APPLIED MATERIALS INC /DE 8-K

What Happened

• Applied Materials, Inc. announced on Feb. 11, 2026 that it entered into a settlement agreement with the U.S. Commerce Department’s Bureau of Industry and Security (BIS) to resolve an inquiry related to certain China customer shipments and export controls compliance. The company agreed to a one-time payment of $252.5 million and to implement internal audits, ongoing export compliance training, and reporting mechanisms.
• The company also disclosed that the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) have informed Applied that they have closed their respective inquiries and no enforcement action was taken by those agencies. Applied filed the 8-K on Feb. 12, 2026 and attached a press release as Exhibit 99.1.

Key Details

• Settlement amount: $252.5 million (one-time payment).
• Settlement date: February 11, 2026; 8-K filed February 12, 2026.
• Compliance commitments: internal export-controls audits, continued export compliance training, and reporting mechanisms.
• DOJ and SEC inquiries: closed with no enforcement action communicated to Applied.

Why It Matters

• Financial impact: the $252.5M payment is a material, one-time cash outflow that could affect near-term results and cash flow; investors should watch upcoming earnings/financial statements for how the company records this charge and any related timing.
• Legal and operational impact: closure of DOJ and SEC inquiries removes two legal overhangs, while the BIS settlement imposes compliance obligations that could increase ongoing compliance costs and oversight.
• Risk and reputation: resolving the matter reduces regulatory uncertainty, but the settlement highlights past export-control compliance issues that management will need to address through strengthened controls and audits.