Form 4: Applied Materials CFO Sells Shares for Tax

Applied Materials' CFO, Brice Hill, disposed of 28,062 shares of common stock to cover tax obligations related to equity award vesting.

Summary

• Brice Hill, Senior Vice President and Chief Financial Officer of Applied Materials Inc. (AMAT), reported a transaction on December 19, 2025.
• 28,062 shares of Applied Materials common stock were disposed of at a price of $256.41 per share.
• This disposition was made to cover tax withholding obligations upon the vesting of equity awards, a transaction exempt under Rule 16b-3.
• Following this transaction, Brice Hill directly beneficially owns 143,565 shares of common stock.
• The remaining beneficial ownership includes 85,503 performance share units (PSUs) and restricted stock units (RSUs) that will convert to common stock upon vesting.
• 33,272 restricted stock units are scheduled to vest in installments from December 2026 through 2028.
• 52,231 performance share units are scheduled to vest in installments from December 2026 through 2028, with the actual number of shares ranging from 0% to 200% of the target amount, depending on achievement of specified performance goals.
• All future vesting is contingent upon continued employment through each applicable vesting date.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While it involves a sale of shares, it's a routine tax-related transaction following the vesting of equity awards, which is generally a positive sign of employee retention and performance alignment. It does not indicate a lack of confidence in the company.

Positives

• The transaction indicates the vesting of equity awards, which generally aligns management incentives with shareholder value and reflects continued employment.
• The disposition was for tax withholding, a routine and expected event for equity compensation.

Negatives

• A reduction of 28,062 shares in direct beneficial ownership by a key executive, although for tax purposes.

Risks

• The actual number of shares vesting from performance share units (52,231 target) can range from 0% to 200% depending on the achievement of specified performance goals, introducing variability in future share ownership.
• All future vesting is subject to continued employment, posing a risk if employment ceases before vesting dates.

Future Outlook

The filing indicates future vesting events for 85,503 equity awards (RSUs and PSUs) held by the CFO, scheduled to occur in installments from December 2026 through 2028, subject to continued employment and performance goals for PSUs.

Industry Context

This Form 4 filing is a routine disclosure of an insider transaction, specifically a tax-related sale upon equity award vesting. It does not provide direct insights into broader industry trends or competitive positioning for Applied Materials, which operates in the semiconductor equipment industry.

Stakeholder Impact

• Shareholders: A minor, routine reduction in direct insider ownership, not indicative of a change in company fundamentals or management's outlook.
• Employees (specifically the CFO): The vesting of equity awards represents a realization of compensation, reinforcing retention and performance incentives.

Next Steps

• Continued vesting of 33,272 restricted stock units in installments from December 2026 through 2028.
• Continued vesting of 52,231 performance share units in installments from December 2026 through 2028, contingent on performance goals.

Key Dates

Keywords

AMAT, Applied Materials, Brice Hill, CFO, Insider Transaction, Form 4, Equity Awards, Tax Withholding, Stock Sale, Restricted Stock Units, Performance Share Units