--- title: "Applied Materials: Business Model" description: "Applied Materials revenue by business segment and geography from its fiscal 2025 Form 10-K, with each part's share, growth and profitability explained." canonical: https://www.getswoopr.com/stocks/companies/applied-materials/business-model/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Applied Materials: Business Model & Revenue Engine ## Direct Answer Applied Materials reports revenue across 2 business segments in its fiscal 2025 Form 10-K. Semiconductor Systems is the largest, with $20.8 billion of revenue (73% of the total), followed by Applied Global Services at $6.4 billion (23%). 11% of revenue came from the United States. ## How Does Applied Materials Make Money? Semiconductor Systems supplies 73% of revenue, so Applied Materials's results move mostly with that one business; the others matter more for diversification than for the headline number. Between fiscal 2024 and 2025, Semiconductor Systems grew fastest (+4.5%) and Applied Global Services slowest (+2.6%), so the revenue mix tilts toward Semiconductor Systems while that gap lasts. | Segment | FY2025 revenue | FY2024 revenue | Share of revenue | Change | | --- | --- | --- | --- | --- | | Semiconductor Systems | $20.8 billion | $19.9 billion | 73.3% | 4.5% | | Applied Global Services | $6.4 billion | $6.2 billion | 22.5% | 2.6% | ![Bar chart of Applied Materials revenue by segment for fiscal 2025: Semiconductor Systems 73.3%, Applied Global Services 22.5%.](https://www.getswoopr.com/images/charts/applied-materials-business-model-segment-mix.webp) *Applied Materials revenue by segment as a share of total revenue, from the table above. The largest is highlighted. Select the chart to open it full size.* ## Which Applied Materials Segments Earn the Most? | Segment | FY2025 segment operating income | Segment margin | | --- | --- | --- | | Semiconductor Systems | $7.4 billion | 35.5% | | Applied Global Services | $1.8 billion | 28.1% | Segment operating income is the profit measure Applied Materials reports to its chief operating decision maker for each segment. It usually leaves out corporate costs that are not allocated to a segment, so the segments usually add up to more than consolidated operating income, and margins are comparable within Applied Materials more safely than against another company. ## Where Does Applied Materials's Revenue Come From? Regions follow the definitions in the filing; most companies assign revenue by customer location. | Region | FY2025 revenue | FY2024 revenue | Share of revenue | Change | | --- | --- | --- | --- | --- | | China | $8.5 billion | $10.1 billion | 30.1% | -15.7% | | Taiwan | $6.9 billion | $4.0 billion | 24.2% | 71.0% | | South Korea | $5.6 billion | $4.5 billion | 19.8% | 24.8% | | United States | $3.1 billion | $3.8 billion | 10.8% | -19.8% | | Japan | $2.3 billion | $2.2 billion | 8.0% | 5.5% | | Southeast Asia | $1.1 billion | $1.1 billion | 3.8% | -5.7% | | Europe | $962 million | $1.4 billion | 3.4% | -33.3% | ## What the Segment Figures Do Not Show The rows above add up to 96% of Applied Materials's reported revenue for fiscal 2025; the difference is intersegment eliminations, corporate revenue or items the company reports outside its segments. Segment definitions are management's choice and change when a company reorganizes, in which case it restates prior years in the next filing, so a multi-year comparison should use the figures from a single filing. Revenue shows where sales come from, not where profit or cash is earned: a small segment can carry most of the margin. ## Where These Numbers Come From Every figure on this page is a value Applied Materials reported in the segment note and revenue disclosures of its Form 10-K filed December 12, 2025 (accession 0001628280-25-056742), read from the SEC's Financial Statement Data Sets. The prior-year column is the comparative figure from that same filing, so it reflects any restatement for a change in segments. Category names are the company's own XBRL labels, lightly reformatted for reading. Rows that only total other rows (for example a "Products" line beside the individual products) are left out so nothing is counted twice. This page is educational and describes reported history for fiscal 2025; it is not a forecast or a recommendation. ## Frequently Asked Questions ### What are Applied Materials's business segments? In its fiscal 2025 Form 10-K, Applied Materials reports revenue for Semiconductor Systems and Applied Global Services. ### Which part of Applied Materials brings in the most revenue? Semiconductor Systems, with $20.8 billion of revenue in fiscal 2025, or 73% of the total. ### How much of Applied Materials's revenue comes from outside the United States? 89% in fiscal 2025, by the geographic breakdown Applied Materials reports in its Form 10-K. Companies assign revenue to regions differently (customer location, shipping address or selling entity), so check the filing's definition before comparing companies. ## References - [SEC EDGAR: APPLIED MATERIALS INC /DE Form 10-K filed December 12, 2025](https://www.sec.gov/Archives/edgar/data/6951/000162828025056742/amat-20251026.htm) - [SEC EDGAR: APPLIED MATERIALS INC /DE annual and quarterly filings](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=6951&type=10-K) - [SEC: EDGAR application programming interfaces (XBRL frames and submissions data)](https://www.sec.gov/search-filings/edgar-application-programming-interfaces) - [SEC: Financial Statement Data Sets](https://www.sec.gov/data-research/sec-markets-data/financial-statement-data-sets) ## Related Pages - [Applied Materials company dossier](https://www.getswoopr.com/stocks/companies/applied-materials/) - [Applied Materials financial metrics](https://www.getswoopr.com/stocks/companies/applied-materials/metrics/) - [Applied Materials financial risk indicators](https://www.getswoopr.com/stocks/companies/applied-materials/risks/) - [Applied Materials peer comparison](https://www.getswoopr.com/stocks/companies/applied-materials/competitors/) - [Applied Materials business model and revenue mix](https://www.getswoopr.com/stocks/companies/applied-materials/business-model/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. 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