⚠ A Record That Is Hard to CompareLow threat

Applied Materials (AMAT) — threat to the moat

Applied has changed its segments twice in two years, and the 2025 full year has not been published on the new basis.

Applied has changed how it reports twice in two years, and each change makes the long record harder to use. At fiscal 2025 it stopped reporting Display separately and folded it into Corporate and Other, recasting the prior years1. At fiscal 2026 it moved 200mm equipment from services to systems and reallocated corporate costs2.

FY2022 systems operating income as reported ($M)6,969FY2022 10-K6,790FY2024 10-KApplied Materials Forms 10-K FY2022 and FY2024
The same year, two numbers.

Neither change is suspicious in itself. But the full fiscal 2025 on the new basis has not been published, only the quarterly and nine-month comparisons3. Anyone comparing fiscal 2026 with fiscal 2025 has to use the company's quarterly recasts.

Earlier restatements show the effect. Fiscal 2022 segment operating income for Semiconductor Systems was $6,969 million in the 10-K for that year4 and $6,790 million in the next one5, after costs were reallocated.

The resegmentation also moved the losses. On the new basis the renamed Other line lost $16 million in the first nine months of fiscal 20256, against an $882 million loss for Corporate and Other in the full year on the old basis7, because corporate costs are now charged to the two main segments. Segment margins before and after the change are not comparable without the recast.

The practical test is whether the fiscal 2026 10-K recasts fiscal 2024 and 2025 on the new basis. If it does not, the segment series will break, and the margin trends in this app will have to start again.

References
  1. ReportedAt fiscal 2025 it stopped reporting Display separately and folded it into Corporate and Other, recasting the prior years.
    Applied Materials Form 10-K for fiscal 2025 (year ended 26 October 2025) - segment note: revenue, operating income, gross margin, research, capital spending and goodwill. — FY2025 · publ. 12 December 2025 · source ↗
  2. ReportedAt fiscal 2026 it moved 200mm equipment from services to systems and reallocated corporate costs.
    Applied Materials Form 10-Q for the quarter ended 26 July 2026 - FY2026 segment basis (200mm moved to Semiconductor Systems), nine-month results, customer concentration, geography, the BIS settlement and the balance sheet - FY2026 segment basis and recast prior-year segment results. — Q3 FY2026 · publ. 20 August 2026 · source ↗
  3. ReportedBut the full fiscal 2025 on the new basis has not been published, only the quarterly and nine-month comparisons.
    Applied Materials Form 10-Q for the quarter ended 26 July 2026 - FY2026 segment basis (200mm moved to Semiconductor Systems), nine-month results, customer concentration, geography, the BIS settlement and the balance sheet - nine-month results, customer concentration, geography, capital returns and legal matters. — Q3 FY2026 · publ. 20 August 2026 · source ↗
  4. ReportedFiscal 2022 segment operating income for Semiconductor Systems was $6,969 million in the 10-K for that year and $6,790 million in the next one, after costs were reallocated.
    Applied Materials Form 10-K for fiscal 2022 - segment results for FY2020-FY2022 including Display and Adjacent Markets, employees, China revenue, the Kokusai termination fee and backlog. — FY2022 · publ. December 2022 · source ↗
  5. ReportedFiscal 2022 segment operating income for Semiconductor Systems was $6,969 million in the 10-K for that year and $6,790 million in the next one, after costs were reallocated.
    Applied Materials Form 10-K for fiscal 2024 - four-segment results including Display for FY2022-FY2024, customer concentration naming Samsung and TSMC, backlog at October 2024. — FY2024 · publ. December 2024 · source ↗
  6. ReportedOn the new basis the renamed Other line lost $16 million in the first nine months of fiscal 2025, against an $882 million loss for Corporate and Other in the full year on the old basis, because corporate costs are now charged to the two main segments.
    Applied Materials Form 10-Q for the quarter ended 26 July 2026 - FY2026 segment basis (200mm moved to Semiconductor Systems), nine-month results, customer concentration, geography, the BIS settlement and the balance sheet - FY2026 segment basis and recast prior-year segment results. — Q3 FY2026 · publ. 20 August 2026 · source ↗
  7. ReportedOn the new basis the renamed Other line lost $16 million in the first nine months of fiscal 2025, against an $882 million loss for Corporate and Other in the full year on the old basis, because corporate costs are now charged to the two main segments.
    Applied Materials Form 10-K for fiscal 2025 (year ended 26 October 2025) - segment note: revenue, operating income, gross margin, research, capital spending and goodwill. — FY2025 · publ. 12 December 2025 · source ↗
Sources
Generated September 25, 2026