Summary
Applied Materials, Inc. (AMAT) reported solid performance for the fiscal year ending October 25, 2025, with net revenue increasing 4% to $28.4 billion. The company's core Semiconductor Systems segment continued to be the primary revenue driver, demonstrating strength fueled by strategic customer investments in new capacity and technology transitions, particularly in leading-edge manufacturing and NAND upgrades. The Applied Global Services (AGS) segment also saw growth, primarily from service agreements and spares. Despite a challenging global economic environment and ongoing geopolitical uncertainties that present risks to demand and supply chains, AMAT has maintained strong operational execution. The company continues to invest significantly in Research, Development, and Engineering (RD&E) to maintain its technology leadership, essential for navigating the rapid pace of innovation in the semiconductor industry. Management expresses confidence that operating cash flow, current cash reserves, and available credit facilities are sufficient to meet liquidity needs for the next 12 months.
Financial Highlights
62 data points| Revenue | $28.37B |
| Cost of Revenue | $14.56B |
| Gross Profit | $13.81B |
| R&D Expenses | $3.57B |
| SG&A Expenses | $1.77B |
| Operating Expenses | $5.52B |
| Operating Income | $8.29B |
| Net Income | $7.00B |
| EPS (Basic) | $8.71 |
| EPS (Diluted) | $8.66 |
| Shares Outstanding (Basic) | 804.00M |
| Shares Outstanding (Diluted) | 808.00M |
Key Highlights
- 1Net revenue grew 4% year-over-year to $28.4 billion, driven by strong performance in the Semiconductor Systems segment.
- 2Semiconductor Systems segment revenue increased 4%, fueled by customer investments in leading-edge logic and NAND fabrication.
- 3Applied Global Services (AGS) segment revenue rose 3%, supported by increased spending on service agreements and spares.
- 4Gross margin improved to 48.7% from 47.5% due to favorable product mix, higher ASPs, and lower manufacturing costs.
- 5Operating income saw a 5% increase to $8.3 billion, with operating margin slightly improving to 29.2%.
- 6The company maintained a strong cash position, with cash and cash equivalents totaling $7.2 billion and total cash, cash equivalents, and investments at $12.9 billion.
- 7AMAT repurchased $4.9 billion of its common stock in fiscal 2025 and declared $1.4 billion in dividends, reflecting a commitment to returning capital to shareholders.