Applied Materials, Inc. stock research
FY2026 Q1
Applied Materials (AMAT) Gross Margin — Quarter Ended Jan 25, 2026
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved relative to both the prior quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jan 25, 2026 · FY2026 Q1
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved relative to both the prior quarter and the same quarter one year earlier.
- The gross margin improvement was driven by a larger increase in gross profit relative to revenue, as cost of revenue grew at a slower pace. This relationship indicates that the margin expansion was supported by cost efficiency.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were lower, but gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.0%
Gross profit
$3.4B
Revenue
$7.0B
Cost of revenue
$3.6B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Apr 27, 2025 | $7.1B | $3.5B | $3.6B | 49.1% |
| Jul 27, 2025 | $7.3B | $3.6B | $3.7B | 48.8% |
| Oct 26, 2025 | $6.8B | $3.3B | $3.5B | 48.0% |
| Jan 25, 2026 | $7.0B | $3.4B | $3.6B | 49.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 26, 2025
+1.0 pts
Year-over-year change
Jan 26, 2025
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a larger increase in gross profit relative to revenue, as cost of revenue grew at a slower pace. This relationship indicates that the margin expansion was supported by cost efficiency.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were lower, but gross margin was higher.
Monitor the trend in cost of revenue relative to revenue, as its slower growth was the key factor behind the margin improvement.