b1ab156f2478b9e799f9c65cd90f8_127)] | | | [removed: [57](#i0d6bd66919e44bd99f34a0fc0f2df298_127)] [added: [53](#ief7b1ab156f2478b9e799f9c65cd90f8_127)] | | |

| | | | [The exhibits listed in the accompanying Index to Exhibits are filed or incorporated by reference as part of this Annual Report on Form [removed: 10-K](#i0d6bd66919e44bd99f34a0fc0f2df298_178)] [added: 10-K](#ief7b1ab156f2478b9e799f9c65cd90f8_172)] | | | [removed: [85](#i0d6bd66919e44bd99f34a0fc0f2df298_178)] [added: [84](#ief7b1ab156f2478b9e799f9c65cd90f8_172)] | | |

We have audited the accompanying consolidated balance sheets of Applied Materials, Inc. and subsidiaries (the Company) as of October [removed: 27, 2024] [added: 26, 2025] and October [removed: 29, 2023,] [added: 27, 2024,] the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended October [removed: 27, 2024,] [added: 26, 2025,] and the related notes (collectively, the consolidated financial statements).

We also have audited the Company’s internal control over financial reporting as of October [removed: 27, 2024,] [added: 26, 2025,] based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of October [removed: 27, 2024] [added: 26, 2025] and October [removed: 29, 2023,] [added: 27, 2024,] and the results of its operations and its cash flows for each of the years in the three-year period ended October [removed: 27, 2024,] [added: 26, 2025,] in conformity with U.S. generally accepted accounting principles.

Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of October [removed: 27, 2024] [added: 26, 2025] based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) [removed: relates] [added: relate] to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

As discussed in Notes 1 and [removed: 14] [added: 15] to the consolidated financial statements, the Company recorded [removed: $27,176] [added: $28,368] million in net revenue, for the year ended October [removed: 27, 2024.][added: 26, 2025.]

| Fiscal Year | | | [removed: 2024] [added: 2025] | | | | | | [removed: 2023] [added: 2024] | | | | | | [removed: 2022] [added: 2023] | | |

| Net revenue | | | $ | [removed: 27,176] [added: 28,368] | | | | | $ | [removed: 26,517] [added: 27,176] | | | | | $ | [removed: 25,785] [added: 26,517] | |

| Cost of products sold | | | [removed: 14,279] [added: 14,560] | | | | | | [removed: 14,133] [added: 14,279] | | | | | | [removed: 13,792] [added: 14,133] | | |

| Gross profit | | | [removed: 12,897] [added: 13,808] | | | | | | [removed: 12,384] [added: 12,897] | | | | | | [removed: 11,993] [added: 12,384] | | |

| Research, development and engineering | | | [removed: 3,233] [added: 3,570] | | | | | | [removed: 3,102] [added: 3,233] | | | | | | [removed: 2,771] [added: 3,102] | | |

| Marketing and selling | | | [removed: 836] [added: 858] | | | | | | [removed: 776] [added: 836] | | | | | | [removed: 703] [added: 776] | | |

| General and administrative | | | [removed: 961] [added: 910] | | | | | | [removed: 852] [added: 961] | | | | | | [removed: 735] [added: 852] | | |

| Severance and [removed: related] [added: other employee-related] charges | | | [removed: —] [added: $] | [added: 154] | | | | | [removed: —] | | | | | | [removed: (4)] | | |

| Total operating expenses | | | [removed: 5,030] [added: 5,519] | | | | | | [removed: 4,730] [added: 5,030] | | | | | | [removed: 4,205] [added: 4,730] | | |

| Income from operations | | | [removed: 7,867] [added: 8,289] | | | | | | [removed: 7,654] [added: 7,867] | | | | | | [removed: 7,788] [added: 7,654] | | |

| Interest expense | | | [removed: 247] [added: 269] | | | | | | [removed: 238] [added: 247] | | | | | | [removed: 228] [added: 238] | | |

| Interest and other income (expense), net | | | [removed: 532] [added: 1,251] | | | | | | [removed: 300] [added: 532] | | | | | | [removed: 39] [added: 300] | | |

| Income before income taxes | | | [removed: 8,152] [added: 9,271] | | | | | | [removed: 7,716] [added: 8,152] | | | | | | [removed: 7,599] [added: 7,716] | | |

| Provision for income taxes | | | [removed: 975] [added: 2,273] | | | | | | [removed: 860] [added: 975] | | | | | | [removed: 1,074] [added: 860] | | |

| Net income | | | $ | [removed: 7,177] [added: 6,998] | | | | | $ | [removed: 6,856] [added: 7,177] | | | | | $ | [removed: 6,525] [added: 6,856] | |

| Basic | | | $ | [removed: 8.68] [added: 8.71] | | | | | $ | [removed: 8.16] [added: 8.68] | | | | | $ | [removed: 7.49] [added: 8.16] | |

| Diluted | | | $ | [removed: 8.61] [added: 8.66] | | | | | $ | [removed: 8.11] [added: 8.61] | | | | | $ | [removed: 7.44] [added: 8.11] | |

| Basic | | | [removed: 827] [added: 804] | | | | | | [removed: 840] [added: 827] | | | | | | [removed: 871] [added: 840] | | |

| Diluted | | | [removed: 834] [added: 808] | | | | | | [removed: 845] [added: 834] | | | | | | [removed: 877] [added: 845] | | |

| Change in unrealized gain (loss) on available-for-sale investments | | | [removed: 43] [added: 18] | | | | | | [removed: 25] [added: 43] | | | | | | [removed: (74)] [added: 25] | | |

| Change in unrealized net loss on derivative instruments | | | [removed: 31] [added: 53] | | | | | | [removed: (66)] [added: 31] | | | | | | [removed: 51] [added: (66)] | | |

| Change in defined and postretirement benefit plans | | | [removed: (25)] [added: (13)] | | | | | | [removed: 26] [added: (25)] | | | | | | [removed: 81] [added: 26] | | |

| Other comprehensive income (loss), net of tax | | | [removed: 49] [added: 58] | | | | | | [removed: (15)] [added: 49] | | | | | | [removed: 58] [added: (15)] | | |

| Comprehensive income | | | $ | [removed: 7,226] [added: 7,056] | | | | | $ | [removed: 6,841] [added: 7,226] | | | | | $ | [removed: 6,583] [added: 6,841] | |

| | | | October [removed: 27, 2024] [added: 26, 2025] | | | | | | October [removed: 29, 2023] [added: 27, 2024] | | |

| Cash and cash equivalents | | | $ | [added: 7,241 | | | | | $ |] 8,022 | | | | | $ | 6,132 | |

| Short-term investments | | | [removed: 1,449] [added: 1,332] | | | | | | [removed: 737] [added: 1,449] | | |

| Accounts receivable, net | | | [removed: 5,234] [added: 5,185] | | | | | | [removed: 5,165] [added: 5,234] | | |

| Inventories | | | [removed: 5,421] [added: 5,915] | | | | | | [removed: 5,725] [added: 5,421] | | |

| Other current assets | | | [removed: 1,094] [added: 1,208] | | | | | | [removed: 1,388] [added: 1,094] | | |

| Total current assets | | | [removed: 21,220] [added: 20,881] | | | | | | [removed: 19,147] [added: 21,220] | | |

| Long-term investments | | | [removed: 2,787] [added: 4,327] | | | | | | [removed: 2,281] [added: 2,787] | | |

| Property, plant and equipment, net | | | [removed: 3,339] [added: 4,610] | | | | | | [removed: 2,723] [added: 3,339] | | |

| Goodwill | | | [removed: 3,732] [added: 3,707] | | | | | | 3,732 | | |

December 12, 2025

| Restructuring charges | | | 181 | | | | | | — | | | | | | — | | |

| Fiscal Year | | | 2025 | | | | | | 2024 | | | | | | 2023 | | |

| Net income | | | $ | 6,998 | | | | | $ | 7,177 | | | | | $ | 6,856 | |

| Balance at October 26, 2025 | | | 793 | | | | | | $ | 8 | | | | | $ | 10,333 | | | | | $ | 55,227 | | | | | 1,241 | | | | | | $ | (45,043) | | | | | $ | (110) | | | | | $ | 20,415 | |

| Fiscal Year | | | 2025 | | | | | | 2024 | | | | | | 2023 | | |

| Net income | | | $ | 6,998 | | | | | $ | 7,177 | | | | | $ | 6,856 | |

| Restructuring charges | | | 179 | | | | | | — | | | | | | — | | |

| (Gain) loss and impairments on investments, net | | | (792) | | | | | | (15) | | | | | | (16) | | |

| Proceeds from asset sale | | | 33 | | | | | | — | | | | | | — | | |

| Debt repayments | | | (700) | | | | | | — | | | | | | — | | |

| Payments of debt issuance costs | | | (3) | | | | | | — | | | | | | — | | |

CONSOLIDATED STATEMENTS OF CASH FLOWS — (Continued)

| Fiscal Year | | | 2025 | | | | | | 2024 | | | | | | 2023 | | |

Based on this assessment, we determined that a quantitative impairment test was required for certain non-strategic businesses within our Corporate and Other category, primarily due to events related to the exit of one such business during the quarter.

As a result, we recognized goodwill impairment charges of $41 million in general and administrative expenses in our Consolidated Statements of Operations.

*Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.* In June 2022, the Financial Accounting Standards Board (FASB) issued an accounting standard update which clarifies how the fair value of equity securities subject to contractual sale restrictions is determined (Topic 820).

The amendment clarifies that a contractual sale restriction should not be considered in measuring fair value.

It also requires certain qualitative and quantitative disclosures related to equity securities subject to contractual sale restrictions.

The adoption of this guidance did not have a material impact on our consolidated condensed financial statements.

In November 2023, the FASB issued an accounting standard update to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses (Topic 280).

The standard requires interim and annual disclosure of significant segment expenses that are regularly provided to the chief operating decision-maker (CODM) and included within the reported measure of a segment’s profit or loss, requires interim disclosures about a reportable segment’s profit or loss and assets that are currently required annually, requires disclosure of the position and title of the CODM, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss and contains other disclosure requirements.

We adopted this authoritative guidance in the fourth quarter of fiscal 2025 and expanded the disclosures in our notes to the consolidated financial statements.

See Note 15, Industry Segment Operations, of the Notes to the Consolidated Financial Statements for further information.

| Fiscal Year | | | 2025 | | | | | | 2024 | | | | | | 2023 | | |

| Net income | | | $ | 6,998 | | | | | $ | 7,177 | | | | | $ | 6,856 | |

| Cash | | | $ | 1,419 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,419 | |

| Bank certificates of deposit and time deposits | | | 180 | | | | | | — | | | | | | — | | | | | | 180 | | |

| U.S. Treasury and agency securities | | | 1,229 | | | | | | 3 | | | | | | — | | | | | | 1,232 | | |

| Municipal securities | | | 463 | | | | | | 5 | | | | | | — | | | | | | 468 | | |

| Total equity investments | | | 1,630 | | | | | | 898 | | | | | | 48 | | | | | | 2,480 | | |

| Total | | | $ | 4,793 | | | | | $ | 5,659 | |

______________________________

| | | | October 26, 2025 | | | | | | October 27, 2024 | | |

| | | | October 26, 2025 | | | | | | October 27, 2024 | | |

| | | | $ | 1,208 | | | | | $ | 1,094 | |

| | | | | | | | | | $ | 4,610 | | | | | $ | 3,339 | |

| | | | October 26, 2025 | | | | | | October 27, 2024 | | |

| | | | $ | 2,548 | | | | | $ | 3,082 | |

| | | | October 26, 2025 | | | | | | October 27, 2024 | | |

December 13, 2024

| | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Balance at October 31, 2021 | | | 892 | | | | | | $ | 9 | | | | | $ | 8,247 | | | | | $ | 32,246 | | | | | 1,119 | | | | | | $ | (27,995) | | | | | $ | (260) | | | | | $ | 12,247 | |

In connection with our periodic review of estimated useful lives of the property, plant and equipment, we have increased the estimated useful lives of certain assets effective as of the beginning of fiscal 2024.

The estimated useful lives for the following assets remained unchanged from fiscal 2023: software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years.

The change in accounting estimate was applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases.

Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $128 million in depreciation expense during fiscal 2024, and an increase of $0.12 in both basic and diluted earnings per share for fiscal 2024.

we determined that it was more likely than not that each of our reporting units’ fair values exceeded their respective carrying values and that it was not necessary to perform the quantitative goodwill impairment test for any of our reporting units.

*Contract Assets and Contract Liabilities from Revenue Contracts with Customers in a Business Combination.* In October 2021, the Financial Accounting Standards Board (FASB) issued an accounting standard update to improve the accounting for contract assets and contract liabilities from revenue contracts with customers in a business combination (Topic 805).

This amendment improves comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination.

During fiscal 2024, the adoption of this guidance had no impact to our consolidated financial statements as there were no acquisitions during the year.

| | | | | | | | | | | | | | | | | | | | | | | | |

_________________________

| Cash | | | $ | 1,417 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,417 | |

| Municipal securities | | | 438 | | | | | | — | | | | | | 11 | | | | | | 427 | | |

| Total equity investments | | | 735 | | | | | | 249 | | | | | | 26 | | | | | | 958 | | |

| Total | | | $ | 4,022 | | | | | $ | 4,236 | |

We are also exposed to interest rate risk associated with our potential future borrowings.

During fiscal 2024, we entered into a series of interest rate contracts to hedge against the variability of cash flows due to changes in the benchmark interest rate of fixed rate debt.

These instruments were designated as cash flow hedges at inception and were settled in conjunction with the issuance of debt in June 2024.

New export rules and regulations issued in December 2024 are expected to have an immaterial impact on remaining unsatisfied performance obligations on contracts with an original estimated duration of one year or more.

| | | | $ | 1,094 | | | | | $ | 1,388 | |

| | | | | | | | | | $ | 3,339 | | | | | $ | 2,723 | |

| | | | $ | 3,082 | | | | | $ | 2,552 | |

| Finance lease liabilities, current | | | — | | | | | | 102 | | |

| | | | $ | 4,820 | | | | | $ | 4,297 | |

| | | | $ | 810 | | | | | $ | 714 | |

| 3.900% Senior Notes Due 2025 | | | $ | — | | | | | $ | 700 | | | | | 3.944% | | | | | | April 1, October 1 | | |

| Balance at October 31, 2021 | | | $ | (1) | | | | | $ | (103) | | | | | $ | (169) | | | | | $ | 13 | | | | | (260) | | |

| Granted | | | 4 | | | | | | $ | 149.20 | | | | | | | | | | | | | |

| Vested | | | (5) | | | | | | $ | 97.50 | | | | | | | | | | | | | |

| Canceled | | | (1) | | | | | | $ | 120.91 | | | | | | | | | | | | | |

Employee Stock Purchase Plans

| Foreign | | | 30 | | | | | | (61) | | | | | | 265 | | |

Our effective tax rate for fiscal 2023 was lower than fiscal 2022 primarily due to a reduction of deferred tax assets that occurred in fiscal 2022, related to a new tax incentive in Singapore.

| Right of use assets | | | (76) | | | | | | (103) | | |