Applied Materials, Inc.

“Applied Materials, Inc. is the leader in the materials engineering solutions used to produce virtually every semiconductor in the world.”

“We provide equipment, services and software to the semiconductor and related industries.”

“We operate in two reportable segments: Semiconductor Systems and Applied Global Services® (AGS).”

“We operate in two reportable segments: Semiconductor Systems and Applied Global Services® (AGS). As of October 26, 2025, management no longer considers Display a significant operating segment for separate reporting purposes.”

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

“Because of the highly technical nature of our products, we market and sell products worldwide almost entirely through a direct sales force.”

“Our portfolio of equipment and service products are highly technical and are sold primarily through a direct sales force.”

“Our products address steps across materials engineering, process control and advanced packaging, including the conversion of patterns into device structures, transistor and interconnect fabrication, metrology, inspection and review, and packaging technologies for connecting finished IC die.”

“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”

“Our AGS segment provides services, spares and factory automation software to customer fabrication plants globally.”

“China$8,529 30%$10,117 37%(16)% Korea5,608 20%4,493 17%25 % Taiwan6,857 24%4,010 15%71 %”

“Semiconductor Systems$20,798 73%$19,911 73%4 % Applied Global Services6,385 23%6,225 23%3 %”

“As of October 26, 2025, all of our subsidiaries use the United States dollar as their functional currency.”

“Product development and manufacturing activities occur primarily in the United States, Europe, Israel, and Asia.”

“We utilize a distributed manufacturing model under which manufacturing and supply chain activities are conducted in various countries, including United States, Singapore, Japan, China, Korea, Taiwan, Israel and other countries in Asia and Europe.”

“Accordingly, some key parts may be obtained from only a qualified single supplier or a limited group of qualified suppliers.”

“we believe secular drivers such as data center AI, edge AI and the internet of things, robotics and electric and autonomous vehicles will continue to create the next wave of growth for semiconductors”

“Research, development and engineering (RD&E)$3,570 $3,233 $337”

“Our significant investments in 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 strategic priorities include developing products that help solve customers’ challenges at technology inflections, growing our service business, and expanding our served market opportunities in the semiconductor industry.”

“Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash equivalents, investments, trade accounts receivable, and derivative financial instruments used in hedging activities.”

“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 26, 2025 and October 27, 2024”

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

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

“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 revenues and increased our exposure to foreign and Chinese domestic competition.”

“The United States government has implemented export regulations for U.S. semiconductor technology sold or provided to customers in China, which have limited our ability to provide certain products and services to customers in China”

“We and our third-party providers have experienced, and expect to continue to experience, cybersecurity incidents.”

“increases in debt obligations to finance activities associated with a transaction, which increase interest expense, and reductions in cash balances, which reduce the availability of cash flow for general corporate or other purposes, including share repurchases and dividends”

“The ability to attract, retain and motivate key employees is vital to our success.”

“Geopolitical tensions or conflicts, such as Russia’s invasion of Ukraine, tension with China and conflict in the Middle East may create a heightened risk of cybersecurity attacks.”