Applied Materials Reaches Resolution with the U.S. Department of Commerce

Rhea-AI Summary

Applied Materials (NASDAQ: AMAT) reached a civil settlement with the U.S. Department of Commerce, resolving BIS allegations about certain China shipments from Nov. 2020 to July 2022. The company agreed to pay $252.5 million, and the Department of Justice and SEC have closed related investigations without action.

Applied said the resolution concludes the U.S. government review and allows the company to focus on its technology roadmap and export‑control compliance.

Positive

• Civil settlement concludes U.S. government review
• DOJ and SEC closed related investigations without action
• Clarifies export‑control status allowing operational focus

Negative

• Company agreed to pay $252.5 million
• Allegations cover shipments from Nov 2020 to Jul 2022

Market Reaction

-4.12% $327.81

15m delay 1 alert

-4.12% Since News

$327.81 Last Price

$316.77 $344.34 Day Range

-$11.59B Valuation Impact

$269.77B Market Cap

14K Volume

Following this news, AMAT has declined 4.12%, reflecting a moderate negative market reaction. The stock is currently trading at $327.81. This price movement has removed approximately $11.59B from the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Settlement payment: $252.5 million Alleged violation window start: Nov. 2020 Alleged violation window end: July 2022 +5 more

8 metrics

Settlement payment $252.5 million Civil settlement with U.S. Department of Commerce (BIS)

Alleged violation window start Nov. 2020 Start of Chinese shipment period cited by BIS

Alleged violation window end July 2022 End of Chinese shipment period cited by BIS

Record annual revenue $28.37 billion Fiscal 2025 results (up 4% YoY)

FY2025 GAAP EPS $8.66 Fiscal 2025 GAAP EPS (up 1% YoY)

FY2025 non-GAAP EPS $9.42 Fiscal 2025 non-GAAP EPS (up 9% YoY)

Q1 FY2026 revenue outlook $6.85B +/- $0.5B Guidance issued Nov 13, 2025

Quarterly dividend $0.46 per share Dividend payable Mar 12, 2026

Market Reality Check

Price: $339.88 Vol: Volume 6,879,498 is below...

normal vol

$339.88 Last Close

Volume Volume 6,879,498 is below the 20-day average of 8,414,305 (relative volume 0.82). normal

Technical Price 339.88 is trading above the 200-day MA at 215.18, near the 344.60 52-week high.

Peers on Argus

AMAT gained 3.29% while peers were mixed: LRCX -0.18%, ASML -0.20%, KLAC +0.76%,...

AMAT gained 3.29% while peers were mixed: LRCX -0.18%, ASML -0.20%, KLAC +0.76%, TER +2.89%, ENTG +0.63%, suggesting a company-specific reaction.

Historical Context

5 past events · Latest: Feb 10 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 10	AI product update	Positive	-0.5%	New chipmaking systems for 2nm and beyond AI-focused transistors.
Jan 22	Earnings date set	Neutral	-2.0%	Scheduled Q1 FY2026 earnings release and conference call details.
Dec 12	Dividend announcement	Positive	-4.0%	Quarterly cash dividend with eight consecutive years of increases.
Nov 17	Conference participation	Neutral	+1.2%	CFO fireside chat at a major technology and AI conference.
Nov 13	Earnings results	Positive	-3.3%	Record FY2025 revenue and EPS with detailed Q1 FY2026 guidance.

Pattern Detected

Recent history shows several positive or shareholder-friendly announcements followed by negative price reactions, indicating a tendency for the stock to sell off on good news.

Recent Company History

Over the past six months, Applied Materials reported record fiscal 2025 revenue of $28.37 billion with non-GAAP EPS of $9.42 and issued Q1 FY2026 guidance for revenue of $6.85B +/- $0.5B. It also announced a quarterly dividend of $0.46 per share, its eighth consecutive annual increase, after returning nearly $6.3 billion to shareholders in fiscal 2025. Despite these positives and AI-related product news, several announcements saw negative next-day price reactions, contrasting with today’s positive move on resolving a regulatory matter.

Market Pulse Summary

This announcement finalized a civil settlement with the U.S. Department of Commerce, setting a defin...

Analysis

This announcement finalized a civil settlement with the U.S. Department of Commerce, setting a defined payment of $252.5 million and closing related Department of Justice and SEC investigations without action. It removed a regulatory overhang while leaving Applied’s broader story—record $28.37 billion fiscal 2025 revenue, dividend growth, and AI-focused innovation—intact. Investors may watch upcoming earnings on Feb. 12, 2026 and any updates on compliance practices for further clarity.

Key Terms

bureau of industry and security, securities and exchange commission (sec)

2 terms

bureau of industry and security regulatory

"settlement agreement with the U.S. Department of Commerce, Bureau of Industry and Security (BIS)."

A U.S. government agency that controls the export and re-export of sensitive goods, technology, and software for reasons of national security and foreign policy. For investors, its decisions—such as licensing approvals, trade restrictions, or blacklists—can abruptly limit a company’s ability to sell products or access markets, much like a gatekeeper deciding who can take valuable equipment out of a stadium.

securities and exchange commission (sec) regulatory

"the U.S. Securities and Exchange Commission (SEC) have notified Applied that they have closed"

A U.S. federal agency that oversees the stock and securities markets, requiring public companies and brokers to register and share accurate financial information so investors can see the facts. It enforces rules, investigates fraud and can pause or change market activity; think of it as a referee whose decisions and investigations affect investor confidence, legal risk and the value of traded securities.

AI-generated analysis. Not financial advice.

SANTA CLARA, Calif., Feb. 11, 2026 (GLOBE NEWSWIRE) -- Applied Materials, Inc. today announced that it has reached a settlement agreement with the U.S. Department of Commerce, Bureau of Industry and Security (BIS). The settlement resolves BIS’s allegations that certain customer shipments to China between Nov. 2020 and July 2022 did not comply with the U.S. Export Administration Regulations, based on the company’s misunderstanding of the applicability of those regulations. Under the terms of the settlement, Applied has agreed to pay $252.5 million to the Department of Commerce. In addition, the U.S. Department of Justice and the U.S. Securities and Exchange Commission (SEC) have notified Applied that they have closed their related investigations without action.

Applied Materials is pleased that the Department of Justice and SEC have closed their respective reviews, and that a civil settlement has been reached with the Department of Commerce, concluding the U.S. government’s review. Applied believes that resolving this matter is in the best interest of the company, its customers, employees and shareholders. Integrity and compliance are core to how Applied operates, and the company remains fully committed to maintaining strong export-control and trade-compliance practices across its global operations. With this matter closed, Applied is focused on executing our technology roadmap and supporting the accelerating demand for next-generation semiconductor innovation.

Forward-Looking Statements
This press release contains forward-looking statements, including those regarding the company’s business and growth strategies, industry outlooks, expected benefits of the settlement with BIS and the effectiveness of the company’s compliance programs. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include the risks and uncertainties described in Applied’s most recent Form 10-K and other Securities and Exchange Commission filings. All forward-looking statements are based on management’s current estimates, projections and assumptions, and Applied assumes no obligation to update them.

About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions that are at the foundation of virtually every new semiconductor and advanced display in the world. The technology we create is essential to advancing AI and accelerating the commercialization of next-generation chips. At Applied, we push the boundaries of science and engineering to deliver material innovation that changes the world. Learn more at www.appliedmaterials.com.

Contact:
Ricky Gradwohl (editorial/media) 408.235.4676
Mike Sullivan (financial community) 408.986.7977

FAQ

What did Applied Materials (AMAT) announce on February 12, 2026 about the Department of Commerce settlement?

Applied Materials announced a civil settlement resolving BIS allegations and agreed to pay $252.5 million. According to the company, DOJ and SEC closed their related investigations without action, concluding the U.S. government’s review and removing related regulatory uncertainty.

How much will AMAT pay to resolve the BIS export‑control allegations in 2026?

Applied Materials agreed to pay $252.5 million to the Department of Commerce as part of the settlement. According to the company, this payment resolves BIS allegations tied to certain customer shipments to China between Nov. 2020 and Jul. 2022.

Does the February 2026 settlement with BIS mean DOJ or SEC pursued charges against AMAT (AMAT)?

No, the company said DOJ and SEC have closed their related investigations without action. According to the company, only a civil settlement with the Department of Commerce was reached, and no enforcement actions proceeded by DOJ or SEC.

What shipment period did the BIS allegations against Applied Materials (AMAT) cover?

BIS’s allegations related to certain customer shipments between Nov. 2020 and July 2022. According to the company, the alleged noncompliance reflected a misunderstanding of export regulation applicability during that period.

How does the AMAT settlement affect the company’s business focus and compliance stance?

The company indicated the settlement allows it to refocus on its technology roadmap and serve customers. According to the company, it remains committed to strong export‑control and trade‑compliance practices across global operations.

Will the $252.5 million settlement announced Feb 12, 2026 materially impact Applied Materials (AMAT) finances?

Applied Materials agreed to a $252.5 million civil payment as part of the resolution. According to the company, resolving the matter was deemed in shareholders’ best interest; financial impact specifics beyond the payment were not disclosed in the announcement.