APPLIED MATERIALS INC /DE Quarterly Report for Q3 Ended Jul 27, 2025

Summary

Applied Materials Inc. (AMAT) reported strong revenue growth in the third quarter of fiscal year 2025, with net revenue reaching $7.302 billion, an increase of 8% year-over-year. This growth was primarily driven by the Semiconductor Systems segment, which saw a 10% increase in net revenue. The company also demonstrated improved profitability, with gross margin rising to 48.8% and operating margin reaching 30.6%, both improvements over the prior year's comparable periods. Diluted earnings per share also saw a healthy increase to $2.22, up from $2.05 in the same quarter last year. Despite a decrease in cash and cash equivalents from the previous fiscal year-end, likely due to significant share repurchases and dividend payments, the company maintains a solid financial position with substantial investments and a large remaining authorization for stock repurchases, signaling continued confidence in its future performance and commitment to returning capital to shareholders.

Key Highlights

• 1Net revenue increased by 8% year-over-year to $7.302 billion for the three months ended July 27, 2025.
• 2Semiconductor Systems segment revenue grew by 10% year-over-year, driven by foundry, logic, and NAND investments.
• 3Gross margin improved to 48.8% and operating margin to 30.6% compared to the prior year's periods, indicating enhanced profitability.
• 4Diluted earnings per share increased to $2.22 from $2.05 year-over-year, reflecting improved profitability.
• 5The company repurchased $1.038 billion of common stock during the quarter, demonstrating a commitment to shareholder returns.
• 6Cash and cash equivalents decreased to $5.384 billion from $8.022 billion at the prior fiscal year-end, primarily due to significant capital allocation activities including share repurchases and dividends.
• 7Remaining authorization for stock repurchases stands at a substantial $14.8 billion as of July 27, 2025.

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