FFilingSight

Applied Materials Inc. (AMAT) 10-K Red Flags

Risk signals extracted deterministically from Applied Materials Inc.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.

Detected red flags (9)

  • Gross margin compression: Gross margin contracted +26.5%pp (from 110.8% to 84.3%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.
  • Operating cash flow exceeds net income: OCF is 1.27x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
  • Deferred revenue growing — future revenue visibility: Deferred revenue grew +41.9% to $1.28B, providing forward revenue visibility. This is a positive leading indicator for subscription or contract-based businesses.
  • R&D intensity declining: R&D as % of revenue fell from 25.6% to 21.1%. This may signal reduced innovation investment — potentially impacting long-term competitive position. Compare with peer R&D trends.
  • Endogenous analysis: Strong cash conversion (OCF > NI) combined with growing deferred revenue provides high forward visibility. The business model appears to generate sustainable, recurring cash flows — a positive structural indicator.
  • 6 new XBRL disclosure(s) in latest filing — expanding reporting scope.
  • 20 disclosure(s) dropped from prior year — reduced reporting granularity.
  • Market cap $478.79B at $603.04 per share.
  • Trailing P/E 74.36, P/S 32.58, P/B 20.03.

Filings & ownership

  • Latest annual report (10-K) filed Dec 12, 2025.
  • Latest quarterly report (10-Q) filed May 21, 2026.
  • 17 recent 8-K material-event filings in the index.
  • Recent insider Form 4s: 0 buy vs 0 sell transactions.

Full AMAT analyst report

Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.

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Not investment advice. FilingSight is an automated analytical research tool, not a registered investment advisor. Ratings and scores are quantitative analytical classifications, not buy or sell recommendations. Nothing here is personalized to your circumstances. Investing involves risk of loss — consult a licensed professional. See full disclosures.