Applied Materials, Inc. stock research
FY2026 Q2
Applied Materials (AMAT) Gross Margin — Quarter Ended Apr 26, 2026
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly versus both periods, reflecting a favorable relationship between revenue growth and cost growth.
Gross margin takeaway
Quarter ended Apr 26, 2026 · FY2026 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly versus both periods, reflecting a favorable relationship between revenue growth and cost growth.
- The strongest observable margin driver is the increase in gross profit relative to cost of revenue, as gross profit grew faster than cost of revenue compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were also higher, with gross margin slightly improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.9%
Gross profit
$3.9B
Revenue
$7.9B
Cost of revenue
$4.0B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Apr 26, 2026 | $7.9B | $3.9B | $4.0B | 49.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 25, 2026
+0.9 pts
Year-over-year change
Apr 27, 2025
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit relative to cost of revenue, as gross profit grew faster than cost of revenue compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were also higher, with gross margin slightly improved.
Monitor the trend in cost of revenue growth relative to revenue growth, as any acceleration in cost growth could pressure gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Applied Materials, Inc. (AMAT) | 49.9% |