Recent News
In August the company warned about slowing demand and tariff exposure tied to its China business and guided conservatively for the coming quarter; management cited reduced visibility in the policy environment. Analysts followed with mixed reactions: several shops trimmed targets or ratings on China and market-share concerns, while other firms raised outlooks on memory-led demand and upgraded coverage more recently.
Technical Analysis
Directional indicators show strength: ADX at 36.05 signals a strong underlying trend while DI+ at 43.68 (increasing) paired with DI- at 16.54 (decreasing) indicates the trend direction favors upside relative to recent valuation levels.
MACD sits at 7.58 with the MACD line above the signal line (signal 3.73) and the MACD trend increasing, indicating bullish momentum and continuation pressure that complements the current valuation bias.
MRO registers -2.63 and the MRO trend moves higher; price lies below the intrinsic target implied by the oscillator, implying upward potential as momentum and valuation pressure converge.
RSI at 58.01 and rising shows strengthening buyer control without reaching overbought territory, which supports additional near-term upside while leaving room before momentum exhaustion impacts price versus valuation.
Price structure confirms the technical tilt: last close $204.95 sits above the 20-, 50- and 200-day averages (20-day $186.79, 50-day $177.58, 200-day $168.36) and above the 12-day EMA ($192.15, increasing), reinforcing the bullish bias relative to the displayed valuation. SuperTrend lower band near $194.88 provides a reference support level beneath current price.
Bollinger context shows the close slightly above the 1x upper band ($204.07), consistent with persistent upside pressure; volume sits below the 10-day average but above the 200-day average, indicating selective participation during the move.
Fundamental Analysis
Profitability and margins: EBIT $2,629,000,000 and an EBIT margin of 36.00%, up 6.96% QoQ and up 20.63% YoY, reflect improved operating leverage versus recent quarters; gross margin stands at 48.78% (up 3.16% YoY). The EBIT margin remains below the industry peer mean of 58.47% and below the industry peer median of 66.89%.
Earnings and cash flow: Reported EPS $2.48 versus estimate $2.36 produced an EPS surprise of +5.09%. Operating cash flow $2,634,000,000 and free cash flow $2,050,000,000 translate into a free cash flow yield of 1.48%, above the industry peer mean of 0.40%, and free cash flow growth YoY at 11.02% supports near-term funding flexibility.
Revenue and growth dynamics: Total revenue $7,302,000,000 with YoY revenue growth 43.25% while quarterly revenue registered a QoQ decline of about -4.09%, demonstrating strong year-on-year expansion offset by sequential variability tied to the order cycle and regional demand effects.
Balance sheet and efficiency: Cash and short-term investments $7,014,000,000 and a current ratio of 2.50 provide ample liquidity; net debt stands near $879,000,000 and debt-to-equity about 0.347, modest relative leverage. Cash conversion cycle at 174 days exceeds the industry peer mean of about 70 days, indicating working-capital intensity that requires monitoring.
Return metrics: Return on equity 9.12% exceeds the industry peer mean of 5.15% and the peer high of 8.11%, while return on assets at 5.24% trails the peer mean. Interest coverage near 39.8x affords significant buffer to service debt.
Valuation context: Price multiples show a P/E of 72.32 and forward P/E near 73.41; price-to-book about 7.09, below the industry peer mean of 33.69. Enterprise multiples and forward multiples reflect a disconnect between strong cash generation and elevated headline multiples. The current valuation as determined by WMDST: under-valued, supported primarily by cash flow strength and above-peer free cash flow yield versus several headline multiples that embed near-term growth expectations.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-07-31 |
| REPORT DATE: | 2025-08-14 |
| NEXT REPORT DATE: | 2025-11-12 |
| CASH FLOW | Begin Period Cash Flow | $ 6.2 B |
| Operating Cash Flow | $ 2.6 B | |
| Capital Expenditures | $ -584.00 M | |
| Change In Working Capital | $ 588.0 M | |
| Dividends Paid | $ -368.00 M | |
| Cash Flow Delta | $ -790.00 M | |
| End Period Cash Flow | $ 5.5 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 7.3 B | |
| Forward Revenue | $ 2.0 B | |
| COSTS | ||
| Cost Of Revenue | $ 3.7 B | |
| Depreciation | $ 113.0 M | |
| Depreciation and Amortization | $ 113.0 M | |
| Research and Development | $ 901.0 M | |
| Total Operating Expenses | $ 5.1 B | |
| PROFITABILITY | ||
| Gross Profit | $ 3.6 B | |
| EBITDA | $ 2.7 B | |
| EBIT | $ 2.6 B | |
| Operating Income | $ 2.2 B | |
| Interest Income | $ 396.0 M | |
| Interest Expense | $ 66.0 M | |
| Net Interest Income | $ 330.0 M | |
| Income Before Tax | $ 2.6 B | |
| Tax Provision | $ 784.0 M | |
| Tax Rate | 30.6 % | |
| Net Income | $ 1.8 B | |
| Net Income From Continuing Operations | $ 1.8 B | |
| EARNINGS | ||
| EPS Estimate | $ 2.36 | |
| EPS Actual | $ 2.48 | |
| EPS Difference | $ 0.12 | |
| EPS Surprise | 5.085 % | |
| Forward EPS | $ 2.42 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 34.2 B | |
| Intangible Assets | $ 4.0 B | |
| Net Tangible Assets | $ 15.5 B | |
| Total Current Assets | $ 19.7 B | |
| Cash and Short-Term Investments | $ 7.0 B | |
| Cash | $ 5.4 B | |
| Net Receivables | $ 5.8 B | |
| Inventory | $ 5.8 B | |
| Long-Term Investments | $ 443.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 1.8 B | |
| Short-Term Debt | $ 800.0 M | |
| Total Current Liabilities | $ 7.9 B | |
| Net Debt | $ 879.0 M | |
| Total Debt | $ 6.8 B | |
| Total Liabilities | $ 14.7 B | |
| EQUITY | ||
| Total Equity | $ 19.5 B | |
| Retained Earnings | $ 53.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 24.48 | |
| Shares Outstanding | 796.642 M | |
| Revenue Per-Share | $ 9.17 | |
| VALUATION | Market Capitalization | $ 138.4 B |
| Enterprise Value | $ 138.1 B | |
| Enterprise Multiple | 50.367 | |
| Enterprise Multiple QoQ | 0.928 % | |
| Enterprise Multiple YoY | -35.348 % | |
| Enterprise Multiple IPRWA | high: 253.93 mean: 133.819 median: 124.816 AMAT: 50.367 low: -162.64 |
|
| EV/R | 18.914 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.754 | |
| Asset To Liability | 2.326 | |
| Debt To Capital | 0.257 | |
| Debt To Assets | 0.198 | |
| Debt To Assets QoQ | -0.323 % | |
| Debt To Assets YoY | 6623.81 % | |
| Debt To Assets IPRWA | high: 0.388 AMAT: 0.198 mean: 0.154 median: 0.075 low: 0.005 |
|
| Debt To Equity | 0.347 | |
| Debt To Equity QoQ | -1.427 % | |
| Debt To Equity YoY | 6504.762 % | |
| Debt To Equity IPRWA | high: 0.939 AMAT: 0.347 mean: 0.295 median: 0.106 low: 0.006 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.094 | |
| Price To Book QoQ | 8.048 % | |
| Price To Book YoY | -23.195 % | |
| Price To Book IPRWA | high: 40.244 median: 40.244 mean: 33.687 AMAT: 7.094 low: 1.076 |
|
| Price To Earnings (P/E) | 72.318 | |
| Price To Earnings QoQ | 11.422 % | |
| Price To Earnings YoY | -27.363 % | |
| Price To Earnings IPRWA | high: 193.583 mean: 156.752 median: 114.656 AMAT: 72.318 low: 39.495 |
|
| PE/G Ratio | 19.203 | |
| Price To Sales (P/S) | 18.948 | |
| Price To Sales QoQ | 8.068 % | |
| Price To Sales YoY | -26.194 % | |
| Price To Sales IPRWA | high: 86.209 median: 86.209 mean: 83.671 AMAT: 18.948 low: 5.759 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 73.409 | |
| Forward PE/G | 19.493 | |
| Forward P/S | 69.867 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.515 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.215 | |
| Asset Turnover Ratio QoQ | 1.519 % | |
| Asset Turnover Ratio YoY | 4.161 % | |
| Asset Turnover Ratio IPRWA | high: 0.351 median: 0.351 mean: 0.281 AMAT: 0.215 low: 0.06 |
|
| Receivables Turnover | 1.221 | |
| Receivables Turnover Ratio QoQ | 4.788 % | |
| Receivables Turnover Ratio YoY | -12.186 % | |
| Receivables Turnover Ratio IPRWA | high: 2.646 mean: 2.052 median: 1.872 AMAT: 1.221 low: 1.181 |
|
| Inventory Turnover | 0.653 | |
| Inventory Turnover Ratio QoQ | 0.696 % | |
| Inventory Turnover Ratio YoY | 2.811 % | |
| Inventory Turnover Ratio IPRWA | high: 2.501 mean: 1.335 median: 0.98 low: 0.699 AMAT: 0.653 |
|
| Days Sales Outstanding (DSO) | 74.723 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 174.316 | |
| Cash Conversion Cycle Days QoQ | 0.763 % | |
| Cash Conversion Cycle Days YoY | -0.076 % | |
| Cash Conversion Cycle Days IPRWA | AMAT: 174.316 high: 148.383 median: 74.714 mean: 70.504 low: 48.418 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.617 | |
| CapEx To Revenue | -0.08 | |
| CapEx To Depreciation | -5.168 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 25.0 B | |
| Net Invested Capital | $ 25.8 B | |
| Invested Capital | $ 25.8 B | |
| Net Tangible Assets | $ 15.5 B | |
| Net Working Capital | $ 11.8 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.89 | |
| Current Ratio | 2.501 | |
| Current Ratio QoQ | 1.485 % | |
| Current Ratio YoY | -12.536 % | |
| Current Ratio IPRWA | high: 7.414 median: 4.214 mean: 3.511 AMAT: 2.501 low: 1.497 |
|
| Quick Ratio | 1.765 | |
| Quick Ratio QoQ | 0.415 % | |
| Quick Ratio YoY | -15.546 % | |
| Quick Ratio IPRWA | high: 6.338 median: 3.597 mean: 3.012 AMAT: 1.765 low: 1.366 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 2.466 | |
| Cost Of Debt | 0.682 % | |
| Interest Coverage Ratio | 39.833 | |
| Interest Coverage Ratio QoQ | 13.333 % | |
| Interest Coverage Ratio YoY | 24.048 % | |
| Interest Coverage Ratio IPRWA | high: 504.323 median: 504.323 mean: 368.285 AMAT: 39.833 low: -17.099 |
|
| Operating Cash Flow Ratio | 0.269 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 45.082 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.834 | |
| Dividend Payout Ratio | 0.207 | |
| Dividend Rate | $ 0.46 | |
| Dividend Yield | 0.003 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.722 % | |
| Revenue Growth | 2.845 % | |
| Revenue Growth QoQ | -408.903 % | |
| Revenue Growth YoY | 43.253 % | |
| Revenue Growth IPRWA | high: 11.225 % mean: 6.199 % median: 6.085 % AMAT: 2.845 % low: -0.283 % |
|
| Earnings Growth | 3.766 % | |
| Earnings Growth QoQ | 796.667 % | |
| Earnings Growth YoY | 162.439 % | |
| Earnings Growth IPRWA | high: 114.286 % median: 29.63 % mean: 23.694 % low: 6.962 % AMAT: 3.766 % |
|
| MARGINS | ||
| Gross Margin | 48.781 % | |
| Gross Margin QoQ | -0.619 % | |
| Gross Margin YoY | 3.164 % | |
| Gross Margin IPRWA | high: 72.424 % median: 72.424 % mean: 70.649 % AMAT: 48.781 % low: 33.677 % |
|
| EBIT Margin | 36.004 % | |
| EBIT Margin QoQ | 6.957 % | |
| EBIT Margin YoY | 20.629 % | |
| EBIT Margin IPRWA | high: 66.893 % median: 66.893 % mean: 58.467 % AMAT: 36.004 % low: -23.022 % |
|
| Return On Sales (ROS) | 30.581 % | |
| Return On Sales QoQ | -9.153 % | |
| Return On Sales YoY | 2.459 % | |
| Return On Sales IPRWA | high: 60.843 % median: 60.843 % mean: 54.053 % AMAT: 30.581 % low: -23.022 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 2.0 B | |
| Free Cash Flow Yield | 1.482 % | |
| Free Cash Flow Yield QoQ | 73.944 % | |
| Free Cash Flow Yield YoY | 23.5 % | |
| Free Cash Flow Yield IPRWA | AMAT: 1.482 % high: 0.946 % mean: 0.398 % median: 0.334 % low: 0.05 % |
|
| Free Cash Growth | 93.214 % | |
| Free Cash Growth QoQ | -1.918 % | |
| Free Cash Growth YoY | 11.015 % | |
| Free Cash Growth IPRWA | high: 93.897 % AMAT: 93.214 % mean: -30.96 % median: -48.562 % low: -186.665 % |
|
| Free Cash To Net Income | 1.152 | |
| Cash Flow Margin | 29.061 % | |
| Cash Flow To Earnings | 1.193 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 5.244 % | |
| Return On Assets QoQ | -17.831 % | |
| Return On Assets YoY | 0.885 % | |
| Return On Assets IPRWA | high: 19.867 % median: 19.867 % mean: 15.069 % AMAT: 5.244 % low: -2.839 % |
|
| Return On Capital Employed (ROCE) | 9.986 % | |
| Return On Equity (ROE) | 0.091 | |
| Return On Equity QoQ | -19.076 % | |
| Return On Equity YoY | 0.785 % | |
| Return On Equity IPRWA | AMAT: 0.091 high: 0.081 median: 0.057 mean: 0.051 low: -0.049 |
|
| DuPont ROE | 9.25 % | |
| Return On Invested Capital (ROIC) | 7.081 % | |
| Return On Invested Capital QoQ | -18.777 % | |
| Return On Invested Capital YoY | -136.226 % | |
| Return On Invested Capital IPRWA | high: 7.618 % AMAT: 7.081 % median: 3.471 % mean: 3.244 % low: -3.051 % |
|