Applied Materials Q4 revenue jumps 53% to $10.4B
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Applied Materials (AMAT) reported fourth-quarter fiscal 2026 revenue of $10.409 billion for the quarter ended October 25, 2026, up 53% year over year. GAAP net income was $2.718 billion, up 43%, and diluted EPS was $3.40, also up 43%. Non-GAAP diluted EPS was $4.16, up 92%, while non-GAAP free cash flow was $2.616 billion, up 28%.
For fiscal 2026, revenue was $34.446 billion, up 21%; GAAP net income was $10.088 billion, up 44%, and diluted EPS was $12.62, up 46%. The company generated $8.868 billion in operating cash and distributed $4.75 billion to shareholders through share repurchases and dividends.
For Q1 FY2027, Applied expects revenue of $11.1 billion, plus or minus $500 million, and non-GAAP diluted EPS of $4.35, plus or minus $0.20. It unveiled its EPIC Center and announced four new partnerships, bringing announced engagements to 15. An accelerated share purchase agreement would increase Applied’s investment in Besi to approximately 20% of Besi’s outstanding shares.
3 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointQuarterly revenue increased 53% to $10.409 billion year over year.
- Moderate pointQuarterly non-GAAP diluted EPS increased 92% to $4.16.
- Minor pointFiscal-year revenue increased 21% to $34.446 billion.
Negative
- None.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Fourth-quarter revenue: $10.409 billion
Fourth-quarter GAAP diluted EPS: $3.40
Fourth-quarter non-GAAP diluted EPS: $4.16
+5 more
8 metrics
Fourth-quarter revenue
$10.409 billion
Fourth quarter fiscal 2026; up 53% year over year
Fourth-quarter GAAP diluted EPS
$3.40
Fourth quarter fiscal 2026; up 43% year over year
Fourth-quarter non-GAAP diluted EPS
$4.16
Fourth quarter fiscal 2026; up 92% year over year
Fiscal-year revenue
$34.446 billion
Fiscal 2026; up 21% year over year
Fiscal-year GAAP diluted EPS
$12.62
Fiscal 2026; up 46% year over year
Fiscal-year non-GAAP diluted EPS
$12.89
Fiscal 2026; up 37% year over year
Q1 FY2027 revenue outlook
$11.1 billion, plus or minus $500 million
Company outlook for the first quarter of fiscal 2027
Q1 FY2027 non-GAAP diluted EPS outlook
$4.35, plus or minus $0.20
Company outlook for the first quarter of fiscal 2027
Key Terms
non-GAAP financial measures, free cash flow, wafer fab equipment, high-NA EUV, +2 more
6 terms
non-GAAP financial measures financial
"Applied provides investors with certain non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
free cash flow financial
"record quarterly free cash flow of $2.6 billion"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
wafer fab equipment technical
"wafer fab equipment (WFE) market"
Wafer fab equipment is the specialized machines and tools used to build semiconductor chips on silicon wafers, handling steps like etching, deposition, inspection and testing. Think of it as the industrial kitchen appliances that turn raw ingredients into finished products; its availability and performance determine how many chips can be made, how quickly and at what cost, so changes in demand, lead times or technology upgrades directly affect manufacturers’ revenue, margins and investment plans.
high-NA EUV technical
"patterning control challenges of high-NA EUV"
High-NA EUV is the next-generation form of extreme ultraviolet lithography that uses a higher numerical aperture (NA) optical system to print smaller features on semiconductor wafers. Increasing the NA improves imaging resolution by capturing steeper light angles, but it also reduces depth of focus and requires larger, more complex reflective optics, new reticle layouts and mask handling, and changes in fab infrastructure and exposure control. It is a manufacturing technology term describing tools and processes for making finer integrated-circuit patterns, not a material or product brand.
eBeam metrology technical
"advanced eBeam metrology innovations"
Earnings Snapshot
Fourth-quarter revenue: $10.409 billion · Guidance included
Fourth quarter and fiscal year ended October 25, 2026
Fourth-quarter revenue
$10.409 billion
Up 53% year over year
Fourth-quarter GAAP net income
$2.718 billion
Up 43% year over year
Fourth-quarter GAAP diluted EPS
$3.40
Up 43% year over year
Fourth-quarter non-GAAP diluted EPS
$4.16
Up 92% year over year
Fiscal-year revenue
$34.446 billion
Up 21% year over year
Fiscal-year GAAP diluted EPS
$12.62
Up 46% year over year
Fiscal-year non-GAAP diluted EPS
$12.89
Up 37% year over year
Guidance
For Q1 FY2027, revenue is expected to be $11.1 billion, plus or minus $500 million, and non-GAAP diluted EPS is expected to be $4.35, plus or minus $0.20.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were AMAT’s fourth-quarter fiscal 2026 revenue and EPS?
Applied Materials reported fourth-quarter revenue of $10.409 billion and GAAP diluted EPS of $3.40 for the quarter ended October 25, 2026. Revenue and GAAP diluted EPS each increased 43% year over year; non-GAAP diluted EPS was $4.16, up 92%.
How much revenue and EPS did AMAT report for fiscal 2026?
Applied Materials reported fiscal 2026 revenue of $34.446 billion, GAAP diluted EPS of $12.62, and non-GAAP diluted EPS of $12.89. Year over year, revenue increased 21%, GAAP diluted EPS increased 46%, and non-GAAP diluted EPS increased 37%.
What is AMAT’s Q1 FY2027 outlook?
Applied expects Q1 FY2027 revenue of $11.1 billion, plus or minus $500 million, and non-GAAP diluted EPS of $4.35, plus or minus $0.20. The non-GAAP EPS outlook excludes known charges related to completed acquisitions of $0.01 per share and includes a net income tax benefit of $0.04 per share related to intra-entity intangible asset transfers.
Which new partners were announced for Applied Materials’ EPIC Center?
The four announced partners are Intel, KIOXIA Corporation, BE Semiconductor Industries N.V. (Besi), and the UCLA Samueli School of Engineering. The announcements bring Applied’s total number of announced EPIC engagements to 15.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________
FORM 8-K
____________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 12, 2026
____________________________________________________________________
Applied Materials, Inc.
(Exact name of registrant as specified in its charter)
____________________________________________________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices)
Registrant’s telephone number, including area code: (408 ) 727-5555
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging Growth Company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act). ☐
Item 2.02 Results of Operations and Financial Condition.
On November 12, 2026, Applied Materials, Inc. (“Applied Materials”) announced its financial results for its fourth quarter and fiscal year ended October 25, 2026. A copy of Applied Materials’ press release is attached hereto as Exhibit 99.1.
The information in this Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section, and shall not be deemed to be incorporated by reference in any filing of Applied Materials under the Securities Act of 1933, as amended, or the Exchange Act, unless expressly incorporated by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press Release issued by Applied Materials, Inc. dated November 12, 2026 | |||||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Applied Materials, Inc. (Registrant) | ||||||||||||||
| Date: | November 12, 2026 | By: | /s/ Teri A. Little | |||||||||||
| Teri A. Little | ||||||||||||||
| Senior Vice President, Chief Legal Officer and Corporate Secretary | ||||||||||||||
Exhibit 99.1
Investor Relations Contact:
Mike Sullivan (408) 986-7977
mike_sullivan@amat.com
Media Contact:
Ricky Gradwohl (408) 235-4676
ricky_gradwohl@amat.com
APPLIED MATERIALS ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2026 RESULTS
•Record quarterly revenue $10.41 billion, up 53 percent year over year
•Quarterly GAAP gross margin 50.4 percent and non-GAAP gross margin 50.6 percent, up 240 basis points and 250 basis points year over year, respectively
•Quarterly GAAP EPS $3.40 and record non-GAAP EPS $4.16, up 43 percent and 92 percent year over year, respectively
•Record annual revenue $34.45 billion, up 21 percent year over year
•Annual GAAP gross margin 50.0 percent and non-GAAP gross margin 50.1 percent, both up 130 basis points year over year
•Record annual GAAP EPS $12.62 and record non-GAAP EPS $12.89, up 46 percent and 37 percent year over year, respectively
•Unveiled the EPIC Center in Silicon Valley and added four new R&D partnerships, bringing our total number of announced EPIC engagements to 15
SANTA CLARA, Calif., Nov. 12, 2026 — Applied Materials, Inc. (NASDAQ: AMAT) today reported results for its fourth quarter and fiscal year ended Oct. 25, 2026.
Fourth Quarter Results
Applied generated record revenue of $10.41 billion. On a GAAP basis, the company reported gross margin of 50.4 percent, record operating income of $3.66 billion or 35.1 percent of revenue, and earnings per share (EPS) of $3.40.
On a non-GAAP basis, the company reported gross margin of 50.6 percent, record operating income of $3.68 billion or 35.3 percent of revenue, and record EPS of $4.16.
The company generated record cash from operations of $3.30 billion and distributed $2.42 billion to shareholders through $2.00 billion in share repurchases and $421 million in dividends.
Fiscal Year Results
Applied generated record revenue of $34.45 billion. On a GAAP basis, the company reported gross margin of 50.0 percent, record operating income of $11.09 billion or 32.2 percent of revenue, and record EPS of $12.62.
Applied Materials, Inc.
Page 2 of 15
On a non-GAAP basis, the company reported gross margin of 50.1 percent, record operating income of $11.42 billion or 33.1 percent of revenue, and record EPS of $12.89.
The company generated record cash from operations of $8.87 billion and distributed $4.75 billion to shareholders through $3.18 billion in share repurchases and $1.57 billion in dividends.
“Applied Materials delivered record results in fiscal 2026, and we are on track to grow our Semiconductor Systems business more than 40 percent in our calendar 2026,” said Gary Dickerson, President and CEO. “AI continues to fuel strong incremental demand for semiconductors and Applied has built the most-enabling portfolio to advance the AI-computing roadmap, putting us in a great position for multi-year revenue and profit growth.”
“With technology leadership in the most critical areas of the wafer fab equipment market, Applied Materials increased fiscal fourth quarter revenue by 53 percent year over year and non-GAAP earnings per share by 92 percent,” said Brice Hill, Senior Vice President and CFO. “We generated record quarterly free cash flow of $2.6 billion and distributed over $2.4 billion to shareholders, including the largest quarterly share buyback in more than eight years.”
Applied Materials, Inc.
Page 3 of 15
Results Summary
| Change | |||||||||||||||||||||||||||||||||||
| Q4 FY2026 | Q4 FY2025 | FY2026 | FY2025 | Q4 FY2026 vs. Q4 FY2025 | FY2026 vs. FY2025 | ||||||||||||||||||||||||||||||
| (In millions, except per share amounts and percentages) | |||||||||||||||||||||||||||||||||||
| Revenue | $ | 10,409 | $ | 6,800 | $ | 34,446 | $ | 28,368 | 53% | 21% | |||||||||||||||||||||||||
| Gross margin | 50.4 | % | 48.0 | % | 50.0 | % | 48.7 | % | 2.4 points | 1.3 points | |||||||||||||||||||||||||
| Operating margin | 35.1 | % | 25.2 | % | 32.2 | % | 29.2 | % | 9.9 points | 3.0 points | |||||||||||||||||||||||||
| Net income | $ | 2,718 | $ | 1,897 | $ | 10,088 | $ | 6,998 | 43% | 44% | |||||||||||||||||||||||||
| Diluted earnings per share | $ | 3.40 | $ | 2.38 | $ | 12.62 | $ | 8.66 | 43% | 46% | |||||||||||||||||||||||||
| Non-GAAP Results | |||||||||||||||||||||||||||||||||||
| Non-GAAP gross margin | 50.6 | % | 48.1 | % | 50.1 | % | 48.8 | % | 2.5 points | 1.3 points | |||||||||||||||||||||||||
| Non-GAAP operating margin | 35.3 | % | 28.6 | % | 33.1 | % | 30.2 | % | 6.7 points | 2.9 points | |||||||||||||||||||||||||
| Non-GAAP net income | $ | 3,321 | $ | 1,732 | $ | 10,301 | $ | 7,607 | 92% | 35% | |||||||||||||||||||||||||
| Non-GAAP diluted EPS | $ | 4.16 | $ | 2.17 | $ | 12.89 | $ | 9.42 | 92% | 37% | |||||||||||||||||||||||||
| Non-GAAP free cash flow | $ | 2,616 | $ | 2,043 | $ | 6,196 | $ | 5,698 | 28% | 9% | |||||||||||||||||||||||||
A reconciliation of the GAAP and non-GAAP results is provided in the financial tables included in this release. See also “Use of Non-GAAP Financial Measures” section.
Recent Highlights
EPIC Center
•Unveiled the EPIC Center in Silicon Valley, the world’s largest facility dedicated to collaborative semiconductor process technology and manufacturing equipment R&D. By bringing chipmakers, equipment partners and university researchers into the same building as Applied’s scientists and engineers, EPIC enables parallel rather than sequential development of materials, equipment and process technology, resulting in shorter learning cycles and faster commercialization of the innovations that will power the AI era.
•Announced four new EPIC Center partnerships, bringing the total to 15 announced to date.
•Intel will join EPIC as a founding partner to accelerate development of chipmaking innovations for next-generation transistors, interconnects and advanced packaging technologies. The collaboration will bring together cutting-edge capabilities from Applied’s EPIC Center and Intel’s R&D campus in Hillsboro, Oregon to shorten time-to-market of advanced semiconductor technologies essential to AI computing.
•KIOXIA Corporation will join the EPIC Center as an innovation partner to advance next-generation memory technologies. Applied and KIOXIA will work together at the EPIC Center on advanced memory-cell and structure creation, multi-chip stacking architectures, and new materials engineering approaches designed to increase memory density and performance for the AI era.
•BE Semiconductor Industries N.V. (Besi) will join the EPIC Center as an innovation partner. This is an expansion of Applied’s longstanding strategic partnership with Besi and extends the companies’ co-innovation beyond hybrid bonding into new interconnect architectures and applications supporting the semiconductor industry’s AI-driven scaling roadmap.
•The UCLA Samueli School of Engineering will join the EPIC Center as a research partner. Together with Applied’s scientists and engineers, UCLA researchers will work to solve semiconductor materials and integration challenges with a focus on shortening the time it takes to bring breakthrough research to commercialization.
Applied Materials, Inc.
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New Products and Technologies
•Introduced the VeritySEM™ 20 metrology system, a next-generation critical dimension scanning electron microscope (CD-SEM). The VeritySEM 20 system is engineered to address the patterning control challenges of high-NA EUV by using advanced eBeam metrology innovations and AI-driven process efficiencies to accurately measure thinner photoresists, support tighter process windows and enable faster recipe creation.
Corporate Initiatives
•Entered into an accelerated share purchase agreement to increase Applied’s investment in Besi to approximately 20 percent of Besi’s outstanding shares. The share purchase would add to Applied’s current investment in Besi, which was initially made in April 2025.
•Hosted an Investor Breakfast Presentation during SEMICON West, where Applied executives presented the company’s longer-term growth expectations and outlined how our leadership in materials engineering positions the company to outperform the wafer fab equipment (WFE) market over the coming years.
Applied Materials, Inc.
Page 5 of 15
Business Outlook
Applied’s total revenue and non-GAAP diluted EPS for the first quarter of fiscal 2027 are expected to be as follows:
| Q1 FY2027 | |||||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||||
| Total revenue | $ | 11,100 | +/- | $ | 500 | ||||||||||||
| Non-GAAP diluted EPS | $ | 4.35 | +/- | $ | 0.20 | ||||||||||||
This outlook for non-GAAP diluted EPS excludes known charges related to completed acquisitions of $0.01 per share and includes a net income tax benefit related to intra-entity intangible asset transfers of $0.04 per share, but does not reflect any items that are unknown at this time, such as any additional charges related to acquisitions or other non-operational or unusual items, as well as other tax-related items, which we are not able to predict without unreasonable efforts due to their inherent uncertainty.
Fourth Quarter and Fiscal Year Reportable Segment Information
Effective in the first quarter of fiscal 2026, management moved our 200-millimeter equipment business to Semiconductor Systems. The business was previously included in Applied Global Services. Additionally, effective in the first quarter of fiscal 2026, management began fully allocating corporate support costs to our operating segments. Prior-period numbers have been recast to conform to the current-year presentation. Display operating segment financial results are included in the Other category balances below.
| Semiconductor Systems | Q4 FY2026 | Q4 FY2025 | FY2026 | FY2025 | |||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||
| Revenue | $ | 7,996 | $ | 4,879 | $ | 26,142 | $ | 21,441 | |||||||||||||||
| Foundry and logic | 58 | % | 66 | % | 63 | % | 68 | % | |||||||||||||||
| DRAM | 33 | % | 28 | % | 30 | % | 26 | % | |||||||||||||||
| Flash memory | 9 | % | 6 | % | 7 | % | 6 | % | |||||||||||||||
| Gross margin | 55.0 | % | 52.7 | % | 54.9 | % | 53.2 | % | |||||||||||||||
| Operating income | $ | 3,101 | $ | 1,430 | $ | 9,277 | $ | 6,909 | |||||||||||||||
| Operating margin | 38.8 | % | 29.3 | % | 35.5 | % | 32.2 | % | |||||||||||||||
| Non-GAAP Results | |||||||||||||||||||||||
| Non-GAAP gross margin | 55.2 | % | 52.8 | % | 55.0 | % | 53.4 | % | |||||||||||||||
| Non-GAAP operating income | $ | 3,115 | $ | 1,442 | $ | 9,581 | $ | 6,958 | |||||||||||||||
| Non-GAAP operating margin | 39.0 | % | 29.6 | % | 36.6 | % | 32.5 | % | |||||||||||||||
| Applied Global Services | Q4 FY2026 | Q4 FY2025 | FY2026 | FY2025 | |||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||
| Revenue | $ | 1,896 | $ | 1,506 | $ | 6,901 | $ | 5,742 | |||||||||||||||
| Gross margin | 35.1 | % | 34.1 | % | 35.0 | % | 33.5 | % | |||||||||||||||
| Operating income | $ | 578 | $ | 433 | $ | 2,039 | $ | 1,547 | |||||||||||||||
| Operating margin | 30.5 | % | 28.8 | % | 29.5 | % | 26.9 | % | |||||||||||||||
| Non-GAAP Results | |||||||||||||||||||||||
| Non-GAAP gross margin | 35.1 | % | 34.1 | % | 35.0 | % | 33.5 | % | |||||||||||||||
| Non-GAAP operating income | $ | 578 | $ | 434 | $ | 2,039 | $ | 1,549 | |||||||||||||||
| Non-GAAP operating margin | 30.5 | % | 28.8 | % | 29.5 | % | 27.0 | % | |||||||||||||||
| Other | Q4 FY2026 | Q4 FY2025 | FY2026 | FY2025 | |||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Revenue | $ | 517 | $ | 415 | $ | 1,403 | $ | 1,185 | |||||||||||||||
| Cost of products sold and expenses | (542) | (385) | (1,624) | (1,171) | |||||||||||||||||||
| Restructuring charges | 4 | (181) | (8) | (181) | |||||||||||||||||||
| Operating income (loss) | $ | (21) | $ | (151) | $ | (229) | $ | (167) | |||||||||||||||
Applied Materials, Inc.
Page 6 of 15
Calendar Year Information
Applied's calendar 2026 refers to the period beginning with the second quarter of fiscal 2026 through the first quarter of fiscal 2027.
Use of Non-GAAP Financial Measures
Applied provides investors with certain non-GAAP financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including, as applicable, certain items related to mergers and acquisitions; restructuring and severance charges and any associated adjustments; legal settlement charges; impairments of assets; gain or loss, dividends and impairments on strategic investments; certain income tax items; and other discrete adjustments. On a non-GAAP basis, the tax effect related to share-based compensation is recognized ratably over the fiscal year. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.
Management uses these non-GAAP financial measures to evaluate the company’s operating and financial performance and for planning purposes, and as performance measures in its executive compensation program. Applied believes these measures enhance an overall understanding of its performance and investors’ ability to review the company’s business from the same perspective as the company’s management, and facilitate comparisons of this period’s results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Applied's ongoing operating performance. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.
Webcast Information
Applied Materials will discuss these results during an earnings call that begins at 1:30 p.m. Pacific Time today. A live webcast and related slide presentation will be available at https://ir.appliedmaterials.com. A replay will be available on the website beginning at 5:00 p.m. Pacific Time today.
Applied Materials, Inc.
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Forward-Looking Statements
This press release contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, the plans and expectations for the EPIC Center, legal matters, our business outlook for the first quarter of fiscal 2027 and beyond, and other statements that are not historical facts. 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, without limitation: the level of demand for our products; demand for semiconductor chips and electronic devices, including demand related to the development and use of AI technologies; our ability to meet customer demand, and our suppliers’ ability to meet our demand requirements; global economic, political and industry conditions, including changes in interest rates and prices for goods and services; global trade issues, changes in trade and export regulations, license requirements, and their interpretation, and our ability to obtain licenses or authorizations on a timely basis, if at all; changes in tariffs, any retaliatory measures, and our ability to mitigate the impact of tariffs; the effects of geopolitical turmoil or conflicts; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; cybersecurity incidents affecting us or our suppliers, customers or vendors; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including our most recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume 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.
Applied Materials, Inc.
Page 8 of 15
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| (In millions, except per share amounts) | October 25, 2026 | October 26, 2025 | October 25, 2026 | October 26, 2025 | |||||||||||||||||||
| Revenue | $ | 10,409 | $ | 6,800 | $ | 34,446 | $ | 28,368 | |||||||||||||||
| Cost of products sold | 5,158 | 3,535 | 17,227 | 14,560 | |||||||||||||||||||
| Gross profit | 5,251 | 3,265 | 17,219 | 13,808 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research, development and engineering | 1,129 | 917 | 4,184 | 3,570 | |||||||||||||||||||
| Marketing and selling | 250 | 212 | 954 | 858 | |||||||||||||||||||
| General and administrative | 218 | 243 | 733 | 910 | |||||||||||||||||||
| Legal settlement | — | — | 253 | — | |||||||||||||||||||
| Restructuring charges | (4) | 181 | 8 | 181 | |||||||||||||||||||
| Total operating expenses | 1,593 | 1,553 | 6,132 | 5,519 | |||||||||||||||||||
| Income from operations | 3,658 | 1,712 | 11,087 | 8,289 | |||||||||||||||||||
| Interest expense | 68 | 71 | 274 | 269 | |||||||||||||||||||
| Interest and other income (expense), net | (513) | 626 | 724 | 1,251 | |||||||||||||||||||
| Income before income taxes | 3,077 | 2,267 | 11,537 | 9,271 | |||||||||||||||||||
| Provision for income taxes | 359 | 370 | 1,449 | 2,273 | |||||||||||||||||||
| Net income | $ | 2,718 | $ | 1,897 | $ | 10,088 | $ | 6,998 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 3.43 | $ | 2.39 | $ | 12.71 | $ | 8.71 | |||||||||||||||
| Diluted | $ | 3.40 | $ | 2.38 | $ | 12.62 | $ | 8.66 | |||||||||||||||
| Weighted average number of shares: | |||||||||||||||||||||||
| Basic | 793 | 794 | 793 | 804 | |||||||||||||||||||
| Diluted | 798 | 798 | 799 | 808 | |||||||||||||||||||
Applied Materials, Inc.
Page 9 of 15
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
| (In millions) | October 25, 2026 | October 26, 2025 | |||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 7,239 | $ | 7,241 | |||||||
| Short-term investments | 2,100 | 1,332 | |||||||||
| Accounts receivable, net | 8,998 | 5,185 | |||||||||
| Inventories | 6,889 | 5,915 | |||||||||
| Other current assets | 1,913 | 1,208 | |||||||||
| Total current assets | 27,139 | 20,881 | |||||||||
| Long-term investments | 4,756 | 4,327 | |||||||||
| Property, plant and equipment, net | 5,854 | 4,610 | |||||||||
| Goodwill | 3,875 | 3,707 | |||||||||
| Purchased technology and other intangible assets, net | 339 | 226 | |||||||||
| Deferred income taxes and other assets | 3,437 | 2,548 | |||||||||
| Total assets | $ | 45,400 | $ | 36,299 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Short-term debt | $ | 1,299 | $ | 100 | |||||||
| Accounts payable and accrued expenses | 6,696 | 5,333 | |||||||||
| Contract liabilities | 3,585 | 2,566 | |||||||||
| Total current liabilities | 11,580 | 7,999 | |||||||||
| Long-term debt | 5,233 | 6,455 | |||||||||
| Income taxes payable | 1,080 | 356 | |||||||||
| Other liabilities | 1,401 | 1,074 | |||||||||
| Total liabilities | 19,294 | 15,884 | |||||||||
| Total stockholders’ equity | 26,106 | 20,415 | |||||||||
| Total liabilities and stockholders’ equity | $ | 45,400 | $ | 36,299 | |||||||
Applied Materials, Inc.
Page 10 of 15
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
| (In millions) | Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
| October 25, 2026 | October 26, 2025 | October 25, 2026 | October 26, 2025 | ||||||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||||||
| Net income | $ | 2,718 | $ | 1,897 | $ | 10,088 | $ | 6,998 | |||||||||||||||
| Adjustments required to reconcile net income to cash provided by operating activities: | |||||||||||||||||||||||
| Depreciation and amortization | 158 | 114 | 571 | 435 | |||||||||||||||||||
| Restructuring charges | (4) | 179 | 8 | 179 | |||||||||||||||||||
| (Gain) loss and impairments on investments, net | 637 | (522) | (272) | (792) | |||||||||||||||||||
| Share-based compensation | 174 | 156 | 719 | 668 | |||||||||||||||||||
| Deferred income taxes | (333) | (313) | (308) | 639 | |||||||||||||||||||
| Other | 9 | 59 | (2) | 31 | |||||||||||||||||||
| Net change in operating assets and liabilities | (59) | 1,258 | (1,936) | (200) | |||||||||||||||||||
| Cash provided by operating activities | 3,300 | 2,828 | 8,868 | 7,958 | |||||||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||||||
| Capital expenditures | (684) | (785) | (2,672) | (2,260) | |||||||||||||||||||
| Cash paid for acquisitions, net of cash acquired | 4 | — | (258) | (29) | |||||||||||||||||||
| Proceeds from asset sale | — | — | 6 | 33 | |||||||||||||||||||
| Proceeds from sales and maturities of investments | 1,346 | 1,591 | 5,931 | 5,528 | |||||||||||||||||||
| Purchases of investments | (1,346) | (945) | (6,839) | (6,054) | |||||||||||||||||||
| Cash used in investing activities | (680) | (139) | (3,832) | (2,782) | |||||||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||||||
| Debt borrowings, net of issuance costs | — | 991 | — | 991 | |||||||||||||||||||
| Debt repayments | — | (700) | — | (700) | |||||||||||||||||||
| Proceeds from commercial paper | 101 | 103 | 500 | 503 | |||||||||||||||||||
| Repayments of commercial paper | (100) | (102) | (500) | (502) | |||||||||||||||||||
| Proceeds from common stock issuances | 135 | 132 | 266 | 261 | |||||||||||||||||||
| Common stock repurchases | (2,000) | (851) | (3,177) | (4,895) | |||||||||||||||||||
| Tax withholding payments for vested equity awards | (133) | (38) | (570) | (248) | |||||||||||||||||||
| Payments of dividends to stockholders | (421) | (365) | (1,571) | (1,384) | |||||||||||||||||||
| Payments of debt issuance costs | — | (1) | — | (3) | |||||||||||||||||||
| Cash used in financing activities | (2,418) | (831) | (5,052) | (5,977) | |||||||||||||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash equivalents | 202 | 1,858 | (16) | (801) | |||||||||||||||||||
| Cash, cash equivalents and restricted cash equivalents — beginning of period | 7,094 | 5,454 | 7,312 | 8,113 | |||||||||||||||||||
| Cash, cash equivalents and restricted cash equivalents — end of period | $ | 7,296 | $ | 7,312 | $ | 7,296 | $ | 7,312 | |||||||||||||||
| Reconciliation of cash, cash equivalents, and restricted cash equivalents | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 7,239 | $ | 7,241 | $ | 7,239 | $ | 7,241 | |||||||||||||||
| Restricted cash equivalents included in deferred income taxes and other assets | 57 | 71 | 57 | 71 | |||||||||||||||||||
| Total cash, cash equivalents, and restricted cash equivalents | $ | 7,296 | $ | 7,312 | $ | 7,296 | $ | 7,312 | |||||||||||||||
| Supplemental cash flow information: | |||||||||||||||||||||||
| Cash payments for income taxes | $ | 113 | $ | 235 | $ | 932 | $ | 1,504 | |||||||||||||||
| Cash refunds from income taxes | $ | 13 | $ | 11 | $ | 35 | $ | 90 | |||||||||||||||
| Cash payments for interest | $ | 54 | $ | 68 | $ | 246 | $ | 239 | |||||||||||||||
Applied Materials, Inc.
Page 11 of 15
Additional Information
| Q4 FY2026 | Q4 FY2025 | FY2026 | FY2025 | ||||||||||||||||||||
Revenue by Geography (In millions) | |||||||||||||||||||||||
| United States | $ | 1,320 | $ | 655 | $ | 4,284 | $ | 3,063 | |||||||||||||||
| % of Total | 13 | % | 10 | % | 12 | % | 11 | % | |||||||||||||||
| Europe | $ | 520 | $ | 220 | $ | 1,571 | $ | 962 | |||||||||||||||
| % of Total | 5 | % | 3 | % | 5 | % | 3 | % | |||||||||||||||
| Japan | $ | 619 | $ | 448 | $ | 2,606 | $ | 2,273 | |||||||||||||||
| % of Total | 6 | % | 6 | % | 8 | % | 8 | % | |||||||||||||||
| Korea | $ | 1,811 | $ | 1,219 | $ | 6,362 | $ | 5,608 | |||||||||||||||
| % of Total | 17 | % | 18 | % | 18 | % | 20 | % | |||||||||||||||
| Taiwan | $ | 2,916 | $ | 1,834 | $ | 8,818 | $ | 6,857 | |||||||||||||||
| % of Total | 28 | % | 27 | % | 26 | % | 24 | % | |||||||||||||||
| Southeast Asia | $ | 581 | $ | 460 | $ | 1,475 | $ | 1,076 | |||||||||||||||
| % of Total | 6 | % | 7 | % | 4 | % | 4 | % | |||||||||||||||
| China | $ | 2,642 | $ | 1,964 | $ | 9,330 | $ | 8,529 | |||||||||||||||
| % of Total | 25 | % | 29 | % | 27 | % | 30 | % | |||||||||||||||
Employees (In thousands) | |||||||||||||||||||||||
| Regular Full Time | 41.5 | 36.5 | |||||||||||||||||||||
Applied Materials, Inc.
Page 12 of 15
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| (In millions, except percentages) | October 25, 2026 | October 26, 2025 | October 25, 2026 | October 26, 2025 | |||||||||||||||||||
| Non-GAAP Gross Profit | |||||||||||||||||||||||
| GAAP reported gross profit | $ | 5,251 | $ | 3,265 | $ | 17,219 | $ | 13,808 | |||||||||||||||
Certain items associated with acquisitions1 | 12 | 7 | 36 | 27 | |||||||||||||||||||
| Non-GAAP gross profit | $ | 5,263 | $ | 3,272 | $ | 17,255 | $ | 13,835 | |||||||||||||||
| Non-GAAP gross margin | 50.6 | % | 48.1 | % | 50.1 | % | 48.8 | % | |||||||||||||||
| Non-GAAP Operating Income | |||||||||||||||||||||||
| GAAP reported operating income | $ | 3,658 | $ | 1,712 | $ | 11,087 | $ | 8,289 | |||||||||||||||
Certain items associated with acquisitions1 | 14 | 11 | 51 | 45 | |||||||||||||||||||
| Acquisition integration and deal costs | 8 | 2 | 16 | 6 | |||||||||||||||||||
| Impairment of goodwill | — | 41 | — | 41 | |||||||||||||||||||
Legal settlement2 | — | — | 253 | — | |||||||||||||||||||
Restructuring charges3 | (4) | 181 | 8 | 181 | |||||||||||||||||||
| Non-GAAP operating income | $ | 3,676 | $ | 1,947 | $ | 11,415 | $ | 8,562 | |||||||||||||||
| Non-GAAP operating margin | 35.3 | % | 28.6 | % | 33.1 | % | 30.2 | % | |||||||||||||||
| Non-GAAP Net Income | |||||||||||||||||||||||
| GAAP reported net income | $ | 2,718 | $ | 1,897 | $ | 10,088 | $ | 6,998 | |||||||||||||||
Certain items associated with acquisitions1 | 14 | 11 | 51 | 45 | |||||||||||||||||||
| Acquisition integration and deal costs | 8 | 2 | 16 | 6 | |||||||||||||||||||
| Impairment of goodwill | — | 41 | — | 41 | |||||||||||||||||||
Legal settlement2 | — | — | 253 | — | |||||||||||||||||||
Restructuring charges3 | (4) | 181 | 8 | 181 | |||||||||||||||||||
| Realized loss (gain), dividends and impairments on strategic investments, net | (18) | (55) | 4 | (66) | |||||||||||||||||||
| Unrealized loss (gain) on strategic investments, net | 653 | (467) | (296) | (755) | |||||||||||||||||||
| Foreign exchange loss (gain) related to purchase of strategic investment | — | — | — | 23 | |||||||||||||||||||
| Loss (gain) on asset sale | — | — | — | (44) | |||||||||||||||||||
Income tax effect of share-based compensation4 | 4 | (1) | — | — | |||||||||||||||||||
Income tax effects related to intra-entity intangible asset transfers5 | 49 | 39 | 145 | 777 | |||||||||||||||||||
Resolution of prior years’ income tax filings and other tax items6 | (27) | (7) | (24) | 313 | |||||||||||||||||||
Income tax effect of non-GAAP adjustments7 | (76) | 91 | 56 | 88 | |||||||||||||||||||
| Non-GAAP net income | $ | 3,321 | $ | 1,732 | $ | 10,301 | $ | 7,607 | |||||||||||||||
| 1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | ||||
| 2 | Charge of $253 million for settlement with the U.S. Commerce Department Bureau of Industry and Security to resolve a previously disclosed export controls compliance matter. | ||||
| 3 | The restructuring charges related to a workforce reduction plan announced in the fourth quarter of fiscal 2025. | ||||
| 4 | GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis. | ||||
| 5 | Amount for the twelve months ended October 26, 2025, included changes to the income tax provision of $118 million from amortization of intangibles and a $659 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in the first quarter of fiscal 2025. | ||||
| 6 | Amounts for the twelve months ended October 26, 2025 included the impact of the recognition of a $403 million valuation allowance against deferred tax assets related to corporate alternative minimum tax credits. | ||||
| 7 | Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. | ||||
Applied Materials, Inc.
Page 13 of 15
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| (In millions, except per share amounts) | October 25, 2026 | October 26, 2025 | October 25, 2026 | October 26, 2025 | |||||||||||||||||||
| Non-GAAP Earnings Per Diluted Share | |||||||||||||||||||||||
| GAAP reported earnings per diluted share | $ | 3.40 | $ | 2.38 | $ | 12.62 | $ | 8.66 | |||||||||||||||
| Certain items associated with acquisitions | 0.02 | 0.01 | 0.06 | 0.05 | |||||||||||||||||||
| Acquisition integration and deal costs | 0.01 | — | 0.02 | 0.01 | |||||||||||||||||||
| Impairment of goodwill | — | 0.05 | — | 0.05 | |||||||||||||||||||
| Legal settlement | — | — | 0.32 | — | |||||||||||||||||||
| Restructuring charges | — | 0.19 | 0.01 | 0.19 | |||||||||||||||||||
| Realized loss (gain), dividends and impairments on strategic investments, net | 0.02 | (0.07) | 0.13 | (0.08) | |||||||||||||||||||
| Unrealized loss (gain) on strategic investments, net | 0.68 | (0.43) | (0.42) | (0.80) | |||||||||||||||||||
| Foreign exchange loss (gain) related to purchase of strategic investment | — | — | — | 0.03 | |||||||||||||||||||
| Loss (gain) on asset sale | — | — | — | (0.04) | |||||||||||||||||||
Income tax effects related to intra-entity intangible asset transfers1 | 0.06 | 0.05 | 0.18 | 0.96 | |||||||||||||||||||
Resolution of prior years’ income tax filings and other tax items2 | (0.03) | (0.01) | (0.03) | 0.39 | |||||||||||||||||||
| Non-GAAP earnings per diluted share | $ | 4.16 | $ | 2.17 | $ | 12.89 | $ | 9.42 | |||||||||||||||
| Weighted average number of diluted shares | 798 | 798 | 799 | 808 | |||||||||||||||||||
| 1 | Amount for the twelve months ended October 26, 2025, included changes to the income tax provision of $0.14 per diluted share from amortization of intangibles and $0.82 per diluted share from a remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in the first quarter of fiscal 2025. | ||||
| 2 | Amounts for the twelve months ended October 26, 2025 included a $0.50 per diluted share impact of the recognition of a valuation allowance against deferred tax assets related to corporate alternative minimum tax credits. | ||||
Applied Materials, Inc.
Page 14 of 15
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| (In millions, except percentages) | October 25, 2026 | October 26, 2025 | October 25, 2026 | October 26, 2025 | |||||||||||||||||||
| Semiconductor Systems Non-GAAP Gross Profit | |||||||||||||||||||||||
| GAAP reported gross profit | $ | 4,400 | $ | 2,569 | $ | 14,350 | $ | 11,414 | |||||||||||||||
Certain items associated with acquisitions1 | 12 | 7 | 36 | 27 | |||||||||||||||||||
| Non-GAAP gross profit | $ | 4,412 | $ | 2,576 | $ | 14,386 | $ | 11,441 | |||||||||||||||
| Non-GAAP gross margin | 55.2 | % | 52.8 | % | 55.0 | % | 53.4 | % | |||||||||||||||
| Applied Global Services Non-GAAP Gross Profit | |||||||||||||||||||||||
| GAAP reported gross profit | $ | 665 | $ | 514 | $ | 2,413 | $ | 1,921 | |||||||||||||||
| Non-GAAP gross profit | $ | 665 | $ | 514 | $ | 2,413 | $ | 1,921 | |||||||||||||||
| Non-GAAP gross margin | 35.1 | % | 34.1 | % | 35.0 | % | 33.5 | % | |||||||||||||||
| Semiconductor Systems Non-GAAP Operating Income | |||||||||||||||||||||||
| GAAP reported operating income | $ | 3,101 | $ | 1,430 | $ | 9,277 | $ | 6,909 | |||||||||||||||
Certain items associated with acquisitions1 | 14 | 11 | 51 | 45 | |||||||||||||||||||
| Acquisition integration and deal costs | — | 1 | — | 4 | |||||||||||||||||||
Legal settlement2 | — | — | 253 | — | |||||||||||||||||||
| Non-GAAP operating income | $ | 3,115 | $ | 1,442 | $ | 9,581 | $ | 6,958 | |||||||||||||||
| Non-GAAP operating margin | 39.0 | % | 29.6 | % | 36.6 | % | 32.5 | % | |||||||||||||||
| Applied Global Services Non-GAAP Operating Income | |||||||||||||||||||||||
| GAAP reported operating income | $ | 578 | $ | 433 | $ | 2,039 | $ | 1,547 | |||||||||||||||
| Acquisition integration and deal costs | — | 1 | — | 2 | |||||||||||||||||||
| Non-GAAP operating income | $ | 578 | $ | 434 | $ | 2,039 | $ | 1,549 | |||||||||||||||
| Non-GAAP operating margin | 30.5 | % | 28.8 | % | 29.5 | % | 27.0 | % | |||||||||||||||
| 1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | ||||
| 2 | Charge of $253 million for settlement with the U.S. Commerce Department Bureau of Industry and Security to resolve a previously disclosed export controls compliance matter. | ||||
Note: The reconciliation of GAAP and non-GAAP segment results above does not include certain revenues, costs of products sold and operating expenses that are reported within other and included in consolidated operating income.
Applied Materials, Inc.
Page 15 of 15
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE
| Three Months Ended | |||||
| (In millions, except percentages) | October 25, 2026 | ||||
GAAP provision for income taxes (a) | $ | 359 | |||
| Income tax effect of share-based compensation | (4) | ||||
| Income tax effects related to intra-entity intangible asset transfers | (49) | ||||
| Resolution of prior years’ income tax filings and other tax items | 27 | ||||
| Income tax effect of non-GAAP adjustments | 76 | ||||
Non-GAAP provision for income taxes (b) | $ | 409 | |||
GAAP income before income taxes (c) | $ | 3,077 | |||
| Certain items associated with acquisitions | 14 | ||||
| Acquisition integration and deal costs | 8 | ||||
Restructuring charges | (4) | ||||
| Realized loss (gain), dividends and impairments on strategic investments, net | (18) | ||||
| Unrealized loss (gain) on strategic investments, net | 653 | ||||
Non-GAAP income before income taxes (d) | $ | 3,730 | |||
GAAP effective income tax rate (a/c) | 11.7 | % | |||
Non-GAAP effective income tax rate (b/d) | 11.0 | % | |||
UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| (In millions) | October 25, 2026 | October 26, 2025 | October 25, 2026 | October 26, 2025 | |||||||||||||||||||
| Cash provided by operating activities | $ | 3,300 | $ | 2,828 | $ | 8,868 | $ | 7,958 | |||||||||||||||
| Capital expenditures | (684) | (785) | (2,672) | (2,260) | |||||||||||||||||||
| Non-GAAP free cash flow | $ | 2,616 | $ | 2,043 | $ | 6,196 | $ | 5,698 | |||||||||||||||