{ "ticker": "AMAT", "company": "Applied Materials Inc.", "filing_type": "10-K", "year_current": "2025", "year_prior": "2024", "summary": { "added": 12, "removed": 7, "modified": 62, "unchanged": 40, "total_current": 114, "total_prior": 109 }, "source": "SEC EDGAR", "url": "https://riskdiff.com/amat/2025-vs-2024/", "markdown_url": "https://riskdiff.com/amat/2025-vs-2024/index.md", "json_url": "https://riskdiff.com/amat/2025-vs-2024/index.json", "generated": "2026-06-01", "ai_summary": null, "risks": [ { "status": "ADDED", "current_title": "We are exposed to risks and uncertainty related to changes in trade policies, and increased tariffs and trade disputes.", "prior_title": null, "current_body": "Our business, financial condition and results of operations may be adversely affected by uncertainty and changes in trade policies, including tariffs, and trade disputes between the United States and other countries. The United States has announced changes to its trade policy, including increased tariffs on imports. These actions have caused substantial uncertainty and have resulted in retaliatory measures, including new tariffs on U.S. goods imposed by China and other countries. Some of these actions have been followed by announcements of limited exemptions and temporary pauses and trade frameworks with certain countries. A significant number of our customers and suppliers are located outside of the United States. Increases in tariffs increase our costs and can negatively impact our margins and reduce the competitiveness of our products due to the increase in the cost of importing materials, parts and components used in manufacturing our products. Tariffs can also increase supply chain complexity and may make it more difficult to purchase necessary equipment and supplies to manufacture our products. Increases in tariffs, including reciprocal and sector-based tariffs, also increase the cost to our customers of importing our products, which could harm customer demand for our products. Uncertainty or volatility with respect to tariffs and trade disputes may also make it difficult for us and our customers and suppliers to make and execute business and capital equipment investment plans; lead to global or regional inflation and economic recession and reduce demand for semiconductor chips and electronic devices; cause our customers to delay or cancel orders or negatively impact our competitive position; impede our ability to purchase materials, including critical materials and minerals, and disrupt supply chain and logistics. For example, in 2025 the Chinese government implemented export controls on the export of rare earth minerals that are used in certain of our products and may implement additional controls in the future. We may take actions to mitigate the impact of increases in tariffs and changes in trade policies, but there can be no assurance that we will be successful, and any such actions could result in additional costs, manufacturing delays or other difficulties, as well as additional risks, and may not be effective. Any or all of these factors may have a material and adverse impact on our business, financial condition and results of operations." }, { "status": "ADDED", "current_title": "(In millions)", "prior_title": null, "current_body": "Fiscal Year202520242023Net income$6,998 $7,177 $6,856 Other comprehensive income (loss), net of tax:Change in unrealized gain (loss) on available-for-sale investments18 43 25 Change in unrealized net loss on derivative instruments53 31 (66)Change in defined and postretirement benefit plans(13)(25)26 Other comprehensive income (loss), net of tax58 49 (15)Comprehensive income$7,056 $7,226 $6,841 See accompanying Notes to Consolidated Financial Statements. 48 48 48 Table of Contents Table of Contents" }, { "status": "ADDED", "current_title": "Recently Adopted Accounting Standards", "prior_title": null, "current_body": "Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. In June 2022, the Financial Accounting Standards Board (FASB) issued an accounting standard update which clarifies how the fair value of equity securities subject to contractual sale restrictions is determined (Topic 820). The amendment clarifies that a contractual sale restriction should not be considered in measuring fair value. It also requires certain qualitative and quantitative disclosures related to equity securities subject to contractual sale restrictions. We adopted this authoritative guidance in the first quarter of fiscal 2025. The adoption of this guidance did not have a material impact on our consolidated condensed financial statements. Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued an accounting standard update to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses (Topic 280). The standard requires interim and annual disclosure of significant segment expenses that are regularly provided to the chief operating decision-maker (CODM) and included within the reported measure of a segment’s profit or loss, requires interim disclosures about a reportable segment’s profit or loss and assets that are currently required annually, requires disclosure of the position and title of the CODM, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss and contains other disclosure requirements. We adopted this authoritative guidance in the fourth quarter of fiscal 2025 and expanded the disclosures in our notes to the consolidated financial statements. See Note 15, Industry Segment Operations, of the Notes to the Consolidated Financial Statements for further information. 59 59 59 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "ADDED", "current_title": "Note 6 Accounts Receivable, Net", "prior_title": null, "current_body": "We have agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. We sell our accounts receivable generally without recourse. From time to time, we also discount letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. 65 65 65 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "ADDED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": null, "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "ADDED", "current_title": "Note 10 Restructuring Charges", "prior_title": null, "current_body": "Fiscal 2025 Restructuring Plan In the fourth quarter of fiscal 2025, we approved a workforce reduction plan (Fiscal 2025 Restructuring Plan) to position us for continued growth as a more competitive and productive organization and expect approximately 4% of our global workforce to be impacted under this plan. The majority of the charges related to the Fiscal 2025 Restructuring Plan were recognized in the fourth quarter of fiscal 2025 and consist primarily of severance and other employment termination benefits to be paid in cash, and other non-cash related charges. Restructuring charges related to the Fiscal 2025 Restructuring Plan were as follows: 2025(In millions)Severance and other employee-related charges$154 Asset impairments27 Total$181 Changes in restructuring reserves related to the Fiscal 2025 Restructuring Plan described above were as follows: Restructuring Charges Reserves(In millions)Balance as of October 27, 2024$— Restructuring charges167 Consumption of reserves(2)Balance as of October 26, 2025$165 70 70 70 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "ADDED", "current_title": "Stock Repurchase Program", "prior_title": null, "current_body": "In March 2025, our Board of Directors approved a common stock repurchase program authorizing $10.0 billion in repurchases, which supplemented the previous $10.0 billion authorization approved in March 2023. At October 26, 2025, approximately $14.0 billion remained available for future stock repurchases under the repurchase program. The following table summarizes our stock repurchases, including and excluding excise tax, for each fiscal year: 202520242023 (In millions, except per share amounts)Shares of common stock repurchased30 20 18 Cost of stock repurchased (including excise tax)*$4,893 $3,851 $2,202 Average price paid per share (including excise tax)*$162.85 $190.27 $123.63 Cost of stock repurchased (excluding excise tax)$4,853 $3,823 $2,189 Average price paid per share (excluding excise tax)$161.54 $188.87 $122.89 (*) Stock repurchase amounts include the 1% surcharge on stock repurchases under the Inflation Reduction Act’s excise tax. This excise tax is recorded in equity and reduces the amount available under the repurchase program, as applicable. We record common stock repurchased and held as treasury stock under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If we reissue treasury stock at an amount below our acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings. 71 71 71 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "ADDED", "current_title": "Note 13 Income Taxes", "prior_title": null, "current_body": "The components of income before income taxes for each fiscal year were as follows: 202520242023 (In millions)U.S.$56 $833 $1,234 Foreign9,215 7,319 6,482 Total$9,271 $8,152 $7,716 The components of the provision for income taxes for each fiscal year were as follows:202520242023 (In millions)Current:U.S.$675 $1,254 $708 Foreign411 366 456 State34 33 54 1,120 1,653 1,218 Deferred:U.S.382 (697)(255)Foreign788 30 (61)State(17)(11)(42)1,153 (678)(358)Total$2,273 $975 $860 76 76 76 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "ADDED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": null, "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "ADDED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": null, "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "ADDED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": null, "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "ADDED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": null, "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "REMOVED", "current_title": null, "prior_title": "We are exposed to various factors that impact the industries in which we operate.", "prior_body": "The global semiconductor, display and related industries are characterized by factors that impact demand for and the profitability of our products and services and our operating results, including: •the nature, timing and degree of visibility of changes in demand for semiconductor chips and electronic devices, including those related to fluctuations in consumer buying patterns tied to general economic or geopolitical conditions, seasonality or the introduction of new products, and the effects of these changes on customers’ businesses and on demand for our products; •increasing capital requirements for building and operating new fabrication plants and customers’ ability to raise the necessary capital; •trade, regulatory, tax or government incentives impacting the timing of customers’ investment in new or expanded fabrication plants; •differences in growth rates among the semiconductor, display and other industries in which we operate; •the importance of establishing, improving and maintaining strong relationships with customers; •the cost and complexity for customers to move from product design to volume manufacturing, which may slow the adoption rate of new manufacturing technology; •the importance of reducing the total cost of manufacturing system ownership; •the importance to customers of system reliability and productivity and the effect on demand for fabrication systems as a result of their increasing productivity, device yield and reliability; •manufacturers’ ability to reconfigure and re-use fabrication systems which can reduce demand for new equipment; •the importance of developing products with sufficient differentiation to influence customers’ purchasing decisions; 17 17 17 Table of Contents Table of Contents •requirements for shorter cycle times for the development, manufacture and installation of our equipment; •price and performance trends for semiconductor devices and displays, and the impact on demand for such products; •the importance of the availability of spare parts to maximize the time that customers’ systems are available for production; •government incentives for local suppliers and domestic semiconductor research and development, and increased investment in manufacturing capabilities; •the increasing role for and complexity of software in our products; and •the focus on reducing energy usage and improving the environmental impact and sustainability associated with manufacturing operations, and the availability of adequate and reliable sources of energy. If we do not effectively address these factors, our business and results of operations may be materially and adversely impacted." }, { "status": "REMOVED", "current_title": null, "prior_title": "Recently Adopted Accounting Standards", "prior_body": "Contract Assets and Contract Liabilities from Revenue Contracts with Customers in a Business Combination. In October 2021, the Financial Accounting Standards Board (FASB) issued an accounting standard update to improve the accounting for contract assets and contract liabilities from revenue contracts with customers in a business combination (Topic 805). This amendment improves comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. We adopted this authoritative guidance in the first quarter of fiscal 2024 and the impact of the adoption depends on the facts and circumstances of future acquisitions. During fiscal 2024, the adoption of this guidance had no impact to our consolidated financial statements as there were no acquisitions during the year. 62 62 62 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "REMOVED", "current_title": null, "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 27, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant and equipment, we have increased the estimated useful lives of certain assets effective as of the beginning of fiscal 2024. The updated estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to 5 to 8 years. The estimated useful lives for the following assets remained unchanged from fiscal 2023: software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. The change in accounting estimate was applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases. Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $128 million in depreciation expense during fiscal 2024, and an increase of $0.12 in both basic and diluted earnings per share for fiscal 2024. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 58 58 58 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "REMOVED", "current_title": null, "prior_title": "Note 12 Income Taxes", "prior_body": "The components of income before income taxes for each fiscal year were as follows: 202420232022 (In millions)U.S.$833 $1,234 $1,171 Foreign7,319 6,482 6,428 Total$8,152 $7,716 $7,599 The components of the provision for income taxes for each fiscal year were as follows:202420232022 (In millions)Current:U.S.$1,254 $708 $590 Foreign366 456 275 State33 54 14 1,653 1,218 879 Deferred:U.S.(697)(255)(62)Foreign30 (61)265 State(11)(42)(8)(678)(358)195 Total$975 $860 $1,074 A reconciliation between the statutory U.S. federal income tax rate and our actual effective income tax rate for each fiscal year is presented below: 202420232022Tax provision at U.S. statutory rate21.0 %21.0 %21.0 %Effect of foreign operations taxed at various rates(7.6)(8.2)(4.4)Changes in prior years’ unrecognized tax benefits— (0.2)(0.9)Resolutions of prior years’ income tax filings(0.1)(0.1)(0.2)Research and other tax credits(1.4)(1.6)(1.0)Other0.1 0.2 (0.4)Total12.0 %11.1 %14.1 % Changes in prior years’ unrecognized tax benefits Resolutions of prior years’ income tax filings 78 78 78 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "REMOVED", "current_title": null, "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 27, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant and equipment, we have increased the estimated useful lives of certain assets effective as of the beginning of fiscal 2024. The updated estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to 5 to 8 years. The estimated useful lives for the following assets remained unchanged from fiscal 2023: software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. The change in accounting estimate was applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases. Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $128 million in depreciation expense during fiscal 2024, and an increase of $0.12 in both basic and diluted earnings per share for fiscal 2024. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 58 58 58 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "REMOVED", "current_title": null, "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 27, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant and equipment, we have increased the estimated useful lives of certain assets effective as of the beginning of fiscal 2024. The updated estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to 5 to 8 years. The estimated useful lives for the following assets remained unchanged from fiscal 2023: software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. The change in accounting estimate was applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases. Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $128 million in depreciation expense during fiscal 2024, and an increase of $0.12 in both basic and diluted earnings per share for fiscal 2024. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 58 58 58 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "REMOVED", "current_title": null, "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 27, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant and equipment, we have increased the estimated useful lives of certain assets effective as of the beginning of fiscal 2024. The updated estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to 5 to 8 years. The estimated useful lives for the following assets remained unchanged from fiscal 2023: software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. The change in accounting estimate was applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases. Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $128 million in depreciation expense during fiscal 2024, and an increase of $0.12 in both basic and diluted earnings per share for fiscal 2024. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 58 58 58 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "Interest Rate Risk", "prior_title": "Interest Rate Risk", "similarity_score": 0.919, "confidence": "high", "key_changes": [ "Reworded sentence: \"Available-for-sale Debt Securities - The market value of our investments in available-for-sale securities was approximately $3.2 billion at October 26, 2025.\"" ], "current_body": "Available-for-sale Debt Securities - The market value of our investments in available-for-sale securities was approximately $3.2 billion at October 26, 2025. An immediate hypothetical 100 basis point increase in interest rates would result in a decrease in the fair value of investments as of October 26, 2025 of approximately $36 million. Debt - At October 26, 2025, the aggregate principal of long-term senior unsecured notes issued by us was $6.5 billion with an estimated fair value of $6.2 billion. A hypothetical decrease in interest rates of 100 basis points would result in an increase in the fair value of our long-term senior notes issuances of approximately $462 million at October 26, 2025. From time to time, we use interest rate swaps or rate lock agreements to mitigate the potential impact of changes in benchmark interest rates on interest expense and cash flows.", "prior_body": "Available-for-sale Debt Securities - The market value of our investments in available-for-sale securities was approximately $3.2 billion at October 27, 2024. An immediate hypothetical 100 basis point increase in interest rates would result in a decrease in the fair value of investments as of October 27, 2024 of approximately $36 million. Debt - At October 27, 2024, the aggregate principal of long-term senior unsecured notes issued by us was $5.5 billion with an estimated fair value of $5.1 billion. A hypothetical decrease in interest rates of 100 basis points would result in an increase in the fair value of our long-term senior notes issuances of approximately $428 million at October 27, 2024. From time to time, we use interest rate swaps or rate lock agreements to mitigate the potential impact of changes in benchmark interest rates on interest expense and cash flows." }, { "status": "MODIFIED", "current_title": "The industries in which we operate are highly competitive and subject to rapid technological and market changes.", "prior_title": "The industries in which we operate are highly competitive and subject to rapid technological and market changes.", "similarity_score": 0.919, "confidence": "high", "key_changes": [ "Reworded sentence: \"We operate in a highly competitive environment in which innovation is critical, and our future success depends on many factors, including the development of new technologies, commercialization of our products and services, and our ability to increase our position in our current markets and expand into adjacent and new markets.\"" ], "current_body": "We operate in a highly competitive environment in which innovation is critical, and our future success depends on many factors, including the development of new technologies, commercialization of our products and services, and our ability to increase our position in our current markets and expand into adjacent and new markets. The development, introduction and 15 15 15 Table of Contents Table of Contents support of products in a geographically diverse and competitive environment requires collaboration with customers and other industry participants, which has grown more complex and expensive over time. New or improved products may entail higher costs and longer development cycles, and may have unforeseen product design or manufacturing defects. To compete successfully, we must: •identify and address technology inflections, market changes, competitor innovations, new applications, customer requirements and end-use demand; •develop new products and disruptive technologies, improve and develop new applications for existing products, and adapt products for use by customers in different applications and markets with varying technical requirements; •complete our new Equipment and Process Innovation and Commercialization Center and other major infrastructure projects on schedule and on budget, and realize the anticipated benefits of those projects; •differentiate our products from those of competitors, meet customers’ performance specifications, and successfully commercialize our products and achieve market acceptance; •maintain operating flexibility to enable responses to changing markets, applications and customer requirements; •enhance our worldwide operations across our businesses to reduce cycle time, enable continuous quality improvement, reduce costs, and enhance design for manufacturability and serviceability; •focus on product development and sales and marketing strategies that address customers’ high value problems and strengthen customer relationships; •effectively allocate resources between our existing products and markets, the development of new products, and expanding into new and adjacent markets; •improve the productivity of capital invested in research and development activities; •accurately forecast demand, work with suppliers and meet production schedules for our products, improve our manufacturing processes and achieve cost efficiencies across product offerings; and •implement changes in our design engineering methodology to reduce material costs and cycle time and improve product life cycle management. If we do not successfully anticipate technology inflections, develop and commercialize new products and technologies, and respond to changes in customer requirements and market trends, our business performance and operating results may be materially and adversely impacted.", "prior_body": "We operate in a highly competitive environment in which innovation is critical, and our future success depends on many factors, including the development of new technologies and effective commercialization and customer acceptance of our equipment, services and related products, and our ability to increase our position in our current markets, expand into adjacent and new markets, and optimize operational performance. The development, introduction and support of products in a geographically diverse and competitive environment requires collaboration with customers and other industry participants, which has grown more complex and expensive over time. New or improved products may entail higher costs, longer development cycles, lower profits and may have unforeseen product design or manufacturing defects. To compete successfully, we must: •identify and address technology inflections, market changes, competitor innovations, new applications, customer requirements and end-use demand in a timely and effective manner; •develop new products and disruptive technologies, improve and develop new applications for existing products, and adapt products for use by customers in different applications and markets with varying technical requirements; •complete major infrastructure projects on schedule and on budget, and realize the anticipated benefits of those projects; •differentiate our products from those of competitors, meet customers’ performance specifications (including those related to energy consumption and environmental impact more broadly), appropriately price products, and achieve market acceptance; •maintain operating flexibility to enable responses to changing markets, applications and customer requirements; 19 19 19 Table of Contents Table of Contents •enhance our worldwide operations across our businesses to reduce cycle time, enable continuous quality improvement, reduce costs, and enhance design for manufacturability and serviceability; •focus on product development and sales and marketing strategies that address customers’ high value problems and strengthen customer relationships; •effectively allocate resources between our existing products and markets, the development of new products, and expanding into new and adjacent markets; •improve the productivity of capital invested in R&D activities; •accurately forecast demand, work with suppliers and meet production schedules for our products; •improve our manufacturing processes and achieve cost efficiencies across product offerings; •adapt to changes in value offered by companies in different parts of the supply chain; •qualify products for evaluation and volume manufacturing with our customers; and •implement changes in our design engineering methodology to reduce material costs and cycle time, increase commonality of platforms and types of parts used in different systems, and improve product life cycle management. If we do not successfully anticipate technology inflections, develop and commercialize new products and technologies, and respond to changes in customer requirements and market trends, our business performance and operating results may be materially and adversely impacted." }, { "status": "MODIFIED", "current_title": "Senior Unsecured Notes", "prior_title": "Senior Unsecured Notes", "similarity_score": 0.918, "confidence": "high", "key_changes": [ "Reworded sentence: \"In September 2025, we issued $550 million aggregate principal amount of 4.000% senior unsecured notes due 2031 and $450 million aggregate principal amount of 4.600% senior unsecured notes due 2036, in a registered public offering.\"" ], "current_body": "In September 2025, we issued $550 million aggregate principal amount of 4.000% senior unsecured notes due 2031 and $450 million aggregate principal amount of 4.600% senior unsecured notes due 2036, in a registered public offering. In October 2025, we used a portion of the net proceeds from the offering to repay the outstanding $700 million in aggregate principal amount of its 3.900% senior unsecured notes due October 1, 2025. The remaining net proceeds from the issuance of the senior unsecured notes are intended for general corporate purposes. Debt outstanding as of October 26, 2025 and October 27, 2024 was as follows: Principal AmountOctober 26,2025October 27,2024EffectiveInterest RateInterestPay Dates (In millions) Current portion of long-term debt: 3.900% Senior Notes Due 2025$— $700 3.944%April 1, October 1Total current portion of long-term debt$— $700 Long-term debt:3.300% Senior Notes Due 2027$1,200 $1,200 3.342%April 1, October 14.800% Senior Notes Due 2029700 700 4.844%June 15, December 151.750% Senior Notes Due 2030750 750 1.792%June 1, December 14.000% Senior Notes Due 2031550 — 4.070%January 15, July 155.100% Senior Notes Due 2035500 500 5.127%April 1, October 14.600% Senior Notes Due 2036450 — 4.632%January 15, July 155.850% Senior Notes Due 2041600 600 5.879%June 15, December 154.350% Senior Notes Due 20471,000 1,000 4.361%April 1, October 12.750% Senior Notes Due 2050750 750 2.773%June 1, December 16,500 5,500 Total unamortized discount(12)(10)Total unamortized debt issuance costs(33)(30)Total long-term debt$6,455 $5,460 3.900% Senior Notes Due 2025 3.300% Senior Notes Due 2027 4.800% Senior Notes Due 2029 1.750% Senior Notes Due 2030 4.000% Senior Notes Due 2031 5.100% Senior Notes Due 2035 4.600% Senior Notes Due 2036 5.850% Senior Notes Due 2041 4.350% Senior Notes Due 2047 2.750% Senior Notes Due 2050 69 69 69 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "In June 2024, we issued $700 million aggregate principal amount of 4.800% senior unsecured notes due 2029 in a registered public offering. The proceeds from the issuance of the senior unsecured notes are intended for general corporate purposes. Debt outstanding as of October 27, 2024 and October 29, 2023 was as follows: Principal AmountOctober 27,2024October 29,2023EffectiveInterest RateInterestPay Dates (In millions) Current portion of long-term debt: 3.900% Senior Notes Due 2025$700 $— 3.944%April 1, October 1Total current portion of long-term debt$700 $— Long-term debt:3.900% Senior Notes Due 2025$— $700 3.944%April 1, October 13.300% Senior Notes Due 20271,200 1,200 3.342%April 1, October 14.800% Senior Notes Due 2029700 — 4.844%June 15, December 151.750% Senior Notes Due 2030750 750 1.792%June 1, December 15.100% Senior Notes Due 2035500 500 5.127%April 1, October 15.850% Senior Notes Due 2041600 600 5.879%June 15, December 154.350% Senior Notes Due 20471,000 1,000 4.361%April 1, October 12.750% Senior Notes Due 2050750 750 2.773%June 1, December 15,500 5,500 Total unamortized discount(10)(11)Total unamortized debt issuance costs(30)(28)Total long-term debt$5,460 $5,461 3.900% Senior Notes Due 2025 3.900% Senior Notes Due 2025 3.300% Senior Notes Due 2027 4.800% Senior Notes Due 2029 1.750% Senior Notes Due 2030 5.100% Senior Notes Due 2035 5.850% Senior Notes Due 2041 4.350% Senior Notes Due 2047 2.750% Senior Notes Due 2050 72 72 72 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "Note 2 Earnings Per Share", "prior_title": "Note 2 Earnings Per Share", "similarity_score": 0.915, "confidence": "high", "key_changes": [ "Reworded sentence: \"Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of restricted stock units and employees’ stock purchase plan shares) outstanding during the period.\"", "Reworded sentence: \"Fiscal Year202520242023 (In millions, except per share amounts)Numerator:Net income$6,998 $7,177 $6,856 Denominator:Weighted average common shares outstanding804 827 840 Effect of weighted dilutive restricted stock units and employees’ stock purchase plan shares4 7 5 Denominator for diluted earnings per share808 834 845 Basic earnings per share$8.71 $8.68 $8.16 Diluted earnings per share$8.66 $8.61 $8.11 Potentially weighted dilutive securities— — — Excluded from the calculation of diluted earnings per share are securities attributable to outstanding restricted stock units where the combined exercise price and average unamortized fair value are greater than the average market price of our common stock, and therefore their inclusion would be anti-dilutive.\"" ], "current_body": "Basic earnings per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of restricted stock units and employees’ stock purchase plan shares) outstanding during the period. Our net income has not been adjusted for any period presented for purposes of computing basic or diluted earnings per share due to our non-complex capital structure. Fiscal Year202520242023 (In millions, except per share amounts)Numerator:Net income$6,998 $7,177 $6,856 Denominator:Weighted average common shares outstanding804 827 840 Effect of weighted dilutive restricted stock units and employees’ stock purchase plan shares4 7 5 Denominator for diluted earnings per share808 834 845 Basic earnings per share$8.71 $8.68 $8.16 Diluted earnings per share$8.66 $8.61 $8.11 Potentially weighted dilutive securities— — — Excluded from the calculation of diluted earnings per share are securities attributable to outstanding restricted stock units where the combined exercise price and average unamortized fair value are greater than the average market price of our common stock, and therefore their inclusion would be anti-dilutive. 60 60 60 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "Basic earnings per share is determined using the weighted average number of common shares outstanding during the period. Diluted earnings per share is determined using the weighted average number of common shares and potential common shares (representing the dilutive effect of restricted stock units and employee stock purchase plan shares) outstanding during the period. Our net income has not been adjusted for any period presented for purposes of computing basic or diluted earnings per share due to our non-complex capital structure. Fiscal Year202420232022 (In millions, except per share amounts)Numerator:Net income$7,177 $6,856 $6,525 Denominator:Weighted average common shares outstanding827 840 871 Effect of weighted dilutive restricted stock units and employee stock purchase plan shares7 5 6 Denominator for diluted earnings per share834 845 877 Basic earnings per share$8.68 $8.16 $7.49 Diluted earnings per share$8.61 $8.11 $7.44 Potentially weighted dilutive securities— — 3 Excluded from the calculation of diluted earnings per share are securities attributable to outstanding restricted stock units where the combined exercise price and average unamortized fair value are greater than the average market price of our common stock, and therefore their inclusion would be anti-dilutive. 63 63 63 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.", "prior_title": "Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand, could affect our ability to meet customer demand, lead to higher costs, or result in excess or obsolete inventory.", "similarity_score": 0.913, "confidence": "high", "key_changes": [ "Reworded sentence: \"Volatility in demand for our products and worldwide demand for semiconductor chips and electronic devices can impact our suppliers’ ability to meet our demand requirements and has in the past resulted in a shortage of parts, materials and services needed to manufacture our products.\"", "Reworded sentence: \"If we purchase or commit to purchase inventory in anticipation of customer demand that does not materialize, or the inventory is rendered obsolete by the rapid pace of technological change, or if customers reduce, delay or cancel orders, we may incur excess or obsolete inventory charges.\"" ], "current_body": "Our business depends on our timely supply of products and services to meet the changing requirements of our customers, which depends in part on the timely delivery of parts, materials and services from suppliers and contract manufacturers. Volatility in demand for our products and worldwide demand for semiconductor chips and electronic devices can impact our suppliers’ ability to meet our demand requirements and has in the past resulted in a shortage of parts, materials and services needed to manufacture our products. These shortages, as well as delays in and unpredictability of shipments due to transportation interruptions, may adversely impact our manufacturing operations and our ability to meet customer demand. Supply chain constraints may increase costs of logistics and parts for our products and may cause us to pass on increased costs to our customers, which may lead to reduced demand for our products. Supply chain disruptions have in the past caused, and may from time to time cause, delays in our equipment production and delivery schedules, which can lead to our business 13 13 13 Table of Contents Table of Contents performance becoming significantly dependent on quarter-end production and delivery schedules. We may further experience supply chain disruptions, significant interruptions of our manufacturing operations, delays in our ability to deliver or install products or services, increased costs, customer order cancellations or reduced demand for our products as a result of: •global trade issues and changes in and uncertainties with respect to trade and export regulations, trade policies and sanctions, tariffs, international trade disputes, particularly those relating to exports of certain technologies to China, where a significant portion of our supply chain is located, and any retaliatory measures, that adversely impact us or our direct or sub-tier suppliers; •political instability, social unrest, terrorism, acts of war or other geopolitical turmoil in locations where we or our customers or suppliers have operations; •the failure or inability to accurately forecast demand and obtain quality parts on a cost-effective basis; •cybersecurity incidents affecting our supply chain; •volatility in the availability and cost of parts, commodities, energy and shipping related to our products, including increased costs due to rising inflation or interest rates or other market conditions, as well as uncertainties arising from the imposition of tariffs and any retaliatory measures; •difficulties or delays in obtaining required import or export licenses and approvals; •shipment delays due to transportation interruptions or capacity constraints; •a worldwide shortage of semiconductor components as a result of sharp increases in demand for semiconductor products in general; •limited availability of critical materials and minerals, including due to Chinese government restrictions on the export of certain rare earth minerals implemented in 2025, which could be expanded in the future, and limited feasible alternatives to materials subject to existing or proposed regulations to limit their use (such as hydrofluorocarbons and per- and polyfluoroalkyl substances), which are found in parts, components, process chemicals and other materials supplied to us or used in the manufacturing or operations of our products; and •impacts of natural disasters, extreme and chronic weather events, regional or global health epidemics, or other events beyond our control. If a supplier fails to meet our requirements concerning quality, cost, intellectual property protection or other performance factors, or does not meet regulatory requirements applicable to our supply chain, we may transfer our business to alternative sources, which could result in manufacturing delays, additional costs or other difficulties, and impair our ability to protect, enforce and extract the full value of our intellectual property rights and the intellectual property rights of our customers and other third parties. If we need to rapidly increase our business and manufacturing capacity to meet increases in demand or expedited shipment schedules, this may strain our manufacturing and supply chain operations and negatively impact our working capital. If we are unable to accurately forecast demand for our products, we may purchase more or fewer parts than necessary or incur costs for canceling, postponing or expediting delivery of parts. If we purchase or commit to purchase inventory in anticipation of customer demand that does not materialize, or the inventory is rendered obsolete by the rapid pace of technological change, or if customers reduce, delay or cancel orders, we may incur excess or obsolete inventory charges. Any of these events impacting our supply chain could affect our ability to meet our customers’ demand, result in higher costs to us and have an adverse effect on customer relationships and our business, financial condition and results of operations.", "prior_body": "Our business depends on our timely supply of products and services to meet the changing requirements of our customers, which depends in part on the timely delivery of parts, materials and services from suppliers and contract manufacturers. Increases in demand for our products and worldwide demand for semiconductor chips and electronic devices can impact our suppliers’ ability to meet our demand requirements, and have in the past resulted in, and may from time to time result in, a shortage of parts, materials and services needed to manufacture our products. Such shortages, as well as delays in and unpredictability of shipments due to transportation interruptions, have adversely impacted, and may continue to adversely impact, our manufacturing operations and our ability to meet customer demand. Volatility of demand for equipment can also increase our and our suppliers’ capital, technical, operational and other risks, and may cause some suppliers to exit businesses, or scale back or cease operations, which could impact our ability to meet customer demand. Supply chain constraints may increase costs of logistics and parts for our products and may cause us to pass on increased costs to our customers, which may lead to reduced demand for our products and materially and adversely impact our operating results. Supply chain disruptions have in the past caused, and may from time to time cause, delays in our equipment production and delivery schedules, which can lead to our business performance becoming significantly dependent on quarter-end production and delivery schedules, and could have an adverse impact on our operating and financial results. Cybersecurity incidents affecting our suppliers could impact our supply chain. Such incidents have caused, and may from time to time cause, difficulties and delays in our ability to obtain parts, materials and services needed to manufacture our products and provide services, and have adversely impacted, and may from time to time adversely impact, our manufacturing operations, our ability to meet customer demand, and our operating results. Failure to timely recover from such delays could materially and adversely affect our business, financial condition and results of operations, and may also cause our business and financial outlook to be inaccurate. We may further experience supply chain disruptions, significant interruptions of our manufacturing operations, delays in our ability to deliver or install products or services, increased costs, customer order cancellations or reduced demand for our products as a result of: •global trade issues and changes in and uncertainties with respect to trade and export regulations, trade policies and sanctions, tariffs, international trade disputes, particularly those relating to exports of certain technologies to China, where a significant portion of our supply chain is located, and any retaliatory measures, that adversely impact us or our direct or sub-tier suppliers; •political instability, social unrest, terrorism, acts of war or other geopolitical turmoil, such as the conflict in the Middle East, in locations where we or our customers or suppliers have manufacturing, research, engineering or other operations; 16 16 16 Table of Contents Table of Contents •the failure or inability to accurately forecast demand and obtain quality parts on a cost-effective basis; •volatility in the availability and cost of parts, commodities, energy and shipping related to our products, including increased costs due to rising inflation or interest rates or other market conditions; •difficulties or delays in obtaining required import or export licenses and approvals; •shipment delays due to transportation interruptions or capacity constraints; •a worldwide shortage of semiconductor components as a result of sharp increases in demand for semiconductor products in general; •limited availability of feasible alternatives to materials subject to existing or proposed regulations to limit their use (such as hydrofluorocarbons and per- and polyfluoroalkyl substances), which are found in parts, components, process chemicals and other materials supplied to us or used in the manufacturing or operations of our products; •information technology or infrastructure failures within our operations or those of a third-party supplier or service provider, including failures caused by cybersecurity incidents; impacts of natural disasters, extreme and chronic weather events (which may be exacerbated by climate change), or other events beyond our control (such as earthquakes, utility interruptions, tsunamis, hurricanes, typhoons, floods, storms or fires); and •regional or global health epidemics. If a supplier fails to meet our requirements concerning quality, cost, intellectual property protection, socially-responsible and sustainable business practices, or other performance factors, or does not meet regulatory requirements applicable to our supply chain, we may transfer our business to alternative sources. Transferring business to alternative suppliers could result in manufacturing delays, additional costs or other difficulties, and may impair our ability to protect, enforce and extract the full value of our intellectual property rights, and the intellectual property rights of our customers and other third parties. These outcomes could have a material and adverse impact on our business and competitive position and subject us to legal proceedings and claims. If we are unable to meet our customers’ demand for a prolonged period due to our inability to obtain certain parts or components from suppliers on a timely basis or at all, our business, results of operations and customer relationships could be adversely impacted. If we need to rapidly increase our business and manufacturing capacity to meet increases in demand or expedited shipment schedules, this may strain our manufacturing and supply chain operations, and negatively impact our working capital. If we are unable to accurately forecast demand for our products, we may purchase more or fewer parts than necessary or incur costs for canceling, postponing or expediting delivery of parts. If we purchase or commit to purchase inventory in anticipation of customer demand that does not materialize, or such inventory is rendered obsolete by the rapid pace of technological change, or if customers reduce, delay or cancel orders, we may incur excess or obsolete inventory charges." }, { "status": "MODIFIED", "current_title": "We are exposed to risks related to the global regulatory environment.", "prior_title": "We are exposed to risks related to the global regulatory environment.", "similarity_score": 0.911, "confidence": "high", "key_changes": [ "Reworded sentence: \"We are subject to the laws of the United States and multiple foreign jurisdictions and the rules and regulations of various governing bodies, including those related to financial and other disclosures, accounting standards, securities, corporate governance, public procurement and public funding, intellectual property, tax, trade (including import, export and customs regulations), antitrust, cybersecurity, environment, health and safety, employment, immigration and travel regulations, human rights, privacy, data protection and localization and anti-corruption.\"" ], "current_body": "We are subject to the laws of the United States and multiple foreign jurisdictions and the rules and regulations of various governing bodies, including those related to financial and other disclosures, accounting standards, securities, corporate governance, public procurement and public funding, intellectual property, tax, trade (including import, export and customs regulations), antitrust, cybersecurity, environment, health and safety, employment, immigration and travel regulations, human rights, privacy, data protection and localization and anti-corruption. Changing, inconsistent or conflicting laws, rules and regulations, and ambiguities in their interpretation and application create uncertainty and challenges, and compliance may be onerous and expensive, divert management time and attention and otherwise adversely impact our business operations. Violations of these law, rules and regulations could result in fines, criminal penalties, restrictions on our business, and damage to our reputation, and could have an adverse impact on our business operations, financial condition and results of operations.", "prior_body": "We are subject to the laws of the United States and multiple foreign jurisdictions and the rules and regulations of various governing bodies, which may differ among jurisdictions, including those related to financial and other disclosures, accounting standards, securities, corporate governance, public procurement and public funding, intellectual property, tax, trade (including import, export and customs), antitrust, cybersecurity, environment (including those relating to sustainability and climate), health and safety, employment, immigration and travel regulations, human rights, privacy, data protection and localization, and anti-corruption. Changing, inconsistent or conflicting laws, rules and regulations, and ambiguities in their interpretation and application create uncertainty and challenges, and compliance with laws, rules and regulations may be onerous and expensive, divert management time and attention from revenue-generating activities, and otherwise adversely impact our business operations. Violations of law, rules and regulations, including, among others, those related to financial and other disclosures, trade (including import and export regulations), antitrust, environment, health and safety, privacy, data protection, and anti-corruption, could result in fines, criminal penalties, restrictions on our business, and damage to our reputation, and could have an adverse impact on our business operations, financial condition and results of operations." }, { "status": "MODIFIED", "current_title": "Short-term Commercial Paper", "prior_title": "Short-term Commercial Paper", "similarity_score": 0.91, "confidence": "high", "key_changes": [ "Reworded sentence: \"We have a short-term commercial paper program under which we may issue unsecured commercial paper notes up to a total of $4.0 billion.\"", "Reworded sentence: \"At October 26, 2025, we had $100 million of commercial paper notes outstanding and recorded as short-term debt with a weighted-average interest rate of 4.07% and maturities of 35 days, and as of October 27, 2024, we had $100 million of commercial paper notes outstanding and recorded as short-term debt with a weighted-average interest rate of 5.06% and maturities of 63 days.\"" ], "current_body": "We have a short-term commercial paper program under which we may issue unsecured commercial paper notes up to a total of $4.0 billion. We increased the amount of commercial paper notes we may issue to $4.0 billion in the fourth quarter of fiscal 2025, subsequent to increasing the amount from $1.5 billion to $2.0 billion in the third quarter of fiscal 2025. The proceeds from the issuances of commercial paper are used for general corporate purposes. At October 26, 2025, we had $100 million of commercial paper notes outstanding and recorded as short-term debt with a weighted-average interest rate of 4.07% and maturities of 35 days, and as of October 27, 2024, we had $100 million of commercial paper notes outstanding and recorded as short-term debt with a weighted-average interest rate of 5.06% and maturities of 63 days.", "prior_body": "We have a short-term commercial paper program under which we may issue unsecured commercial paper notes of up to a total amount of $1.5 billion. The proceeds from the issuances of commercial paper are used for general corporate purposes. At October 27, 2024, we had $100 million of commercial paper notes outstanding and recorded as short-term debt with a weighted-average interest rate of 5.06% and maturities of 63 days, and as of October 29, 2023, we had $100 million of commercial paper notes outstanding and recorded as short-term debt with a weighted-average interest rate of 5.39% and maturities of 90 days." }, { "status": "MODIFIED", "current_title": "Market Information", "prior_title": "Market Information", "similarity_score": 0.909, "confidence": "high", "key_changes": [ "Reworded sentence: \"As of December 5, 2025, there were 2,626 registered holders of our common stock.\"" ], "current_body": "Our common stock is traded on the Nasdaq Global Select Market under the symbol AMAT. As of December 5, 2025, there were 2,626 registered holders of our common stock. Information regarding quarterly cash dividends declared on our common stock during fiscal 2025, 2024 and 2023 may be found under “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition, Liquidity and Capital Resources”.", "prior_body": "Our common stock is traded on the Nasdaq Global Select Market under the symbol AMAT. As of December 6, 2024, there were 2,692 registered holders of our common stock. Information regarding quarterly cash dividends declared on our common stock during fiscal 2024, 2023 and 2022 may be found under “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition, Liquidity and Capital Resources”." }, { "status": "MODIFIED", "current_title": "Our indebtedness and debt covenants could adversely affect our financial condition and business.", "prior_title": "Our indebtedness and debt covenants could adversely affect our financial condition and business.", "similarity_score": 0.907, "confidence": "high", "key_changes": [ "Reworded sentence: \"As of October 26, 2025, we had $6.5 billion in aggregate principal amount of senior unsecured notes outstanding.\"", "Reworded sentence: \"Significant changes in our credit rating, disruptions in the global financial markets, or incurrence of new or refinancing of existing indebtedness at higher interest rates could have a material and adverse impact on our access to and cost of capital for future financings and our financial condition.\"" ], "current_body": "As of October 26, 2025, we had $6.5 billion in aggregate principal amount of senior unsecured notes outstanding. Under the indenture governing the senior unsecured notes, we may be required to offer to repurchase the notes at a price equal to 20 20 20 Table of Contents Table of Contents 101% of the principal amount, plus accrued and unpaid interest, if we experience a change of control and a contemporaneous downgrade of the notes below investment grade. We also have in place revolving credit facilities that allow us to borrow up to an aggregate amount of approximately $4.1 billion. While no amounts were outstanding under these credit facilities as of October 26, 2025, we may borrow amounts in the future under these credit facilities or enter into new financing arrangements. Our ability to satisfy our debt obligations is dependent upon the results of our business operations and subject to other risks discussed in this section. If we fail to satisfy our debt obligations, or comply with financial and other debt covenants, we may be in default and any borrowings may become immediately due and payable, and such default may constitute a default under our other obligations. There can be no assurance that we would have sufficient financial resources or be able to arrange financing to repay any borrowings at such time. Significant changes in our credit rating, disruptions in the global financial markets, or incurrence of new or refinancing of existing indebtedness at higher interest rates could have a material and adverse impact on our access to and cost of capital for future financings and our financial condition.", "prior_body": "As of October 27, 2024, we had $6.2 billion in aggregate principal amount of senior unsecured notes outstanding. Under the indenture governing the senior unsecured notes, we may be required to offer to repurchase the notes at a price equal to 101% of the principal amount, plus accrued and unpaid interest, if we experience a change of control and a contemporaneous downgrade of the notes below investment grade. We also have in place a $1.5 billion revolving credit facility. While no amounts were outstanding under this credit facility as of October 27, 2024, we may borrow amounts in the future under this credit facility or enter into new financing arrangements. Our ability to satisfy our debt obligations is dependent upon the results of our business operations and subject to other risks discussed in this section. If we fail to satisfy our debt obligations, or comply with financial and other debt covenants, we may be in default and any borrowings may become immediately due and payable, and such default may constitute a default under our other obligations. There can be no assurance that we would have sufficient financial resources or be able to arrange financing to repay any borrowings at such time. Significant changes in our credit rating, disruptions in the global financial markets, or incurrence of new or refinancing of existing indebtedness at higher interest rates could have a material and adverse impact on our access to and cost of capital for future financings, and financial condition." }, { "status": "MODIFIED", "current_title": "Introduction", "prior_title": "Introduction", "similarity_score": 0.905, "confidence": "high", "key_changes": [ "Reworded sentence: \"The following section generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024.\"", "Reworded sentence: \"Each of our segments is subject to variable industry conditions, as demand for equipment and services can change depending on supply and demand for chips and other electronic devices, as well as other factors, such as global economic, political and market conditions, and the nature and timing of technological advances in fabrication processes.\"", "Reworded sentence: \"We operate in two reportable segments: Semiconductor Systems and Applied Global Services® (AGS).\"", "Reworded sentence: \"Our results are driven primarily by customer spending on capital equipment and services to support key technology transitions or to increase production volume in response to worldwide demand for semiconductors.\"", "Reworded sentence: \"The AGS segment provides services, spares and factory automation software to customer fabrication plants globally to help customers optimize performance of our large, global installed base of semiconductor and other equipment.\"" ], "current_body": "Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to facilitate an understanding of our business and results of operations. This MD&A should be read in conjunction with our Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements included elsewhere in this Form 10-K. The following discussion contains forward-looking statements and should also be read in conjunction with the cautionary statement set forth at the beginning of this Form 10-K. The following section generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024. Discussions of 2024 items and year-to-year comparisons between 2024 and 2023 that are not included in this Form 10-K can be found in “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended October 27, 2024, filed on December 13, 2024. Overview We provide equipment, services and software to the semiconductor and related industries. Our customers include manufacturers of semiconductor wafers and chips and other electronic devices. Our customers’ products are used in a wide variety of products such as personal computing devices, mobile phones, artificial intelligence (AI) and data center servers, automobiles, connected devices, industrial applications and consumer electronics. Each of our segments is subject to variable industry conditions, as demand for equipment and services can change depending on supply and demand for chips and other electronic devices, as well as other factors, such as global economic, political and market conditions, and the nature and timing of technological advances in fabrication processes. Our strategic priorities include developing products that help solve customers’ challenges at technology inflections, growing our service business, and expanding our served market opportunities in the semiconductor industry. Our long-term growth strategy requires continued development of new materials engineering capabilities, including products and platforms that enable expansion into new and adjacent markets. Our significant investments in research, development and engineering (RD&E) are intended to enable us to deliver new products and technologies before the emergence of strong demand, allowing customers to incorporate these products into their manufacturing plans during early-stage technology selection. We collaborate closely with our global customers to design systems and processes to meet their technical and production requirements. Our future operating results depend to a considerable extent on our ability to maintain a competitive advantage in the equipment and service products we provide. Development cycles depend on whether the product is an enhancement of an existing product, which typically has a shorter development cycle, or a new product, which typically has a longer development cycle. Most of our existing products resulted from internal development activities and innovations involving new technologies, materials and processes. In certain instances, we acquire technologies, either in existing or new product areas, to complement our existing technology capabilities and to reduce time to market. Product development and manufacturing activities occur primarily in the United States, Europe, Israel, and Asia. Our portfolio of equipment and service products are highly technical and are sold primarily through a direct sales force. We believe that it is critical to make substantial investments in RD&E to assure the availability of innovative technology that meets the current and projected requirements of our customers’ most advanced designs. We have and continue to invest in RD&E in order to continue to offer new products and technologies. We operate in two reportable segments: Semiconductor Systems and Applied Global Services® (AGS). As of October 26, 2025, management no longer considers Display a significant operating segment for separate reporting purposes. The financial results of our other operating segments that do not meet the requirements for a reportable segment, including our Display operating segment, are included in Corporate and Other. Prior-year Corporate and Other balances have been recast to include Display financial results. A summary of financial information for each reportable segment is found in Note 15 of Notes to Consolidated Financial Statements. A discussion of factors that could affect our operations is set forth under “Risk Factors” in Part I, Item 1A, which is incorporated herein by reference. Our results are driven primarily by customer spending on capital equipment and services to support key technology transitions or to increase production volume in response to worldwide demand for semiconductors. 28 28 28 Table of Contents Table of Contents The Semiconductor Systems segment is comprised primarily of capital equipment used to fabricate semiconductor chips. Spending by semiconductor customers, which include companies that operate in the foundry, logic, memory, and other semiconductor chip markets, is driven by demand for products such as smartphones, mobile devices, personal computers (PC), servers for artificial intelligence (AI) and data centers, automobiles, clean energy, storage, and other products, and the nature and timing of technological advances in fabrication processes. The growth of data and emerging end-market drivers such as AI, the internet of things, robotics and smart vehicles are also creating the next wave of growth for the industry. As a result, products within the Semiconductor Systems segment are subject to significant changes in customer requirements, including transitions to smaller dimensions, increasingly complex chip architectures, new materials and an increasing number of applications. Spending can also depend on customer facility readiness and timeline for installation of capital equipment at customer sites. Development efforts are focused on solving customers’ key technical challenges in patterning, transistor, interconnect, process control, and packaging performance. The AGS segment provides services, spares and factory automation software to customer fabrication plants globally to help customers optimize performance of our large, global installed base of semiconductor and other equipment. The AGS segment also includes 200 millimeter (200mm) and other equipment, which is shipped to many customers globally that serve the non-leading-edge end markets. Effective the first quarter of fiscal 2026, our 200mm equipment business will be moved to our Semiconductor Systems segment. Demand for AGS’ service and spares is driven by our large and growing installed base of manufacturing systems, and customers’ needs to shorten ramp times, improve system performance, and optimize factory output and operating costs. Industry conditions that affect AGS’ sales of spares and services are primarily characterized by changes in semiconductor manufacturers’ wafer starts and utilization rates, growth of the installed base of equipment and growing service intensity of newer tools. Our strategy is to continue to shift the AGS’ service and spares business to a subscription agreement model, improving customer factory performance and optimizing operating costs, and providing us a more predictable revenue stream. The Corporate and Other category includes revenues and costs of product not included in our reportable segments, as well as certain operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level. These operating expenses include costs for certain management, finance, legal, human resources, and RD&E functions performed at the corporate level; and unabsorbed information technology and occupancy. In addition, we do not allocate to our reportable segments charges associated with restructuring actions, such as employee severance costs and asset impairment charges, unless the restructuring actions pertain to a specific reportable segment. The United States government has implemented export regulations for U.S. semiconductor technology sold or provided to customers in China, which have limited our ability to provide certain products and services to customers in China, over the past several years. The U.S. government continues to issue new export licensing requirements, and additional updates and other requirements that have had the effect of further limiting our ability to provide certain products and services to customers outside the U.S., including in China. Also, the United States has announced changes to its trade policy, including increased tariffs on imports. These actions have caused substantial uncertainty and have resulted in retaliatory measures, including new tariffs on U.S. goods imposed by China and other countries. Some of these actions have been followed by announcements of limited exemptions and temporary pauses. For a description of these risks, see the risk factors entitled “Business and Industry Risks - Global trade issues and changes in and uncertainties with respect to trade policies and export regulations, including import and export license requirements, trade sanctions, tariffs and international trade disputes, have adversely impacted and could further adversely impact our business and operations, and reduce the competitiveness of our products and services relative to local and global competitors” and “Business and Industry Risks - We are exposed to risks and uncertainty related to changes in trade policies, and increased tariffs and trade disputes ” in Part I, Item 1A, “Risk Factors.” 29 29 29 Table of Contents Table of Contents", "prior_body": "Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to facilitate an understanding of our business and results of operations. This MD&A should be read in conjunction with our Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements included elsewhere in this Form 10-K. The following discussion contains forward-looking statements and should also be read in conjunction with the cautionary statement set forth at the beginning of this Form 10-K. The following section generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023. Discussions of 2023 items and year-to-year comparisons between 2023 and 2022 that are not included in this Form 10-K can be found in \"Management's Discussion and Analysis of Financial Condition and Results of Operations\" in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended October 29, 2023, filed on December 15, 2023. Overview We provide equipment, services and software to the semiconductor, display, and related industries. Our customers include manufacturers of semiconductor wafers and chips, liquid crystal and organic light-emitting diode (OLED) displays, and other electronic devices. Our customers’ products are used in a wide variety of products such as personal computing devices, mobile phones, artificial intelligence (AI) and data center servers, automobiles, connected devices, industrial applications and consumer electronics. Each of our segments is subject to variable industry conditions, as demand for equipment and services can change depending on supply and demand for chips, display technologies and other electronic devices, as well as other factors, such as global economic, political and market conditions, and the nature and timing of technological advances in fabrication processes. Our strategic priorities include developing products that help solve customers’ challenges at technology inflections; expanding our served market opportunities in the semiconductor and display industries; and growing our service business. Our long-term growth strategy requires continued development of new materials engineering capabilities, including products and platforms that enable expansion into new and adjacent markets. Our significant investments in research, development and engineering (RD&E) are intended to enable us to deliver new products and technologies before the emergence of strong demand, allowing customers to incorporate these products into their manufacturing plans during early-stage technology selection. We collaborate closely with our global customers to design systems and processes to meet their technical and production requirements. Our future operating results depend to a considerable extent on our ability to maintain a competitive advantage in the equipment and service products we provide. Development cycles depend on whether the product is an enhancement of an existing product, which typically has a shorter development cycle, or a new product, which typically has a longer development cycle. Most of our existing products resulted from internal development activities and innovations involving new technologies, materials and processes. In certain instances, we acquire technologies, either in existing or new product areas, to complement our existing technology capabilities and to reduce time to market. Product development and manufacturing activities occur primarily in the United States, Europe, Israel, and Asia. Our portfolio of equipment and service products are highly technical and are sold primarily through a direct sales force. We believe that it is critical to make substantial investments in RD&E to assure the availability of innovative technology that meets the current and projected requirements of our customers’ most advanced designs. We have and continue to invest in RD&E in order to continue to offer new products and technologies. We operate in three reportable segments: Semiconductor Systems, Applied Global Services® (AGS), and Display. A summary of financial information for each reportable segment is found in Note 14 of Notes to Consolidated Financial Statements. A discussion of factors that could affect our operations is set forth under “Risk Factors” in Part I, Item 1A, which is incorporated herein by reference. Our results are driven primarily by customer spending on capital equipment and services to support key technology transitions or to increase production volume in response to worldwide demand for semiconductors and displays. 32 32 32 Table of Contents Table of Contents The Semiconductor Systems segment is comprised primarily of capital equipment used to fabricate semiconductor chips. Spending by semiconductor customers, which include companies that operate in the foundry, logic, memory, and other semiconductor chip markets, is driven by demand for products such as smartphones, mobile devices, personal computers, servers for artificial intelligence (AI) and data centers, automobiles, clean energy, storage, and other products, and the nature and timing of technological advances in fabrication processes. The growth of data and emerging end-market drivers such as AI, the internet of things, 5G networks, electric and autonomous vehicles and augmented and virtual reality are also creating the next wave of growth for the industry. As a result, products within the Semiconductor Systems segment are subject to significant changes in customer requirements, including transitions to smaller dimensions, increasingly complex chip architectures, new materials and an increasing number of applications. Spending can also depend on customer facility readiness and timeline for installation of capital equipment at customer sites. Development efforts are focused on solving customers’ key technical challenges in patterning, transistor, interconnect, process control, and packaging performance. The AGS segment provides services, spares and factory automation software to customer fabrication plants globally to help customers optimize performance of our large, global installed base of semiconductor, display and other equipment. The AGS segment also includes 200mm and other equipment, which is shipped to many customers globally that serve the non-leading-edge end markets. Demand for AGS’ service and spares is driven by our large and growing installed base of manufacturing systems, and customers’ needs to shorten ramp times, improve system performance, and optimize factory output and operating costs. Industry conditions that affect AGS’ sales of spares and services are primarily characterized by changes in semiconductor manufacturers’ wafer starts and utilization rates, growth of the installed base of equipment and growing service intensity of newer tools. Our strategy is to continue to shift the AGS’ service and spares business to a subscription agreement model, improving customer factory performance and optimizing operating costs, and providing us a more predictable revenue stream. The Display segment encompasses products for manufacturing liquid crystal and OLED displays, and other display technologies for TVs, monitors, laptops, personal computers (PC), tablets, smart phones, other consumer-oriented devices, equipment upgrades and solar energy cells. The segment is focused on expanding its presence through technologically-differentiated equipment and products that provide customers with improved performance and yields. Display segment growth depends primarily on consumer demand for increasingly larger and more advanced TVs and high-resolution displays for mobile devices and information technology (IT) products, including laptops, monitors and tablets, as well as new form factors, including thin, light, curved and flexible displays, and new applications such as augmented and virtual reality. The timing of customer investment in manufacturing equipment is also affected by the timing of next-generation process development and of capacity expansion to meet end-market demand. The Corporate and Other category includes revenues and costs of product sold from other products, as well as certain operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level. These operating expenses include costs for certain management, finance, legal, human resource, and RD&E functions performed at the corporate level; and unabsorbed information technology and occupancy. In addition, we do not allocate to our reportable segments severance, asset impairment and any associated charges related to restructuring actions, unless these actions pertain to a specific reportable segment. Effective in the first quarter of fiscal 2024, management began including share-based compensation expense in the evaluation of reportable segments' performance. Prior-year numbers have been recast to conform to the current-year presentation. The United States government has implemented export regulations for U.S. semiconductor technology sold or provided to customers in China, which have limited our ability to provide certain products and services to customers in China, over the past several years. The U.S. government continues to issue new export licensing requirements, and additional updates and other requirements that have had the effect of further limiting our ability to provide certain products and services to customers outside the U.S., including in China. For a description of these risks, see the risk factor entitled “Business and Industry Risks - Global trade issues and changes in and uncertainties with respect to trade policies and export regulations, including import and export license requirements, trade sanctions, tariffs and international trade disputes, have adversely impacted and could further adversely impact our business and operations, and reduce the competitiveness of our products and services relative to local and global competitors” in Part I, Item 1A, “Risk Factors.” 33 33 33 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "Plan Category(a)Number ofSecurities to beIssued Upon Exerciseof Outstanding Options,Warrants andRights(1) (b)Weighted AverageExercise Price ofOutstanding Options,Warrants andRights(2)(c)Number of SecuritiesAvailable for FutureIssuance Under EquityCompensation Plans(Excluding SecuritiesReflected inColumn(a)) (In millions, except prices) Equity compensation plans approved by security holders9 $— 25 (3)Total9 $— 25", "prior_title": "Plan Category(a)Number ofSecurities to beIssued Upon Exerciseof Outstanding Options,Warrants andRights(1) (b)Weighted AverageExercise Price ofOutstanding Options,Warrants andRights(2)(c)Number of SecuritiesAvailable for FutureIssuance Under EquityCompensation Plans(Excluding SecuritiesReflected inColumn(a)) (In millions, except prices) Equity compensation plans approved by security holders10 $— 31 (3)Total10 $— 31", "similarity_score": 0.903, "confidence": "high", "key_changes": [ "Reworded sentence: \"(1)Includes only restricted stock units and performance share units outstanding under our equity compensation plans, as no options, stock warrants or other rights were outstanding as of October 26, 2025.\"", "Reworded sentence: \"(3)Includes 8 million shares of our common stock available for future issuance under the Applied Materials, Inc.\"", "Reworded sentence: \"Of these 8 million shares, 1 million are subject to purchase during the purchase period in effect as of October 26, 2025.\"", "Reworded sentence: \"42 42 42 Table of Contents Table of Contents Item 13: Certain Relationships and Related Transactions, and Director Independence The information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 23, 2026.\"", "Reworded sentence: \"The information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 23, 2026.\"" ], "current_body": "(1)Includes only restricted stock units and performance share units outstanding under our equity compensation plans, as no options, stock warrants or other rights were outstanding as of October 26, 2025. (2)The weighted average exercise price calculation does not take into account any restricted stock units or performance shares. (3)Includes 8 million shares of our common stock available for future issuance under the Applied Materials, Inc. Omnibus Employees’ Stock Purchase Plan. Of these 8 million shares, 1 million are subject to purchase during the purchase period in effect as of October 26, 2025. We have the following equity compensation plan that has not been approved by stockholders: Applied Materials Profit Sharing Scheme. The Applied Materials Profit Sharing Scheme was adopted effective July 3, 1996 and amended from time to time to enable employees of Applied Materials Ireland Limited and its participating subsidiaries to purchase our common stock at 100% of fair market value on the purchase date. Under this plan, eligible employees may elect to forego a certain portion of their base salary and certain bonuses they have earned and that otherwise would be payable in cash to purchase shares of our common stock at full fair market value. Since the eligible employees pay full fair market value for the shares, there is no reserved amount of shares under this plan and, accordingly, the table above does not include any set number of shares available for future issuance under the plan. 42 42 42 Table of Contents Table of Contents Item 13: Certain Relationships and Related Transactions, and Director Independence The information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 23, 2026. Item 14: Principal Accounting Fees and Services Our independent registered public accounting firm is KPMG LLP, Santa Clara, California, Auditor Firm ID: 185. The information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 23, 2026. 43 43 43 Table of Contents Table of Contents PART IV Item 15: Exhibits, Financial Statement Schedules (a) The following documents are filed as part of this Annual Report on Form 10-K: PageNumber(1)Financial Statements:Report of Independent Registered Public Accounting Firm45Consolidated Statements of Operations47Consolidated Statements of Comprehensive Income48Consolidated Balance Sheets49Consolidated Statements of Stockholders’ Equity50Consolidated Statements of Cash Flows51Notes to Consolidated Financial Statements53(2)Exhibits:The exhibits listed in the accompanying Index to Exhibits are filed or incorporated by reference as part of this Annual Report on Form 10-K84 Report of Independent Registered Public Accounting Firm 45 Consolidated Statements of Operations 47 Consolidated Statements of Comprehensive Income 48 Consolidated Balance Sheets 49 Consolidated Statements of Stockholders’ Equity 50 Consolidated Statements of Cash Flows 51 Notes to Consolidated Financial Statements 53 The exhibits listed in the accompanying Index to Exhibits are filed or incorporated by reference as part of this Annual Report on Form 10-K 84 All other schedules are omitted because they are not applicable or the required information is shown in the Consolidated Financial Statements or Notes thereto. Item 16: Form 10-K Summary None. 44 44 44 Table of Contents Table of Contents", "prior_body": "(1)Includes only restricted stock units and performance share units outstanding under our equity compensation plans, as no options, stock warrants or other rights were outstanding as of October 27, 2024. (2)The weighted average exercise price calculation does not take into account any restricted stock units or performance shares. (3)Includes 10 million shares of our common stock available for future issuance under the Applied Materials, Inc. Omnibus Employees’ Stock Purchase Plan. Of these 10 million shares, 1 million are subject to purchase during the purchase period in effect as of October 27, 2024. We have the following equity compensation plan that has not been approved by stockholders: Applied Materials Profit Sharing Scheme. The Applied Materials Profit Sharing Scheme was adopted effective July 3, 1996 and amended from time to time to enable employees of Applied Materials Ireland Limited and its participating subsidiaries to purchase our common stock at 100% of fair market value on the purchase date. Under this plan, eligible employees may elect to forego a certain portion of their base salary and certain bonuses they have earned and that otherwise would be payable in cash to purchase shares of our common stock at full fair market value. Since the eligible employees pay full fair market value for the shares, there is no reserved amount of shares under this plan and, accordingly, the table above does not include any set number of shares available for future issuance under the plan. 47 47 47 Table of Contents Table of Contents Item 13: Certain Relationships and Related Transactions, and Director Independence The information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 24, 2025. Item 14: Principal Accounting Fees and Services Our independent registered public accounting firm is KPMG LLP, Santa Clara, California, Auditor Firm ID: 185. The information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 24, 2025. 48 48 48 Table of Contents Table of Contents PART IV Item 15: Exhibits, Financial Statement Schedules (a) The following documents are filed as part of this Annual Report on Form 10-K: PageNumber(1)Financial Statements:Report of Independent Registered Public Accounting Firm50Consolidated Statements of Operations52Consolidated Statements of Comprehensive Income53Consolidated Balance Sheets54Consolidated Statements of Stockholders’ Equity55Consolidated Statements of Cash Flows56Notes to Consolidated Financial Statements57(2)Exhibits:The exhibits listed in the accompanying Index to Exhibits are filed or incorporated by reference as part of this Annual Report on Form 10-K85 Report of Independent Registered Public Accounting Firm 50 Consolidated Statements of Operations 52 Consolidated Statements of Comprehensive Income 53 Consolidated Balance Sheets 54 Consolidated Statements of Stockholders’ Equity 55 Consolidated Statements of Cash Flows 56 Notes to Consolidated Financial Statements 57 The exhibits listed in the accompanying Index to Exhibits are filed or incorporated by reference as part of this Annual Report on Form 10-K 85 All other schedules are omitted because they are not applicable or the required information is shown in the Consolidated Financial Statements or Notes thereto. Item 16: Form 10-K Summary None. 49 49 49 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "the Programs*", "prior_title": "the Programs*", "similarity_score": 0.892, "confidence": "high", "key_changes": [ "Reworded sentence: \"Item 6: [Reserved] 27 27 27 Table of Contents Table of Contents Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations\"" ], "current_body": "*Amounts include the 1% surcharge on stock repurchases under the Inflation Reduction Act’s excise tax. This excise tax is recorded in equity and reduces the amount available under the repurchase program, as applicable. Item 6: [Reserved] 27 27 27 Table of Contents Table of Contents Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations", "prior_body": "*Amounts include the 1% surcharge on stock repurchases under the Inflation Reduction Act’s excise tax. This excise tax is recorded in equity and reduces the amount available under the repurchase program, as applicable. Item 6: [Reserved] 31 31 31 Table of Contents Table of Contents Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations" }, { "status": "MODIFIED", "current_title": "Note 4 Fair Value Measurements", "prior_title": "Note 4 Fair Value Measurements", "similarity_score": 0.891, "confidence": "high", "key_changes": [ "Reworded sentence: \"Assets Measured at Fair Value on a Recurring Basis The following table presents our fair value hierarchy for our financial assets (excluding cash balances) measured at fair value on a recurring basis: October 26, 2025October 27, 2024 Level 1Level 2TotalLevel 1Level 2Total (In millions)Assets:Available-for-sale debt security investmentsMoney market funds*$2,264 $— $2,264 $3,512 $— $3,512 Bank certificates of deposit and time deposits— 184 184 — 103 103 U.S.\"", "Reworded sentence: \"deferred income taxes and other assets deferred income taxes and other assets We did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements as of October 26, 2025 or October 27, 2024.\"", "Reworded sentence: \"Impairment losses on equity investments in privately held companies, included in the above table, were not material during fiscal 2025 and 2024 and were $121 million during fiscal 2023.\"", "Reworded sentence: \"At October 26, 2025, the aggregate principal amount of long-term senior unsecured notes was $6.5 billion, and the estimated fair value was $6.2 billion.\"", "Reworded sentence: \"64 64 64 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents\"" ], "current_body": "Assets Measured at Fair Value on a Recurring Basis The following table presents our fair value hierarchy for our financial assets (excluding cash balances) measured at fair value on a recurring basis: October 26, 2025October 27, 2024 Level 1Level 2TotalLevel 1Level 2Total (In millions)Assets:Available-for-sale debt security investmentsMoney market funds*$2,264 $— $2,264 $3,512 $— $3,512 Bank certificates of deposit and time deposits— 184 184 — 103 103 U.S. Treasury and agency securities2,109 319 2,428 2,684 14 2,698 Non-U.S. government securities— 5 5 — 5 5 Municipal securities— 473 473 — 460 460 Commercial paper, corporate bonds and medium-term notes— 3,102 3,102 — 2,590 2,590 Asset-backed and mortgage-backed securities— 616 616 — 654 654 Total available-for-sale debt security investments$4,373 $4,699 $9,072 $6,196 $3,826 $10,022 Equity investments with readily determinable valuesPublicly traded equity securities$2,110 $— $2,110 $723 $— $723 Total equity investments with readily determinable values$2,110 $— $2,110 $723 $— $723 Total$6,483 $4,699 $11,182 $6,919 $3,826 $10,745 ______________________________ *Amounts as of October 26, 2025 and October 27, 2024 include $71 million and $91 million, respectively, invested in money market funds related to deferred compensation plans. Due to restrictions on the distribution of these funds, they are classified as restricted cash equivalents and are included in deferred income taxes and other assets in the Consolidated Balance Sheets. deferred income taxes and other assets deferred income taxes and other assets We did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements as of October 26, 2025 or October 27, 2024. Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis Our equity investments without readily determinable values consist of equity investments in privately held companies. We elected the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes on a prospective basis for certain equity investments without readily determinable fair values and are required to account for any subsequent observable changes in fair value within the statements of operations. These investments are classified as Level 3 within the fair value hierarchy and periodically assessed for impairment when an event or circumstance indicates that a decline in value may have occurred. Impairment losses on equity investments in privately held companies, included in the above table, were not material during fiscal 2025 and 2024 and were $121 million during fiscal 2023. These impairment losses are included in interest and other income (expense), net in the Consolidated Statement of Operations. Other The carrying amounts of our financial instruments, including cash and cash equivalents, restricted cash equivalents, accounts receivable, commercial paper notes, and accounts payable and accrued expenses, approximate fair value due to their short maturities. At October 26, 2025, the aggregate principal amount of long-term senior unsecured notes was $6.5 billion, and the estimated fair value was $6.2 billion. At October 27, 2024, the aggregate principal amount of long-term senior unsecured notes was $5.5 billion and the estimated fair value was $5.1 billion. The estimated fair value of long-term senior unsecured notes is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. See Note 9 of the Notes to the Consolidated Financial Statements for further detail of existing debt. 64 64 64 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "Assets Measured at Fair Value on a Recurring Basis The following table presents our fair value hierarchy for our financial assets (excluding cash balances) measured at fair value on a recurring basis: October 27, 2024October 29, 2023 Level 1Level 2TotalLevel 1Level 2Total (In millions)Assets:Available-for-sale debt security investmentsMoney market funds*$3,512 $— $3,512 $3,361 $— $3,361 Bank certificates of deposit and time deposits— 103 103 — 18 18 U.S. Treasury and agency securities2,684 14 2,698 331 43 374 Non-U.S. government securities— 5 5 — 6 6 Municipal securities— 460 460 — 453 453 Commercial paper, corporate bonds and medium-term notes— 2,590 2,590 — 2,177 2,177 Asset-backed and mortgage-backed securities— 654 654 — 487 487 Total available-for-sale debt security investments$6,196 $3,826 $10,022 $3,692 $3,184 $6,876 Equity investments with readily determinable valuesPublicly traded equity securities$723 $— $723 $698 $— $698 Total equity investments with readily determinable values$723 $— $723 $698 $— $698 Total$6,919 $3,826 $10,745 $4,390 $3,184 $7,574 _________________________ *Amounts as of October 27, 2024 and October 29, 2023 include $91 million and $101 million, respectively, invested in money market funds related to deferred compensation plans. Due to restrictions on the distribution of these funds, they are classified as restricted cash equivalents and are included in deferred income taxes and other assets in the Consolidated Balance Sheets. deferred income taxes and other assets deferred income taxes and other assets We did not have any financial assets measured at fair value on a recurring basis within Level 3 fair value measurements as of October 27, 2024 or October 29, 2023. Assets and Liabilities without Readily Determinable Values Measured on a Non-recurring Basis Our equity investments without readily determinable values consist of equity investments in privately held companies. We elected the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes on a prospective basis for certain equity investments without readily determinable fair values and are required to account for any subsequent observable changes in fair value within the statements of operations. These investments are classified as Level 3 within the fair value hierarchy and periodically assessed for impairment when an event or circumstance indicates that a decline in value may have occurred. Impairment losses on equity investments in privately held companies, included in the above table, were not material during fiscal 2024 and 2022 and were $121 million during fiscal 2023. These impairment losses are included in interest and other income (expense), net in the Consolidated Statement of Operations. Other The carrying amounts of our financial instruments, including cash and cash equivalents, restricted cash equivalents, accounts receivable, commercial paper notes, and accounts payable and accrued expenses, approximate fair value due to their short maturities. At October 27, 2024, the aggregate principal amount of long-term senior unsecured notes was $5.5 billion, and the estimated fair value was $5.1 billion. At October 29, 2023, the aggregate principal amount of long-term senior unsecured notes was $5.5 billion and the estimated fair value was $4.7 billion. The estimated fair value of long-term senior unsecured notes is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. See Note 9 of the Notes to the Consolidated Financial Statements for further detail of existing debt. 67 67 67 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "similarity_score": 0.886, "confidence": "high", "key_changes": [ "Reworded sentence: \"Gains and Losses on Investments At October 26, 2025, gross unrealized losses related to our fixed income portfolio were not material.\"", "Reworded sentence: \"Factors considered in determining whether an unrealized loss is considered to be a credit loss include: the significance of the decline in value compared to the cost basis; the financial condition, credit quality and near-term prospects of the investee; and whether it is more likely than not that we will be required to sell the security prior to recovery.\"", "Reworded sentence: \"Any additional changes in fair value that are not related to credit losses are recognized in accumulated other comprehensive income (loss).\"" ], "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 27, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant and equipment, we have increased the estimated useful lives of certain assets effective as of the beginning of fiscal 2024. The updated estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to 5 to 8 years. The estimated useful lives for the following assets remained unchanged from fiscal 2023: software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. The change in accounting estimate was applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases. Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $128 million in depreciation expense during fiscal 2024, and an increase of $0.12 in both basic and diluted earnings per share for fiscal 2024. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 58 58 58 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "Lease Obligations", "prior_title": "Lease Obligations", "similarity_score": 0.878, "confidence": "high", "key_changes": [ "Reworded sentence: \"As of October 26, 2025, our operating lease obligation was $565 million related to various operating lease arrangements for certain facilities, of which $104 million is payable within 12 months and the remaining amount is payable beyond 12 months.\"" ], "current_body": "As of October 26, 2025, our operating lease obligation was $565 million related to various operating lease arrangements for certain facilities, of which $104 million is payable within 12 months and the remaining amount is payable beyond 12 months.", "prior_body": "As of October 27, 2024, our operating lease obligation was $384 million related to various operating lease arrangements for certain facilities, of which $96 million is payable within 12 months and the remaining amount is payable beyond 12 months." }, { "status": "MODIFIED", "current_title": "The industries we serve can be volatile and difficult to predict.", "prior_title": "The industries we serve can be volatile and difficult to predict.", "similarity_score": 0.878, "confidence": "high", "key_changes": [ "Reworded sentence: \"The industries in which we operate, including the global semiconductor industry, have historically been cyclical and are subject to volatility in customer demand.\"", "Reworded sentence: \"To meet rapidly changing demand, we must accurately forecast demand and effectively manage our resources, investments, production capacity, supply chain, workforce, inventory and other components of our business.\"" ], "current_body": "The industries in which we operate, including the global semiconductor industry, have historically been cyclical and are subject to volatility in customer demand. Demand for our products and services is impacted by technology inflections and advances in fabrication processes, new and emerging technologies and market drivers, production capacity relative to demand for semiconductor chips and electronic devices, end-user demand, the timing of customers’ investment in new or expanded fabrication plants, customers’ capacity utilization, production volumes, access to affordable capital, business and consumer buying patterns and general economic and political conditions. Artificial intelligence (AI) and technologies related to AI are a significant demand driver for the industries we serve. AI is evolving rapidly and the expected timing and amount of investments related to AI can change significantly. As a result, it is difficult to accurately forecast demand for our products related to AI. Changes in demand can affect the timing and amounts of customer investments in technology and manufacturing equipment and can significantly impact our operating results. The amount and mix of our customers’ capital equipment spending between different products and technologies can also significantly impact our operating results. To meet rapidly changing demand, we must accurately forecast demand and effectively manage our resources, investments, production capacity, supply chain, workforce, inventory and other components of our business. We may incur unexpected or additional costs to align our business operations with changes in demand. If we do not effectively manage these challenges, our business performance and operating results may be adversely impacted. Even with effective allocation of resources and management of costs, our gross and operating margins, cash flows and earnings may be adversely impacted during periods of changing demand.", "prior_body": "We are a supplier to the global semiconductor and display and related industries, which historically have been cyclical and are subject to volatility in customer demand. Factors that impact demand for our products and services include technology inflections and advances in fabrication processes, new and emerging technologies and market drivers, such as demand for high-bandwidth memory and other forms of advanced packaging and technologies related to artificial intelligence and data center computing, production capacity relative to demand for semiconductor chips and electronic devices, end-user demand, customers’ capacity utilization, production volumes, access to affordable capital, business and consumer buying patterns and general economic and political conditions. Artificial intelligence is evolving rapidly and is a relatively new demand driver for semiconductors and semiconductor equipment, and it is difficult to accurately forecast such demand. Changes in demand can affect the timing and amounts of customer investments in technology and manufacturing equipment and can significantly impact our operating results. The amount and mix of our customers’ capital equipment spending between different products and technologies can also significantly impact our operating results. To meet rapidly changing demand, we must accurately forecast demand and effectively manage our resources, investments, production capacity, supply chain, workforce, inventory, and other components of our business. We may incur unexpected or additional costs to align our business operations with changes in demand. If we do not effectively manage these challenges, our business performance and operating results may be adversely impacted. Even with effective allocation of resources and management of costs, our gross and operating margins, cash flows and earnings may be adversely impacted during periods of changing demand." }, { "status": "MODIFIED", "current_title": "(In millions, except per share amounts)", "prior_title": "(In millions, except per share amounts)", "similarity_score": 0.877, "confidence": "high", "key_changes": [ "Reworded sentence: \"Common StockAdditionalPaid-InCapitalRetainedEarningsTreasury StockAccumulatedOtherComprehensiveIncome (Loss)TotalSharesAmountSharesAmountBalance at October 30, 2022844 $8 $8,593 $37,892 1,173 $(34,097)$(202)$12,194 Net income— — — 6,856 — — — 6,856 Other comprehensive income (loss), net of tax— — — — — — (15)(15)Dividends declared ($1.22 per common share)— — — (1,022)— — — (1,022)Share-based compensation— — 490 — — — — 490 Net issuance under stock plans7 — 48 — — — — 48 Common stock repurchases(18)— — — 18 (2,202)— (2,202)Balance at October 29, 2023833 $8 $9,131 $43,726 1,191 $(36,299)$(217)$16,349 Net income— — — 7,177 — — — 7,177 Other comprehensive income (loss), net of tax— — — — — — 49 49 Dividends declared ($1.52 per common share)— — — (1,252)— — — (1,252)Share-based compensation— — 577 — — — — 577 Net issuance under stock plans5 — (48)— — — — (48)Common stock repurchases(20)— — — 20 (3,851)— (3,851)Balance at October 27, 2024818 $8 $9,660 $49,651 1,211 $(40,150)$(168)$19,001 Net income— — — 6,998 — — — 6,998 Other comprehensive income (loss), net of tax— — — — — — 58 58 Dividends declared ($1.78 per common share)— — — (1,422)— — — (1,422)Share-based compensation— — 660 — — — — 660 Net issuance under stock plans5 — 13 — — — — 13 Common stock repurchases(30)— — — 30 (4,893)— (4,893)Balance at October 26, 2025793 $8 $10,333 $55,227 1,241 $(45,043)$(110)$20,415 Dividends declared ($1.22 per common share) Dividends declared ($1.52 per common share) Dividends declared ($1.78 per common share) See accompanying Notes to Consolidated Financial Statements.\"" ], "current_body": "Fiscal Year202520242023 Net revenue$28,368 $27,176 $26,517 Cost of products sold14,560 14,279 14,133 Gross profit13,808 12,897 12,384 Operating expenses:Research, development and engineering3,570 3,233 3,102 Marketing and selling858 836 776 General and administrative910 961 852 Restructuring charges181 — — Total operating expenses5,519 5,030 4,730 Income from operations8,289 7,867 7,654 Interest expense269 247 238 Interest and other income (expense), net1,251 532 300 Income before income taxes9,271 8,152 7,716 Provision for income taxes2,273 975 860 Net income$6,998 $7,177 $6,856 Earnings per share:Basic$8.71 $8.68 $8.16 Diluted$8.66 $8.61 $8.11 Weighted average number of shares:Basic804 827 840 Diluted808 834 845 See accompanying Notes to Consolidated Financial Statements. 47 47 47 Table of Contents Table of Contents", "prior_body": "Fiscal Year202420232022 Net revenue$27,176 $26,517 $25,785 Cost of products sold14,279 14,133 13,792 Gross profit12,897 12,384 11,993 Operating expenses:Research, development and engineering3,233 3,102 2,771 Marketing and selling836 776 703 General and administrative961 852 735 Severance and related charges— — (4)Total operating expenses5,030 4,730 4,205 Income from operations7,867 7,654 7,788 Interest expense247 238 228 Interest and other income (expense), net532 300 39 Income before income taxes8,152 7,716 7,599 Provision for income taxes975 860 1,074 Net income$7,177 $6,856 $6,525 Earnings per share:Basic$8.68 $8.16 $7.49 Diluted$8.61 $8.11 $7.44 Weighted average number of shares:Basic827 840 871 Diluted834 845 877 See accompanying Notes to Consolidated Financial Statements. 52 52 52 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "Accounting Standards Adopted", "prior_title": "Accounting Standards Adopted", "similarity_score": 0.876, "confidence": "high", "key_changes": [ "Reworded sentence: \"33 33 33 Table of Contents Table of Contents\"" ], "current_body": "For a description of recently adopted accounting standards, including the date of adoption and the effect, if any, on our consolidated financial statements, see Note 1, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements. 33 33 33 Table of Contents Table of Contents", "prior_body": "For a description of recently adopted accounting standards, including the date of adoption and the effect, if any, on our consolidated financial statements, see Note 1, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements. 38 38 38 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "Stock Options", "prior_title": "Stock Options", "similarity_score": 0.873, "confidence": "high", "key_changes": [ "Reworded sentence: \"There were no stock options granted during fiscal 2025, 2024 and 2023 and no outstanding stock options at the end of fiscal 2025.\"" ], "current_body": "Stock options are rights to purchase, at future dates, shares of our common stock. There were no stock options granted during fiscal 2025, 2024 and 2023 and no outstanding stock options at the end of fiscal 2025. 72 72 72 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "Stock options are rights to purchase, at future dates, shares of our common stock. There were no stock options granted during fiscal 2024, 2023 and 2022 and no outstanding stock options at the end of fiscal 2024. 74 74 74 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "similarity_score": 0.87, "confidence": "high", "key_changes": [ "Reworded sentence: \"The following tables summarize the assumptions used for the valuation of share-based awards for the periods presented: 202520242023Service-Based Awards and the portion of Performance-Based Awards subject to performance goals:Grant date market value$138.24 - $223.91$148.39 - $241.26$104.22 - $143.97Risk-free interest rate3.56% - 4.52%3.48% - 5.37%3.64% - 5.48%Dividend yield1.18% - 3.48%0.72% - 2.62%0.70% - 3.59%Fair value$134.61 - $220.09 $144.79 - $237.94 $102.09 - $141.33 $138.24 - $223.91 $148.39 - $241.26 $104.22 - $143.97 3.56% - 4.52% 3.48% - 5.37% 3.64% - 5.48% 1.18% - 3.48% 0.72% - 2.62% 0.70% - 3.59% $134.61 - $220.09 $144.79 - $237.94 $102.09 - $141.33 202520242023Portion of Performance-Based Awards subject to market goals:Grant date market value$169.08 $148.39 - $173.89$109.37 Risk-free interest rate4.10% 4.24% - 4.30%4.10% Dividend yield0.95% 0.74% - 0.86%0.95%Expected volatility42.65%40.99% - 43.35%52.38% Fair value$183.40 $195.32 - $249.37$162.72 $169.08 $148.39 - $173.89 $109.37 4.10% 4.24% - 4.30% 4.10% 0.95% 0.74% - 0.86% 0.95% 42.65% 40.99% - 43.35% 52.38% $183.40 $195.32 - $249.37 $162.72 A summary of the changes in restricted stock units, restricted stock, performance share units and performance units outstanding under our equity compensation plans during fiscal 2025 is presented below: SharesWeightedAverageGrant DateFair ValueWeightedAverageRemainingContractual TermAggregate Intrinsic Value (In millions, except per share amounts)Non-vested restricted stock units, restricted stock, performance share units and performance units at October 27, 202410 $129.31 Granted5 $165.66 Vested(5)$126.15 Canceled(1)$139.50 Non-vested restricted stock units, restricted stock, performance share units and performance units at October 26, 20259 $148.43 2.3 years$2,086 Non-vested restricted stock units, restricted stock, performance share units and performance units expected to vest9 $148.23 2.2 years$2,029 Non-vested restricted stock units, restricted stock, performance share units and performance units at October 27, 2024 Non-vested restricted stock units, restricted stock, performance share units and performance units at October 26, 2025 At October 26, 2025, 0.7 million additional performance-based awards could be earned based upon achievement of certain levels of specified performance and/or market goals.\"" ], "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 27, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant and equipment, we have increased the estimated useful lives of certain assets effective as of the beginning of fiscal 2024. The updated estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to 5 to 8 years. The estimated useful lives for the following assets remained unchanged from fiscal 2023: software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. The change in accounting estimate was applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases. Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $128 million in depreciation expense during fiscal 2024, and an increase of $0.12 in both basic and diluted earnings per share for fiscal 2024. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 58 58 58 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "We operate in jurisdictions with complex and changing tax laws.", "prior_title": "We operate in jurisdictions with complex and changing tax laws.", "similarity_score": 0.864, "confidence": "high", "key_changes": [ "Reworded sentence: \"Our provision for income taxes and effective tax rates could be affected by numerous factors, including changes in applicable tax laws, interpretations of applicable tax laws, amount and composition of pre-tax income in jurisdictions with differing tax rates and valuation of deferred tax assets.\"", "Reworded sentence: \"For example, various countries where we do business have enacted or plan to enact new tax laws to implement the global minimum tax regimes based on the Organization for Economic Cooperation and Development Base Erosion and Profit Shifting Project, and where enacted, the rules began to be effective in fiscal 2025.\"", "Reworded sentence: \"Consistent with the international nature of our business, we conduct certain manufacturing, supply chain and other operations in Asia, bringing these activities closer to customers and reducing operating costs.\"" ], "current_body": "We are subject to income taxes in the United States and foreign jurisdictions. Significant judgment is required to determine and estimate worldwide tax liabilities. Our provision for income taxes and effective tax rates could be affected by numerous factors, including changes in applicable tax laws, interpretations of applicable tax laws, amount and composition of pre-tax income in jurisdictions with differing tax rates and valuation of deferred tax assets. There have been a number of enacted and proposed changes in the tax laws that could have a material impact on our provision for income taxes and effective tax rate. An increase in our provision for income taxes and effective tax rate could, in turn, have a material and adverse impact on our results of operations and financial condition. For example, various countries where we do business have enacted or plan to enact new tax laws to implement the global minimum tax regimes based on the Organization for Economic Cooperation and Development Base Erosion and Profit Shifting Project, and where enacted, the rules began to be effective in fiscal 2025. Additionally, on July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act (OBBBA). Key tax provisions of the OBBBA are designed to accelerate tax deductions, but that may have a detrimental impact on our ability to use certain deferred tax assets. For example, as a result of the acceleration of certain tax deductions under the OBBBA, we are unable to forecast utilization of our existing corporate alternative minimum tax (CAMT) credit deferred tax asset. We have recorded a full valuation allowance against the CAMT credit deferred tax asset, which increased our effective tax rate and provision for income taxes in fiscal 2025. The amount of the valuation allowance may be adjusted in future quarters if estimates of our future taxable income change. We continue to monitor developments and evaluate the impact, if any, of enacted and proposed changes in the tax laws on our results of operations and cash flows. The adoption and effective dates of changes in the tax laws vary by country and could increase tax complexity and uncertainty and may adversely affect our provision for income taxes in future years. We have been granted additional conditional reduced tax rates in Singapore that expire beginning in fiscal 2030. There is risk our conditional reduced tax rates may not be renewed. Consistent with the international nature of our business, we conduct certain manufacturing, supply chain and other operations in Asia, bringing these activities closer to customers and reducing operating costs. In some foreign jurisdictions, we must meet certain requirements to continue to qualify for tax incentives. There is no assurance we will be able to meet such requirements in the future to fully realize benefits from these incentives. Furthermore, the proposed plans to implement global minimum tax regimes could reduce or eliminate the benefits of our tax incentives. We are subject to examination by the U.S. Internal Revenue Service and other tax authorities, and from time to time amend previously filed tax returns. We regularly assess the likelihood of favorable or unfavorable outcomes resulting from these examinations and amendments to determine the adequacy of our provision for income taxes, which requires estimates and judgments. Although we believe our tax estimates are reasonable, there can be no assurance the tax authorities will agree with such estimates. We may have to engage in litigation to achieve the results reflected in the estimates, which may be time-consuming and expensive. There can be no assurance that we will be successful or that any final determination will not be materially different from the treatment reflected in our historical income tax provisions and effective tax rates.", "prior_body": "We are subject to income taxes in the United States and foreign jurisdictions. Significant judgment is required to determine and estimate worldwide tax liabilities. Our provision for income taxes and effective tax rates could be affected by numerous factors, including changes in applicable tax laws, interpretations of applicable tax laws, amount and composition of pre-tax income in jurisdictions with differing tax rates, and valuation of deferred tax assets. There have been a number of proposed changes in the tax laws that could have a material impact on our provision for 23 23 23 Table of Contents Table of Contents income taxes and effective tax rate. An increase in our provision for income taxes and effective tax rate could, in turn, have a material and adverse impact on our results of operations and financial condition. For example, several countries where we do business have enacted global minimum tax regimes based on the Organization for Economic Cooperation and Development (“OECD”) Base Erosion and Profit Shifting Project. This will change various aspects of the existing framework under which our global tax obligations are determined, and will unfavorably impact our existing tax incentives and effective tax rate, beginning in fiscal 2025. The OECD continues to release additional guidance on this new global minimum tax framework. We will continue to monitor these developments, as each jurisdiction incorporates changes into its tax laws. Our conditional reduced tax rates in Singapore will expire in fiscal 2025, excluding potential renewal and subject to certain conditions with which we expect to comply. There is risk our conditional reduced tax rates may not be renewed. Consistent with the international nature of our business, we conduct certain manufacturing, supply chain, and other operations in Asia, bringing these activities closer to customers and reducing operating costs. In some foreign jurisdictions, we must meet certain requirements to continue to qualify for tax incentives. There is no assurance we will be able to meet such requirements in the future to fully realize benefits from these incentives. Furthermore, the proposed plans to implement global minimum tax regimes could reduce or eliminate the benefits of our tax incentives. We are subject to examination by the U.S. Internal Revenue Service and other tax authorities, and from time to time amend previously filed tax returns. We regularly assess the likelihood of favorable or unfavorable outcomes resulting from these examinations and amendments to determine the adequacy of our provision for income taxes, which requires estimates and judgments. Although we believe our tax estimates are reasonable, there can be no assurance the tax authorities will agree with such estimates. We may have to engage in litigation to achieve the results reflected in the estimates, which may be time-consuming and expensive. There can be no assurance that we will be successful or that any final determination will not be materially different from the treatment reflected in our historical income tax provisions and effective tax rates." }, { "status": "MODIFIED", "current_title": "Sources and Uses of Cash", "prior_title": "Sources and Uses of Cash", "similarity_score": 0.86, "confidence": "high", "key_changes": [ "Reworded sentence: \"A summary of cash provided by (used in) operating, investing, and financing activities was as follows: 20252024 (In millions)Cash provided by operating activities$7,958 $8,677 Cash used in investing activities$(2,782)$(2,327)Cash used in financing activities$(5,977)$(4,470)\"" ], "current_body": "A summary of cash provided by (used in) operating, investing, and financing activities was as follows: 20252024 (In millions)Cash provided by operating activities$7,958 $8,677 Cash used in investing activities$(2,782)$(2,327)Cash used in financing activities$(5,977)$(4,470)", "prior_body": "A summary of cash provided by (used in) operating, investing, and financing activities is as follows: 20242023 (In millions)Cash provided by operating activities$8,677 $8,700 Cash used in investing activities$(2,327)$(1,535)Cash used in financing activities$(4,470)$(3,032)" }, { "status": "MODIFIED", "current_title": "Note 7 Contract Balances and Performance Obligations", "prior_title": "Note 7 Contract Balances and Performance Obligations", "similarity_score": 0.858, "confidence": "high", "key_changes": [ "Reworded sentence: \"Contract balances at the end of each reporting period were as follows: October 26, 2025October 27, 2024(In millions)Contract assets$281 $269 Contract liabilities$2,566 $2,849 The increase in contract assets during fiscal 2025 was primarily due to an increase in unsatisfied performance obligations related to goods transferred to customers where payment was conditional upon technical sign off.\"" ], "current_body": "Contract Assets and Liabilities Contract assets primarily result from receivables for goods transferred to customers where payment is conditional upon technical sign off and not just the passage of time. Contract liabilities consist of unsatisfied performance obligations related to advance payments received and billings in excess of revenue recognized. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets are generally classified as current and are included in Other Current Assets in the Consolidated Balance Sheets. Contract liabilities are classified as current or non-current based on the timing of when performance obligations will be satisfied and associated revenue is expected to be recognized. Contract balances at the end of each reporting period were as follows: October 26, 2025October 27, 2024(In millions)Contract assets$281 $269 Contract liabilities$2,566 $2,849 The increase in contract assets during fiscal 2025 was primarily due to an increase in unsatisfied performance obligations related to goods transferred to customers where payment was conditional upon technical sign off. During fiscal 2025, we recognized revenue of approximately $2.4 billion related to contract liabilities at October 27, 2024. Contract liabilities decreased during fiscal 2025 due to revenue recognized related to contract liabilities at October 27, 2024, partially offset by new billings for products and services for which there were unsatisfied performance obligations to customers, and revenue had not yet been recognized as of October 26, 2025. There were no credit losses recognized on our accounts receivables and contract assets during fiscal 2025 and 2024. Performance Obligations As of October 26, 2025, the amount of remaining unsatisfied performance obligations on contracts, primarily consisting of written purchase orders received from customers, with an original estimated duration of one year or more was approximately $1.7 billion, of which approximately 53% is expected to be recognized within 12 months and the remainder is expected to be recognized within the following 24 months thereafter. We have elected the available practical expedient to exclude the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. 66 66 66 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "Contract Assets and Liabilities Contract assets primarily result from receivables for goods transferred to customers where payment is conditional upon technical sign off and not just the passage of time. Contract liabilities consist of unsatisfied performance obligations related to advance payments received and billings in excess of revenue recognized. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets are generally classified as current and are included in Other Current Assets in the Consolidated Balance Sheets. Contract liabilities are classified as current or non-current based on the timing of when performance obligations will be satisfied and associated revenue is expected to be recognized. Contract balances at the end of each reporting period were as follows: October 27, 2024October 29, 2023(In millions)Contract assets$269 $274 Contract liabilities$2,849 $2,975 The decrease in contract assets during fiscal 2024, was primarily due to a reduction in goods transferred to customers where payment was conditional upon technical sign off. During fiscal 2024, we recognized revenue of approximately $2.7 billion related to contract liabilities at October 29, 2023. This reduction in contract liabilities was partially offset by new billings for products and services for which there were unsatisfied performance obligations to customers and revenue had not yet been recognized as of October 27, 2024. There were no credit losses recognized on our accounts receivables and contract assets during fiscal 2024 and 2023. 69 69 69 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "Interest Expense and Interest and Other Income (expense), net", "prior_title": "Interest Expense and Interest and Other Income (expense), net", "similarity_score": 0.857, "confidence": "high", "key_changes": [ "Reworded sentence: \"Interest expense and interest and other income (expense), net for the periods presented were as follows: Change 202520242025 over 2024 (In millions)Interest expense$269 $247 $22 Interest and other income (expense), net$1,251 $532 $719 Interest expense incurred was primarily associated with senior unsecured notes.\"" ], "current_body": "Interest expense and interest and other income (expense), net for the periods presented were as follows: Change 202520242025 over 2024 (In millions)Interest expense$269 $247 $22 Interest and other income (expense), net$1,251 $532 $719 Interest expense incurred was primarily associated with senior unsecured notes. Interest expense in fiscal 2025 increased slightly as a result of the issuance of senior unsecured notes in June 2024. 31 31 31 Table of Contents Table of Contents Interest and other income (expense), net in fiscal 2025 increased primarily driven by higher net gain on equity investments, partially offset by lower interest income driven by lower cash balances and a decrease in market interest rates.", "prior_body": "Interest expense and interest and other income (expense), net for the periods presented were as follows: Change 202420232024 over 2023 (In millions)Interest expense$247 $238 $9 Interest and other income (expense), net$532 $300 $232 Interest expense incurred was primarily associated with issued senior unsecured notes. Interest expense in fiscal 2024 increased slightly as a result of the issuance of senior unsecured notes in June 2024. Interest and other income (expense), net in fiscal 2024 increased primarily driven by higher interest income due to higher cash balances and lower impairment on equity investment, partially offset by higher net loss on equity investment." }, { "status": "MODIFIED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "similarity_score": 0.856, "confidence": "high", "key_changes": [ "Removed sentence: \"A valuation allowance is recorded to reflect the estimated amount of net deferred tax assets that may not be realized.\"", "Removed sentence: \"Changes in the valuation allowance in each fiscal year were as follows: 202420232022(In millions)Beginning balance$530 $460 $361 Increases39 70 99 Ending balance$569 $530 $460 At October 27, 2024, we have state research and development tax credit carryforwards of $592 million, including $553 million of credits that are carried over until exhausted and $35 million that are carried over for 15 years and begin to expire in fiscal 2034.\"", "Removed sentence: \"It is more likely than not that all tax credit carryforwards, net of valuation allowance, will be utilized.\"", "Reworded sentence: \"A reconciliation of the beginning and ending balances of gross unrecognized tax benefits in each fiscal year is as follows: 202520242023 (In millions)Beginning balance of gross unrecognized tax benefits$544 $510 $498 Lapses of statutes of limitation(82)— — Increases in tax positions for current year26 25 28 Increases in tax positions for prior years— 13 — Decreases in tax positions for prior years(1)(4)(16)Ending balance of gross unrecognized tax benefits$487 $544 $510 Tax benefit for interest and penalties on unrecognized tax benefits for fiscal 2025 was $63 million and tax expense for interest and penalties on unrecognized tax benefits for fiscal 2024 and 2023 was $45 million and $34 million, respectively.\"", "Reworded sentence: \"We believe it is reasonably possible that the amount of gross unrecognized tax benefits related primarily to foreign operations could be reduced by approximately $200 million in the next 12 months as a result of the resolution of tax matters or the lapse of statute of limitations.\"" ], "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 27, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant and equipment, we have increased the estimated useful lives of certain assets effective as of the beginning of fiscal 2024. The updated estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to 5 to 8 years. The estimated useful lives for the following assets remained unchanged from fiscal 2023: software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. The change in accounting estimate was applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases. Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $128 million in depreciation expense during fiscal 2024, and an increase of $0.12 in both basic and diluted earnings per share for fiscal 2024. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 58 58 58 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "Investing Activities", "prior_title": "Investing Activities", "similarity_score": 0.835, "confidence": "high", "key_changes": [ "Reworded sentence: \"We used $2.8 billion and $2.3 billion of cash in investing activities in fiscal 2025 and 2024, respectively.\"", "Reworded sentence: \"34 34 34 Table of Contents Table of Contents\"" ], "current_body": "We used $2.8 billion and $2.3 billion of cash in investing activities in fiscal 2025 and 2024, respectively. Capital expenditures in fiscal 2025 and 2024 were $2.3 billion and $1.2 billion, respectively. Capital expenditures were primarily for investments in real property and improvements, demonstration and testing equipment, manufacturing and network equipment. Purchases of investments, net of proceeds from sales and maturities of investments, for 2025 and 2024 were $526 million and $1.1 billion, respectively. Net proceeds from asset sale were $33 million, and net cash paid for acquisition was $29 million in fiscal 2025. Investing activities also included investments in technology to allow us to access new market opportunities or emerging technologies. Our investment portfolio consists principally of investment grade money market mutual funds, U.S. Treasury and agency securities, municipal bonds, corporate bonds and mortgage-backed and asset-backed securities, as well as equity securities. We regularly monitor the credit risk in our investment portfolio and take appropriate measures, which may include the sale of certain securities, to manage such risks prudently in accordance with our investment policies. 34 34 34 Table of Contents Table of Contents", "prior_body": "We used $2.3 billion and $1.5 billion of cash in investing activities in fiscal 2024 and 2023, respectively. Capital expenditures in fiscal 2024 and 2023 were $1.2 billion and $1.1 billion, respectively. Capital expenditures were primarily for investments in real property acquisitions and improvements, demonstration and testing equipment, manufacturing and network equipment. Purchases of investments, net of proceeds from sales and maturities of investments, for 2024 and 2023 was $1.1 billion and $404 million, respectively. Net cash paid for acquisitions in fiscal 2023 was $25 million. Investing activities also included investments in technology to allow us to access new market opportunities or emerging technologies. Our investment portfolio consists principally of investment grade money market mutual funds, U.S. Treasury and agency securities, municipal bonds, corporate bonds and mortgage-backed and asset-backed securities, as well as equity securities. We regularly monitor the credit risk in our investment portfolio and take appropriate measures, which may include the sale of certain securities, to manage such risks prudently in accordance with our investment policies. 39 39 39 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "Deemed Repatriation Tax Payable", "prior_title": "Deemed Repatriation Tax Payable", "similarity_score": 0.829, "confidence": "high", "key_changes": [ "Reworded sentence: \"As of October 26, 2025, we had one remaining payment of $255 million, payable in February of 2026.\"" ], "current_body": "As of October 26, 2025, we had one remaining payment of $255 million, payable in February of 2026. This transition tax liability is associated with the deemed repatriation of accumulated foreign earnings as a result of the enactment of the Tax Act.", "prior_body": "As of October 27, 2024, we had $459 million of transition tax liability, of which $204 million is payable within 12 months and the remaining amount is payable beyond 12 months. This transition tax liability is associated with the deemed repatriation of accumulated foreign earnings as a result of the enactment of the Tax Act." }, { "status": "MODIFIED", "current_title": "Operating Activities", "prior_title": "Operating Activities", "similarity_score": 0.814, "confidence": "high", "key_changes": [ "Reworded sentence: \"Cash from operating activities for fiscal 2025 was $8.0 billion, which reflects net income adjusted for the effect of non-cash charges and changes in working capital components.\"", "Reworded sentence: \"We sold $501 million and $444 million of accounts receivable during fiscal 2025 and 2024, respectively.\"", "Reworded sentence: \"The slight increase in days sales outstanding was primarily due to unfavorable revenue linearity.\"" ], "current_body": "Cash from operating activities for fiscal 2025 was $8.0 billion, which reflects net income adjusted for the effect of non-cash charges and changes in working capital components. Significant non-cash charges included depreciation, amortization, gain or loss on investments or asset sale, share-based compensation, deferred income taxes and restructuring charges. Cash provided by operating activities in fiscal 2025 was lower primarily due to higher payments for income taxes and inventory. We have agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. We sell our accounts receivable generally without recourse. From time to time, we also discount letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. We sold $501 million and $444 million of accounts receivable during fiscal 2025 and 2024, respectively. We did not discount letters of credit issued by customers in fiscal 2025 and 2024. There was no discounting of promissory notes in each of fiscal 2025 and 2024. Our working capital was $12.9 billion at October 26, 2025 and $12.8 billion at October 27, 2024. Days sales outstanding of our accounts receivable at the end of fiscal 2025 and 2024 was 69 days and 68 days, respectively. Days sales outstanding varies due to the timing of shipments and payment terms. The slight increase in days sales outstanding was primarily due to unfavorable revenue linearity.", "prior_body": "Cash from operating activities for fiscal 2024 was $8.7 billion, which reflects net income adjusted for the effect of non-cash charges and changes in working capital components. Significant non-cash charges included depreciation, amortization, share-based compensation and deferred income taxes. Cash provided by operating activities in fiscal 2024 remained relatively flat primarily due to lower collections of customer receivable balances, partially offset by lower payments to vendors and higher net income. We have agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. We sell our accounts receivable generally without recourse. From time to time, we also discount letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. We sold $0.4 billion and $0.7 billion of accounts receivable during fiscal 2024 and 2023, respectively. We did not discount letters of credit issued by customers in fiscal 2024 and 2023. There was no discounting of promissory notes in each of fiscal 2024 and 2023. Our working capital was $12.8 billion at October 27, 2024 and $11.8 billion at October 29, 2023. Days sales outstanding of our accounts receivable at the end of fiscal 2024 and 2023 was 68 days and 70 days, respectively. Days sales outstanding varies due to the timing of shipments and payment terms. The decrease in days sales outstanding was primarily due to favorable revenue linearity." }, { "status": "MODIFIED", "current_title": "Financial Condition, Liquidity and Capital Resources", "prior_title": "Financial Condition, Liquidity and Capital Resources", "similarity_score": 0.799, "confidence": "high", "key_changes": [ "Reworded sentence: \"Our cash, cash equivalents and investments consisted of the following: October 26,2025October 27,2024 (In millions)Cash and cash equivalents$7,241 $8,022 Short-term investments1,332 1,449 Long-term investments4,327 2,787 Total cash, cash-equivalents and investments$12,900 $12,258\"" ], "current_body": "Our cash, cash equivalents and investments consisted of the following: October 26,2025October 27,2024 (In millions)Cash and cash equivalents$7,241 $8,022 Short-term investments1,332 1,449 Long-term investments4,327 2,787 Total cash, cash-equivalents and investments$12,900 $12,258", "prior_body": "Our cash, cash equivalents and investments consist of the following: October 27,2024October 29,2023 (In millions)Cash and cash equivalents$8,022 $6,132 Short-term investments1,449 737 Long-term investments2,787 2,281 Total cash, cash-equivalents and investments$12,258 $9,150" }, { "status": "MODIFIED", "current_title": "We are exposed to various factors that impact the industries in which we operate, including factors specific to the semiconductor industry.", "prior_title": "We are exposed to factors specific to the semiconductor industry.", "similarity_score": 0.799, "confidence": "high", "key_changes": [ "Reworded sentence: \"The industries in which we operate are characterized by factors that impact demand for and the profitability of our products and services and our operating results.\"" ], "current_body": "The industries in which we operate are characterized by factors that impact demand for and the profitability of our products and services and our operating results. The largest proportion of our net revenue and profitability is derived from our Semiconductor Systems segment’s sale of a wide range of equipment used to fabricate semiconductor chips, and a majority of the revenue of Applied Global Services is from sales to semiconductor manufacturers. The industries in which we operate, including the semiconductor industry, are characterized by factors particular to these industries that impact demand for and the profitability of our products and services, including: •changes in demand for semiconductor chips and electronic devices, including those related to fluctuations in consumer buying patterns tied to general economic or geopolitical conditions, seasonality or the introduction of new products; •the frequency and complexity of technology transitions and inflections, and our ability to timely and effectively anticipate and adapt to these changes; 14 14 14 Table of Contents Table of Contents •the cost of research and development due to many factors, including shrinking geometries, the use of new materials, new and more complex device structures, more applications and process steps, increasing chip design costs, and the cost and complexity of integrated manufacturing processes; •the need to reduce product development time and meet technical challenges; •the number of types and varieties of semiconductors and number of applications; •capital requirements for building and operating new fabrication plants and customers’ ability to raise the necessary capital; •trade, regulatory, tax or government incentives impacting customers’ investment in new or expanded fabrication plants and semiconductor research and development; •the cost and complexity for customers to move from product design to volume manufacturing, and the impact on investment in capital equipment; •semiconductor manufacturers’ levels of capital expenditures and the allocation of capital investment to market segments that we do not serve, such as lithography, or segments where our products have lower relative market presence; •delays in installation of our equipment delivered to customers; •changes in growth rates among the semiconductor and other industries in which we operate; •the importance of increasing market positions in segments with growing demand; •manufacturers’ ability to reconfigure and re-use equipment, resulting in diminished need to purchase new equipment and services from us, and challenges in providing parts for reused equipment; •the availability of spare parts to maximize the time that customers’ systems are available for production; •system reliability and productivity and the effect on demand for fabrication systems as a result of their increasing productivity, device yield and reliability; •shorter cycle times between order placements by customers and product shipment require greater reliance on forecasting of customer investment, which may lead to inventory write-offs and manufacturing inefficiencies that decrease gross margin; •competitive factors that make it difficult to enhance position, including total cost of manufacturing system ownership and other challenges in securing development-tool-of-record (DTOR) and production-tool-of-record (PTOR) positions with customers; •consolidation in the semiconductor industry, including among semiconductor manufacturers and among semiconductor equipment suppliers; •shifts in sourcing strategies by computer and electronics companies, and manufacturing processes for advanced circuit technologies, that impact the equipment requirements of our foundry customers; •the fragmentation of semiconductor markets, leading certain markets to become too small to support the cost of a new fabrication plant, while others require less technologically advanced products; •the importance of specialty markets (such as internet of things, communications, automotive, power and sensors) that use process technologies that have a low barrier to entry; •the increasing role for and complexity of software in our products; •the focus on reducing energy usage and improving the environmental impact and sustainability associated with manufacturing operations, and the availability of adequate and reliable sources of energy; and •the importance of advanced packaging to AI computing. If we do not effectively address these factors, accurately forecast and allocate appropriate resources and investment towards addressing key technology changes and inflections, successfully develop and commercialize products to meet demand for new technologies, and effectively address industry trends, our business and results of operations may be materially and adversely impacted.", "prior_body": "The largest proportion of our consolidated net revenue and profitability is derived from our Semiconductor Systems segment’s sale of a wide range of equipment used to fabricate semiconductor chips to the global semiconductor industry, and a majority of the revenues of Applied Global Services is from sales to semiconductor manufacturers. The semiconductor industry is characterized by factors particular to this industry that impact demand for and the profitability of our semiconductor manufacturing equipment and service products, including: •the frequency and complexity of technology transitions and inflections, and our ability to timely and effectively anticipate and adapt to these changes; •the cost of research and development due to many factors, including shrinking geometries, the use of new materials, new and more complex device structures, more applications and process steps, increasing chip design costs, and the cost and complexity of integrated manufacturing processes; •the need to reduce product development time and meet technical challenges; •the number of types and varieties of semiconductors and number of applications; •the cost and complexity for semiconductor manufacturers to move more technically advanced capability and smaller geometries to volume manufacturing, and the impact on investment in capital equipment; •semiconductor manufacturers’ levels of capital expenditures and the allocation of capital investment to market segments that we do not serve, such as lithography, or segments where our products have lower relative market presence; •delays in installation of our equipment delivered to customers; •the importance of increasing market positions in segments with growing demand; •semiconductor manufacturers’ ability to reconfigure and re-use equipment, resulting in diminished need to purchase new equipment and services from us, and challenges in providing parts for reused equipment; •shorter cycle times between order placements by customers and product shipment require greater reliance on forecasting of customer investment, which may lead to inventory write-offs and manufacturing inefficiencies that decrease gross margin; •competitive factors that make it difficult to enhance position, including challenges in securing development-tool-of-record (DTOR) and production-tool-of-record (PTOR) positions with customers; •consolidation in the semiconductor industry, including among semiconductor manufacturers and among semiconductor equipment suppliers; •shifts in sourcing strategies by computer and electronics companies, and manufacturing processes for advanced circuit technologies, that impact the equipment requirements of our foundry customers; •the concentration of new wafer starts in Korea and Taiwan, where our service penetration and service-revenue-per-wafer-start have been lower than in other regions; •the increasing fragmentation of semiconductor markets, leading certain markets to become too small to support the cost of a new fabrication plant, while others require less technologically advanced products; the continuing importance of specialty markets (such as internet of things, communications, automotive, power and sensors) that use process technologies that have a low barrier to entry; and 18 18 18 Table of Contents Table of Contents •the importance of advanced packaging to artificial intelligence computing. If we do not accurately forecast and allocate appropriate resources and investment towards addressing key technology changes and inflections, successfully develop and commercialize products to meet demand for new technologies, and effectively address industry trends, our business and results of operations may be materially and adversely impacted." }, { "status": "MODIFIED", "current_title": "Omnibus Employees’ Stock Purchase Plan", "prior_title": "Employee Stock Purchase Plans", "similarity_score": 0.795, "confidence": "high", "key_changes": [ "Reworded sentence: \"Our purchasing cycles began in March and September of each of fiscal 2025, 2024 and 2023.\"", "Reworded sentence: \"Underlying assumptions used in the model are outlined in the following table: 202520242023ESPP:Dividend yield1.19 %0.82 %0.98 %Expected volatility42.0 %40.1 %39.4 %Risk-free interest rate4.13 %5.03 %5.29 %Expected life (in years)0.50.50.5Weighted average estimated fair value$42.04$52.31$35.31\"" ], "current_body": "Under the ESPP, substantially all employees may purchase our common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of our common stock at the beginning or end of each 6-month purchase period, subject to certain limits. Our purchasing cycles began in March and September of each of fiscal 2025, 2024 and 2023. We issued 2 million shares in fiscal 2025 at a weighted average price of $131.75 per share, 2 million shares in fiscal 2024 at a weighted average price of $147.38 per share and 2 million shares in fiscal 2023 at a weighted average price of $87.75 per share, under the ESPP. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. Underlying assumptions used in the model are outlined in the following table: 202520242023ESPP:Dividend yield1.19 %0.82 %0.98 %Expected volatility42.0 %40.1 %39.4 %Risk-free interest rate4.13 %5.03 %5.29 %Expected life (in years)0.50.50.5Weighted average estimated fair value$42.04$52.31$35.31", "prior_body": "Under the ESPP, substantially all employees may purchase our common stock through payroll deductions at a price equal to 85 percent of the lower of the fair market value of our common stock at the beginning or end of each 6-month purchase period, subject to certain limits. Our purchasing cycles began in March and September of each of fiscal 2024, 2023 and 2022. We issued 2 million shares in fiscal 2024 at a weighted average price of $147.38 per share, 2 million shares in fiscal 2023 at a weighted average price of $87.75 per share and 2 million shares in fiscal 2022 at a weighted average price of $93.30 per share, under the ESPP. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. Underlying assumptions used in the model are outlined in the following table: 202420232022ESPP:Dividend yield0.82 %0.98 %0.97 %Expected volatility40.1 %39.4 %46.8 %Risk-free interest rate5.03 %5.29 %2.24 %Expected life (in years)0.50.50.5Weighted average estimated fair value$52.31$35.31$30.23" }, { "status": "MODIFIED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "Summary of Cash, Cash Equivalents and Investments", "similarity_score": 0.794, "confidence": "high", "key_changes": [ "Reworded sentence: \"October 27, 2024CostGrossUnrealizedGainsGrossUnrealizedLossesEstimatedFair Value (In millions)Cash$1,313 $— $— $1,313 Cash equivalents:Money market funds*3,421 — — 3,421 Bank certificates of deposit and time deposits90 — — 90 U.S.\"", "Reworded sentence: \"government securities** ________________________ *Excludes $91 million of restricted cash equivalents invested in money market funds related to deferred compensation plans.\"", "Reworded sentence: \"During fiscal 2025, 2024 and 2023, interest income from our cash, cash equivalents and fixed income securities was $406 million, $486 million and $262 million, respectively.\"" ], "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "The following tables summarize our cash, cash equivalents and investments by security type: October 27, 2024CostGrossUnrealizedGainsGrossUnrealizedLossesEstimatedFair Value (In millions)Cash$1,313 $— $— $1,313 Cash equivalents:Money market funds*3,421 — — 3,421 Bank certificates of deposit and time deposits90 — — 90 U.S. Treasury and agency securities1,394 — — 1,394 Municipal securities19 — — 19 Commercial paper, corporate bonds and medium-term notes1,785 — — 1,785 Total cash equivalents6,709 — — 6,709 Total cash and cash equivalents$8,022 $— $— $8,022 Short-term and long-term investments:Bank certificates of deposit and time deposits$13 $— $— $13 U.S. Treasury and agency securities1,306 — 2 1,304 Non-U.S. government securities**5 — — 5 Municipal securities441 2 2 441 Commercial paper, corporate bonds and medium-term notes803 4 2 805 Asset-backed and mortgage-backed securities656 3 5 654 Total fixed income securities3,224 9 11 3,222 Publicly traded equity securities543 185 5 723 Equity investments in privately held companies255 58 22 291 Total equity investments798 243 27 1,014 Total short-term and long-term investments$4,022 $252 $38 $4,236 Total cash, cash equivalents and investments$12,044 $252 $38 $12,258 Money market funds* Non-U.S. government securities** _________________________ *Excludes $91 million of restricted cash equivalents invested in money market funds related to deferred compensation plans. **Includes Canadian provincial government debt. 64 64 64 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "similarity_score": 0.786, "confidence": "high", "key_changes": [ "Reworded sentence: \"A reconciliation between the statutory U.S.\"", "Added sentence: \"Our effective tax rate for fiscal 2025 was higher than the prior fiscal year primarily due to a $659 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore and the recognition of a $407 million valuation allowance against deferred tax assets related to corporate alternative minimum tax (CAMT) credits.\"", "Added sentence: \"These credits are not expected to be realized as a result of changes in the timing of future tax deductions, following the enactment of the One Big Beautiful Bill Act.\"", "Added sentence: \"No prudent and feasible tax-planning strategies are currently available.\"", "Added sentence: \"The amount of the valuation allowance may be adjusted in future quarters if estimates of future taxable income change.\"" ], "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 27, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant and equipment, we have increased the estimated useful lives of certain assets effective as of the beginning of fiscal 2024. The updated estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to 5 to 8 years. The estimated useful lives for the following assets remained unchanged from fiscal 2023: software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. The change in accounting estimate was applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases. Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $128 million in depreciation expense during fiscal 2024, and an increase of $0.12 in both basic and diluted earnings per share for fiscal 2024. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 58 58 58 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "We are exposed to factors specific to the display industry.", "prior_title": "We are exposed to factors specific to the display industry.", "similarity_score": 0.785, "confidence": "high", "key_changes": [ "Reworded sentence: \"We are a supplier to the global display industry, which has experienced considerable volatility in capital equipment investment levels, due in part to the limited number of display manufacturers, the concentrated nature of end-use applications, production capacity relative to end-use demand, the speed of adopting new technologies and panel manufacturer profitability.\"", "Reworded sentence: \"Demand for and the profitability of our display products and services is impacted by the foregoing industry factors, as well as the introduction of and rate of transition to new types of display technologies, our ability to anticipate and adapt to technology transitions and inflections, and the expansion of display manufacturing facilities in China.\"" ], "current_body": "We are a supplier to the global display industry, which has experienced considerable volatility in capital equipment investment levels, due in part to the limited number of display manufacturers, the concentrated nature of end-use applications, production capacity relative to end-use demand, the speed of adopting new technologies and panel manufacturer profitability. Industry growth depends primarily on consumer demand for increasingly larger and more advanced TVs, and on demand for advanced smartphones and mobile device displays, which demand is highly sensitive to cost and improvements in technologies and features. Demand for and the profitability of our display products and services is impacted by the foregoing industry factors, as well as the introduction of and rate of transition to new types of display technologies, our ability to anticipate and adapt to technology transitions and inflections, and the expansion of display manufacturing facilities in China. If we do not successfully develop and commercialize products to meet demand for new and emerging display technologies, or if industry demand for display fabrication equipment and technologies does not grow, our business and our operating results may be adversely impacted. 16 16 16 Table of Contents Table of Contents", "prior_body": "The global display industry has experienced considerable volatility in capital equipment investment levels, due in part to the limited number of display manufacturers, the concentrated nature of end-use applications, production capacity relative to end-use demand, the speed of adopting new technologies into production, and panel manufacturer profitability. Industry growth depends primarily on consumer demand for increasingly larger and more advanced TVs, and on demand for advanced smartphones and mobile device displays, which demand is highly sensitive to cost and improvements in technologies and features. The display industry is characterized by factors particular to this industry that impact demand for and the profitability of our display products and services, including: •the importance of new types of display technologies, such as organic light-emitting diode (OLED), low temperature polysilicon (LTPS) and metal oxide transistor backplanes, flexible displays, and new touch panel films; •the increasing cost of research and development, and complexity of technology transitions and inflections, and our ability to timely and effectively anticipate and adapt to these changes; •the timing and extent of an expansion of manufacturing facilities in China, which may be affected by changes in economic conditions and governmental regulations, including trade policies and export regulations; •the importance of increasing market positions in products and technologies with growing demand; •the rate of transition to new display technologies for TVs, information technology products and mobile applications, and augmented and virtual reality applications, and the resulting effect on capital intensity in the industry and on our product differentiation, gross margin and return on investment; •the concentration of display manufacturer customers, and fluctuations in customer spending quarter over quarter and year over year for display fabrication equipment; and •the dependence on a limited number of display manufacturer customers’ selection of new technologies, and their ability to successfully commercialize new products and technologies, and uncertainty with respect to future display technology end-use applications and growth drivers. The display industry has experienced decreased levels of investment in display fabrication equipment. If we do not successfully develop and commercialize products to meet demand for new and emerging display technologies, or if industry demand for display fabrication equipment and technologies does not grow, our business and our operating results may continue to be adversely impacted." }, { "status": "MODIFIED", "current_title": "Note 14 Guarantees, Commitments and Contingencies", "prior_title": "Note 13 Guarantees, Commitments and Contingencies", "similarity_score": 0.78, "confidence": "high", "key_changes": [ "Reworded sentence: \"As of October 26, 2025, the maximum potential amount of future payments that we could be required to make under these guarantee agreements was approximately $350 million.\"", "Reworded sentence: \"We also have agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements, issuance of bank guarantees, and letters of credit.\"" ], "current_body": "Guarantees In the ordinary course of business, we provide standby letters of credit or other guarantee instruments to third parties as required for certain transactions initiated by either us or our subsidiaries. As of October 26, 2025, the maximum potential amount of future payments that we could be required to make under these guarantee agreements was approximately $350 million. We have not recorded any liability in connection with these guarantee agreements beyond that required to appropriately account for the underlying transaction being guaranteed. We do not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid under these guarantee agreements. We also have agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements, issuance of bank guarantees, and letters of credit. As of October 26, 2025, we have provided parent guarantees to banks for approximately $293 million to cover these arrangements.", "prior_body": "Guarantees In the ordinary course of business, we provide standby letters of credit or other guarantee instruments to third parties as required for certain transactions initiated by either us or our subsidiaries. As of October 27, 2024, the maximum potential amount of future payments that we could be required to make under these guarantee agreements was approximately $284 million. We have not recorded any liability in connection with these guarantee agreements beyond that required to appropriately account for the underlying transaction being guaranteed. We do not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid under these guarantee agreements. 80 80 80 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "Financing Activities", "prior_title": "Financing Activities", "similarity_score": 0.776, "confidence": "high", "key_changes": [ "Reworded sentence: \"We used $6.0 billion of cash in financing activities in fiscal 2025, consisting primarily of repurchases of common stock of $4.9 billion, cash dividends to stockholders of $1.4 billion, repayment of $700 million senior notes and tax withholding payments for vested equity awards of $248 million, partially offset by net proceeds received from the issuance of senior unsecured notes of $991 million and proceeds received from common stock issuances under our employee stock purchase plan of $261 million.\"", "Reworded sentence: \"We have credit facilities for unsecured borrowings in various currencies of up to an aggregate amount of $4.1 billion.\"", "Reworded sentence: \"At October 26, 2025, we had $100 million of commercial paper notes outstanding.\"", "Reworded sentence: \"We may seek to refinance our existing debt and may incur additional indebtedness depending on our capital requirements, general corporate purposes and the availability of financing.\"", "Reworded sentence: \"The transition tax expense has been paid in installments starting with fiscal 2018, and as of October 26, 2025, we had one remaining payment of $255 million, payable in February of 2026.\"" ], "current_body": "We used $6.0 billion of cash in financing activities in fiscal 2025, consisting primarily of repurchases of common stock of $4.9 billion, cash dividends to stockholders of $1.4 billion, repayment of $700 million senior notes and tax withholding payments for vested equity awards of $248 million, partially offset by net proceeds received from the issuance of senior unsecured notes of $991 million and proceeds received from common stock issuances under our employee stock purchase plan of $261 million. We used $4.5 billion of cash in financing activities in fiscal 2024, consisting primarily of repurchases of common stock of $3.8 billion, cash dividends to stockholders of $1.2 billion and tax withholding payments for vested equity awards of $291 million, and net payments of principal on financing leases of $102 million, partially offset by net proceeds received from the issuance of senior unsecured notes of $694 million and proceeds received from common stock issuances under our employee stock purchase plan of $243 million. In March 2025, our Board of Directors approved a common stock repurchase program authorizing $10.0 billion in repurchases, which supplemented the previous $10.0 billion authorization approved in March 2023. At October 26, 2025, approximately $14.0 billion remained available for future stock repurchases under the repurchase program. During each of fiscal 2025 and 2024, we paid four quarterly cash dividends, totaling $1.4 billion and $1.2 billion, respectively. We currently anticipate that cash dividends will continue to be paid on a quarterly basis, although the declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on our financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination by the Board of Directors that cash dividends are in the best interests of our stockholders. We have credit facilities for unsecured borrowings in various currencies of up to an aggregate amount of $4.1 billion. These credit facilities consist of a $2.0 billion five-year committed revolving credit agreement with a group of banks (Five-Year Credit Agreement), a $2.0 billion 364-day committed revolving credit agreement with a group of banks (364-Day Credit Agreement), and revolving credit facilities with Japanese banks pursuant to which we may borrow up to approximately $53 million in aggregate at any time. The Five-Year Credit Agreement is scheduled to expire in February 2030, unless extended as permitted under the terms of the agreement. The 364-Day Credit Agreement is scheduled to expire in September 2026, provided, however, if any loans are outstanding on the maturity date, we may convert all or part of such loans to term loans that will mature in September 2027, subject to payment of a fee by us and other customary conditions. The Five-Year Credit Agreement and the 364-Day Credit Agreement each includes financial and other covenants with which we were in compliance as of October 26, 2025. No amounts were outstanding under any of these credit facilities as of October 26, 2025 and October 27, 2024. See Note 9, Borrowing Facilities and Debt, of the Notes to the Consolidated Financial Statements for further discussion related to our credit facilities. We have a short-term commercial paper program under which we may issue unsecured commercial paper notes up to a total of $4.0 billion. We increased the amount of commercial paper notes we may issue to $4.0 billion in the fourth quarter of fiscal 2025, subsequent to increasing the amount from $1.5 billion to $2.0 billion in the third quarter of fiscal 2025. The proceeds from the issuances of commercial paper are used for general corporate purposes. At October 26, 2025, we had $100 million of commercial paper notes outstanding. In September 2025, we issued $550 million in aggregate principal amount of 4.000% senior unsecured notes due 2031 and $450 million in aggregate principal amount of 4.600% senior unsecured notes due 2036, in a registered public offering. In October 2025, we used a portion of the net proceeds from the offering to repay the outstanding $700 million in aggregate principal amount of our 3.900% senior unsecured notes due October 1, 2025. The remaining net proceeds from the issuance of the senior unsecured notes are intended for general corporate purposes. We had senior unsecured notes in the aggregate principal amount of $6.5 billion outstanding as of October 26, 2025. See Note 9 of the Notes to the Consolidated Financial Statements for additional discussion of existing debt. We may seek to refinance our existing debt and may incur additional indebtedness depending on our capital requirements, general corporate purposes and the availability of financing. 35 35 35 Table of Contents Table of Contents Others On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (Tax Act). The Tax Act requires a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries. The transition tax expense has been paid in installments starting with fiscal 2018, and as of October 26, 2025, we had one remaining payment of $255 million, payable in February of 2026. On August 9, 2022, the U.S. government enacted the U.S. CHIPS and Science Act (CHIPS Act). The CHIPS Act creates a 25% investment tax credit for certain investments in domestic semiconductor manufacturing. The credit is provided for qualifying property, which is placed in service after December 31, 2022, for which construction begins before January 1, 2027, and is treated as a government grant recognized against property, plant and equipment and a reduction of income taxes payable. We recognize this investment tax credit when there is reasonable assurance that we will qualify for the credit and the benefit will be received. As of October 26, 2025, our current income taxes payable was reduced by $233 million, and future income taxes payable will be reduced by $548 million, both of which are due to the investment tax credit. On July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act (OBBBA). The OBBBA includes a broad range of tax reform provisions including extending and modifying certain key Tax Act provisions and expanding certain Chips Act incentives. These changes include full expensing of domestic research costs, immediate expensing of qualifying property and increasing the investment tax credit for certain investments in domestic semiconductor manufacturing from 25% to 35%. Key tax provisions of the OBBBA are designed to accelerate tax deductions but that may have a detrimental impact on our ability to use certain tax credits. The use of certain tax credits may not be economically viable if it requires electing to forgo significant tax deductions. Most of the provisions are effective beginning in fiscal years 2026 or 2027, with immediate expensing of qualifying property being effective in fiscal 2025. We will continue to evaluate the full impact of these legislative changes as more guidance becomes available. Various countries where we do business have enacted or plan to enact new tax laws to implement the global minimum tax regimes based on the Organization for Economic Cooperation and Development Base Erosion and Profit Shifting Project, and where enacted, the rules began to be effective in fiscal 2025. The impact of the currently enacted legislation is not material to our fiscal 2025 financial results. We continue to monitor developments and evaluate impacts, if any, of these rules on our results of operations and cash flows. The adoption and effective dates of these rules vary by country and could increase tax complexity and uncertainty and may adversely affect our provision for income taxes in future years. We have been granted additional conditional reduced tax rates in Singapore that expire beginning in fiscal 2030. Although cash requirements will fluctuate based on the timing and extent of factors such as those discussed above, our management believes that cash generated from operations, together with the liquidity provided by existing cash balances and borrowing capability, will be sufficient to satisfy our liquidity requirements for the next 12 months. For further details regarding our operating, investing and financing activities, see the Consolidated Statements of Cash Flows in this report. For details on standby letters of credit, guarantee instruments and other agreements with banks, see Off-Balance Sheet Arrangements below. 36 36 36 Table of Contents Table of Contents", "prior_body": "We used $4.5 billion of cash in financing activities in fiscal 2024, consisting primarily of repurchases of common stock of $3.8 billion, cash dividends to stockholders of $1.2 billion, tax withholding payments for vested equity awards of $291 million, and net payments of principal on financing leases of $102 million, partially offset by net proceeds received from the issuance of senior unsecured notes of $694 million and proceeds received from common stock issuances of $243 million. We used $3.0 billion of cash in financing activities in fiscal 2023, consisting primarily of repurchases of common stock of $2.2 billion, cash dividends to stockholders of $975 million and tax withholding payments for vested equity awards of $179 million, offset by proceeds received from common stock issuances of $227 million and net proceeds from issuances of commercial paper of $91 million. In March 2023, our Board of Directors approved a common stock repurchase program authorizing $10.0 billion in repurchases, which supplemented the previously existing $6.0 billion authorization approved in March 2022. At October 27, 2024, approximately $8.9 billion remained available for future stock repurchases under the repurchase program. During each of fiscal 2024 and 2023 we paid four quarterly cash dividends, totaling $1.2 billion and $975 million, respectively. We currently anticipate that cash dividends will continue to be paid on a quarterly basis, although the declaration of any future cash dividend is at the discretion of the Board of Directors and will depend on our financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination by the Board of Directors that cash dividends are in the best interests of our stockholders. We have credit facilities for unsecured borrowings in various currencies of up to $1.6 billion, of which $1.5 billion is comprised of a committed revolving credit agreement (Revolving Credit Agreement) with a group of banks. The Revolving Credit Agreement is scheduled to expire in February 2026, unless extended as permitted under the Revolving Credit Agreement. The Revolving Credit Agreement includes financial and other covenants with which we were in compliance as of October 27, 2024. No amounts were outstanding under the Revolving Credit Agreement as of October 27, 2024 and October 29, 2023. See Note 9, Borrowing Facilities and Debt, of the Notes to the Consolidated Financial Statements for further discussion related to our Revolving Credit Agreement and other credit facilities. We have a short-term commercial paper program under which we may from time to time issue unsecured commercial paper notes of up to a total amount of $1.5 billion. The proceeds from the issuances of commercial paper are used for general corporate purposes. At October 27, 2024, we had $100 million of commercial paper notes outstanding. The commercial paper program is backstopped by the Revolving Credit Agreement and borrowings under the Revolving Credit Agreement reduce the amount of commercial paper notes we can issue. In June 2024, we issued $700 million aggregate principal amount of 4.800% senior unsecured notes due 2029 in a registered public offering. The proceeds from the issuance of the senior unsecured notes are intended for general corporate purposes. We had senior unsecured notes in the aggregate principal amount of $6.2 billion outstanding as of October 27, 2024. See Note 9 of the Notes to the Consolidated Financial Statements for additional discussion of existing debt. We may seek to refinance our existing debt and may incur additional indebtedness depending on our capital requirements and the availability of financing. Others On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act (Tax Act). The Tax Act requires a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries. The transition tax expense is payable in installments over eight years, with eight percent due in each of the first five years starting with fiscal 2018. As of October 27, 2024, we had $459 million of total payments remaining, payable in installments in the next two years. On August 9, 2022, the U.S. government enacted the U.S. CHIPS and Science Act (“CHIPS Act”). The CHIPS Act creates a 25% investment tax credit for certain investments in domestic semiconductor manufacturing. The credit is provided for qualifying property, which is placed in service after December 31, 2022, for which construction begins before January 1, 2027, and is treated as a government grant. We recognize this investment tax credit when there is reasonable assurance that we will qualify for the credit and the benefit will be received. Investments related to the 25% investment tax credit reduced our income taxes payable by $170 million as of October 27, 2024. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act. The Inflation Reduction Act introduced a new 15% corporate minimum tax, based on adjusted financial statement income of certain large corporations. Applicable corporations are allowed to claim a credit for the minimum tax paid against regular tax in future years. We are subject to the minimum tax in fiscal 2024 and expect to claim a credit for the minimum tax in future years. 40 40 40 Table of Contents Table of Contents Several countries where we do business have enacted global minimum tax regimes based on the Organization for Economic Cooperation and Development (“OECD”) Base Erosion and Profit Shifting Project. This will change various aspects of the existing framework under which our global tax obligations are determined and is expected to increase our tax liabilities beginning in fiscal 2025. The OECD continues to release additional guidance on this new global minimum tax framework. We will continue to monitor these developments, as each jurisdiction incorporates changes into its tax laws. Our conditional reduced tax rates in Singapore will expire in fiscal 2025, excluding potential renewal and subject to certain conditions with which we expect to comply. Although cash requirements will fluctuate based on the timing and extent of factors such as those discussed above, our management believes that cash generated from operations, together with the liquidity provided by existing cash balances and borrowing capability, will be sufficient to satisfy our liquidity requirements for the next 12 months. For further details regarding our operating, investing and financing activities, see the Consolidated Statements of Cash Flows in this report. For details on standby letters of credit, guarantee instruments and other agreements with banks, see Off-Balance Sheet Arrangements below. 41 41 41 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "Legal Matters", "prior_title": "Legal Matters", "similarity_score": 0.775, "confidence": "high", "key_changes": [ "Reworded sentence: \"79 79 79 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents\"" ], "current_body": "From time to time, we receive notification from third parties, including customers and suppliers, seeking indemnification, litigation support, payment of money or other actions by us in connection with claims made against them. In addition, from time to time, we receive notification from third parties claiming that we may be or are infringing or misusing their intellectual property or other rights. We also are subject to various legal proceedings, government investigations or inquiries, and claims, both asserted and unasserted, that arise in the ordinary course of business. These matters are subject to uncertainties, and we cannot predict the outcome of these matters, or governmental inquiries or proceedings that may occur. Although the outcome of the above-described matters, claims and proceedings cannot be predicted with certainty, we do not believe at this time that any of the above-described matters will have a material effect on our consolidated financial condition or results of operations. 79 79 79 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "From time to time, we receive notification from third parties, including customers and suppliers, seeking indemnification, litigation support, payment of money or other actions by us in connection with claims made against them. In addition, from time to time, we receive notification from third parties claiming that we may be or are infringing or misusing their intellectual property or other rights. We also are subject to various legal proceedings, government investigations or inquiries, and claims, both asserted and unasserted, that arise in the ordinary course of business. These matters are subject to uncertainties, and we cannot predict the outcome of these matters, or governmental inquiries or proceedings that may occur. Although the outcome of the above-described matters, claims and proceedings cannot be predicted with certainty, we do not believe at this time that any of the above-described matters will have a material effect on our consolidated financial condition or results of operations. Since 2022, we have received multiple subpoenas from government authorities requesting information relating to certain China customer shipments and export controls compliance, including from the U.S. Department of Justice, the U.S. Commerce Department Bureau of Industry and Security, and the U.S. Securities and Exchange Commission. We also have received subpoenas from the U.S. Department of Justice requesting information related to certain federal award applications and information submitted to the federal government. We are cooperating fully with the U.S. government in these matters. We have continued to receive related subpoenas, as well as requests for information, and may in the future receive additional related subpoenas and requests for information from such or other government authorities. Any such matters are subject to uncertainties, and we cannot predict the outcome, nor reasonably estimate a range of loss or penalties, if any, relating to these matters." }, { "status": "MODIFIED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "Note 6 Accounts Receivable, Net", "similarity_score": 0.77, "confidence": "high", "key_changes": [ "Reworded sentence: \"We sold $501 million, $444 million and $679 million of accounts receivable during fiscal 2025, 2024 and 2023, respectively.\"", "Reworded sentence: \"The balances of allowance for credit losses and changes in allowance for credit losses were not material for fiscal 2025, 2024 and 2023.\"" ], "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "We have agreements with various financial institutions to sell accounts receivable and discount promissory notes from selected customers. We sell our accounts receivable generally without recourse. From time to time, we also discount letters of credit issued by customers through various financial institutions. The discounting of letters of credit depends on many factors, including the willingness of financial institutions to discount the letters of credit and the cost of such arrangements. We sold $0.4 billion, $0.7 billion and $1.0 billion of accounts receivable during fiscal 2024, 2023 and 2022, respectively. We did not discount letters of credit issued by customers in fiscal 2024, 2023 and 2022. There was no discounting of promissory notes in each of fiscal 2024, 2023 and 2022. Financing charges on the sale of receivables and discounting of letters of credit are included in interest expense in the accompanying Consolidated Statements of Operations and were not material for all years presented. We maintain an allowance for credit losses for estimated losses resulting from the inability of our customers to make required payments. This allowance is based on historical experience, credit evaluations, specific customer collection history and any customer-specific issues we have identified. Changes in circumstances, such as an unexpected material adverse change in a major customer’s ability to meet its financial obligation to us or its payment trends, may require us to further adjust our estimates of the recoverability of amounts due to us. Bad debt expense and any reversals are recorded in marketing and selling expenses in the Consolidated Statement of Operations. The balances of allowance for credit losses and changes in allowance for credit losses were not material for fiscal 2024, 2023 and 2022. We sell our products principally to manufacturers within the semiconductor and display industries. While we believe that our allowance for credit losses is adequate and represents our best estimate as of October 27, 2024, we continue to closely monitor customer liquidity and industry and economic conditions, which may result in changes to our estimates." }, { "status": "MODIFIED", "current_title": "Government Assistance", "prior_title": "Government Assistance", "similarity_score": 0.754, "confidence": "high", "key_changes": [ "Reworded sentence: \"Capital expenditure related incentives reduced gross property, plant and equipment, net by $1.2 billion as of October 26, 2025.\"" ], "current_body": "Capital expenditure related incentives reduced gross property, plant and equipment, net by $1.2 billion as of October 26, 2025. Contra-depreciation expense was not material in fiscal 2025. Operating incentives recognized as a reduction to research, development and engineering expense was $31 million in fiscal 2025. Capital expenditure related incentives reduced our income taxes payable by $781 million as of October 26, 2025, of which $233 million is in other current assets and $548 million is in deferred income taxes and other assets, in our Consolidated Balance Sheets. property, plant and equipment, net research, development and engineering expense other current assets deferred income taxes and other assets Consolidated Balance Sheets", "prior_body": "Capital expenditure related incentives reduced gross property, plant and equipment, net by $479 million as of October 27, 2024. Contra-depreciation expense was not material in fiscal 2024. Operating incentives recognized as a reduction to research, development and engineering expense was $38 million in fiscal 2024. Capital expenditure related incentives reduced our income taxes payable by $170 million as of October 27, 2024, of which $159 million is in accounts payable and accrued expenses and $11 million is in deferred income taxes and other assets, in our Consolidated Balance Sheets. property, plant and equipment, net research, development and engineering expense accounts payable and accrued expenses deferred income taxes and other assets Consolidated Balance Sheets 71 71 71 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "Performance Graph", "prior_title": "Performance Graph", "similarity_score": 0.754, "confidence": "high", "key_changes": [ "Reworded sentence: \"The performance graph below shows the five-year cumulative total stockholder return on our common stock during the period from October 25, 2020 through October 26, 2025.\"", "Reworded sentence: \"The comparison assumes $100 was invested on October 25, 2020 in our common stock and in each of the foregoing indices and assumes reinvestment of dividends, if any.\"", "Reworded sentence: \"The graph below assumes that the value of the investment in our common stock and in each of the indexes was $100 at October 25, 2020, and that all dividends were reinvested.\"" ], "current_body": "The performance graph below shows the five-year cumulative total stockholder return on our common stock during the period from October 25, 2020 through October 26, 2025. This is compared with the cumulative total return of the Standard & Poor’s 500 Stock Index and the PHLX Semiconductor Index over the same period. The comparison assumes $100 was invested on October 25, 2020 in our common stock and in each of the foregoing indices and assumes reinvestment of dividends, if any. Dollar amounts in the graph are rounded to the nearest whole dollar. The performance shown in the graph represents past performance and should not be considered an indication of future performance. The graph below assumes that the value of the investment in our common stock and in each of the indexes was $100 at October 25, 2020, and that all dividends were reinvested. Copyright© 2025 Standard & Poor’s, a division of S&P global. All rights reserved. 10/25/202010/31/202110/30/202210/29/202310/27/202410/26/2025Applied Materials100.00 226.06 149.67 221.11 316.48 392.09 S&P 500 Index100.00 134.88 116.04 124.53 178.22 211.12 PHLX Semiconductor Index100.00 148.13 105.92 142.27 232.14 313.53 26 26 26 Table of Contents Table of Contents", "prior_body": "The performance graph below shows the five-year cumulative total stockholder return on our common stock during the period from October 27, 2019 through October 27, 2024. This is compared with the cumulative total return of the Standard & Poor’s 500 Stock Index and the PHLX Semiconductor Index over the same period. The comparison assumes $100 was invested on October 27, 2019 in our common stock and in each of the foregoing indices and assumes reinvestment of dividends, if any. Dollar amounts in the graph are rounded to the nearest whole dollar. The performance shown in the graph represents past performance and should not be considered an indication of future performance. The graph below assumes that the value of the investment in our common stock and in each of the indexes was $100 at October 27, 2019, and that all dividends were reinvested. Copyright© 2024 Standard & Poor’s, a division of S&P global. All rights reserved. 10/27/201910/25/202010/31/202110/30/202210/29/202310/27/2024Applied Materials100.00 110.92 250.74 166.02 245.26 351.03 S&P 500 Index100.00 116.84 157.60 135.57 145.49 208.23 PHLX Semiconductor Index100.00 145.68 215.80 154.30 207.26 338.18 30 30 30 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "Accounting Standards Not Yet Adopted", "prior_title": "Accounting Standards Not Yet Adopted", "similarity_score": 0.735, "confidence": "medium", "key_changes": [ "Added sentence: \"Targeted Improvements to the Accounting for Internal-Use Software.\"", "Added sentence: \"In September 2025, the Financial Accounting Standards Board (FASB) issued an accounting standard update to increase the operability of the recognition guidance considering different methods of software development by replacing the current stage-based capitalization model with a principles-based approach.\"", "Added sentence: \"Under the new guidance, costs are capitalized once management authorizes and commits to funding the software project, it is probable that the project will be completed and the software will be used to perform the function intended.\"", "Added sentence: \"This authoritative guidance will be effective for us beginning with our interim and annual reporting for fiscal year 2029, with early adoption permitted.\"", "Added sentence: \"We are evaluating the effect of this guidance on our consolidated financial statements and related disclosures.\"" ], "current_body": "Targeted Improvements to the Accounting for Internal-Use Software. In September 2025, the Financial Accounting Standards Board (FASB) issued an accounting standard update to increase the operability of the recognition guidance considering different methods of software development by replacing the current stage-based capitalization model with a principles-based approach. Under the new guidance, costs are capitalized once management authorizes and commits to funding the software project, it is probable that the project will be completed and the software will be used to perform the function intended. This authoritative guidance will be effective for us beginning with our interim and annual reporting for fiscal year 2029, with early adoption permitted. We are evaluating the effect of this guidance on our consolidated financial statements and related disclosures. Measurement of Credit Losses for Accounts Receivable and Contract Assets. In July 2025, the FASB issued an accounting standard update to provide a practical expedient that simplifies the calculation of expected credit losses (Topic 326). The practical expedient allows an entity to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset, therefore, an entity will no longer need to develop reasonable and supportable forecasts of future economic conditions. This authoritative guidance will be effective for us beginning with our interim and annual reporting for fiscal year 2027, with early adoption permitted. Although this guidance will simplify our process of calculating expected credit losses on accounts receivable and contract assets, we do not expect this guidance to materially impact our consolidated financial statements or related disclosures. Disaggregation of Income Statements Expenses. In November 2024, the FASB issued an accounting standard update to improve income statement expenses disclosures (Subtopic 220-40). The standard requires more detailed information related to the types of expenses, including (among other items) the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included within each interim and annual income statement’s expense caption, as applicable. This authoritative guidance can be applied prospectively or retrospectively and will be effective for us in fiscal 2028 for annual periods and in the first quarter of fiscal 2029 for interim periods, with early adoption permitted. We are evaluating the effect of this guidance on our consolidated financial statements and related disclosures. Improvements to Income Tax Disclosures. In December 2023, the FASB issued an accounting standard update to improve income tax disclosures (Topic 740). The standard prescribes specific categories for the components of the effective tax rate reconciliation, requires disclosure of income taxes paid by jurisdiction, and modifies other income tax-related disclosures. This authoritative guidance will be effective for us beginning with our annual reporting for fiscal year 2026. We are evaluating the effect of this guidance on our consolidated financial statements and related disclosures.", "prior_body": "Disaggregation of Income Statements Expenses. In November 2024, the Financial Accounting Standards Board (FASB) issued an accounting standard update to improve income statement expenses disclosures (Subtopic 220-40). The standard requires more detailed information related to the types of expenses, including (among other items) the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization included within each interim and annual income statement’s expense caption, as applicable. This authoritative guidance can be applied prospectively or retrospectively and will be effective for us in fiscal 2028 for annual periods and in the first quarter of fiscal 2029 for interim periods, with early adoption permitted. We are evaluating the effect of this guidance on our consolidated financial statements and related disclosures. Improvements to Income Tax Disclosures. In December 2023, the FASB issued an accounting standard update to improve income tax disclosures (Topic 740). The standard prescribes specific categories for the components of the effective tax rate reconciliation, requires disclosure of income taxes paid by jurisdiction, and modifies other income tax-related disclosures. This authoritative guidance will be effective for us beginning with our annual reporting for fiscal year 2026, with early adoption permitted. We are evaluating the effect of this guidance on our consolidated financial statements and related disclosures. Improvements to Reportable Segment Disclosures. In November 2023, the FASB issued an accounting standard update to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses (Topic 280). The standard requires interim and annual disclosure of significant segment expenses that are regularly provided to the chief operating decision-maker (CODM) and included within the reported measure of a segment’s profit or loss, requires interim disclosures about a reportable segment’s profit or loss and assets that are currently required annually, requires disclosure of the position and title of the CODM, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss and contains other disclosure requirements. This authoritative guidance will be effective for us in fiscal 2025 for annual periods and in the first quarter of fiscal 2026 for interim periods, with early adoption permitted. We are evaluating the effect of this guidance on our consolidated financial statements and related disclosures. Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. In June 2022, the FASB issued an accounting standard update which clarifies how the fair value of equity securities subject to contractual sale restrictions is determined (Topic 820). The amendment clarifies that a contractual sale restriction should not be considered in measuring fair value. It also requires certain qualitative and quantitative disclosures related to equity securities subject to contractual sale restrictions. We will adopt this guidance in the first quarter of fiscal 2025. The adoption of this guidance is not expected to have a significant impact on our consolidated financial statements." }, { "status": "MODIFIED", "current_title": "We are exposed to risks associated with an uncertain global economy.", "prior_title": "We are exposed to risks associated with an uncertain global economy.", "similarity_score": 0.731, "confidence": "medium", "key_changes": [ "Reworded sentence: \"Our business and the industries in which we operate can be impacted by uncertain or adverse economic and business conditions, including uncertainties and volatility in the financial markets, national debt, fiscal or monetary concerns, inflation and changes in interest rates, bank failures, tariffs and trade policies and economic recession.\"", "Reworded sentence: \"Even during periods of economic uncertainty or lower demand, we must continue to invest in research and development and maintain a global business infrastructure to compete effectively and support our customers.\"" ], "current_body": "Our business and the industries in which we operate can be impacted by uncertain or adverse economic and business conditions, including uncertainties and volatility in the financial markets, national debt, fiscal or monetary concerns, inflation and changes in interest rates, bank failures, tariffs and trade policies and economic recession. These conditions have caused, and may in the future cause, our customers to delay, cancel or refrain from purchasing our equipment or services, which could negatively impact demand for our products and services, reduce our backlog and increase our inventory. Customers may also scale back operations, exit businesses, merge with other manufacturers, or file for bankruptcy, which can reduce our revenue and result in additional inventory or bad debt expense. Other equipment manufacturers may also consolidate or form strategic alliances, which could adversely affect our ability to compete. These conditions make it more difficult to accurately forecast operating and financial results and make business and investment decisions. We may be required to implement additional cost reduction efforts, including restructuring activities, which may adversely impact our ability to capitalize on opportunities. Even during periods of economic uncertainty or lower demand, we must continue to invest in research and development and maintain a global business infrastructure to compete effectively and support our customers. The consequences of these conditions could have an adverse effect on our business, financial condition and results of operations. Our investment portfolio is subject to general credit, liquidity, market and interest rate risks, which may be exacerbated by rising inflation, rising interest rates, bank failures or economic recession and the value and liquidity of our portfolio and returns on pension assets could be negatively impacted and lead to impairment charges. We also maintain cash balances in various bank accounts globally and if any of these financial institutions become insolvent, it could limit our ability to access our cash and affect our ability to manage our operations.", "prior_body": "Uncertain or adverse economic and business conditions, including uncertainties and volatility in the financial markets, national debt, fiscal or monetary concerns, inflation and changes in interest rates, bank failures, and economic recession, could materially and adversely impact our operating results. Markets for our semiconductor and display equipment and services depend largely on business and consumer spending and demand for semiconductor chips and electronic devices. Uncertain or adverse economic and business conditions could result in decreases in business and consumer spending and demand. Decreases in spending and demand have caused, and may in the future cause, our customers to push out, cancel or refrain from purchasing our equipment or services, which could negatively impact demand for our products and services, reduce our backlog, increase our inventory, and materially and adversely impact our operating results. Increases in demand for semiconductor chips and electronic devices have caused, and may in the future cause, a shortage of parts and materials needed to manufacture our products. Such shortages, and shipment delays due to transportation capacity and interruptions, have adversely impacted, and may in the future adversely impact, our suppliers’ ability to meet our requirements. Accelerated digital transformation may further increase demand and exacerbate shortages and strain our manufacturing capacity, which may adversely impact our ability to meet customer demand and have an adverse impact on our revenues, operating results and financial condition. Uncertain or adverse economic and market conditions, difficulties in obtaining capital, increased costs or reduced profitability may cause some customers to scale back operations, exit businesses, merge with other manufacturers, or file for bankruptcy protection and potentially cease operations, which can result in lower sales, additional inventory or bad debt expense. Economic and industry uncertainty may impair the ability of suppliers to deliver parts and negatively affect our ability to manage operations and deliver products. These conditions may also lead to consolidation or strategic alliances among other equipment manufacturers, which could adversely affect our ability to compete effectively. Uncertain economic and industry conditions and supply chain challenges make it more difficult to accurately forecast operating results, make business decisions, and identify and prioritize the risks that may affect our businesses, sources and uses of cash, financial condition and results of operations. If we do not appropriately manage our business operations it could have a material and adverse impact on our business performance and financial condition. We may be required to implement additional cost reduction efforts, including restructuring activities, which may adversely impact our ability to capitalize on opportunities. Even during periods of economic uncertainty or lower demand, we must continue to invest in research and development and maintain a global business infrastructure to compete effectively and support our customers, which can have a negative impact on our operating results. 13 13 13 Table of Contents Table of Contents We maintain an investment portfolio that is subject to general credit, liquidity, market and interest rate risks. The risks to our investment portfolio may be exacerbated if financial market conditions deteriorate due to rising inflation, rising interest rates, bank failures or economic recession and the value and liquidity of the investment portfolio and returns on pension assets could be negatively impacted and lead to impairment charges. We also maintain cash balances in various bank accounts globally to fund normal operations. If any of these financial institutions become insolvent, it could limit our ability to access cash in the affected accounts, which could affect our ability to manage our operations." }, { "status": "MODIFIED", "current_title": "(In millions)", "prior_title": "CONSOLIDATED STATEMENTS OF CASH FLOWS", "similarity_score": 0.724, "confidence": "medium", "key_changes": [ "Reworded sentence: \"Fiscal Year202520242023Cash flows from operating activities:Net income$6,998 $7,177 $6,856 Adjustments required to reconcile net income to cash provided by operating activities:Depreciation and amortization435 392 515 Restructuring charges179 — — Deferred income taxes639 (633)24 (Gain) loss and impairments on investments, net(792)(15)(16)Share-based compensation668 577 490 Other31 62 56 Changes in operating assets and liabilities, net of amounts acquired:Accounts receivable49 (69)903 Inventories(494)304 207 Other current and non-current assets(119)287 (48)Accounts payable and accrued expenses307 281 (138)Contract liabilities(283)(126)(167)Income taxes payable250 389 (20)Other liabilities90 51 38 Cash provided by operating activities7,958 8,677 8,700 Cash flows from investing activities:Capital expenditures(2,260)(1,190)(1,106)Cash paid for acquisitions, net of cash acquired(29)— (25)Proceeds from asset sale33 — — Proceeds from sales and maturities of investments5,528 2,451 1,268 Purchases of investments(6,054)(3,588)(1,672)Cash used in investing activities(2,782)(2,327)(1,535)Cash flows from financing activities:Debt borrowings, net of issuance costs991 694 — Debt repayments(700)— — Proceeds from commercial paper503 401 991 Repayments of commercial paper(502)(400)(900)Proceeds from common stock issuances261 243 227 Common stock repurchases(4,895)(3,823)(2,189)Tax withholding payments for vested equity awards(248)(291)(179)Payments of dividends to stockholders(1,384)(1,192)(975)Payments of debt issuance costs(3)— — Repayments of principals on finance leases— (102)(7)Cash used in financing activities(5,977)(4,470)(3,032)Increase (decrease) in cash, cash equivalents and restricted cash equivalents(801)1,880 4,133 Cash, cash equivalents and restricted cash equivalents — beginning of period8,113 6,233 2,100 Cash, cash equivalents and restricted cash equivalents — end of period$7,312 $8,113 $6,233 Reconciliation of cash, cash equivalents, and restricted cash equivalentsCash and cash equivalents$7,241 $8,022 $6,132 Restricted cash equivalents included in deferred income taxes and other assets71 91 101 Total cash, cash equivalents, and restricted cash equivalents$7,312 $8,113 $6,233 51 51 51\"" ], "current_body": "Fiscal Year202520242023Net income$6,998 $7,177 $6,856 Other comprehensive income (loss), net of tax:Change in unrealized gain (loss) on available-for-sale investments18 43 25 Change in unrealized net loss on derivative instruments53 31 (66)Change in defined and postretirement benefit plans(13)(25)26 Other comprehensive income (loss), net of tax58 49 (15)Comprehensive income$7,056 $7,226 $6,841 See accompanying Notes to Consolidated Financial Statements. 48 48 48 Table of Contents Table of Contents", "prior_body": "(In millions)Fiscal Year202420232022Cash flows from operating activities:Net income$7,177 $6,856 $6,525 Adjustments required to reconcile net income to cash provided by operating activities:Depreciation and amortization392 515 444 Severance and related charges— — (4)Deferred income taxes(633)24 (223)Share-based compensation577 490 413 Other47 40 36 Changes in operating assets and liabilities, net of amounts acquired:Accounts receivable(69)903 (1,109)Inventories304 207 (1,590)Other current and non-current assets287 (48)(16)Accounts payable and accrued expenses281 (138)390 Contract liabilities(126)(167)1,039 Income taxes payable389 (20)(541)Other liabilities51 38 35 Cash provided by operating activities8,677 8,700 5,399 Cash flows from investing activities:Capital expenditures(1,190)(1,106)(787)Cash paid for acquisitions, net of cash acquired— (25)(441)Proceeds from sales and maturities of investments2,451 1,268 1,363 Purchases of investments(3,588)(1,672)(1,492)Cash used in investing activities(2,327)(1,535)(1,357)Cash flows from financing activities:Debt borrowings, net of issuance costs694 — — Proceeds from commercial paper401 991 — Repayments of commercial paper(400)(900)— Proceeds from common stock issuances243 227 199 Common stock repurchases(3,823)(2,189)(6,103)Tax withholding payments for vested equity awards(291)(179)(266)Payments of dividends to stockholders(1,192)(975)(873)Repayments of principals on finance leases(102)(7)— Cash used in financing activities(4,470)(3,032)(7,043)Increase (decrease) in cash, cash equivalents and restricted cash equivalents1,880 4,133 (3,001)Cash, cash equivalents and restricted cash equivalents — beginning of period6,233 2,100 5,101 Cash, cash equivalents and restricted cash equivalents — end of period$8,113 $6,233 $2,100 Reconciliation of cash, cash equivalents, and restricted cash equivalentsCash and cash equivalents$8,022 $6,132 $1,995 Restricted cash equivalents included in deferred income taxes and other assets91 101 105 Total cash, cash equivalents, and restricted cash equivalents$8,113 $6,233 $2,100 Supplemental cash flow information:Cash payments for income taxes$957 $1,006 $1,869 Cash refunds from income taxes$15 $53 $156 Cash payments for interest$205 $205 $205 See accompanying Notes to Consolidated Financial Statements. 56 56 56" }, { "status": "MODIFIED", "current_title": "POWER OF ATTORNEY", "prior_title": "POWER OF ATTORNEY", "similarity_score": 0.724, "confidence": "medium", "key_changes": [ "Reworded sentence: \"DICKERSONPresident, Chief Executive Officer and Director (Principal Executive Officer)December 12, 2025Gary E.\"" ], "current_body": "KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Gary E. Dickerson, Brice Hill and Teri Little, jointly and severally, his or her attorneys-in-fact, each with the power of substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his substitute or substitutes, may do or cause to be done by virtue hereof. ****** Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. TitleDate/s/ GARY E. DICKERSONPresident, Chief Executive Officer and Director (Principal Executive Officer)December 12, 2025Gary E. Dickerson/s/ BRICE HILLSenior Vice President, Chief Financial Officer(Principal Financial Officer)December 12, 2025Brice Hill/s/ ADAM SANDERSVice President,Corporate Controller and Chief Accounting Officer(Principal Accounting Officer)December 12, 2025Adam Sanders/S/ THOMAS J. IANNOTTIThomas J. IannottiChairman of the BoardDecember 12, 2025/S/ JAMES R. ANDERSONJames R. AndersonDirectorDecember 12, 2025/S/ RANI BORKARRani BorkarDirectorDecember 12, 2025/S/ JUDY BRUNERJudy BrunerDirectorDecember 12, 2025/S/ XUN CHENXun ChenDirectorDecember 12, 2025/S/ AART J. DE GEUSAart J. de GeusDirectorDecember 12, 2025/S/ ALEXANDER A. KARSNERAlexander A. KarsnerDirectorDecember 12, 2025/S/ KEVIN P. MARCHKevin P. MarchDirectorDecember 12, 2025/s/ SCOTT A. MCGREGORScott A. McGregorDirectorDecember 12, 2025 /S/ THOMAS J. IANNOTTI /S/ JAMES R. ANDERSON /S/ RANI BORKAR /S/ JUDY BRUNER /S/ XUN CHEN /S/ AART J. DE GEUS /S/ ALEXANDER A. KARSNER /S/ KEVIN P. MARCH 87 87 87", "prior_body": "KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Gary E. Dickerson, Brice Hill and Teri Little, jointly and severally, his or her attorneys-in-fact, each with the power of substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his substitute or substitutes, may do or cause to be done by virtue hereof. ****** Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. TitleDate/s/ GARY E. DICKERSONPresident, Chief Executive Officer and Director (Principal Executive Officer)December 13, 2024Gary E. Dickerson/s/ BRICE HILLSenior Vice President, Chief Financial Officer(Principal Financial Officer)December 13, 2024Brice Hill/s/ ADAM SANDERSVice President,Corporate Controller and Chief Accounting Officer(Principal Accounting Officer)December 13, 2024Adam Sanders/S/ THOMAS J. IANNOTTIThomas J. IannottiChairman of the BoardDecember 13, 2024/S/ RANI BORKARRani BorkarDirectorDecember 13, 2024/S/ JUDY BRUNERJudy BrunerDirectorDecember 13, 2024/S/ XUN CHENXun ChenDirectorDecember 13, 2024/S/ AART J. DE GEUSAart J. de GeusDirectorDecember 13, 2024/S/ ALEXANDER A. KARSNERAlexander A. KarsnerDirectorDecember 13, 2024/S/ KEVIN P. MARCHKevin P. MarchDirectorDecember 13, 2024/s/ YVONNE MCGILLYvonne McGillDirectorDecember 13, 2024/s/ SCOTT A. MCGREGORScott A. McGregorDirectorDecember 13, 2024 /S/ THOMAS J. IANNOTTI /S/ RANI BORKAR /S/ JUDY BRUNER /S/ XUN CHEN /S/ AART J. DE GEUS /S/ ALEXANDER A. KARSNER /S/ KEVIN P. MARCH 88 88 88" }, { "status": "MODIFIED", "current_title": "Income Taxes", "prior_title": "Income Taxes", "similarity_score": 0.713, "confidence": "medium", "key_changes": [ "Reworded sentence: \"Provision for income taxes and effective tax rates for the periods indicated were as follows: Change 202520242025 over 2024 (In millions, except percentages)Provision for income taxes$2,273 $975 $1,298 Effective income tax rate24.5 %12.0 %12.5 points Our provision for income taxes and effective tax rate are affected by the geographical composition of pre-tax income which includes jurisdictions with differing tax rates, conditional reduced tax rates and other income tax incentives.\"", "Reworded sentence: \"Our effective tax rate for fiscal 2025 was higher than the prior fiscal year primarily due to a $659 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore and the recognition of a $407 million valuation allowance against deferred tax assets related to corporate alternative minimum tax (CAMT) credits.\"" ], "current_body": "Provision for income taxes and effective tax rates for the periods indicated were as follows: Change 202520242025 over 2024 (In millions, except percentages)Provision for income taxes$2,273 $975 $1,298 Effective income tax rate24.5 %12.0 %12.5 points Our provision for income taxes and effective tax rate are affected by the geographical composition of pre-tax income which includes jurisdictions with differing tax rates, conditional reduced tax rates and other income tax incentives. It is also affected by events that vary from period to period, such as changes in income tax laws and the resolution of prior years’ income tax filings. Our effective tax rate for fiscal 2025 was higher than the prior fiscal year primarily due to a $659 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore and the recognition of a $407 million valuation allowance against deferred tax assets related to corporate alternative minimum tax (CAMT) credits. These credits are not expected to be realized as a result of changes in the timing of future tax deductions, following the enactment of the One Big Beautiful Bill Act. No prudent and feasible tax-planning strategies are currently available. The amount of the valuation allowance may be adjusted in future quarters if estimates of future taxable income change.", "prior_body": "Provision for income taxes and effective tax rates for the periods indicated were as follows: Change 202420232024 over 2023 (In millions, except percentages)Provision for income taxes$975 $860 $115 Effective income tax rate12.0 %11.1 %0.9 points Our provision for income taxes and effective tax rate are affected by the geographical composition of pre-tax income which includes jurisdictions with differing tax rates, conditional reduced tax rates and other income tax incentives. It is also affected by events that vary from period to period, such as changes in income tax laws and the resolution of prior years’ income tax filings. Our effective tax rate for fiscal 2024 was higher than the prior fiscal year primarily due to lower tax credits in fiscal 2024, partially offset by higher proportion of pre-tax income in lower tax jurisdictions in fiscal 2024. 36 36 36 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "Results of Operations", "prior_title": "Results of Operations", "similarity_score": 0.704, "confidence": "medium", "key_changes": [ "Reworded sentence: \"Our fiscal 2025 and 2024 each contained 52 weeks.\"", "Reworded sentence: \"Our AGS net revenue in fiscal 2025 increased compared to the prior year primarily due to higher customer spending on long-term service agreements and spares, partially offset by lower customer spending on 200mm equipment.\"", "Reworded sentence: \"Over the longer term, we believe secular drivers such as data center AI, edge AI and the internet of things, robotics and electric and autonomous vehicles will continue to create the next wave of growth for semiconductors and expand our served market opportunities.\"" ], "current_body": "Our fiscal 2025 and 2024 each contained 52 weeks. The following table presents certain significant measurements for the periods presented: Change202520242025 over 2024 (In millions, except per share amounts and percentages)Net revenue$28,368 $27,176 $1,192 Gross margin48.7 %47.5 %1.2 pointsOperating income$8,289 $7,867 $422 Operating margin29.2 %28.9 %0.3 pointsNet income$6,998 $7,177 $(179)Earnings per diluted share$8.66 $8.61 $0.05 Net revenue by segment for the periods presented were as follows: Change 202520242025 over 2024 (In millions, except percentages)Semiconductor Systems$20,798 73%$19,911 73%4 %Applied Global Services6,385 23%6,225 23%3 %Corporate and Other1,185 4%1,040 4%14 %Total$28,368 100%$27,176 100%4 % Net revenue for Semiconductor Systems by market for the periods presented were as follows: 20252024Foundry, logic and other67 %68 %Dynamic random-access memory (DRAM)26 %28 %Flash memory (NAND)7 %4 %100 %100 % Net revenue in fiscal 2025 increased as compared to the prior year. Gross margin increased primarily driven by higher net revenue, favorable changes in customer and product mix, an increase in average selling prices, and lower material and manufacturing costs. Semiconductor Systems net revenue increased in fiscal 2025 as compared to the prior year as customers continued to make strategic investments in new capacity and new technology transitions. Foundry and logic customers’ spending in fiscal 2025 increased driven primarily by higher customer investments in leading-edge manufacturing technologies. Memory customers’ spending in fiscal 2025 was higher due to increased customer investments in NAND fabrication equipment upgrades. Investments by semiconductor equipment customers are expected to remain strong with growth in the adoption of high-bandwidth memory and other forms of advanced packaging, continued demand for AI and data center computing, and for non-leading edge nodes. The Semiconductor Systems segment continued to represent the largest contributor of net revenue. Our AGS net revenue in fiscal 2025 increased compared to the prior year primarily due to higher customer spending on long-term service agreements and spares, partially offset by lower customer spending on 200mm equipment. Demand for services is expected to grow as our installed base of systems and chambers increases and customers renew long-term service agreements. Over the longer term, we believe secular drivers such as data center AI, edge AI and the internet of things, robotics and electric and autonomous vehicles will continue to create the next wave of growth for semiconductors and expand our served market opportunities. We believe device refresh cycles, such as those for PCs and smartphones, will also contribute to the next wave of growth. 30 30 30 Table of Contents Table of Contents Net revenue by geographic region, determined by the location of customers’ facilities to which products were shipped and services were performed, was as follows: Change 202520242025 over 2024 (In millions, except percentages)China$8,529 30%$10,117 37%(16)%Korea5,608 20%4,493 17%25 %Taiwan6,857 24%4,010 15%71 %Japan2,273 8%2,154 8%6 %Southeast Asia1,076 4%1,141 4%(6)%Asia Pacific24,343 86%21,915 81%11 %United States3,063 11%3,818 14%(20)%Europe962 3%1,443 5%(33)%Total$28,368 100%$27,176 100%4 % The changes in net revenue from customers in all regions for fiscal 2025 primarily reflected changes in investments in semiconductor equipment.", "prior_body": "Our fiscal 2024 and 2023 each contained 52 weeks. The following table presents certain significant measurements for the periods indicated: Change202420232024 over 2023 (In millions, except per share amounts and percentages)Net revenue$27,176 $26,517 $659 Gross margin47.5 %46.7 %0.8 pointsOperating income$7,867 $7,654 $213 Operating margin28.9 %28.9 %— pointsNet income$7,177 $6,856 $321 Earnings per diluted share$8.61 $8.11 $0.50 Net revenue by segment for the periods presented were as follows: Change 202420232024 over 2023 (In millions, except percentages)Semiconductor Systems$19,911 73%$19,698 74%1 %Applied Global Services6,225 23%5,732 22%9 %Display885 3%868 3%2 %Corporate and Other155 1%219 1%(29)%Total$27,176 100%$26,517 100%2 % Net revenue for Semiconductor Systems by market for the periods presented were as follows: 20242023Foundry, logic and other68 %77 %Dynamic random-access memory (DRAM)28 %17 %Flash memory4 %6 %100 %100 % Net revenue in fiscal 2024 increased as compared to the prior year. Gross margin increased primarily driven by lower material, freight, logistics, and manufacturing costs, favorable changes in customer and product mix and lower depreciation expense as a result of changes in certain assets’ useful lives effective as of the beginning of fiscal 2024, partially offset by an increase in labor costs. Semiconductor Systems net revenue increased in fiscal 2024 as compared to the prior year as customers continued to make strategic investments in new capacity and new technology transitions. Foundry and logic customers’ spending decreased driven primarily by lower customer investments in leading-edge manufacturing technologies, partially offset by increased customer investments in non-leading edge manufacturing technologies. Memory customers’ spending in fiscal 2024 was higher due to increased investments in DRAM technology transitions. Investments by semiconductor equipment customers are expected to remain strong with growth in the adoption of high-bandwidth memory and other forms of advanced packaging, continued demand for AI and data center computing, and for non-leading edge nodes. The Semiconductor Systems segment continued to represent the largest contributor of net revenue. Our AGS net revenue in fiscal 2024 increased primarily due to an increase in net revenue associated with long-term service agreements and customer spending on spares, partially offset by lower customer spending on 200mm equipment. Demand for services is expected to grow as our installed base of systems and chambers increases and customers renew long-term service agreements. 34 34 34 Table of Contents Table of Contents Our Display net revenue increased in fiscal 2024 compared to the prior year primarily due to higher customer investments in display fabrication equipment for IT products including laptops, monitors and tablets, partially offset by lower customer investments in display fabrication equipment for TVs. Over the longer term, we believe secular drivers such as AI, data center computing, the internet of things, 5G networks, electric and autonomous vehicles and augmented and virtual reality will create the next wave of growth for semiconductors and expand our served market opportunities. Net revenue by geographic region, determined by the location of customers’ facilities to which products were shipped and services were performed, was as follows: Change 202420232024 over 2023 (In millions, except percentages)China$10,117 37%$7,247 27%40 %Korea4,493 17%4,609 18%(3)%Taiwan4,010 15%5,670 21%(29)%Japan2,154 8%2,075 8%4 %Southeast Asia1,141 4%758 3%51 %Asia Pacific21,915 81%20,359 77%8 %United States3,818 14%4,006 15%(5)%Europe1,443 5%2,152 8%(33)%Total$27,176 100%$26,517 100%2 % Net revenue increased from customers in China in fiscal 2024 primarily due to investments in semiconductor equipment and spending on spares and services, partially offset by a decrease in investments in 200mm equipment. Net revenue decreased from customers in Europe primarily due to lower investments in semiconductor equipment. Net revenue from customers in Taiwan decreased primarily due to lower investments in semiconductor equipment and spares, offset by higher spending on services. The changes in net revenue from customers in all other regions for fiscal 2024 primarily reflected changes in investment and spending on semiconductor equipment and services." }, { "status": "MODIFIED", "current_title": "Accumulated Other Comprehensive Income (Loss)", "prior_title": "Accumulated Other Comprehensive Income (Loss)", "similarity_score": 0.7, "confidence": "medium", "key_changes": [ "Reworded sentence: \"Changes in the components of accumulated other comprehensive income (loss) (AOCI), net of tax, were as follows: Unrealized Gain (Loss) on Investments, NetUnrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow HedgesDefined and Postretirement Benefit PlansCumulative Translation AdjustmentsTotal(In millions)Balance at October 30, 2022$(75)$(52)$(88)$13 (202)Other comprehensive income (loss) before reclassifications16 (44)17 — (11)Amounts reclassified out of AOCI9 (22)9 — (4)Other comprehensive income (loss), net of tax25 (66)26 — (15)Balance at October 29, 2023$(50)$(118)$(62)$13 $(217)Other comprehensive income (loss) before reclassifications34 28 — — 62 Amounts reclassified out of AOCI9 3 (25)— (13)Other comprehensive income, net of tax43 31 (25)— 49 Balance at October 27, 2024$(7)$(87)$(87)$13 $(168)Other comprehensive income (loss) before reclassifications17 58 — — 75 Amounts reclassified out of AOCI1 (5)(13)— (17)Other comprehensive income (loss), net of tax18 53 (13)— 58 Balance at October 26, 2025$11 $(34)$(100)$13 $(110) Balance at October 30, 2022 Balance at October 29, 2023 Balance at October 27, 2024 Balance at October 26, 2025 The tax effects on net income of amounts reclassified from AOCI were not material for the fiscal 2025, 2024 and 2023.\"" ], "current_body": "Changes in the components of accumulated other comprehensive income (loss) (AOCI), net of tax, were as follows: Unrealized Gain (Loss) on Investments, NetUnrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow HedgesDefined and Postretirement Benefit PlansCumulative Translation AdjustmentsTotal(In millions)Balance at October 30, 2022$(75)$(52)$(88)$13 (202)Other comprehensive income (loss) before reclassifications16 (44)17 — (11)Amounts reclassified out of AOCI9 (22)9 — (4)Other comprehensive income (loss), net of tax25 (66)26 — (15)Balance at October 29, 2023$(50)$(118)$(62)$13 $(217)Other comprehensive income (loss) before reclassifications34 28 — — 62 Amounts reclassified out of AOCI9 3 (25)— (13)Other comprehensive income, net of tax43 31 (25)— 49 Balance at October 27, 2024$(7)$(87)$(87)$13 $(168)Other comprehensive income (loss) before reclassifications17 58 — — 75 Amounts reclassified out of AOCI1 (5)(13)— (17)Other comprehensive income (loss), net of tax18 53 (13)— 58 Balance at October 26, 2025$11 $(34)$(100)$13 $(110) Balance at October 30, 2022 Balance at October 29, 2023 Balance at October 27, 2024 Balance at October 26, 2025 The tax effects on net income of amounts reclassified from AOCI were not material for the fiscal 2025, 2024 and 2023.", "prior_body": "Changes in the components of accumulated other comprehensive income (loss) (AOCI), net of tax, were as follows: Unrealized Gain (Loss) on Investments, NetUnrealized Gain (Loss) on Derivative Instruments Qualifying as Cash Flow HedgesDefined and Postretirement Benefit PlansCumulative Translation AdjustmentsTotal(In millions)Balance at October 31, 2021$(1)$(103)$(169)$13 (260)Other comprehensive income (loss) before reclassifications(60)100 71 — 111 Amounts reclassified out of AOCI(14)(49)10 — (53)Other comprehensive income (loss), net of tax(74)51 81 — 58 Balance at October 30, 2022$(75)$(52)$(88)$13 $(202)Other comprehensive income (loss) before reclassifications16 (44)17 — (11)Amounts reclassified out of AOCI9 (22)9 — (4)Other comprehensive income, net of tax25 (66)26 — (15)Balance at October 29, 2023$(50)$(118)$(62)$13 $(217)Other comprehensive income (loss) before reclassifications34 28 — — 62 Amounts reclassified out of AOCI9 3 (25)— (13)Other comprehensive income (loss), net of tax43 31 (25)— 49 Balance at October 27, 2024$(7)$(87)$(87)$13 $(168) Balance at October 31, 2021 Balance at October 30, 2022 Balance at October 29, 2023 Balance at October 27, 2024 The tax effects on net income of amounts reclassified from AOCI were not material for the fiscal 2024, 2023 and 2022. In March 2023, our Board of Directors approved a common stock repurchase program authorizing $10.0 billion in repurchases, which supplemented the previously existing $6.0 billion authorization approved in March 2022. At October 27, 2024, approximately $8.9 billion remained available for future stock repurchases under the repurchase program. The following table summarizes our stock repurchases, including excise tax, for each fiscal year: 202420232022 (In millions, except per share amounts)Shares of common stock repurchased20 18 54 Cost of stock repurchased (including excise tax)*$3,851 $2,202 $6,103 Average price paid per share (including excise tax)*$190.27 $123.63 $113.84 Cost of stock repurchased (excluding excise tax)$3,823 $2,189 $6,103 Average price paid per share (excluding excise tax)$188.87 $122.89 $113.84 (*) Effective January 1, 2023, stock repurchase amounts include the 1% surcharge on stock repurchases under the Inflation Reduction Act’s excise tax. This excise tax is recorded in equity and reduces the amount available under the repurchase program, as applicable. We record treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid in capital. If we reissue treasury stock at an amount below our acquisition cost and additional paid in capital associated with prior treasury stock transactions is insufficient to cover the difference between the acquisition cost and the reissue price, this difference is recorded against retained earnings. 73 73 73 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "Issuer Purchases of Equity Securities", "prior_title": "Issuer Purchases of Equity Securities", "similarity_score": 0.694, "confidence": "medium", "key_changes": [ "Reworded sentence: \"In March 2025, our Board of Directors approved a common stock repurchase program authorizing $10.0 billion in repurchases, which supplemented the previous $10.0 billion authorization approved in March 2023.\"" ], "current_body": "In March 2025, our Board of Directors approved a common stock repurchase program authorizing $10.0 billion in repurchases, which supplemented the previous $10.0 billion authorization approved in March 2023. At October 26, 2025, approximately $14.0 billion remained available for future stock repurchases under the repurchase program. The following table provides information as of October 26, 2025 with respect to the shares of common stock repurchased by us during the fourth quarter of fiscal 2025 pursuant to the foregoing Board authorization. PeriodTotal Number of Shares PurchasedAveragePrice Paidper Share*AggregatePrice Paid*Total Number ofShares Purchased asPart of PubliclyAnnounced Programs Maximum DollarValue of SharesThat May Yet bePurchased Underthe Programs* (In millions, except per share amounts)Month #1(July 28, 2025 to August 24, 2025)3.0 $170.20 $503 3.0 $14,329 Month #2(August 25, 2025 to September 21, 2025)1.6 $163.59 254 1.6 $14,075 Month #3(September 22, 2025 to October 26, 2025)0.4 $217.41 99 0.4 $13,976 Total5.0 $172.46 $856 5.0 Average Price Paid", "prior_body": "In March 2023, our Board of Directors approved a common stock repurchase program authorizing $10.0 billion in repurchases, which supplemented the previously existing $6.0 billion authorization approved in March 2022. At October 27, 2024, approximately $8.9 billion remained available for future stock repurchases under the repurchase program. The following table provides information as of October 27, 2024 with respect to the shares of common stock repurchased by us during the fourth quarter of fiscal 2024 pursuant to the foregoing Board authorization. PeriodTotal Number of Shares PurchasedAveragePrice Paidper Share*AggregatePrice Paid*Total Number ofShares Purchased asPart of PubliclyAnnounced Programs Maximum DollarValue of SharesThat May Yet bePurchased Underthe Programs* (In millions, except per share amounts)Month #1(July 29, 2024 to August 25, 2024)1.5 $195.93 $292 1.5 $10,030 Month #2(August 26, 2024 to September 22, 2024)2.6 $187.33 492 2.6 $9,538 Month #3(September 23, 2024 to October 27, 2024)3.5 $191.41 669 3.5 $8,869 Total7.6 $190.89 $1,453 7.6 Average Price Paid" }, { "status": "MODIFIED", "current_title": "Income Taxes", "prior_title": "Income Taxes", "similarity_score": 0.687, "confidence": "medium", "key_changes": [ "Reworded sentence: \"Deferred tax assets and liabilities are recognized for the estimated future tax effects of temporary differences between the book and tax bases of assets and liabilities.\"", "Reworded sentence: \"We record a valuation allowance against deferred tax assets when it is more likely than not that some portion, or all, of the assets will not be realized.\"" ], "current_body": "Provision for income taxes and effective tax rates for the periods indicated were as follows: Change 202520242025 over 2024 (In millions, except percentages)Provision for income taxes$2,273 $975 $1,298 Effective income tax rate24.5 %12.0 %12.5 points Our provision for income taxes and effective tax rate are affected by the geographical composition of pre-tax income which includes jurisdictions with differing tax rates, conditional reduced tax rates and other income tax incentives. It is also affected by events that vary from period to period, such as changes in income tax laws and the resolution of prior years’ income tax filings. Our effective tax rate for fiscal 2025 was higher than the prior fiscal year primarily due to a $659 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore and the recognition of a $407 million valuation allowance against deferred tax assets related to corporate alternative minimum tax (CAMT) credits. These credits are not expected to be realized as a result of changes in the timing of future tax deductions, following the enactment of the One Big Beautiful Bill Act. No prudent and feasible tax-planning strategies are currently available. The amount of the valuation allowance may be adjusted in future quarters if estimates of future taxable income change.", "prior_body": "Provision for income taxes and effective tax rates for the periods indicated were as follows: Change 202420232024 over 2023 (In millions, except percentages)Provision for income taxes$975 $860 $115 Effective income tax rate12.0 %11.1 %0.9 points Our provision for income taxes and effective tax rate are affected by the geographical composition of pre-tax income which includes jurisdictions with differing tax rates, conditional reduced tax rates and other income tax incentives. It is also affected by events that vary from period to period, such as changes in income tax laws and the resolution of prior years’ income tax filings. Our effective tax rate for fiscal 2024 was higher than the prior fiscal year primarily due to lower tax credits in fiscal 2024, partially offset by higher proportion of pre-tax income in lower tax jurisdictions in fiscal 2024. 36 36 36 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "Note 15 Industry Segment Operations", "prior_title": "Note 14 Industry Segment Operations", "similarity_score": 0.684, "confidence": "medium", "key_changes": [ "Reworded sentence: \"Our two reportable segments are: Semiconductor Systems and Applied Global Services (AGS).\"", "Reworded sentence: \"The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation.\"", "Removed sentence: \"Effective in the first quarter of fiscal 2024, management began including share-based compensation expense in the evaluation of reportable segments' performance.\"", "Removed sentence: \"Prior-year numbers have been recast to conform to the current-year presentation.\"", "Reworded sentence: \"Our CODM regularly reviews segment operating income to evaluate the performance of, and to assign resources to, each of the reportable segments.\"" ], "current_body": "Our two reportable segments are: Semiconductor Systems and Applied Global Services (AGS). The Display operating segment financial results were included in the Corporate and Other category balances below, as management no longer considers the Display operating segment a significant operating segment for separate reporting purposes. Segment information is presented based upon our management organization structure as of October 26, 2025 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to our reportable segments. The Semiconductor Systems segment includes semiconductor capital equipment to enable materials engineering steps including etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, 200 millimeter and other equipment and factory automation software for semiconductor and other products. Our President and Chief Executive Officer is our chief operating decision-maker (CODM). We derive the segment results directly from our internal management reporting system. The accounting policies we use to derive reportable segment results are substantially the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics including orders, net revenue and operating income. Our CODM regularly reviews segment operating income to evaluate the performance of, and to assign resources to, each of the reportable segments. Actual results are compared to budgeted amounts as part of the CODM’s assessment of each segment’s performance and to make decisions about allocating resources to each segment. Our CODM does not evaluate operating segments using total asset information. The Corporate and Other category includes revenues, costs of products and operating expenses from other operating segments that do not meet the requirements for a reportable segment. Corporate and Other also includes certain corporate function operating expenses that are not allocated to our reportable segments and are managed separately at the corporate level. In addition, we do not allocate to our reportable segments charges associated with restructuring actions, such as employee severance costs and asset impairment charges, unless the restructuring actions pertain to a specific reportable segment. Segment operating income also excludes interest income/expense and other financial charges and income taxes. Our CODM does not consider the unallocated costs in measuring the performance of the reportable segments. 80 80 80 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "Our three reportable segments are: Semiconductor Systems, Applied Global Services (AGS), and Display. As defined under the accounting literature, our chief operating decision-maker has been identified as the President and Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire company. Segment information is presented based upon our management organization structure as of October 27, 2024 and the distinctive nature of each segment. Future changes to this internal financial structure may result in changes to our reportable segments. The Semiconductor Systems reportable segment includes semiconductor capital equipment for etch, rapid thermal processing, deposition, chemical mechanical planarization, metrology and inspection, wafer packaging, and ion implantation. The AGS segment provides integrated solutions to optimize equipment and fab performance and productivity, including spares, upgrades, services, 200mm and other equipment and factory automation software for semiconductor, display and other products. The Display segment includes products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), equipment upgrades and other display technologies for TVs, monitors, laptops, personal computers, smart phones, other consumer-oriented devices and solar energy cells. Each operating segment is separately managed and has separate financial results that are reviewed by our chief operating decision-maker. Each reportable segment contains closely related products that are unique to the particular segment. Segment operating income is determined based upon internal performance measures used by our chief operating decision-maker. The chief operating decision-maker does not evaluate operating segments using total asset information. We derive the segment results directly from our internal management reporting system. Effective in the first quarter of fiscal 2024, management began including share-based compensation expense in the evaluation of reportable segments' performance. Prior-year numbers have been recast to conform to the current-year presentation. The accounting policies we use to derive reportable segment results are substantially the same as those used for external reporting purposes. Management measures the performance of each reportable segment based upon several metrics including orders, net revenue and operating income. Management uses these results to evaluate the performance of, and to assign resources to, each of the reportable segments. 81 81 81 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "Revolving Credit Facilities", "prior_title": "Revolving Credit Facilities", "similarity_score": 0.656, "confidence": "medium", "key_changes": [ "Reworded sentence: \"In September 2025, we entered into a $2.0 billion 364-day committed revolving credit agreement (364-Day Credit Agreement) with a group of banks.\"" ], "current_body": "In September 2025, we entered into a $2.0 billion 364-day committed revolving credit agreement (364-Day Credit Agreement) with a group of banks. The 364-Day Credit Agreement includes a provision under which we may request an increase in the amount of the facility of up to $1.0 billion for a total commitment of no more than $3.0 billion, subject to the receipt of commitments from one or more lenders for any such increase and other customary conditions. The 364-Day Credit Agreement is scheduled to expire in September 2026, provided, however, if any loans are outstanding on the maturity date, we may convert all or part of such loans to term loans that will mature in September 2027, subject to payment of a fee by us and other customary conditions. The 364-Day Credit Agreement provides for unsecured borrowings that bear interest for each advance at one of two rates selected by us, plus an applicable margin, which varies according to our public debt credit ratings. No amounts were outstanding under the 364-Day Credit Agreement as of October 26, 2025. In February 2025, we entered into a $2.0 billion committed revolving credit agreement (Five-Year Credit Agreement) with a group of banks. The Five-Year Credit Agreement includes a provision under which we may request an increase in the amount of the facility of up to $500 million for a total commitment of no more than $2.5 billion, subject to the receipt of commitments from one or more lenders for any such increase and other customary conditions. The Five-Year Credit Agreement is scheduled to expire in February 2030, unless extended as permitted under the terms of the agreement. The Five-Year Credit Agreement provides for borrowings that bear interest for each advance at one of two rates selected by us, plus an applicable margin, which varies according to our public debt credit ratings. The Five-Year Credit Agreement replaced our prior $1.5 billion credit agreement, which was scheduled to expire in February 2026. 68 68 68 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "In February 2020, we entered into a five-year $1.5 billion committed unsecured revolving credit agreement (Revolving Credit Agreement) with a group of banks. The Revolving Credit Agreement includes a provision under which we may request an increase in the amount of the facility of up to $500 million for a total commitment of no more than $2.0 billion, subject to the receipt of commitments from one or more lenders for any such increase and other customary conditions. The Revolving Credit Agreement is scheduled to expire in February 2026, unless extended as permitted under the Revolving Credit Agreement. The Revolving Credit Agreement provides for borrowings that bear interest for each advance at one of two rates selected by us, plus an applicable margin, which varies according to our public debt credit ratings. No amounts were outstanding under the Revolving Credit Agreement as of October 27, 2024 and October 29, 2023. In addition, we have revolving credit facilities with Japanese banks pursuant to which we may borrow up to approximately $52 million in aggregate at any time. Our ability to borrow under these facilities is subject to bank approval at the time of the borrowing request, and any advances will be at rates indexed to the banks’ prime reference rate denominated in Japanese yen. As of October 27, 2024 and October 29, 2023, no amounts were outstanding under these revolving credit facilities." }, { "status": "MODIFIED", "current_title": "(In millions, except per share amounts)", "prior_title": "(In millions, except per share amounts)", "similarity_score": 0.639, "confidence": "medium", "key_changes": [ "Reworded sentence: \"October 26,2025October 27,2024ASSETSCurrent assets:Cash and cash equivalents$7,241 $8,022 Short-term investments1,332 1,449 Accounts receivable, net5,185 5,234 Inventories5,915 5,421 Other current assets1,208 1,094 Total current assets20,881 21,220 Long-term investments4,327 2,787 Property, plant and equipment, net4,610 3,339 Goodwill3,707 3,732 Purchased technology and other intangible assets, net226 249 Deferred income taxes and other assets2,548 3,082 Total assets$36,299 $34,409 LIABILITIES AND STOCKHOLDERS’ EQUITYCurrent liabilities:Short-term debt$100 $799 Accounts payable and accrued expenses5,333 4,820 Contract liabilities2,566 2,849 Total current liabilities7,999 8,468 Long-term debt6,455 5,460 Income taxes payable356 670 Other liabilities1,074 810 Total liabilities15,884 15,408 Commitments and contingencies (Note 14)Stockholders’ equity:Preferred stock: $0.01 par value per share; 1 shares authorized; no shares issued— — Common stock: $0.01 par value per share; 2,500 shares authorized; 793 and 818 shares outstanding at 2025 and 2024, respectively8 8 Additional paid-in capital10,333 9,660 Retained earnings55,227 49,651 Treasury stock: 1,241 and 1,211 shares at 2025 and 2024, respectively(45,043)(40,150)Accumulated other comprehensive loss(110)(168)Total stockholders’ equity20,415 19,001 Total liabilities and stockholders’ equity$36,299 $34,409 Commitments and contingencies (Note 14) Preferred stock: $0.01 par value per share; 1 shares authorized; no shares issued Common stock: $0.01 par value per share; 2,500 shares authorized; 793 and 818 shares outstanding at 2025 and 2024, respectively Treasury stock: 1,241 and 1,211 shares at 2025 and 2024, respectively See accompanying Notes to Consolidated Financial Statements.\"" ], "current_body": "Fiscal Year202520242023 Net revenue$28,368 $27,176 $26,517 Cost of products sold14,560 14,279 14,133 Gross profit13,808 12,897 12,384 Operating expenses:Research, development and engineering3,570 3,233 3,102 Marketing and selling858 836 776 General and administrative910 961 852 Restructuring charges181 — — Total operating expenses5,519 5,030 4,730 Income from operations8,289 7,867 7,654 Interest expense269 247 238 Interest and other income (expense), net1,251 532 300 Income before income taxes9,271 8,152 7,716 Provision for income taxes2,273 975 860 Net income$6,998 $7,177 $6,856 Earnings per share:Basic$8.71 $8.68 $8.16 Diluted$8.66 $8.61 $8.11 Weighted average number of shares:Basic804 827 840 Diluted808 834 845 See accompanying Notes to Consolidated Financial Statements. 47 47 47 Table of Contents Table of Contents", "prior_body": "Fiscal Year202420232022 Net revenue$27,176 $26,517 $25,785 Cost of products sold14,279 14,133 13,792 Gross profit12,897 12,384 11,993 Operating expenses:Research, development and engineering3,233 3,102 2,771 Marketing and selling836 776 703 General and administrative961 852 735 Severance and related charges— — (4)Total operating expenses5,030 4,730 4,205 Income from operations7,867 7,654 7,788 Interest expense247 238 228 Interest and other income (expense), net532 300 39 Income before income taxes8,152 7,716 7,599 Provision for income taxes975 860 1,074 Net income$7,177 $6,856 $6,525 Earnings per share:Basic$8.68 $8.16 $7.49 Diluted$8.61 $8.11 $7.44 Weighted average number of shares:Basic827 840 871 Diluted834 845 877 See accompanying Notes to Consolidated Financial Statements. 52 52 52 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "(In millions)", "prior_title": "(In millions)", "similarity_score": 0.631, "confidence": "medium", "key_changes": [ "Reworded sentence: \"Fiscal Year202520242023Net income$6,998 $7,177 $6,856 Other comprehensive income (loss), net of tax:Change in unrealized gain (loss) on available-for-sale investments18 43 25 Change in unrealized net loss on derivative instruments53 31 (66)Change in defined and postretirement benefit plans(13)(25)26 Other comprehensive income (loss), net of tax58 49 (15)Comprehensive income$7,056 $7,226 $6,841 See accompanying Notes to Consolidated Financial Statements.\"" ], "current_body": "Fiscal Year202520242023Net income$6,998 $7,177 $6,856 Other comprehensive income (loss), net of tax:Change in unrealized gain (loss) on available-for-sale investments18 43 25 Change in unrealized net loss on derivative instruments53 31 (66)Change in defined and postretirement benefit plans(13)(25)26 Other comprehensive income (loss), net of tax58 49 (15)Comprehensive income$7,056 $7,226 $6,841 See accompanying Notes to Consolidated Financial Statements. 48 48 48 Table of Contents Table of Contents", "prior_body": "Fiscal Year202420232022Net income$7,177 $6,856 $6,525 Other comprehensive income (loss), net of tax:Change in unrealized gain (loss) on available-for-sale investments43 25 (74)Change in unrealized net loss on derivative instruments31 (66)51 Change in defined and postretirement benefit plans(25)26 81 Other comprehensive income (loss), net of tax49 (15)58 Comprehensive income$7,226 $6,841 $6,583 See accompanying Notes to Consolidated Financial Statements. 53 53 53 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "similarity_score": 0.612, "confidence": "medium", "key_changes": [ "Reworded sentence: \"For geographical reporting, revenue by geographic location is determined by the location of customers’ facilities to which products were shipped and services were performed.\"", "Reworded sentence: \"Net revenue and long-lived assets by geographic region for and as of each fiscal year were as follows: 202520242023 (In millions)Net revenue:United States$3,063 $3,818 $4,006 China8,529 10,117 7,247 Korea5,608 4,493 4,609 Taiwan6,857 4,010 5,670 Japan2,273 2,154 2,075 Europe962 1,443 2,152 Southeast Asia1,076 1,141 758 Total outside United States25,305 23,358 22,511 Consolidated total$28,368 $27,176 $26,517 October 26,2025October 27,2024 (In millions)Long-lived assets:United States$5,071 $3,759 China8 3 Korea9 9 Taiwan67 59 Japan6 7 Europe155 113 Southeast Asia21 5 Total outside United States266 196 Consolidated total$5,337 $3,955 83 83 83 Table of Contents Table of Contents\"" ], "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 27, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant and equipment, we have increased the estimated useful lives of certain assets effective as of the beginning of fiscal 2024. The updated estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to 5 to 8 years. The estimated useful lives for the following assets remained unchanged from fiscal 2023: software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. The change in accounting estimate was applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases. Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $128 million in depreciation expense during fiscal 2024, and an increase of $0.12 in both basic and diluted earnings per share for fiscal 2024. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 58 58 58 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "similarity_score": 0.58, "confidence": "low", "key_changes": [ "Reworded sentence: \"October 26,2025October 27,2024 (In millions)Accounts Payable and Accrued ExpensesAccounts payable$1,978 $1,570 Compensation and employee benefits1,221 1,188 Warranty346 364 Dividends payable365 327 Income taxes payable380 535 Operating lease liabilities, current91 87 Restructuring reserve165 — Other787 749 $5,333 $4,820 Operating lease liabilities, current Operating lease liabilities, current October 26,2025October 27,2024 (In millions)Other LiabilitiesDefined and postretirement benefit plans$151 $142 Operating lease liabilities, non-current404 259 Other519 409 $1,074 $810 Operating lease liabilities, non-current Operating lease liabilities, non-current\"" ], "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 27, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant and equipment, we have increased the estimated useful lives of certain assets effective as of the beginning of fiscal 2024. The updated estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to 5 to 8 years. The estimated useful lives for the following assets remained unchanged from fiscal 2023: software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. The change in accounting estimate was applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases. Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $128 million in depreciation expense during fiscal 2024, and an increase of $0.12 in both basic and diluted earnings per share for fiscal 2024. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 58 58 58 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "We are exposed to the risks of operating a global business.", "prior_title": "We are exposed to the risks of operating a global business.", "similarity_score": 0.577, "confidence": "low", "key_changes": [ "Reworded sentence: \"In fiscal 2025, approximately 89% of our net revenue was to customers in regions outside the United States.\"" ], "current_body": "We have product development, engineering, manufacturing, sales and other operations distributed throughout many countries, and some of our business activities are concentrated in certain geographic areas. In fiscal 2025, approximately 89% of our net revenue was to customers in regions outside the United States. As a result of the global nature of our operations, we are subject to a number of factors that could have an adverse impact on our business, financial condition and results of operations. These factors include global political and social conditions, such as policies or regulations within countries, including in China, the United States and countries in Europe and Asia, that favor domestic companies over non-domestic companies, including efforts to promote the development and growth of local competitors to us, or regarding national, commercial or security issues. Other factors include geopolitical turmoil, acts of war or social unrest; our ability to maintain appropriate business processes, procedures and internal controls in our geographically diverse operations; delays or restrictions 11 11 11 Table of Contents Table of Contents on personnel travel and in shipping materials or products; our ability to develop relationships with local customers, suppliers and governments; performance of our geographically diverse third-party providers; impacts of regional or global health epidemics, natural disasters and extreme and chronic weather events; fluctuations in interest rates and currency exchange rates; as well as other factors discussed in this Risk Factors section. Any of these factors may have an adverse impact on our business and manufacturing operations or demand for our products and services, and our performance and results of operations may be adversely affected.", "prior_body": "We have product development, engineering, manufacturing, sales and other operations distributed throughout many countries, and some of our business activities are concentrated in certain geographic areas. In fiscal 2024, approximately 86% of our net revenue was to customers in regions outside the United States. As a result of the global nature of our operations, our business performance and results of operations may be adversely affected by a number of factors, including: •uncertain or adverse global economic, political and business conditions and demand; •global trade issues and changes in and uncertainties with respect to trade and export regulations, trade policies and sanctions, tariffs, and international trade disputes, including new and changing export regulations and their impact on our ability to export products and provide services to customers; •positions taken by governmental agencies regarding national, commercial or security issues posed by the development, sale or export of certain products, technologies and raw materials, including critical materials and critical minerals; •political instability, social unrest, terrorism, acts of war or other geopolitical turmoil, such as the conflict in the Middle East, in locations where we have operations, suppliers or sales, or that may influence the value chain of the industries we serve; •cybersecurity incidents; •political and social attitudes, laws, rules, regulations and policies within countries, including in China, the United States, and countries in Europe and Asia, that favor domestic companies over non-domestic companies, including efforts to promote the development and growth of local competitors and reduce dependence on foreign semiconductor equipment and manufacturing capabilities through policies and financial incentives; •efforts to influence us to conduct more or less of our operations and sourcing in a particular country; •different and changing local, regional, national or international laws and regulations, including contract, intellectual property, cybersecurity, data privacy, labor, tax, and import/export laws, and the interpretation and application of laws and regulations; •ineffective or inadequate legal protection of intellectual property rights in certain countries; •interruptions to our or our suppliers’ supply chain; •the availability of raw materials, including critical materials and critical minerals, and increases and volatility of commodity, energy and shipping costs; •delays or restrictions on personnel travel and in shipping materials or products; •geographically diverse operations and projects, and our ability to maintain appropriate business processes, procedures and internal controls, and comply with environmental, health and safety, anti-corruption and other regulatory requirements; •challenges in hiring and integrating workers in different countries, and in effectively managing a diverse workforce with different experience levels, languages, cultures, customs, business practices and worker expectations, and differing employment practices and labor issues; •the ability to develop relationships with local customers, suppliers and governments; •fluctuations in interest rates and currency exchange rates, including the relative strength or weakness of the U.S. dollar against the Japanese yen, Israeli shekel, euro, Taiwanese dollar, Singapore dollar, Chinese yuan or Korean won; •the need to provide technical support in different locations around the world; •performance of geographically diverse third-party providers, including certain engineering, software development, manufacturing, information technology and other functions; •service interruptions from utilities, transportation, data hosting or telecommunications providers; •impacts of natural disasters and extreme and chronic weather events on our operations and those of our customers and suppliers, which may be exacerbated by climate change; 14 14 14 Table of Contents Table of Contents •regional or global health epidemics; •the increasing need for a mobile workforce and travel to different regions; and •uncertainties with respect to economic growth rates in various countries, including for the manufacture and sale of semiconductors and displays in the developing economies of certain countries." }, { "status": "MODIFIED", "current_title": "We are exposed to risks related to the use of AI by us and our competitors.", "prior_title": "We are exposed to risks related to the use of artificial intelligence by us and our competitors.", "similarity_score": 0.565, "confidence": "low", "key_changes": [ "Reworded sentence: \"We are increasingly incorporating AI capabilities into the development of technologies, our business operations and our products and services.\"", "Reworded sentence: \"The use of AI in the development of our products and services could also cause loss of intellectual property, as well as subject us to risks related to intellectual property infringement or misappropriation, data privacy and cybersecurity.\"" ], "current_body": "We are increasingly incorporating AI capabilities into the development of technologies, our business operations and our products and services. AI technology is complex and rapidly evolving and may subject us to significant competitive, legal, regulatory, operational and other risks. The implementation of AI can be costly, and there is no guarantee that our use of AI will enhance our technologies, benefit our business operations, or produce products and services that are preferred by our customers. Our competitors may be more successful in their AI strategy and develop superior products and services with the aid of AI technology. Additionally, AI algorithms or training methodologies may be flawed, and datasets may contain irrelevant, insufficient or biased information, which can cause errors in outputs. This may give rise to legal liability, damage our reputation, and materially harm our business. The use of AI in the development of our products and services could also cause loss of intellectual property, as well as subject us to risks related to intellectual property infringement or misappropriation, data privacy and cybersecurity. We also utilize third-party providers of AI capabilities, and our ability to implement AI successfully in our business operations relies on our continued access to third-party providers and safeguards implemented by them. Additionally, AI technology may also create ethical issues, which could impair market adoption of such technology and impair demand for our products and services. Furthermore, the United States and other countries may adopt laws and regulations related to AI. These laws and regulations could cause us to incur greater compliance costs and limit the use of AI in the development of our products and services. Any failure or perceived failure by us to comply with these regulatory requirements could subject us to legal liabilities, damage our reputation, or otherwise have a material and adverse impact on our business.", "prior_body": "We are increasingly incorporating artificial intelligence capabilities into the development of technologies and our business operations, and into our products and services. Artificial intelligence technology is complex and rapidly evolving, and may subject us to significant competitive, legal, regulatory, operational and other risks. The implementation of artificial intelligence can be costly, and there is no guarantee that our use of artificial intelligence will enhance our technologies, benefit our business operations, or produce products and services that are preferred by our customers. Our competitors may be more successful in their artificial intelligence strategy and develop superior products and services with the aid of artificial intelligence technology. Additionally, artificial intelligence algorithms or training methodologies may be flawed, and datasets may contain irrelevant, insufficient or biased information, which can cause errors in outputs. This may give rise to legal liability, damage our reputation, and materially harm our business. The use of artificial intelligence in the development of our products and services could also cause loss of intellectual property, as well as subject us to risks related to intellectual property infringement or misappropriation, data privacy and cybersecurity. Additionally, artificial intelligence technology may also create ethical issues, which could impair market adoption of such technology and impair demand for our products and services. Furthermore, the United States and other countries may adopt laws and regulations related to artificial intelligence. Such laws and regulations could cause us to incur greater compliance costs and limit the use of artificial intelligence in the development of our products and services. Any failure or perceived failure by us to comply with such regulatory requirements could subject us to legal liabilities, damage our reputation, or otherwise have a material and adverse impact on our business." }, { "status": "MODIFIED", "current_title": "Summary of Cash, Cash Equivalents and Investments", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "similarity_score": 0.51, "confidence": "low", "key_changes": [ "Reworded sentence: \"The following tables summarize our cash, cash equivalents and investments by security type: October 26, 2025CostGrossUnrealizedGainsGrossUnrealizedLossesEstimatedFair Value (In millions)Cash$1,419 $— $— $1,419 Cash equivalents:Money market funds*2,193 — — 2,193 Bank certificates of deposit and time deposits180 — — 180 U.S.\"", "Reworded sentence: \"61 61 61 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents\"" ], "current_body": "The following tables summarize our cash, cash equivalents and investments by security type: October 26, 2025CostGrossUnrealizedGainsGrossUnrealizedLossesEstimatedFair Value (In millions)Cash$1,419 $— $— $1,419 Cash equivalents:Money market funds*2,193 — — 2,193 Bank certificates of deposit and time deposits180 — — 180 U.S. Treasury and agency securities1,196 — — 1,196 Municipal securities5 — — 5 Commercial paper, corporate bonds and medium-term notes2,248 — — 2,248 Total cash equivalents5,822 — — 5,822 Total cash and cash equivalents$7,241 $— $— $7,241 Short-term and long-term investments:Bank certificates of deposit and time deposits$4 $— $— $4 U.S. Treasury and agency securities1,229 3 — 1,232 Non-U.S. government securities**5 — — 5 Municipal securities463 5 — 468 Commercial paper, corporate bonds and medium-term notes848 6 — 854 Asset-backed and mortgage-backed securities614 4 2 616 Total fixed income securities3,163 18 2 3,179 Publicly traded equity securities1,288 824 2 2,110 Equity investments in privately held companies342 74 46 370 Total equity investments1,630 898 48 2,480 Total short-term and long-term investments$4,793 $916 $50 $5,659 Total cash, cash equivalents and investments$12,034 $916 $50 $12,900 Money market funds* Non-U.S. government securities** _________________________ *Excludes $71 million of restricted cash equivalents invested in money market funds related to deferred compensation plans. **Includes Canadian provincial government debt. 61 61 61 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 27, 2024, substantially all of our available-for-sale, short-term and long-term investments were recognized at fair value that was determined based upon observable inputs or quoted prices. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. In connection with our periodic review of estimated useful lives of the property, plant and equipment, we have increased the estimated useful lives of certain assets effective as of the beginning of fiscal 2024. The updated estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years with certain buildings and improvements’ useful lives increased by 5 years; demonstration and manufacturing equipment increased to 5 to 8 years. The estimated useful lives for the following assets remained unchanged from fiscal 2023: software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or the estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. The change in accounting estimate was applied on a prospective basis to the assets on our balance sheet as of October 29, 2023, as well as to subsequent asset purchases. Based on the net carrying amounts of assets in use as of the end of fiscal 2023, the impact of this change was a reduction of $128 million in depreciation expense during fiscal 2024, and an increase of $0.12 in both basic and diluted earnings per share for fiscal 2024. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 58 58 58 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "MODIFIED", "current_title": "Operating Expenses", "prior_title": "Operating Expenses", "similarity_score": 0.505, "confidence": "low", "key_changes": [ "Reworded sentence: \"Operating expenses for the periods presented were as follows: Change 202520242025 over 2024 (In millions)Research, development and engineering (RD&E)$3,570 $3,233 $337 Marketing and selling$858 $836 $22 General and administrative (G&A)$910 $961 $(51)Restructuring charges$181 $— $181 The year-over-year change in RD&E expenses was primarily due to additional headcount to support our ongoing investments in product development initiatives and higher depreciation expenses, consistent with our growth strategy.\"" ], "current_body": "Operating expenses for the periods presented were as follows: Change 202520242025 over 2024 (In millions)Research, development and engineering (RD&E)$3,570 $3,233 $337 Marketing and selling$858 $836 $22 General and administrative (G&A)$910 $961 $(51)Restructuring charges$181 $— $181 The year-over-year change in RD&E expenses was primarily due to additional headcount to support our ongoing investments in product development initiatives and higher depreciation expenses, consistent with our growth strategy. We continued to prioritize RD&E investments in technical capabilities and critical RD&E programs in current and new markets. Marketing and selling expenses for fiscal 2025 increased primarily due to higher employee related expenses. General and administrative expenses in fiscal 2025 decreased primarily due to lower spending on professional services, partially offset by an impairment of goodwill of $41 million recognized during the fourth quarter of fiscal 2025. In the fourth quarter of fiscal 2025, we approved a workforce reduction plan (Fiscal 2025 Restructuring Plan) to position us for continued growth as a more competitive and productive organization and expect approximately 4% of our global workforce to be impacted under this plan. In the fourth quarter of fiscal 2025, we recognized $181 million of restructuring charges consisting primarily of severance and other employment termination benefits to be paid in cash, and other non-cash related charges. We expect to complete the plan in fiscal 2026.", "prior_body": "Operating expenses for the periods presented were as follows: Change 202420232024 over 2023 (In millions)Research, development and engineering (RD&E)$3,233 $3,102 $131 Marketing and selling$836 $776 $60 General and administrative$961 $852 $109 The year-over-year change in RD&E expenses was primarily due to additional headcount to support our ongoing investments in product development initiatives, consistent with our growth strategy, offset by lower depreciation expense as a result of changes in certain assets’ useful lives effective as of the beginning of fiscal 2024. We continued to prioritize existing RD&E investments in technical capabilities and critical RD&E programs in current and new markets, with a focus on the development of new unit process systems and integrated materials solutions. Areas of investment in Semiconductor Systems include etch, deposition, metrology and inspection, patterning, packaging and other technologies to improve chip performance, power, area, cost and time-to-market. In Display, RD&E investments were focused on expanding our market opportunity with new display technologies. Marketing and selling expenses for fiscal 2024 increased primarily due to additional headcount. General and administrative expenses in fiscal 2024 increased primarily due to the increases in share-based compensation expense and professional fees. 35 35 35 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "Segment Operating Income (Loss)", "prior_title": "Segment Operating Income", "similarity_score": 0.497, "confidence": "low", "key_changes": [ "Reworded sentence: \"Operating income (loss) by segment for the periods presented were as follows: Change 202520242025 over 2024 (In millions, except percentages and ratios)Operating income (loss)Semiconductor Systems$7,379 $6,981 $398 6 %Applied Global Services1,792 1,812 (20)(1)%Corporate and Other(882)(926)44 5 %Total$8,289 $7,867 $422 5 %Operating marginSemiconductor Systems35.5 %35.1 %0.4 pointsApplied Global Services28.1 %29.1 %(1.0) points Semiconductor Systems’ operating margin for fiscal 2025 increased compared to the same period in the prior year primarily driven by higher net revenue, favorable changes in customer and product mix, lower material and manufacturing costs, and an increase in average selling prices, partially offset by increased RD&E expenses.\"" ], "current_body": "Operating income (loss) by segment for the periods presented were as follows: Change 202520242025 over 2024 (In millions, except percentages and ratios)Operating income (loss)Semiconductor Systems$7,379 $6,981 $398 6 %Applied Global Services1,792 1,812 (20)(1)%Corporate and Other(882)(926)44 5 %Total$8,289 $7,867 $422 5 %Operating marginSemiconductor Systems35.5 %35.1 %0.4 pointsApplied Global Services28.1 %29.1 %(1.0) points Semiconductor Systems’ operating margin for fiscal 2025 increased compared to the same period in the prior year primarily driven by higher net revenue, favorable changes in customer and product mix, lower material and manufacturing costs, and an increase in average selling prices, partially offset by increased RD&E expenses. AGS’ operating margin for fiscal 2025 decreased compared to the same periods in the prior year primarily due to a decrease in 200mm equipment net revenue, higher expense related to an increase in headcount to support business growth, and higher excess and obsolete inventory charges, partially offset by higher net revenue from services and spares. 32 32 32 Table of Contents Table of Contents", "prior_body": "Operating income by segment for the periods presented were as follows: Change 202420232024 over 2023 (In millions, except percentages and ratios)Operating income (loss)Semiconductor Systems$6,981 $6,879 $102 1 %Applied Global Services1,812 1,529 283 19 %Display51 114 (63)(55)%Corporate and Other(977)(868)(109)13 %Total$7,867 $7,654 $213 3 %Operating marginSemiconductor Systems35.1 %34.9 %0.2 pointsApplied Global Services29.1 %26.7 %2.4 pointsDisplay5.8 %13.1 %(7.3) points Semiconductor Systems’ operating margin for fiscal 2024 increased primarily driven by lower material, freight, logistics and manufacturing costs, favorable changes in customer and product mix and lower depreciation expense as a result of changes in certain assets’ useful lives effective as of the beginning of fiscal 2024, partially offset by increased RD&E expenses. AGS’ operating margin for fiscal 2024 increased primarily due to the increase in net revenue and a favorable change in product mix. Display’s operating margin for fiscal 2024 decreased primarily due to unfavorable changes in product mix. 37 37 37 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "(In millions, except per share amounts)", "prior_title": "(In millions, except per share amounts)", "similarity_score": 0.484, "confidence": "low", "key_changes": [ "Reworded sentence: \"Fiscal Year202520242023 Net revenue$28,368 $27,176 $26,517 Cost of products sold14,560 14,279 14,133 Gross profit13,808 12,897 12,384 Operating expenses:Research, development and engineering3,570 3,233 3,102 Marketing and selling858 836 776 General and administrative910 961 852 Restructuring charges181 — — Total operating expenses5,519 5,030 4,730 Income from operations8,289 7,867 7,654 Interest expense269 247 238 Interest and other income (expense), net1,251 532 300 Income before income taxes9,271 8,152 7,716 Provision for income taxes2,273 975 860 Net income$6,998 $7,177 $6,856 Earnings per share:Basic$8.71 $8.68 $8.16 Diluted$8.66 $8.61 $8.11 Weighted average number of shares:Basic804 827 840 Diluted808 834 845 See accompanying Notes to Consolidated Financial Statements.\"" ], "current_body": "Fiscal Year202520242023 Net revenue$28,368 $27,176 $26,517 Cost of products sold14,560 14,279 14,133 Gross profit13,808 12,897 12,384 Operating expenses:Research, development and engineering3,570 3,233 3,102 Marketing and selling858 836 776 General and administrative910 961 852 Restructuring charges181 — — Total operating expenses5,519 5,030 4,730 Income from operations8,289 7,867 7,654 Interest expense269 247 238 Interest and other income (expense), net1,251 532 300 Income before income taxes9,271 8,152 7,716 Provision for income taxes2,273 975 860 Net income$6,998 $7,177 $6,856 Earnings per share:Basic$8.71 $8.68 $8.16 Diluted$8.66 $8.61 $8.11 Weighted average number of shares:Basic804 827 840 Diluted808 834 845 See accompanying Notes to Consolidated Financial Statements. 47 47 47 Table of Contents Table of Contents", "prior_body": "Fiscal Year202420232022 Net revenue$27,176 $26,517 $25,785 Cost of products sold14,279 14,133 13,792 Gross profit12,897 12,384 11,993 Operating expenses:Research, development and engineering3,233 3,102 2,771 Marketing and selling836 776 703 General and administrative961 852 735 Severance and related charges— — (4)Total operating expenses5,030 4,730 4,205 Income from operations7,867 7,654 7,788 Interest expense247 238 228 Interest and other income (expense), net532 300 39 Income before income taxes8,152 7,716 7,599 Provision for income taxes975 860 1,074 Net income$7,177 $6,856 $6,525 Earnings per share:Basic$8.68 $8.16 $7.49 Diluted$8.61 $8.11 $7.44 Weighted average number of shares:Basic827 840 871 Diluted834 845 877 See accompanying Notes to Consolidated Financial Statements. 52 52 52 Table of Contents Table of Contents" }, { "status": "MODIFIED", "current_title": "Note 8 Balance Sheet Detail", "prior_title": "Note 8 Balance Sheet Detail", "similarity_score": 0.464, "confidence": "low", "key_changes": [ "Reworded sentence: \"October 26,2025October 27,2024 (In millions)InventoriesCustomer service spares$1,786 $1,742 Raw materials2,007 1,680 Work-in-process914 879 Finished goodsDeferred cost of sales229 217 Evaluation inventory474 459 Manufactured on-hand inventory505 444 Total finished goods1,208 1,120 Total inventories$5,915 $5,421 October 26,2025October 27,2024 (In millions)Other Current AssetsPrepaid income taxes and income taxes receivable$148 $120 Prepaid expenses and other1,060 974 $1,208 $1,094 Useful LifeOctober 26,2025October 27,2024 (In years)(In millions)Property, Plant and Equipment, NetLand and improvements$558 $492 Buildings and improvements3-302,930 2,359 Demonstration and manufacturing equipment5-82,708 2,578 Furniture, fixtures and other equipment3-5855 782 Construction in progress1,460 898 Gross property, plant and equipment8,511 7,109 Accumulated depreciation(3,901)(3,770)$4,610 $3,339 3-30 5-8 3-5 Depreciation expense was $389 million, $346 million and $471 million for fiscal 2025, 2024 and 2023, respectively.\"" ], "current_body": "October 26,2025October 27,2024 (In millions)InventoriesCustomer service spares$1,786 $1,742 Raw materials2,007 1,680 Work-in-process914 879 Finished goodsDeferred cost of sales229 217 Evaluation inventory474 459 Manufactured on-hand inventory505 444 Total finished goods1,208 1,120 Total inventories$5,915 $5,421 October 26,2025October 27,2024 (In millions)Other Current AssetsPrepaid income taxes and income taxes receivable$148 $120 Prepaid expenses and other1,060 974 $1,208 $1,094 Useful LifeOctober 26,2025October 27,2024 (In years)(In millions)Property, Plant and Equipment, NetLand and improvements$558 $492 Buildings and improvements3-302,930 2,359 Demonstration and manufacturing equipment5-82,708 2,578 Furniture, fixtures and other equipment3-5855 782 Construction in progress1,460 898 Gross property, plant and equipment8,511 7,109 Accumulated depreciation(3,901)(3,770)$4,610 $3,339 3-30 5-8 3-5 Depreciation expense was $389 million, $346 million and $471 million for fiscal 2025, 2024 and 2023, respectively. October 26,2025October 27,2024(In millions)Deferred Income Taxes and Other AssetsNon-current deferred income taxes$1,233 $2,393 Operating lease right-of-use assets509 375 Income tax receivables and other assets806 314 $2,548 $3,082 Operating lease right-of-use assets Operating lease right-of-use assets 67 67 67 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents", "prior_body": "October 27,2024October 29,2023 (In millions)InventoriesCustomer service spares$1,742 $1,589 Raw materials1,680 1,653 Work-in-process879 997 Finished goodsDeferred cost of sales217 413 Evaluation inventory459 423 Manufactured on-hand inventory444 650 Total finished goods1,120 1,486 Total inventories$5,421 $5,725 October 27,2024October 29,2023 (In millions)Other Current AssetsPrepaid income taxes and income taxes receivable$120 $412 Prepaid expenses and other974 976 $1,094 $1,388 Useful LifeOctober 27,2024October 29,2023 (In years)(In millions)Property, Plant and Equipment, NetLand and improvements$492 $393 Buildings and improvements3-302,359 2,194 Demonstration and manufacturing equipment5-82,578 2,353 Furniture, fixtures and other equipment3-5782 762 Construction in progress898 672 Gross property, plant and equipment7,109 6,374 Accumulated depreciation(3,770)(3,651)$3,339 $2,723 3-30 5-8 3-5 Depreciation expense was $346 million, $471 million and $404 million for fiscal 2024, 2023 and 2022, respectively. 70 70 70 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "UNCHANGED", "current_title": "Disclosure Controls and Procedures", "prior_title": "Disclosure Controls and Procedures", "current_body": "As of the end of the period covered by this report, our management conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures, as such term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 (the Exchange Act). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report in ensuring that information required to be disclosed was recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and to provide reasonable assurance that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure." }, { "status": "UNCHANGED", "current_title": "Contractual Obligations and Off-Balance Sheet Arrangements", "prior_title": "Contractual Obligations and Off-Balance Sheet Arrangements", "current_body": "We have certain on-balance sheet and off-balance sheet obligation arrangements to make future payments under various contracts. Certain contractual arrangements which are recorded on our balance sheet include borrowing facilities and debts and lease obligations." }, { "status": "UNCHANGED", "current_title": "We may not continue to declare cash dividends or repurchase our shares.", "prior_title": "We may not continue to declare cash dividends or repurchase our shares.", "current_body": "Our ability to continue to pay quarterly dividends and to repurchase our shares is subject to capital availability and periodic determinations by our Board of Directors that cash dividends and share repurchases are in the best interest of our stockholders and are in compliance with applicable laws and agreements. Future dividends and share repurchases may be affected by, among other factors, our cash flow; potential future capital requirements for investments, acquisitions, infrastructure projects and research and development; changes in applicable tax, corporate, or other laws; contractual restrictions, such as financial or operating covenants in our debt arrangements; and changes to our business model. Our dividend payments and share repurchases may change from time to time, and we cannot provide assurance that we will continue to declare dividends or repurchase shares in any particular amounts or at all. A reduction or suspension in our dividend payments or share repurchases could have a negative effect on the price of our common stock." }, { "status": "UNCHANGED", "current_title": "Critical Accounting Estimates", "prior_title": "Critical Accounting Estimates", "current_body": "The preparation of consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect the amounts reported. Estimates and assumptions about future events and their effects cannot be determined with certainty. We base our estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as our operating environment changes. These changes have historically been minor and have been included in the consolidated financial statements as soon as they became known. In addition, management is periodically faced with uncertainties, the outcomes of which are not within our control and will not be known for prolonged periods of time. These uncertainties include those discussed in Part I, Item 1A, “Risk Factors.” Management believes that the following is a critical accounting estimate:" }, { "status": "UNCHANGED", "current_title": "We are exposed to risks related to government incentives and other agreements that may involve government entities.", "prior_title": "We are exposed to risks related to government incentives and other agreements that may involve government entities.", "current_body": "From time to time, we enter into agreements with government entities for grants, tax benefits and other incentives, other funding related to our investment, research and development and production activities or for sale of our products to government entities or government-funded programs. These agreements typically include terms that are not common in similar agreements with non-governmental entities, including representations and warranties, covenants and certifications, and record-keeping, accounting, audit, intellectual property rights-sharing, information handling, supply chain management, headcount, security, disclosure and other requirements. These agreements may also require us to achieve or maintain certain levels of investment, capital spending and performance milestones. Compliance with these requirements may add complexity to our operations and increase our costs, and a failure to comply could result in cancelation of agreements or transactions, investigations, civil and criminal penalties, forfeiture of profits, reduction, termination or clawback of any funding, suspension or debarment from doing business with the government, or other penalties, any of which could have a material and adverse effect on our business, financial condition and results of operations." }, { "status": "UNCHANGED", "current_title": "Our business depends on the successful implementation and proper functioning of information systems we use.", "prior_title": "Our business depends on the successful implementation and proper functioning of information systems we use.", "current_body": "Our business depends on certain information systems, including, enterprise resource planning, product research and development, financial reporting, information technology network management and telecommunications. These systems may be maintained by us or by our third-party vendors. Failures of these systems could disrupt our operations, impede our ability to timely and accurately process and report financial results, and adversely impact our business, financial condition and results of operations. We periodically implement new or enhanced information systems. Implementation of new business processes and information systems requires the commitment of significant personnel, training and financial resources, and entails risks to our business operations. If the implementation or improvement of information systems is delayed or unsuccessful, we may not realize anticipated productivity improvements or cost efficiencies and may experience interruptions in service and operational difficulties, which could result in quality issues, reputational harm, lost market and revenue opportunities and otherwise adversely affect our business, financial condition and results of operations." }, { "status": "UNCHANGED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "UNCHANGED", "current_title": "Changes in Internal Control over Financial Reporting", "prior_title": "Changes in Internal Control over Financial Reporting", "current_body": "During the fourth quarter of fiscal 2025, there were no changes in the internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting." }, { "status": "UNCHANGED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "UNCHANGED", "current_title": "Global trade issues and changes in and uncertainties with respect to trade policies and export regulations, including import and export license requirements, trade sanctions, tariffs and international trade disputes, have adversely impacted and could further adversely impact our business and operations, and reduce the competitiveness of our products and services relative to local and global competitors.", "prior_title": "Global trade issues and changes in and uncertainties with respect to trade policies and export regulations, including import and export license requirements, trade sanctions, tariffs and international trade disputes, have adversely impacted and could further adversely impact our business and operations, and reduce the competitiveness of our products and services relative to local and global competitors.", "current_body": "A majority of our products and services are delivered to customers in jurisdictions outside of the United States, including China, Taiwan and Korea. We also purchase a significant portion of equipment and supplies from suppliers outside of the United States. There is inherent risk, based on the complex relationships among the United States and the countries in which we conduct our business, that political, diplomatic and national security factors can lead to global trade restrictions and changes in trade policies and export regulations that affect the semiconductor industry. The United States and other countries have imposed and may continue to impose new trade restrictions and export regulations, have levied tariffs and taxes on certain goods and could significantly increase or impose new tariffs on a broad array of goods. Trade restrictions and export regulations, or increased or new tariffs and additional taxes, including any retaliatory measures, can negatively impact end-user demand and customer investment in semiconductor equipment, increase our supply chain complexity and our manufacturing costs, decrease margins, reduce the competitiveness of our products, or restrict our ability to sell products, provide services or purchase necessary equipment and supplies, any or all of which could have a material and adverse effect on our business, results of operations, or financial condition. For example, certain international sales depend on our ability to obtain export licenses, and our inability to obtain such licenses has limited and could further limit our markets and negatively impact our business. Over the past several years, the U.S. government announced additional export regulations for U.S. semiconductor technology sold in China, including wafer fabrication equipment and related parts and services, with disparate impact on companies in different jurisdictions, which have limited the market for certain of our products and services, adversely impacted our revenues and increased our exposure to foreign and Chinese domestic competition. The U.S. Department of Commerce expanded export license requirements for U.S. companies that sell certain products or provide certain services to entities in China whose actions or functions are intended to support military end uses, eliminated certain export license exceptions for exports of certain items to China, added certain Chinese companies to its “Entity List,” making those companies subject to additional licensing requirements, and expanded licensing requirements for exports to China of items for use in the development or production of integrated circuits and certain technologies. These regulations require us to obtain additional export licenses to supply certain of our products or provide services to certain customers in China. Obtaining export licenses may be difficult and time-consuming, and there is no assurance we will be issued licenses on a timely basis or at all. Our inability to obtain such licenses could limit our sales in China, may cause us to be displaced by foreign and Chinese domestic companies and adversely affect our results of operations. The implementation and interpretation of these complex rules and other regulatory actions taken by the U.S. government are uncertain and evolving and may make it more challenging for us to manage our operations and forecast our operating results. The U.S. and other governments may promulgate new or additional export licensing or other requirements that have the effect of further limiting our ability to provide certain products and services to customers outside the U.S., including China. The U.S. government may also revise or expand existing requirements or issue guidance clarifying the scope and application of these requirements, which could change the impact of these rules on our business and manufacturing operations. The U.S. government may also continue to add customers to its “Entity List,” promulgate additional restrictions, or take measures that could disrupt our product shipments or the provision of services to certain customers. These and other potential future regulatory changes could materially and adversely affect our business, results of operations or financial condition. As a global business with customers, suppliers and operations in many countries around the world, from time to time we may receive inquiries from government authorities about transactions between us and certain foreign entities. For example, since 2022, we have received multiple subpoenas from government authorities requesting information relating to certain China customer shipments and export controls compliance, including from the U.S. Department of Justice, the U.S. Commerce Department Bureau of Industry and Security and the U.S. Securities and Exchange Commission. We are cooperating fully with the U.S. government in these matters. We have continued to receive related subpoenas, as well as requests for information, and may in the future receive additional related subpoenas and requests for information from such or other government authorities. Any such inquiries are subject to uncertainties, and we cannot predict the outcome of these inquiries, or any other governmental inquires or proceedings that may occur. Any violation or alleged violation of law or regulations could result in significant legal costs or in legal proceedings in which we or our employees could be subjected to fines and penalties and could result in restrictions on our business and damage to our global brand and reputation, and could have a material and adverse impact on our business operations, financial condition and results of operations. 12 12 12 Table of Contents Table of Contents Furthermore, government authorities may take retaliatory actions, impose conditions that require the use of local suppliers or partnerships with local companies, require the license or other transfer of sensitive data or intellectual property, or engage in other efforts to promote local businesses and local competitors, which could have a material and adverse impact on our business. Many of these challenges are present in China and Korea, markets that represent a significant portion of our business." }, { "status": "UNCHANGED", "current_title": "Management’s Report on Internal Control over Financial Reporting", "prior_title": "Management’s Report on Internal Control over Financial Reporting", "current_body": "Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, our management conducted an evaluation of the effectiveness of our internal control over financial reporting based upon the framework in “Internal Control — Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that evaluation, our management concluded that our internal control over financial reporting was effective as of October 26, 2025. KPMG LLP, an independent registered public accounting firm, has audited the consolidated financial statements included in this Form 10-K and, as part of the audit, has issued a report, included herein, on the effectiveness of our internal control over financial reporting as of October 26, 2025." }, { "status": "UNCHANGED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "UNCHANGED", "current_title": "The ability to attract, retain and motivate key employees is vital to our success.", "prior_title": "The ability to attract, retain and motivate key employees is vital to our success.", "current_body": "Our success depends in large part on our ability to attract, retain and motivate qualified employees and leaders with the necessary expertise and capabilities, representing diverse backgrounds and experiences. Achieving this objective may be difficult due to many factors, including fluctuations in global economic and industry conditions, management or organizational changes, ongoing competition for talent, the availability of qualified employees, the ability to obtain necessary authorizations for workers to provide services outside their home countries, challenges in hiring and integrating workers in different countries, the attractiveness of our compensation and benefit programs, our career growth and development opportunities and our employment policies. If we are unable to attract, retain and motivate qualified employees and leaders, we may be unable to fully capitalize on current and new market opportunities, which could adversely impact our business and results of operations. The loss of knowledgeable and experienced employees may result in unexpected costs, reduced productivity or difficulties with respect to internal processes and controls." }, { "status": "UNCHANGED", "current_title": "REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM", "prior_title": "REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM", "current_body": "To the Stockholders and Board of Directors Applied Materials, Inc.: Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting We have audited the accompanying consolidated balance sheets of Applied Materials, Inc. and subsidiaries (the Company) as of October 26, 2025 and October 27, 2024, the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended October 26, 2025, and the related notes (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of October 26, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of October 26, 2025 and October 27, 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended October 26, 2025, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of October 26, 2025 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 45 45 45 Table of Contents Table of Contents Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Evaluation of sufficiency of audit evidence over revenue As discussed in Notes 1 and 15 to the consolidated financial statements, the Company recorded $28,368 million in net revenue, for the year ended October 26, 2025. The Company generates revenue by providing manufacturing equipment, services and software to customers in the semiconductor, display and related industries. The Company’s process to account for and recognize revenue differs across revenue streams. We identified the evaluation of the sufficiency of audit evidence obtained over net revenue as a critical audit matter. Evaluating the sufficiency of audit evidence required subjective auditor judgment due to the number of revenue streams and separate processes to account for and recognize revenue. This included determining the nature and extent of audit evidence obtained over each revenue stream. The following are the primary procedures we performed to address this critical audit matter. We applied auditor judgment to determine the revenue streams over which procedures were performed as well as the nature and extent of such procedures. For revenue streams where procedures were performed, we: •evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s revenue recognition processes, including the Company’s controls over the accurate recording of revenue. •evaluated the Company’s revenue recognition accounting policies. •evaluated, for a sample of revenue transactions, (1) the accounting for consistency with the Company’s accounting policies, as applicable, including timing of revenue recognition, and (2) the recorded amounts by comparing them for consistency to underlying documentation, including the customer contracts. In addition, we evaluated the sufficiency of audit evidence obtained by assessing the results of the procedures performed, including the appropriateness of the nature and extent of audit effort over revenue /S/ KPMG LLPKPMG LLP /S/ KPMG LLP We have served as the Company’s auditor since 2004. Santa Clara, California December 12, 2025 46 46 46 Table of Contents Table of Contents" }, { "status": "UNCHANGED", "current_title": "We are exposed to risks associated with expanding into new and related markets and industries.", "prior_title": "We are exposed to risks associated with expanding into new and related markets and industries.", "current_body": "As part of our growth strategy, we seek to continue to expand into related or new markets and industries, either with our existing products or with new products developed internally, or those developed in collaboration with third parties, or obtained through acquisitions. Our ability to successfully expand our business into new and related markets and industries may be adversely affected by a number of factors, including: •the need to devote additional resources to develop new products for, and operate in, new markets; •the need to develop new sales and technical marketing strategies and to develop relationships with new customers; •differing rates of profitability and growth among multiple businesses; •our ability to anticipate demand, capitalize on opportunities and avoid or minimize risks; •the complexity of managing multiple businesses with variations in production planning, execution, supply chain management and logistics; •the adoption of new business models, business processes and systems; •the complexity of entering into and effectively managing strategic alliances or partnering opportunities; •the need to attract, motivate and retain employees with skills and expertise in these new areas; •new and more diverse customers and suppliers, including some with limited operating histories, uncertain or limited funding, evolving business models or locations in regions where we do not have, or have limited, operations; •new or different competitors with potentially more financial or other resources, industry experience and established customer relationships; •entry into new industries and countries, with differing levels of government involvement, laws and regulations, and business, employment and safety practices and requirements; •third parties’ intellectual property rights; and •the need to comply with, or work to establish, industry standards and practices." }, { "status": "UNCHANGED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "UNCHANGED", "current_title": "We are exposed to risks associated with business combinations, acquisitions, strategic investments and divestitures.", "prior_title": "We are exposed to risks associated with business combinations, acquisitions, strategic investments and divestitures.", "current_body": "We may engage in acquisitions of or investments in companies, technologies or products in existing, related or new markets. Business combinations, acquisitions and investments involve numerous risks to our business, financial condition and operating results, including: •inability to complete proposed transactions timely or at all due to the failure to obtain regulatory or other approvals, including through expanding global national security regimes that impose prohibitions on foreign investments in or acquisitions of local businesses; litigation or other disputes, and any ensuing obligation to pay a termination fee; •diversion of management’s attention and disruption of ongoing businesses; •the failure to realize expected revenues, gross and operating margins, net income and other returns from acquired businesses; •requirements imposed by government regulators in connection with their review of a transaction, including post-closing investigations of non-notified transactions, which may include, among other things, divestitures and restrictions on the conduct of our existing business or the acquired business; •following completion of acquisitions, ineffective integration of businesses, operations, systems, digital and physical security, technologies, products, employees, compliance programs, changes in laws or regulations, including tax laws, or other factors, may impact the ability to realize anticipated synergies or other benefits; •failure to commercialize technologies from acquired businesses or developed through strategic investments; •dependence on unfamiliar supply chains or relatively small supply partners; •inability to capitalize on characteristics of new markets that may be significantly different from our existing markets and where competitors may have stronger market positions and customer relationships; •failure to retain and motivate key employees of acquired businesses; •the impact of the announcement or consummation of a proposed transaction on relationships with third parties; •changes in our credit rating, which could adversely impact our access to and cost of capital; •increases in debt obligations to finance activities associated with a transaction, which increase interest expense, and reductions in cash balances, which reduce the availability of cash flow for general corporate or other purposes, including share repurchases and dividends; •exposure to new operational risks, rules, regulations, worker expectations, customs and practices to the extent acquired businesses are located in regions where we have not historically conducted business; •challenges associated with managing new, more diverse and more widespread operations, projects and people; •inability to obtain and protect intellectual property rights in key technologies; •inadequacy or ineffectiveness of an acquired company’s internal financial controls, disclosure controls and procedures, cybersecurity, privacy policies and compliance programs, trade control processes or programs, or environmental, health and safety, anti-corruption, human resource or other policies or practices; •impairment of acquired intangible assets and goodwill as a result of changing business conditions, technological advancements or worse-than-expected performance of the segment; •the risk of litigation, government enforcement actions or claims associated with a proposed or completed transaction; •unknown, underestimated, undisclosed or undetected commitments or liabilities, including potential intellectual property infringement claims, or non-compliance with laws, regulations or policies; and •the inappropriate scale of acquired entities’ critical resources or facilities for business needs. We make investments in other companies, including companies formed as joint ventures, which may decline in value or not meet desired objectives. The success of these investments depends on various factors over which we may have limited or no control and, particularly with respect to joint ventures, requires ongoing and effective cooperation with partners. In addition, new legislation, additional regulations or global economic or political conditions may affect or impair our ability to invest in certain countries or require us to obtain regulatory approvals to do so. We may not receive the necessary regulatory approvals, or the approvals may come with significant conditions or obligations. The risks to our investment portfolio may be exacerbated by unfavorable financial market and macroeconomic conditions, and as a result, the value of the investment portfolio could be negatively impacted and lead to impairment charges. We may seek to divest portions of our business that are not deemed to fit with our strategic plan. Divestitures involve additional risks and uncertainties, such as our ability to sell these businesses at a price and on terms that are satisfactory and in a 19 19 19 Table of Contents Table of Contents timely manner or at all, disruption to other parts of the businesses and distraction of management, allocation of internal resources that would otherwise be devoted to completing strategic acquisitions or other strategic projects or initiatives, loss of key employees or customers, loss of access by retained business units to critical intellectual property or other assets transferred with the divested business, exposure to unanticipated liabilities or ongoing obligations to support the businesses following these divestitures and other adverse financial impacts." }, { "status": "UNCHANGED", "current_title": "We are subject to risks associated with environmental, health and safety regulations.", "prior_title": "We are subject to risks associated with environmental, health and safety regulations.", "current_body": "We are subject to environmental, health and safety regulations in connection with our global business operations, including but not limited to: regulations related to the design, manufacture, sale, shipping, import, export and use of our products; use, handling, discharge, recycling, transportation and disposal of hazardous materials used in our products or in producing our products; the operation of our facilities; and the use of our real property, including in connection with construction of our infrastructure projects. The failure or inability to comply with existing or future environmental, health and safety regulations could result in: significant remediation or other legal liabilities; the imposition of penalties and fines; restrictions on the development, manufacture, sale, shipping, import, export or use of certain of our products; limitations on the operation of our facilities or ability to use our real property; and a decrease in the value of our real property. We could be required to alter our product design, manufacturing and operations and incur substantial expense to comply with environmental, health and safety regulations, including reporting requirements. Any failure to comply with these regulations could subject us to significant costs and liabilities that could materially and adversely affect our business, financial condition and results of operations. 22 22 22 Table of Contents Table of Contents Item 1B: Unresolved Staff Comments None. Item 1C: Cybersecurity" }, { "status": "UNCHANGED", "current_title": "Implementation and reporting on our sustainability strategies and targets could result in additional costs, and our inability to achieve them could have an adverse impact on our reputation and performance.", "prior_title": "Implementation and reporting on our sustainability strategies and targets could result in additional costs, and our inability to achieve them could have an adverse impact on our reputation and performance.", "current_body": "We periodically communicate our strategies and targets related to sustainability matters. These strategies and targets, and their underlying assumptions, reflect our current plans and aspirations, and we may be unable to achieve them. Changing customer and shareholder sustainability expectations, including increasing customer demand for sustainable products, and regulatory requirements, as well as actions taken to achieve our sustainability targets, could cause us to incur substantial expense and alter our manufacturing, operations or equipment designs and processes. Any failure or perceived failure to timely meet these sustainability requirements, expectations or targets, or a failure to realize the anticipated benefits of planned investments and technology innovations related to sustainability, could adversely impact the demand for our products and subject us to significant costs and liabilities and reputational risks that could in turn adversely affect our business, financial condition and results of operations. In addition, standards and processes for measuring and reporting greenhouse gas emissions and other sustainability metrics may change over time and may result in inconsistent data, increase our costs, result in significant revisions to our strategies and targets or impact our ability to achieve them. We also are or may become subject to new climate and sustainability laws and regulations, such as the State of California’s climate change disclosure rules, the European Union’s Corporate Sustainability Reporting Directive and International Sustainability Standards Board standards. Compliance with such laws and regulations, as well as increased scrutiny from regulators, customers and other stakeholders on our sustainability practices, could result in additional costs and expose us to new risks. Any scrutiny of our greenhouse gas emissions or other sustainability disclosures, our failure to achieve related strategies and targets, or our failure to disclose our sustainability measures consistent with applicable laws and regulations or to the satisfaction of regulators or our stakeholders could negatively impact our reputation or performance." }, { "status": "UNCHANGED", "current_title": "Risk Management and Strategy", "prior_title": "Risk Management and Strategy", "current_body": "We have implemented processes for assessing, identifying and managing material risks from cybersecurity threats as part of our cybersecurity risk management program. This program includes processes for continuous cybersecurity risk and advanced persistent cybersecurity threat monitoring; cybersecurity attack, vulnerability and cloud security management; and penetration testing. Our cybersecurity risk management program includes a cybersecurity incident response plan and escalation protocols; cybersecurity and data protection policies and training to our employees; a supply chain cybersecurity program to increase awareness, assess supplier security controls, help improve supplier security controls and manage security incidents; a program to protect company, customer and supplier intellectual property by operationalizing strategy, policy and awareness; a privacy and data protection program to keep pace with rapidly evolving global data laws and regulations as well as emerging technologies; engagement of third-party auditors to help assure the effectiveness of internal controls, including cybersecurity controls; and partnership with industry groups, government agencies and third-party experts in an effort to continuously improve our cybersecurity risk management program. We conduct assessments based on the National Institute of Standards and Technology Cybersecurity (NIST) Framework to evaluate our program, and we engage third-parties for assistance and to independently assess, proactively monitor and provide an external view of our cybersecurity program. We conduct risk assessments and tabletop exercises to evaluate the effectiveness of our systems and processes in addressing cybersecurity threats, including threats associated with our use of third-party service providers, and to identify areas for improvements. Our cybersecurity risk management program is integrated with our enterprise risk management (ERM) program, and information about cybersecurity risks and our cybersecurity risk management program is reviewed as part of our ERM program, sharing common risk governance and reporting processes that apply across our ERM program. While we are not aware of having directly experienced a cybersecurity incident that has materially impacted our business, financial condition or results of operations, we face risks from cybersecurity threats that, if realized, could reasonably likely materially affect us, our business strategy, results of operations, or financial condition. See “Risk Factors - Operational and Financial Risks – We are exposed to cybersecurity threats and incidents” for additional information about cybersecurity related risks. Governance Our Board of Directors is responsible for overseeing the assessment of major risks facing us, and its Audit Committee oversees our ERM program, including oversight of cybersecurity risks and of our cybersecurity risk management program. The Audit Committee receives quarterly reports from management on our cybersecurity risks and cybersecurity risk management program, and our management regularly updates the Chair of the Audit Committee regarding cybersecurity incidents where appropriate in accordance with our cybersecurity incident response plan and escalation protocols. The Audit Committee reports to the full Board regarding its activities, including those related to cybersecurity, and management reports to the full Board on our cybersecurity risks and cybersecurity risk management program at least annually. Our management has day-to-day responsibility for assessing and managing material risks from cybersecurity threats, including implementing risk mitigation plans, processes and controls, and managing our cybersecurity risk management program. Our Chief Information Security Officer (CISO), who has extensive experience in cybersecurity and information security management, is primarily responsible for managing our cybersecurity risk management program, cybersecurity incident response plan and escalation protocols, and reports at least quarterly to the Audit Committee and at least annually to the full Board on our cybersecurity, data and intellectual property security programs, policies, risks and controls. The CISO reports to our Chief Information Officer, who is responsible for administering secure and scalable security infrastructure and reports to our Chief Digital Officer, each of whom has extensive experience in information technology. Our management team’s efforts to prevent, detect, mitigate and remediate cybersecurity risks and incidents are informed by reviews with our information technology security teams, receipt of threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, periodic assessments against the NIST Framework and through alerts and reports produced by security tools deployed in our information technology environment. 23 23 23 Table of Contents Table of Contents Item 2: Properties We own and lease facilities throughout the world for use as offices, manufacturing facilities, warehouses, and research and development centers, primarily in the United States, Singapore, Taiwan, Israel, China, and India. As of October 26, 2025, we owned and leased approximately 9.1 million square feet and 5.3 million square feet of space, respectively. Our headquarters are in Santa Clara, California. Our products are manufactured primarily in the United States, Singapore, Taiwan and Israel. Because of the interrelation of our operations, properties within a country may be shared by the segments operating within that country. We also own a total of approximately 279 acres of buildable land primarily in the United States that could accommodate additional facilities. We consider the properties that we own or lease as adequate to meet our current and future requirements. We regularly assess the size, capability and location of our global infrastructure and periodically make adjustments based on these assessments. 24 24 24 Table of Contents Table of Contents Item 3: Legal Proceedings The information set forth under “Legal Matters” in Note 14 of Notes to Consolidated Financial Statements is incorporated herein by reference. See also “Risk Factors – Legal, Compliance and Other Risks – We are exposed to risks related to legal proceedings, claims and investigations.” Item 4: Mine Safety Disclosures None. 25 25 25 Table of Contents Table of Contents PART II Item 5: Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities" }, { "status": "UNCHANGED", "current_title": "Summary of Significant Accounting Policies", "prior_title": "Summary of Significant Accounting Policies", "current_body": "Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Applied Materials, Inc. and its subsidiaries (we, us, and our) after elimination of intercompany balances and transactions. All references to a fiscal year apply to our fiscal year which ends on the last Sunday in October. Fiscal 2025, 2024 and 2023 each contained 52 weeks. Each fiscal quarter of 2025, 2024 and 2023 contained 13 weeks. Certain prior-year amounts have been reclassified to conform to current-year presentation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate our estimates, including those related to standalone selling price (SSP) related to revenue recognition, accounts receivable and sales allowances, fair values of financial instruments, inventories, intangible assets and goodwill, useful lives of intangible assets and property, plant and equipment, fair values of share-based awards, warranty, and income taxes, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Cash Equivalents All highly liquid investments with a remaining maturity of three months or less at the time of purchase are classified as cash equivalents. Cash equivalents consist primarily of investments in institutional money market funds, treasury bills and investment grade commercial paper. Investments All of our investments, except equity investments, are classified as available-for-sale at the respective balance sheet dates. Investments classified as available-for-sale are measured and recorded in the Consolidated Balance Sheets at fair value, and unrealized gains and losses, net of tax, are reported as a separate component of other comprehensive income. Interest earned on cash and investments, as well as realized gains and losses on sale of securities, are included in interest and other income, net in the Consolidated Statements of Operations. Our equity investments with readily determinable values consist of publicly traded equity securities. These investments are measured at fair value using quoted prices for identical assets in an active market. Privately held equity investments without readily determinable fair value are measured at cost, less impairment, adjusted by observable price changes. Adjustments resulting from impairments and observable price changes are recorded in interest and other income, net in the Consolidated Statements of Operations. Investments with remaining effective maturities of 12 months or less from the balance sheet date are classified as short-term investments. Investments with remaining effective maturities of more than 12 months from the balance sheet date are classified as long-term investments. Fair Value Measurements Our financial assets are measured and recorded at fair value on a recurring basis, except for equity investments in privately held companies. These equity investments are generally accounted for under the measurement alternative, defined as cost, less impairments, adjusted for subsequent observable price changes and are periodically assessed for impairment when events or circumstances indicate that a decline in value may have occurred. Our nonfinancial assets, such as goodwill, intangible assets, and property, plant and equipment, are recorded at cost and are assessed for impairment at least annually for goodwill, or whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. We use the following hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: •Level 1 — Quoted prices in active markets for identical assets or liabilities; 53 53 53 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "UNCHANGED", "current_title": "INDEX TO EXHIBITS", "prior_title": "INDEX TO EXHIBITS", "current_body": "These Exhibits are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K: Incorporated by ReferenceExhibit No.DescriptionFormFile No.Exhibit No.Filing Date3.1Amended and Restated Certificate of Incorporation of Applied Materials, Inc., as amended and restated through March 16, 20208-K000-069203.13/16/20203.2Amended and Restated Bylaws of Applied Materials, Inc., as amended and restated through December 8, 20238-K000-069203.212/13/20234.1Indenture, dated June 8, 2011, by and between Applied Materials, Inc. and U.S. Bank National Association, as Trustee8-K000-069204.16/10/20114.2First Supplemental Indenture, dated June 8, 2011, by and between Applied Materials, Inc. and U.S. Bank National Association, as Trustee8-K000-069204.26/10/20114.3Second Supplemental Indenture, dated September 24, 2015, by and between Applied Materials, Inc. and U.S. Bank National Association, as Trustee8-K000-069204.19/24/20154.4Third Supplemental Indenture, dated March 31, 2017, by and between Applied Materials, Inc. and U.S. Bank National Association, as Trustee8-K000-069204.13/31/20174.5Fourth Supplemental Indenture dated May 29, 2020, by and between Applied Materials, Inc. and U.S. Bank National Association8-K000-069204.15/29/20204.6Description of Registrant’s Securities Registered Under Section 12 of the Securities Exchange Act of 193410-K000-069204.612/15/20234.7Indenture, dated as of June 11, 2024, by and between Applied Materials, Inc. and The Bank of New York Mellon Trust Company, N.A.8-K000-069204.16/11/20244.8Supplemental Indenture, dated as of June 11, 2024, by and between Applied Materials, Inc. and The Bank of New York Mellon Trust Company, N.A.8-K000-069204.26/11/20244.9Second Supplemental Indenture, dated as of September 18, 2025, by and between Applied Materials, Inc. and The Bank of New York Mellon Trust Company, N.A8-K000-069204.19/19/202510.1Form of Indemnification Agreement between Applied Materials, Inc. and Directors and certain officers10-Q000-0692010.15/23/202410.2Applied Materials, Inc. Profit Sharing Scheme (Ireland)S-8333-450114.11/27/199810.3*Applied Materials Inc. Employee Financial Assistance Plan, amended and restated as of December 18, 200810-Q000-0692010.583/3/200910.4Deed of Amendment to Applied Materials Profit Sharing Scheme, dated February 7, 2006, to amend Clause 20 of the Trust Deed thereunder10-K000-0692010.4812/12/200810.5Deed of Amendment to Applied Materials Profit Sharing Scheme, dated February 7, 2006, to amend the definition of Eligible Employee in the First Schedule to the Trust Deed thereunder.10-K000-0692010.4912/12/200810.6*Form of Restricted Stock Unit Agreement for use under the amended and restated Applied Materials, Inc. Employee Stock Incentive Plan10-Q000-0692010.35/27/202110.7*Form of Restricted Stock Unit Agreement for Nonemployee Directors for use under the amended and restated Applied Materials, Inc. Employee Stock Incentive Plan10-Q000-0692010.45/27/202110.8*Form of Restricted Stock Agreement for use under the amended and restated Applied Materials, Inc. Employee Stock Incentive Plan10-Q000-0692010.38/23/2012 Amended and Restated Certificate of Incorporation of Applied Materials, Inc., as amended and restated through March 16, 2020 Amended and Restated Bylaws of Applied Materials, Inc., as amended and restated through December 8, 2023 Indenture, dated June 8, 2011, by and between Applied Materials, Inc. and U.S. Bank National Association, as Trustee First Supplemental Indenture, dated June 8, 2011, by and between Applied Materials, Inc. and U.S. Bank National Association, as Trustee Second Supplemental Indenture, dated September 24, 2015, by and between Applied Materials, Inc. and U.S. Bank National Association, as Trustee Third Supplemental Indenture, dated March 31, 2017, by and between Applied Materials, Inc. and U.S. Bank National Association, as Trustee Fourth Supplemental Indenture dated May 29, 2020, by and between Applied Materials, Inc. and U.S. Bank National Association Description of Registrant’s Securities Registered Under Section 12 of the Securities Exchange Act of 1934 Indenture, dated as of June 11, 2024, by and between Applied Materials, Inc. and The Bank of New York Mellon Trust Company, N.A. Supplemental Indenture, dated as of June 11, 2024, by and between Applied Materials, Inc. and The Bank of New York Mellon Trust Company, N.A. Second Supplemental Indenture, dated as of September 18, 2025, by and between Applied Materials, Inc. and The Bank of New York Mellon Trust Company, N.A Form of Indemnification Agreement between Applied Materials, Inc. and Directors and certain officers Applied Materials, Inc. Profit Sharing Scheme (Ireland) 10.3* Applied Materials Inc. Employee Financial Assistance Plan, amended and restated as of December 18, 2008 Deed of Amendment to Applied Materials Profit Sharing Scheme, dated February 7, 2006, to amend Clause 20 of the Trust Deed thereunder Deed of Amendment to Applied Materials Profit Sharing Scheme, dated February 7, 2006, to amend the definition of Eligible Employee in the First Schedule to the Trust Deed thereunder. 10.6* Form of Restricted Stock Unit Agreement for use under the amended and restated Applied Materials, Inc. Employee Stock Incentive Plan 10.7* Form of Restricted Stock Unit Agreement for Nonemployee Directors for use under the amended and restated Applied Materials, Inc. Employee Stock Incentive Plan 10.8* Form of Restricted Stock Agreement for use under the amended and restated Applied Materials, Inc. Employee Stock Incentive Plan 84 84 84 Table of Contents Table of Contents Incorporated by ReferenceExhibit No.DescriptionFormFile No.Exhibit No.Filing Date10.9*Applied Materials, Inc. Omnibus Employees’ Stock Purchase Plan, effective September 1, 20218-K000-0692010.23/16/202110.10*Offer Letter, dated August 14, 2013, between Applied Materials, Inc. and Gary E. Dickerson10-Q000-0692010.28/22/201310.11*Form of Non-Qualified Stock Option Agreement for Employees for use under the Applied Materials, Inc. Employee Stock Incentive Plan, as amended10-Q000-0692010.48/22/201310.12*Form of Performance Unit Agreement for use under the Applied Materials, Inc. Employee Stock Incentive Plan, as amended10-Q000-0692010.22/20/201410.13*Applied Materials, Inc. Applied Incentive Plan, amended and restated effective September 7, 202310-K000-0692010.1312/15/202310.14*Applied Materials, Inc. 2016 Deferred Compensation Plan, as amended and restated on January 1, 202110-K000-0692010.1512/16/202210.15*Applied Materials, Inc. Employee Stock Incentive Plan, as amended and restated effective March 11, 20218-K000-0692010.13/16/202110.16*Applied Materials, Inc. Senior Executive Bonus Plan, as amended and restated effective September 8, 202310-K000-0692010.1612/15/202310.17*Form of Performance Share Unit Agreement for members of the Executive Staff for use under the amended and restated Applied Materials, Inc. Employee Stock Incentive Plan10-K000-0692010.1712/15/202310.18*Form of Restricted Stock Unit Agreement for members of the Executive Staff for use under the amended and restated Applied Materials, Inc. Employee Stock Incentive Plan10-K000-0692010.1812/15/202310.19*Offer Letter, dated February 26, 2022, between Applied Materials, Inc. and Brice Hill10-Q000-0692010.15/26/202210.20Credit Agreement, dated as of February 24, 2025, among Applied Materials, Inc., Bank of America, N.A., as administrative agent, and the other lenders named therein8-K000-0692010.12/27/202510.21Credit Agreement, dated as of September 25, 2025, among Applied Materials, Inc., Bank of America, N.A., as administrative agent, and the other lenders named therein8-K000-0692010.19/26/202510.22Deed of Amendment, dated December 19, 2023, to the Trust Deed Constituting the Applied Materials Profit Sharing Scheme10-Q000-0692010.12/27/202419.1Insider Trading Policy10-K000-0692019.112/13/202421Subsidiaries of Applied Materials, Inc.†23Consent of Independent Registered Public Accounting Firm, KPMG LLP†24Power of Attorney (included on the signature page of this Annual Report on Form 10-K)†31.1Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002†31.2Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002†32.1Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002‡32.2Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002‡97.1Applied Materials, Inc. Compensation Recovery Policy, adopted on September 7, 202310-K000-0692097.112/15/2023101.INSXBRL Instance Document‡101.SCHXBRL Taxonomy Extension Schema Document‡101.CALXBRL Taxonomy Extension Calculation Linkbase Document‡ 10.9* Applied Materials, Inc. Omnibus Employees’ Stock Purchase Plan, effective September 1, 2021 10.10* Offer Letter, dated August 14, 2013, between Applied Materials, Inc. and Gary E. Dickerson 10.11* Form of Non-Qualified Stock Option Agreement for Employees for use under the Applied Materials, Inc. Employee Stock Incentive Plan, as amended 10.12* Form of Performance Unit Agreement for use under the Applied Materials, Inc. Employee Stock Incentive Plan, as amended 10.13* Applied Materials, Inc. Applied Incentive Plan, amended and restated effective September 7, 2023 Applied Materials, Inc. 2016 Deferred Compensation Plan, as amended and restated on January 1, 2021 10.15* Applied Materials, Inc. Employee Stock Incentive Plan, as amended and restated effective March 11, 2021 10.16* Applied Materials, Inc. Senior Executive Bonus Plan, as amended and restated effective September 8, 2023 Form of Performance Share Unit Agreement for members of the Executive Staff for use under the amended and restated Applied Materials, Inc. Employee Stock Incentive Plan Form of Restricted Stock Unit Agreement for members of the Executive Staff for use under the amended and restated Applied Materials, Inc. Employee Stock Incentive Plan Offer Letter, dated February 26, 2022, between Applied Materials, Inc. and Brice Hill Credit Agreement, dated as of February 24, 2025, among Applied Materials, Inc., Bank of America, N.A., as administrative agent, and the other lenders named therein Credit Agreement, dated as of September 25, 2025, among Applied Materials, Inc., Bank of America, N.A., as administrative agent, and the other lenders named therein Deed of Amendment, dated December 19, 2023, to the Trust Deed Constituting the Applied Materials Profit Sharing Scheme Insider Trading Policy Subsidiaries of Applied Materials, Inc.† Consent of Independent Registered Public Accounting Firm, KPMG LLP† Power of Attorney (included on the signature page of this Annual Report on Form 10-K)† Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002† Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002† Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002‡ Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002‡ Applied Materials, Inc. Compensation Recovery Policy, adopted on September 7, 2023 85 85 85 Table of Contents Table of Contents Incorporated by ReferenceExhibit No.DescriptionFormFile No.Exhibit No.Filing Date101.DEFXBRL Taxonomy Extension Definition Linkbase Document‡101.LABXBRL Taxonomy Extension Label Linkbase Document‡101.PREXBRL Taxonomy Extension Presentation Linkbase Document‡104Cover Page Interactive Data File (formatted as inline XBRL) *Indicates a management contract or compensatory plan or arrangement, as required by Item 15(a)(3).†Filed herewith.‡Furnished herewith. 86 86 86 Table of Contents Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. APPLIED MATERIALS, INC.By:/s/ GARY E. DICKERSONGary E. DickersonPresident, Chief Executive Officer Dated: December 12, 2025" }, { "status": "UNCHANGED", "current_title": "We are exposed to risks related to legal proceedings, claims and investigations.", "prior_title": "We are exposed to risks related to legal proceedings, claims and investigations.", "current_body": "From time to time we are, and in the future may be, involved in legal proceedings or claims regarding patent infringement, trade secret misappropriation, other intellectual property rights, trade compliance, including import, export and customs, antitrust, anti-corruption, compliance with government contracting requirements, environmental regulations, cybersecurity, privacy, data protection, securities, contracts, product performance, product liability, unfair competition, employment, workplace safety and other matters. We may receive, and have received, inquiries, warrants, subpoenas, and other requests for information in connection with government investigations of potential or suspected violations of law or regulations by our company or our employees. For example, we have received subpoenas from government authorities requesting 21 21 21 Table of Contents Table of Contents information relating to China customer shipments, export controls compliance, certain federal award applications and information submitted to the federal government. We also on occasion receive notifications from customers who believe we owe them indemnification, product warranty or have other obligations related to claims made against such customers by third parties. Legal proceedings, claims and government investigations, whether with or without merit, and internal investigations, may be time-consuming and expensive to prosecute, defend or conduct; divert management’s attention and our other resources; constrain our ability to sell our products and services; result in adverse judgments for damages, injunctive relief, penalties and fines; and negatively affect our business. We cannot predict the outcome of current or future legal proceedings, claims or investigations." }, { "status": "UNCHANGED", "current_title": "Foreign Currency Risk", "prior_title": "Foreign Currency Risk", "current_body": "Certain of our operations are conducted in foreign currencies, such as Japanese yen, Israeli shekel, euro and Taiwanese dollar. Hedges are used to reduce, but not eliminate, the impact of foreign currency exchange rate movements on the consolidated balance sheet, statement of operations, and statement of cash flows. A hypothetical 10% adverse change in foreign currency exchange rates relative to the U.S. Dollar would result in a decrease in the fair value of these hedging contracts of $177 million at October 26, 2025. We use primarily foreign currency forward contracts to offset the impact of foreign exchange movements on non-U.S. dollar denominated monetary assets and liabilities. The foreign exchange gains and losses on the assets and liabilities are recorded in interest and other income (expense), net and are offset by the gains and losses on the hedges. We use foreign currency forward and option contracts to hedge a portion of anticipated non-U.S. dollar denominated revenues and expenses expected to occur within the next 24 months. Gains and losses on these hedging contracts generally mitigate the effect of currency movements on our net revenue, cost of products sold, and operating expenses. We do not use foreign currency forward or option contracts for trading or speculative purposes. Item 8: Financial Statements and Supplementary Data The consolidated financial statements required by this Item are set forth on the pages indicated at Item 15(a). Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. 39 39 39 Table of Contents Table of Contents Item 9A: Controls and Procedures" }, { "status": "UNCHANGED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "UNCHANGED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "UNCHANGED", "current_title": "Inherent Limitations of Disclosure Controls and Procedures and Internal Control over Financial Reporting", "prior_title": "Inherent Limitations of Disclosure Controls and Procedures and Internal Control over Financial Reporting", "current_body": "It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system will be met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Item 9B: Other Information During the three months ended October 26, 2025, no director or officer, as defined in Rule 16a-1(f), adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Regulation S-K Item 408. Item 9C: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable. 40 40 40 Table of Contents Table of Contents PART III Item 10: Directors, Executive Officers and Corporate Governance Except for the information regarding executive officers required by Item 401 of Regulation S-K (which is included in Part I, Item 1 of this Annual Report on Form 10-K, under “Information about our Executive Officers”), and code of ethics and insider trading policy (which are set forth below), the information required by this item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 23, 2026. We have implemented the Standards of Business Conduct, a code of ethics with which every person who works for us and every member of the Board of Directors is expected to comply. If any substantive amendments are made to the Standards of Business Conduct or any waiver is granted, including any implicit waiver, from a provision of the code to our Chief Executive Officer, Chief Financial Officer or Chief Accounting Officer, we will disclose the nature of such amendment or waiver on our website or in a report on Form 8-K. The above information, including the Standards of Business Conduct, is available on our website under the Governance Documents section at https://www.appliedmaterials.com/us/en/about/corporate-governance.html. This website address is intended to be an inactive, textual reference only. None of the materials on, or accessible through, this website is part of this report or is incorporated by reference herein. We have adopted an Insider Trading Policy governing the purchase, sale, and other dispositions of our securities by our directors, officers, employees and other individuals associated with us that we believe is reasonably designed to promote compliance with insider trading laws, rules and regulations, and listing standards applicable to us. A copy of our Insider Trading Policy is filed as Exhibit 19.1 to this Annual Report on Form 10-K. Item 11: Executive Compensation The information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 23, 2026. 41 41 41 Table of Contents Table of Contents Item 12: Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Except for the information regarding securities authorized for issuance under equity compensation plans (which is set forth below), the information required by this Item will be provided in accordance with Instruction G(3) to Form 10-K no later than February 23, 2026. The following table summarizes information with respect to equity awards under our equity compensation plans as of October 26, 2025:" }, { "status": "UNCHANGED", "current_title": "Note 12 Employee Benefit Plans", "prior_title": "Note 11 Employee Benefit Plans", "current_body": "Employee Bonus Plans We have various employee bonus plans. A discretionary bonus plan provides for the distribution of a percentage of pre-tax income to our employees who are not participants in other performance-based incentive plans, up to a maximum percentage of eligible compensation. Other plans provide for bonuses to our executives and other key contributors based on the achievement of profitability and/or other specified performance criteria. Charges under these plans for fiscal 2025, 2024 and 2023 were $785 million, $837 million and $702 million, respectively. Defined Benefit Pension Plans of Foreign Subsidiaries and Other Postretirement Benefits Several of our foreign subsidiaries have defined benefit pension plans covering substantially all of their eligible employees. Benefits under these plans are typically based on years of service and final average compensation levels. The plans are managed in accordance with applicable local statutes and practices. We deposit funds for certain of these plans with insurance companies, pension trustees, government-managed accounts, and/or accrue the expense for the unfunded portion of the benefit obligation on our Consolidated Financial Statements. Our practice is to fund the various pension plans in amounts sufficient to meet the minimum requirements as established by applicable local governmental oversight and taxing authorities. Depending on the design of the plan, local custom and market circumstances, the liabilities of a plan may exceed the qualified plan assets. The differences between the aggregate projected benefit obligations and aggregate plan assets of these plans have been recorded as liabilities by us and are included in other liabilities and accrued expenses in the Consolidated Balance Sheets. The net funded status and periodic benefit cost were not material for fiscal 2025, 2024 and 2023. Our investment strategy for our defined benefit plans is to invest plan assets in a prudent manner, maintaining well-diversified portfolios with the long-term objective of meeting the obligations of the plans as they come due. Asset allocation decisions are typically made by plan fiduciaries with input from our international pension committee. Our asset allocation strategy incorporates a sufficient equity exposure in order for the plans to benefit from the expected better long-term performance of equities relative to the plans’ liabilities. We retain investment managers, where appropriate, to manage the assets of the plans. Performance of investment managers is monitored by plan fiduciaries with the assistance of local investment consultants. The investment managers make investment decisions within the guidelines set forth by plan fiduciaries. Risk management practices include diversification across asset classes and investment styles and periodic rebalancing toward target asset allocation ranges. Investment managers may use derivative instruments for efficient portfolio management purposes. Asset return assumptions are derived based on actuarial and statistical methodologies, from analysis of long-term historical data relevant to the country in which each plan is in effect and the investments applicable to the corresponding plan. The discount rate for each plan was derived by reference to appropriate benchmark yields on high quality corporate bonds, allowing for the approximate duration of both plan obligations and the relevant benchmark yields. 75 75 75 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "UNCHANGED", "current_title": "Note 5 Derivative Instruments and Hedging Activities", "prior_title": "Note 5 Derivative Instruments and Hedging Activities", "current_body": "Derivative Financial Instruments We conduct business in a number of foreign countries, with certain transactions denominated in local currencies, such as the Japanese yen, Israeli shekel, euro and Taiwanese dollar. We use derivative financial instruments, such as foreign currency forward and option contracts, to hedge certain forecasted foreign currency denominated transactions expected to occur typically within the next 24 months. The purpose of our foreign currency management is to mitigate the effect of exchange rate fluctuations on certain foreign currency denominated revenues, costs and eventual cash flows. The terms of currency instruments used for hedging purposes are generally consistent with the timing of the transactions being hedged. We do not use derivative financial instruments for trading or speculative purposes. Derivative instruments and hedging activities, including foreign exchange and interest rate contracts, are recognized on the balance sheet at fair value. Changes in the fair value of derivatives that do not qualify for hedge accounting treatment are recognized currently in earnings. All of our derivative financial instruments are recorded at their fair value in other current assets or in accounts payable and accrued expenses. Hedges related to anticipated transactions are designated and documented at the inception of the hedge as cash flow hedges and foreign exchange derivatives are typically entered into once per month. Cash flow hedges are evaluated for effectiveness quarterly. The effective portion of the gain or loss on these hedges is reported as a component of AOCI in stockholders’ equity and is reclassified into earnings when the hedged transaction affects earnings. The majority of the after-tax net income or loss related to foreign exchange derivative instruments included in AOCI at October 26, 2025 is expected to be reclassified into earnings within 12 months. Changes in fair value caused by changes in time value of option contracts designated as cash flow hedges are excluded from the assessment of effectiveness. The initial value of this excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in the financial statement line item to which the hedge relates. If the transaction being hedged is probable not to occur, we recognize the gain or loss on the associated financial instrument in the consolidated statement of operations. The amount recognized due to discontinuance of cash flow hedges that were probable of not occurring by the end of the originally specified time period was not material for fiscal years 2025, 2024 or 2023. Foreign currency forward contracts are generally used to hedge certain foreign currency denominated assets or liabilities. Accordingly, changes in the fair value of these hedges are recorded in earnings to offset the changes in the fair value of the assets or liabilities being hedged. As of October 26, 2025 and October 27, 2024, the total outstanding notional amount of foreign exchange contracts was $2.3 billion and $2.0 billion, respectively. The fair values of foreign exchange derivative instruments at October 26, 2025 and October 27, 2024 were not material. The gain (loss) on derivatives in cash flow hedging relationships recognized in AOCI for derivatives designated as hedging instruments were not material for fiscal year 2025, 2024 and 2023. The effects of derivative instruments, both those designated as cash flow hedges and those that are not designated, on the Consolidated Statements of Operations were not material for fiscal 2025, 2024 and 2023. Credit Risk Contingent Features If our credit rating were to fall below investment grade, we would be in violation of credit risk contingent provisions of the derivative instruments discussed above, and certain counterparties to the derivative instruments could request immediate payment on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a net liability position was immaterial as of October 26, 2025 and October 27, 2024. Entering into derivative contracts with banks exposes us to credit-related losses in the event of the banks’ nonperformance. However, our exposure is not considered material." }, { "status": "UNCHANGED", "current_title": "We are exposed to risks related to protection and enforcement of intellectual property rights.", "prior_title": "We are exposed to risks related to protection and enforcement of intellectual property rights.", "current_body": "Our success depends on the protection of our technology using patents, trade secrets, copyrights and other intellectual property rights. Infringement or misappropriation of our intellectual property rights, such as the manufacture or sale of equipment or spare parts that use our technology without authorization, could result in uncompensated lost market and revenue opportunities. Detecting and preventing misuse of our intellectual property is difficult and costly, and we cannot be certain that our protective measures will be successful. Our ability to enforce our intellectual property rights is subject to litigation risks and uncertainty as to the protection and enforceability of those rights in some countries. Enforcement efforts may be subject to claims that our rights are invalid or unenforceable and may result in counterclaims against us, which could have a negative impact on our business. If we are unable to enforce and protect intellectual property rights, or if they are circumvented, rendered obsolete, invalidated by the rapid pace of technological change, or stolen or misappropriated by employees or third parties, it 17 17 17 Table of Contents Table of Contents could have an adverse impact on our competitive position and business. Changes in intellectual property laws or their interpretation may impact our ability to protect and assert our intellectual property rights, increase costs and uncertainties in the prosecution of patent applications or related enforcement actions and diminish the value and competitive advantage conferred by our intellectual property assets. From time to time third parties have asserted, and may continue to assert, intellectual property claims against us and our products. Claims that our products infringe the rights of others, whether or not meritorious, can be expensive and time-consuming to defend and resolve, and may divert the efforts and attention of management and personnel. The inability to obtain rights to use third-party intellectual property on commercially reasonable terms could have an adverse impact on our business. We may face claims based on the theft or unauthorized use or disclosure of third-party trade secrets and other confidential business information. Any of these incidents and claims could severely harm our business and reputation, result in significant expenses, harm our competitive position, and prevent us from selling certain products, all of which could have a material and adverse impact on our business and results of operations." }, { "status": "UNCHANGED", "current_title": "Purchase Obligations", "prior_title": "Purchase Obligations", "current_body": "As of October 26, 2025, we had $10.6 billion of purchase obligations for goods and services, of which $7.3 billion is payable within 12 months and the remaining amount is payable beyond 12 months." }, { "status": "UNCHANGED", "current_title": "Restricted Stock Units, Restricted Stock, Performance Share Units and Performance Units", "prior_title": "Restricted Stock Units, Restricted Stock, Performance Share Units and Performance Units", "current_body": "Restricted stock units are converted into shares of our common stock upon vesting on a one-for-one basis. Restricted stock has the same rights as other issued and outstanding shares of our common stock except these shares generally have no right to dividends and are held in escrow until the award vests. Performance share units and performance units are awards that result in a payment to a grantee, generally in shares of our common stock on a one-for-one basis, if performance goals, market goals and/or other vesting criteria are achieved or the awards otherwise vest. Restricted stock units, restricted stock, performance share units and performance units typically vest over three to four years and vesting is usually subject to the grantee’s continued service with us and, in some cases, achievement of specified performance and/or market goals. three The compensation expense related to share-based awards subject solely to time-based vesting requirements (Service-Based Awards) is determined using the market value of our common stock, adjusted to exclude the present value of expected dividends during the vesting period. The market value of our common stock is calculated using the closing price of our common stock on the date of grant, or if the grant date is not a trading date, the average of the closing prices on the trading dates immediately preceding and following the grant date. During fiscal 2025, 2024 and 2023, certain members of senior management were granted share-based awards that are subject to the achievement of certain levels of specified market and performance goals, in addition to time-based vesting requirements (Performance-Based Awards). The market goal for Performance-Based Awards granted during fiscal 2025, 2024 and 2023 is targeted levels of total shareholder return (TSR) relative to the TSR of the companies in the Standard & Poor’s 500 Index. The performance goal for Performance-Based Awards granted during fiscal 2025 is non-GAAP economic profit, and the performance goal for awards granted during fiscal 2024 and 2023 is non-GAAP operating margin. Each of the performance goal and market goal is weighted 50% and is measured over a three-year period. The number of Performance-Based Awards that may vest in full after three years ranges from 0% to 200% of the target amount. The awards become eligible to vest only if the goals are achieved and will vest only if the grantee remains employed by us through each applicable vesting date, subject to a qualifying retirement based on age and years of service. The awards provide for a partial vesting based on actual performance at the conclusion of the three-year performance period in the event of a qualifying retirement. The fair value of the portion of the Performance-Based Awards subject to targeted levels of relative TSR is estimated on the date of grant using a Monte Carlo simulation model. Compensation expense is recognized based upon the assumption of 100% achievement of the TSR goal and will not be reversed even if the threshold level of TSR is never achieved, and is reflected over the service period and reduced for estimated forfeitures. The fair value of the portion of the Performance-Based Awards subject to targeted levels of non-GAAP economic profit or non-GAAP operating margin is estimated on the date of grant based on the market value of our common stock, adjusted to exclude the present value of expected dividends during the vesting period. The market value of our common stock is calculated using the closing price of our common stock on the date of the grant or, if the grant date is not a trading date, the average of the closing prices on the trading dates immediately preceding and following the grant date. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized and any previously recognized compensation expense is reversed. The expected cost is based on the portion of the awards that is probable to vest and is reflected over the service period and reduced for estimated forfeitures. 73 73 73 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "UNCHANGED", "current_title": "Borrowing Facilities and Debt Obligations", "prior_title": "Borrowing Facilities and Debt Obligations", "current_body": "As of October 26, 2025, we had $6.5 billion in aggregate principal amount of senior unsecured notes with varying maturities, which are due beyond 12 months. Future interest payments associated with these unsecured notes were $2.9 billion, of which $246 million is due within 12 months and the remaining interest payments are due beyond 12 months. See Note 9, Borrowing Facilities and Debt, of the Notes to the Consolidated Financial Statements for further discussion related to our borrowing facilities and debt obligations." }, { "status": "UNCHANGED", "current_title": "We may incur impairment charges related to goodwill or long-lived assets.", "prior_title": "We may incur impairment charges related to goodwill or long-lived assets.", "current_body": "We have a significant amount of goodwill and other acquired intangible assets related to acquisitions. Goodwill and purchased intangible assets with indefinite useful lives are not amortized but are reviewed for impairment annually during the fourth quarter of each fiscal year and more frequently when events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The review compares the fair value for each of our reporting units to its associated carrying value, including goodwill. Factors that could lead to impairment of goodwill and intangible assets include adverse industry or economic trends, reduced estimates of future cash flows, declines in the market price of our common stock, changes in our strategies or product portfolio and restructuring activities. Our valuation methodology for assessing impairment requires management to make judgments and assumptions based on historical experience and projections of future operating performance. We have recorded charges to earnings, and may in the future be required to record charges to earnings, when impairments of goodwill or intangible assets have been determined to exist." }, { "status": "UNCHANGED", "current_title": "We are exposed to risks associated with a highly concentrated customer base.", "prior_title": "We are exposed to risks associated with a highly concentrated customer base.", "current_body": "A relatively limited number of customers account for a substantial portion of our business. As a result, the actions of even a single customer have exposed and can further expose our business and operating results to greater volatility. Our customer base is geographically concentrated, particularly in China, Taiwan and Korea, and export regulations that apply to customers in certain countries, such as those in China, have exposed and can further expose our business and operating results to greater volatility. The geographic concentration of our customer base could shift over time as a result of changes in technology and competitive landscape, as well as government policy and incentives to develop regional semiconductor industries. The mix and type of customers and sales to any single customer, including as a result of changes in government policy, have varied and may vary significantly over time and may continue to have a significant impact on our operating results. Our products are configured to customer specifications, and changing, rescheduling or canceling orders may result in significant, non-recoverable costs. If customers do not place orders, or they substantially reduce, delay or cancel orders, we may not be able to replace the business, which may have a material and adverse impact on our results of operations and financial condition. The concentration of our customer base increases our risks related to the financial condition of our customers, and the deterioration in financial condition of a single customer or the failure of a single customer to perform its obligations could have a material and adverse effect on our results of operations and cash flow. To the extent our customers experience liquidity constraints, we may incur bad debt expense, which may have a significant impact on our results of operations. Major customers may seek pricing, payment, intellectual property-related, or other commercial terms that are less favorable to us, which may have a negative impact on our business, cash flow, revenue and gross margins." }, { "status": "UNCHANGED", "current_title": "We are exposed to cybersecurity threats and incidents.", "prior_title": "We are exposed to cybersecurity threats and incidents.", "current_body": "In the conduct of our business, we collect, use, transmit, store and otherwise process data using information technology systems, including systems owned and maintained by us or our third-party providers. These data include confidential information and intellectual property belonging to us or our customers or other business partners, and personal information of individuals. All information technology systems are subject to disruptions, outages, failures and security breaches or incidents, which may be caused by a variety of internal and external factors. We and our third-party providers have experienced, and expect to continue to experience, cybersecurity incidents. Cybersecurity incidents may range from physical attacks on our computer system or network infrastructure, to employee or contractor error or misuse or unauthorized use of information technology systems or confidential information, to individual attempts to gain unauthorized access to these information systems, to sophisticated cybersecurity attacks, or advanced persistent threats, any of which may target or impact us directly or indirectly through our third-party providers and global supply chain. Threat actors may also attempt to influence employees, suppliers and other third-party providers, or customers to disclose sensitive information to gain access to our, our customers’ or business partners’ data. Cybersecurity attacks are increasing in number and the attackers are increasingly organized and well-financed, or at times supported by state actors. Geopolitical tensions or conflicts, such as Russia’s invasion of Ukraine, tension with China and conflict in the Middle East may create a heightened risk of cybersecurity attacks. The techniques used by threat actors to identify vulnerabilities and craft cybersecurity attacks change frequently and may increasingly involve the use of new technologies, including AI and quantum computing. AI and deepfake technologies could be used to attack information systems by creating more effective phishing emails or social engineering and by exploiting vulnerabilities in electronic security programs utilizing false image or voice recognition. Vulnerabilities, technical errors and other risks may be introduced through the use of AI by us, our customers, suppliers and other business partners and third-party providers, or through the use of third-party hardware and software. Advances in quantum computing have the potential to undermine current encryption standards and may allow threat actors to circumvent existing protective measures. Although we are not aware of any cybersecurity incidents impacting our information systems that have been determined to have a material impact on us to date, we continue to devote significant resources to network security, data encryption and other measures to protect our systems and data from unauthorized access or misuse, and we may be required to expend greater resources in the future. We may be unable to anticipate, prevent or remediate future incidents, and in some instances, we may be unaware of incidents or their magnitude and effects, particularly as attackers are increasingly able to circumvent controls and remove forensic evidence. Cybersecurity incidents, including incidents on third-party provider networks, may result in business disruption; delay in the development and delivery of our products; disruption of our manufacturing processes, internal communications, interactions with customers and suppliers and processing and reporting financial results; the theft or misappropriation of intellectual property; corruption, loss of, or inability to access (e.g., through ransomware or denial of service) confidential information and critical data (i.e., that of our company and our third-party providers and customers); reputational damage; private claims, demands, and litigation or regulatory investigations, enforcement actions, or other proceedings related to contractual or regulatory privacy, cybersecurity, data protection or other confidentiality obligations; diminution in the value of our investment in research, development and engineering; and increased costs associated with the implementation of cybersecurity measures to detect, deter, protect against and recover from these incidents. Our efforts to comply with and changes to laws, regulations and contractual and other actual and asserted obligations concerning privacy, cybersecurity and data protection, including developing restrictions on cross-border data transfer and data localization, could result in significant expense, and any actual or alleged failure to comply could result in inquiries, investigations and other proceedings against us by regulatory authorities or other third parties. Customers and third-party providers increasingly demand rigorous contractual provisions regarding privacy, cybersecurity, data protection, confidentiality and intellectual property, which may increase our overall compliance burden. 18 18 18 Table of Contents Table of Contents" }, { "status": "UNCHANGED", "current_title": "Other Long-term Liabilities", "prior_title": "Other Long-term Liabilities", "current_body": "We also have the obligation to fund our pension, postretirement and deferred compensation plans. We evaluate the need to make contributions to our pension and postretirement benefit plans after considering the funded status of the plans, movements in the discount rate, performance of the plan assets and related tax consequences. Payments to the plans would be dependent on these factors and could vary across a wide range of amounts and time periods. Payments for deferred compensation plans are dependent on activity by participants, making the timing of payments uncertain. As of October 26, 2025, the total of our future expected benefit payments for the pension plans and the postretirement plan over the next ten fiscal years were $250 million, of which $19 million is payable within 12 months and the remaining amount is payable beyond 12 months. As of October 26, 2025, the gross liability for unrecognized tax benefits that was not expected to result in payment of cash within one year was $452 million. Interest and penalties related to uncertain tax positions that were not expected to result in payment of cash within one year of October 26, 2025 was $118 million. At this time, we are unable to reliably estimate the timing of payments due to uncertainties in the timing of tax audit outcomes." }, { "status": "UNCHANGED", "current_title": "Off-Balance Sheet Arrangements", "prior_title": "Off-Balance Sheet Arrangements", "current_body": "In the ordinary course of business, we provide standby letters of credit or other guarantee instruments to third parties as required for certain transactions initiated by either us or our subsidiaries. These include agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements. We also have agreements with various banks to facilitate subsidiary banking operations worldwide, including overdraft arrangements, issuance of bank guarantees, and letters of credit. See Note 14, Guarantees, Commitments and Contingencies, of the Notes to the Consolidated Financial Statements for further discussion relating to these arrangements. 37 37 37 Table of Contents Table of Contents" }, { "status": "UNCHANGED", "current_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "prior_title": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)", "current_body": "•Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and •Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In determining the fair value of our debt securities investments, we use pricing information from pricing services that value securities based on quoted market prices and models that utilize observable market inputs. In the event a fair value estimate is unavailable from a pricing service, we generally obtain non-binding price quotes from brokers. In addition, to validate pricing information obtained from pricing services, we periodically perform supplemental analysis on a sample of securities. We review any significant unanticipated differences identified through this analysis to determine the appropriate fair value. As of October 26, 2025, substantially all of our available-for-sale, short-term, and long-term investments were recognized at fair value that was determined based upon quoted prices or other observable inputs. Our equity investments with readily determinable values are measured at fair value using quoted prices for identical assets in an active market, and the changes in fair value of these equity investments are recognized in the consolidated statements of operations. Inventories Inventories are stated at the lower of cost or net realizable value, with approximate cost determined on a first-in, first-out (FIFO) basis. We adjust inventory carrying value for estimated obsolescence equal to the difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. We fully write down inventories and noncancelable purchase orders for inventory deemed obsolete. We perform periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by us, additional inventory adjustments may be required. Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Estimated useful lives of certain assets for financial reporting purposes are as follows: buildings and improvements, 3 to 30 years; demonstration and manufacturing equipment, 5 to 8 years; software, 3 to 5 years; and furniture, fixtures and other equipment, 3 to 5 years. Land improvements are amortized over the shorter of 15 years or their estimated useful life. Leasehold improvements are amortized over the shorter of five years or the lease term. Government Assistance We receive government assistance from various domestic and foreign governments in the form of cash grants or refundable tax credits. These arrangements incentivize us to continue growing our capital investments and research and development activities. Government incentives generally contain conditions that must be met in order for the assistance to be earned. We recognize the incentives when there is reasonable assurance that we will comply with all conditions specified in the incentive arrangement and the incentive will be received. We record capital expenditure related incentives as an offset to the associated property, plant and equipment, net within our Consolidated Balance Sheets and recognize a reduction to depreciation expense over the useful life of the corresponding acquired asset. We record incentives related to operating activities as a reduction to expense in the same line item on the Consolidated Statements of Operations as the expenditure for which the grant is intended to compensate. 54 54 54 Table of ContentsAPPLIED MATERIALS, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Table of Contents" }, { "status": "UNCHANGED", "current_title": "Share-Based Compensation", "prior_title": "Share-Based Compensation", "current_body": "We have a stockholder-approved equity plan, the Employee Stock Incentive Plan (ESIP), which permits grants to employees of share-based awards, including stock options, stock appreciation rights, restricted stock, restricted stock units, performance share units and performance units. In addition, the plan provides for the automatic grant of restricted stock units to non-employee directors and permits the grant of share-based awards to non-employee directors and consultants. Share-based awards made under the plan may be subject to accelerated vesting under certain circumstances, including in the event of a change in control. In addition, we have an Omnibus Employees’ Stock Purchase Plan (ESPP), which enables eligible employees to purchase our common stock. We recognized share-based compensation expense related to share-based awards and ESPP shares. The effect of share-based compensation on the results of operations and the related tax benefits for each fiscal year were as follows: 202520242023 (In millions)Cost of products sold$158 $134 $180 Research, development, and engineering259 219 179 Marketing and selling85 72 55 General and administrative166 152 76 Restructuring charges*(8)— — Total share-based compensation$660 $577 $490 Income tax benefits recognized$80 $73 $63 Restructuring charges* (*) Amount related to modification of share-based awards associated with the Fiscal 2025 Restructuring Plan. The cost associated with share-based awards is typically recognized over the awards’ service period for the entire award on a straight-line basis, adjusting for estimated forfeitures. However, in the case of share-based awards granted to certain members of senior management that allow for partial accelerated vesting in the event of a qualifying retirement based on age and years of service, the compensation expense is recognized once the individual meets the conditions for a qualifying retirement. We calculate estimated forfeiture rate on an annual basis, based on historical forfeiture activities. The cost associated with share-based awards that include performance and/or market goals, is recognized for each tranche over the service period. The cost of the portion of share-based awards subject to performance goals is recognized based on an assessment of the likelihood that the applicable performance goals will be achieved, and the cost of the portion of share-based awards subject to market goals is recognized based on the assumption of 100% achievement of the goal. At October 26, 2025, we had $947 million in total unrecognized compensation expense, net of estimated forfeitures, related to grants of share-based awards under the ESIP and shares issued under the ESPP, which will be recognized over a weighted average period of 2.4 years. At October 26, 2025, there were 17 million shares available for grant of share-based awards under the ESIP, and an additional 8 million shares available for issuance under the ESPP." } ] }