Summary
Applied Materials, Inc. (AMAT) demonstrated robust performance in fiscal year 2021, driven by strong demand in the semiconductor industry. The company's Semiconductor Systems segment, its largest, saw significant growth, reflecting increased customer investments in both advanced and mature nodes. The Applied Global Services segment also experienced substantial growth, indicating the value customers place on ongoing support and optimization of their equipment. The Display and Adjacent Markets segment showed stable performance, with growth in TV display equipment offsetting a decline in mobile display equipment investment. The company navigated supply chain constraints, which impacted its ability to fully meet demand, particularly in the fourth quarter. Despite these challenges, AMAT maintained a strong financial position, with increased net sales and operating income. Strategic investments in research, development, and engineering (RD&E) continue to be a priority to drive future innovation and market expansion.
Financial Highlights
60 data points| Revenue | $23.06B |
| Cost of Revenue | $12.15B |
| Gross Profit | $10.91B |
| R&D Expenses | $2.48B |
| Operating Expenses | $4.03B |
| Operating Income | $6.89B |
| Interest Expense | $236.00M |
| Net Income | $5.89B |
| EPS (Basic) | $6.47 |
| EPS (Diluted) | $6.40 |
| Shares Outstanding (Basic) | 910.00M |
| Shares Outstanding (Diluted) | 919.00M |
Key Highlights
- 1Strong revenue growth of 34% in fiscal year 2021, reaching $23.06 billion, driven by increased customer investments in semiconductor manufacturing equipment.
- 2The Semiconductor Systems segment accounted for 71% of net sales, demonstrating its dominance and the industry's demand for AMAT's offerings.
- 3Applied Global Services segment grew by 21%, highlighting the increasing importance of service and support for customer operations.
- 4Operating income saw a significant increase of 58% to $6.89 billion, with an operating margin of 29.9%, up from 25.4% in the prior year.
- 5The company repurchased $3.8 billion of its common stock in fiscal year 2021 and declared dividends totaling $838 million, returning capital to shareholders.
- 6Backlog reached $11.76 billion by the end of fiscal year 2021, indicating strong future demand, although the Display and Adjacent Markets segment backlog decreased.
- 7The company continues to invest heavily in RD&E, with expenses rising to $2.49 billion, underscoring its commitment to innovation and future product development.