Applied MaterialsBUE:AMAT -0.50%84 Operating Margin % is 31.90% as of Apr. 2026, which is 14% above its 10-year median of 27.87. GuruFocus rates BUE:AMAT with a GF Score™ of 84/100 and a GF Value™ of ARS66,776.56 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,023 Semiconductors companies, Applied Materials ranks better than 93.65% on this metric.
Applied Materials Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Applied Materials's Operating Margin % or its related term are showing as below:
BUE:AMAT'
s Operating Margin % Range Over the Past 10 Years
Min: 19.88 Med: 27.87 Max: 31.22
Current: 30.13
BUE:AMAT's Operating Margin % is ranked better than 93.65% of 1023
companies
in the Semiconductors industry
Industry Median: 5.24
vs BUE:AMAT: 30.13
Applied Materials's 5-Year Average Operating Margin % Growth Rate was 1.60% per year.
Applied Materials's Operating Income for the
three
months ended in Apr. 2026 was ARS3,509,481 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was ARS12,208,794 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Applied Materials Operating Margin % Related Terms
Applied Materials Operating Margin % Historical Data
* Premium members only.
The historical data trend for Applied Materials's Operating Margin % 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.
BUE:AMAT vs LRCX, KLAC, TER: Operating Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Applied Materials's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Applied Materials's Operating Margin % for the fiscal year that ended in Oct. 2025 is calculated as
* 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 (BUE:AMAT) has a Operating Margin % of 31.90% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Applied Materials and its competitors. This is 14% above median its historical median of 27.87. Over the past decade, Applied Materials' Operating Margin % has ranged from 19.88 to 31.22. According to the industry distribution chart, Applied Materials ranks #65 out of 1023 companies in the Semiconductors industry, placing it in the top 6.4%.
Is Applied Materials' Operating Margin % too high?
Applied Materials' current Operating Margin % of 31.90% is 14% above median its 10-year median of 27.87. Over the past 10 years, this metric has ranged from a low of 19.88 to a high of 31.22. The Semiconductors industry median Operating Margin % is 5.24. Applied Materials' value of 31.90% is 508.8% above this industry median. Based on the distribution chart, Applied Materials ranks #65 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Applied Materials has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' Operating Margin % compare to LRCX and KLAC?
According to the Semiconductors industry distribution chart, Applied Materials ranks #65 out of 1023 companies for Operating Margin %. This places Applied Materials in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.24. Applied Materials' value of 31.90% is 508.8% above this benchmark. Historically, Applied Materials' own Operating Margin % has ranged from 19.88 to 31.22 over the past decade. While the company's 10-year median is 27.87 vs. the industry median of 5.24, Applied Materials has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.24, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Materials's current Operating Margin % of 31.90% is 508.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Applied Materials and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current Operating Margin % is 31.90%, which is 14% above median its own 10-year median of 27.87. 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 (BUE:AMAT) is currently considered Significantly Overvalued. The stock's GF Value™ is ARS66,776.56, compared to a current price of ARS180,750.00 — trading 170.7% above its estimated fair value. The current Operating Margin % is 31.90%, which is 14% above median its 10-year median of 27.87 and 508.8% above the Semiconductors industry median of 5.24. Applied Materials' overall GF Score™ is 84/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Applied Materials (BUE:AMAT), the current Operating Margin % is 31.90% 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 (BUE:AMAT) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of ARS180,750.00 is trading 170.7% above its estimated GF Value™ of ARS66,776.56.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for BUE:AMAT:
Operating Margin %: 31.90% (14% above median its 10-year median of 27.87)
GF Value™: ARS66,776.56 vs. price of ARS180,750.00 (170.7% above fair value)
Industry Position: 508.8% above the Semiconductors median (#65 of 1023)
No single metric tells the full story. See the BUE:AMAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
84GF Score
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