Overview

• The company said in a regulatory filing that the rule will reduce fourth-quarter revenue by about $110 million and fiscal 2026 revenue by roughly $600 million.
• The Bureau of Industry and Security on Sept. 29 widened the Entity List coverage to subsidiaries 50% or more owned by listed entities, a move it described as closing a loophole.
• Applied Materials said certain products, parts and services for specific China-based customers now require licenses that could constrain exports and support.
• Shares fell about 3% in after-hours trading Thursday following the disclosure, with additional weakness reported Friday premarket.
• Analysts noted the change will expand licensing requirements and strain supply chains, and China accounted for more than one-third of Applied’s revenue in its fiscal third quarter.