AMAT
Applied Materials Inc.
Is AMAT Halal?
Applied Materials' April 2026 financial ratios pass the examined total-assets screens, but its filing does not disclose a reproducible Sharia-screened revenue numerator across equipment, services, software, customers and end uses.
What You Should Know
Applied Materials designs and sells semiconductor and display-manufacturing equipment and related services, which are generally permissible industrial activities. Current debt, liquidity, receivables and disclosed-interest ratios pass the examined total-assets screens. The public filing does not classify revenue by a Sharia-screened product, contract, customer, end use or financial activity, so ZakatInvest retains a doubtful classification instead of claiming that all revenue is permissible or prescribing a complete purification percentage.
⚠️ Concerns
- •Interest-bearing debt is 16.02% of total assets
- •Disclosed interest income was 1.21% of quarterly revenue
- •Fixed-income cash equivalents and investments are 26.70% of total assets
- •Equipment, service, software, customer and end-use revenue is not disclosed as a Sharia-screened numerator
- •Dual-use technology, export controls, customer use, labor, responsible minerals, chemicals, water, energy, waste and community impacts require qualitative review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-26; calculated 2026-07-13.
6,455 / 40,286
10,756 / 40,286
12,673 / 40,286
96 / 7,910
- Financial
- Pass
- Overall
- Incomplete
Debt is 16.02%, identifiable liquidity is 26.70%, receivables plus cash is 31.46%, and disclosed interest income is 1.21%; all examined financial ratios pass. The screened business-revenue calculation remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt, cash plus identifiable interest-bearing securities, and receivables plus cash are below the examined total-assets limits. This is not a claim about index membership; business-activity revenue remains undisclosed.
- Financial
- Pass
- Overall
- Incomplete
Identifiable conventional cash and interest-bearing instruments and conservatively defined interest-bearing debt are below 33% of total assets. This is a calculation against the SAC ratios, not an official SAC classification of a U.S.-listed security; screened business revenue is unavailable.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible 24- or 36-month issuer market-cap history is not yet stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Applied Materials develops and sells semiconductor and display-manufacturing equipment, services and related technologies. Semiconductor manufacturing equipment, maintenance and material-engineering services are generally permissible industrial activities that can support computing, communications, health, safety, energy and other uses. Equipment and services remain capable of different end uses, so a general-purpose technology classification does not replace product-, customer- and contract-specific evidence.
Limitation: The filing reports broad segment and geographic revenue, not revenue classified by a Sharia-screened product, software, service, customer, end use, contractual term or financial activity. No separately disclosed prohibited category is not proof of a zero numerator, so an exact prohibited-revenue percentage cannot be reproduced from consolidated disclosure.
Purification
Disclosed interest income equals 1.21% of quarterly revenue and passes the examined income limit. Equipment, service, software, customer and end-use revenue is not separately screened, so 1.21% is evidence for the income screen rather than a complete fixed purification prescription.
Inputs, assumptions and primary sources
- Interest-bearing debt is the reported 1,199 current portion of long-term debt plus 5,256 long-term debt. The debt captions include the effect of the issuer's interest-rate swaps and unamortized discount and issuance costs.
- Cash and cash equivalents use the reported 6,301 balance. Identifiable interest-bearing securities use the reported 4,455 fixed-income securities, including bank certificates and time deposits, Treasury and agency securities, municipal securities, commercial paper, corporate bonds, medium-term notes and asset- and mortgage-backed securities. Public and private equity investments are excluded from that liquidity numerator.
- Accounts receivable use the reported 6,372 net balance.
- Revenue of 7,910 and disclosed interest income of 96 use the same three-month period ended April 26, 2026. The issuer separately reports higher net interest-and-other income driven primarily by unrealized gains on equity investments; that broader line is not treated as interest income.
- The filing reports Semiconductor Systems, Applied Global Services and Other revenue, but does not classify revenue by a Sharia-screened equipment, service, software, customer, end-use, contract or financial-activity numerator.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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