Applied Materials (CHIX:AP2D) EBIT: €9,118 Mil (TTM As of Apr. 2026)


CHIX:AP2D Applied Materials Inc CHIX:AP2D
89 GF Score
Price €549.00
GF Value €203.73
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Applied Materials EBIT?

Applied Materials CHIX:AP2D 89 EBIT is €9,118 Mil as of Apr. 2026. GuruFocus rates CHIX:AP2D with a GF Score™ of 89/100 and a GF Value™ of €203.73 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Applied Materials's earnings before interest and taxes (EBIT) for the three months ended in Apr. 2026 was €2,816 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2026 was €9,118 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Applied Materials's annualized ROC % for the quarter that ended in Apr. 2026 was 33.37%. Applied Materials's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 118.33%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Applied Materials's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 2.24%.


Applied Materials  (CHIX:AP2d) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Applied Materials's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

ROC % (Q: Apr. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2026 ) + Invested Capital (Q: Apr. 2026 ))/ count )
=8628.66 * ( 1 - 12.99% )/( (21120.969 + 23870.745)/ 2 )
=7507.797066/22495.857
=33.37 %

where

Invested Capital(Q: Jan. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=32035.044 - 3671.214 - ( 7242.861 - max(0, 6597.803 - 17912.699+7242.861))
=21120.969

Invested Capital(Q: Apr. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=34444.53 - 3527.73 - ( 7046.055 - max(0, 7693.29 - 19298.205+7046.055))
=23870.745

Note: The Operating Income data used here is four times the quarterly (Apr. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Applied Materials's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2026  Q: Apr. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=11265.48/( ( (4763.898 + max(3776.738, 0)) + (5194.125 + max(5306.13, 0)) )/ 2 )
=11265.48/( ( 8540.636 + 10500.255 )/ 2 )
=11265.48/9520.4455
=118.33 %

where Working Capital is:

Working Capital(Q: Jan. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4235.427 + 5103.447 + 864.616) - (3671.214 + 2103.672 + 651.866)
=3776.738

Working Capital(Q: Apr. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5448.06 + 5423.265 + 1005.48) - (3527.73 + 2197.35 + 845.595)
=5306.13

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Applied Materials's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Apr. 2026 )
=9117.612/406241.764
=2.24 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Applied Materials EBIT Related Terms


Applied Materials EBIT Historical Data

* Premium members only.

The historical data trend for Applied Materials's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Applied Materials EBIT Chart

Applied Materials Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6,040.03 7,944.41 7,532.44 7,710.28 8,194.86

Applied Materials Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2,127.10 2,253.05 2,008.34 2,039.85 2,816.37

CHIX:AP2D vs LRCX, KLAC, TER: EBIT Comparison

For the Semiconductor Equipment & Materials subindustry, Applied Materials's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Applied Materials EV-to-EBIT vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Applied Materials's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Applied Materials's EV-to-EBIT falls into.


CHIX:AP2D
89GF Score
Applied Materials Inc CHIX:AP2D
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Applied Materials EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €9,118 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €9,118 Mil mean?
Applied Materials (CHIX:AP2D) has a EBIT of €9,118 Mil as of Apr. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Applied Materials.
Is Applied Materials' EBIT too high?
Applied Materials' current EBIT is €9,118 Mil. Overall, Applied Materials has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' EBIT compare to LRCX and KLAC?
Applied Materials' EBIT of €9,118 Mil can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Semiconductors company?
A good EBIT depends on the Semiconductors industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Applied Materials. Applied Materials's current EBIT is €9,118 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Materials stock overvalued right now?
Based on GuruFocus' analysis, Applied Materials (CHIX:AP2D) is currently considered Significantly Overvalued. The stock's GF Value™ is €203.73, compared to a current price of €549.00 — trading 169.5% above its estimated fair value. The current EBIT is €9,118 Mil. Applied Materials' overall GF Score™ is 89/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Applied Materials (CHIX:AP2D), the current EBIT is €9,118 Mil as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Applied Materials (CHIX:AP2D) Overvalued in 2026?

Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued. The current stock price of €549.00 is trading 169.5% above its estimated GF Value™ of €203.73. GuruFocus considers Applied Materials to be Significantly Overvalued.

Key valuation signals for CHIX:AP2D:

  • EBIT: €9,118 Mil
  • GF Value™: €203.73 vs. price of €549.00 (169.5% above fair value)
  • GF Score™: 89/100 with 6 warning signs

No single metric tells the full story. See the CHIX:AP2D stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Applied Materials Business Description

Address 3050 Bowers Avenue, P.O. Box 58039, Santa Clara, CA, USA, 95052-8039
Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world. It has a broad portfolio spanning nearly every corner of the WFE ecosystem. Applied Materials holds leading market share in deposition, which entails the layering of new materials on semiconductor wafers. It is more exposed to general-purpose logic chips made at integrated device manufacturers and foundries. It counts the largest chipmakers in the world as customers, including TSMC, Intel, and Samsung.
89GF Score

Get the complete analysis for CHIX:AP2D

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€549.00
Price
€203.73
GF Value