Applied Materials’ Stock Buyback History and Impact on Investors
Applied Materials (AMAT) has returned significant shareholder value through its long-standing stock repurchase program, with a total of nearly $50 billion spent since the first buyback in fiscal 1996. The company's most aggressive year was 2022 when it spent $6.1 billion on shares. In recent years, including fiscal 2025 and part of 2026, Applied has continued repurchasing stock at a high pace despite rising share prices. The buyback-to-free cash flow ratio exceeded 1 in eight different years between 1996 and 2025, indicating that the company spent more on repurchases than its free cash flow. As of late August 2026, Applied Materials' stock was trading near record highs at $458 per share after hitting a peak of $730 in June 2026. The company's strong performance has been driven by increased demand for semiconductor manufacturing equipment due to the rise of artificial intelligence and data center development. However, with higher valuations, Applied appears to be scaling back its repurchase activity compared to previous years.
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