Financial Data and Key Metrics Changes - Applied Materials reported record revenues of approximately $7.2 billion for Q1 2025, representing a 7% year-over-year increase [24][29] - Non-GAAP earnings per share (EPS) reached a record $2.38, up 12% year-over-year [23][26] - Non-GAAP gross margin was 48.9%, the highest quarterly gross margin since fiscal year 2000, up 100 basis points year-over-year [24][26] Business Line Data and Key Metrics Changes - Semiconductor system sales were $5.36 billion, up 9% year-over-year, driven by a 20% growth in foundry logic, while DRAM sales declined due to prior year sales to customers in China not repeating [26][30] - Applied Global Services (AGS) revenue was $1.59 billion, up 8% year-over-year, with healthy growth in services partially offset by a decline in sales of 200-millimeter equipment [27] - The display business generated revenue of $183 million [28] Market Data and Key Metrics Changes - The global semiconductor sales grew approximately 20% year-on-year in 2024, with expectations to exceed $1 trillion in annual revenues by 2030 [8][9] - The impact of new trade rules is estimated to reduce revenue by approximately $400 million in fiscal 2025, with nearly half of that impact expected in Q2 [13][31] - China is anticipated to represent a smaller portion of global wafer fab equipment spending in 2025, with a projected revenue contribution about five percentage points lower than in Q1 [31][32] Company Strategy and Development Direction - The company is focused on developing and commercializing enabling technologies across leading-edge logic, memory, advanced packaging, and ICAPS [14][19] - High-velocity co-innovation is emphasized as a key strategy to bring next-generation technology to market faster and at lower costs [17][21] - Significant investments in R&D are being made to grow share at the leading edge and to enhance capital investments for co-innovation [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth opportunities across all business segments, despite trade restrictions impacting near-term service growth [20][33] - The outlook for Q2 includes expected total revenue of approximately $7.1 billion, representing a 7% increase year-over-year, with non-GAAP EPS projected at $2.30, a 10% increase year-over-year [32][34] - The company anticipates a return to growth in AGS in Q3 after a step back in Q2 due to trade restrictions [31][56] Other Important Information - The company distributed $1.6 billion to shareholders in the quarter, including $1.3 billion in share repurchases and $326 million in dividends [24][29] - The construction of the EPIC Center in Silicon Valley is on track to be operational by 2026, serving as a global collaboration platform [19] Q&A Session Summary Question: Context on 2025 outlook by application and geography - Management indicated that leading-edge foundry logic is expected to grow strongly in Q2, offsetting a more measured investment level in ICAPS nodes [40][43] Question: Expectations for semiconductor systems growth - Management stated that growth in leading-edge is anticipated, but visibility on ICAPS remains uncertain [51][52] Question: Impact of China on AGS growth - Management clarified that approximately half of the impact from China will be felt in Q2, with expectations for AGS to grow at low double digits thereafter [56][57] Question: Gross margin expectations - Management reiterated a baseline gross margin of around 48%, with expectations for pricing to reflect the increasing value of solutions [61][62] Question: Confidence in customer forecasts - Management expressed high confidence in forecasts for larger customers, particularly in leading logic and DRAM segments, while noting lower visibility in ICAPS [124][125] Question: Expectations for DRAM growth excluding China - Management indicated continued momentum in DRAM, particularly in advanced compute performance systems [110][112] Question: Gate-all-around revenue expectations - Management maintained expectations for gate-all-around revenue to double in 2025, with continued growth anticipated beyond that [117][120]

Applied Materials, Inc. (NASDAQ: AMAT ) reported Q1 earnings after the close Thursday, which was followed by a selloff of around 5% as I write this. The company turned in solid growth for the current quarter, achieved significant marginTo follow me click the "Follow" button! (Easy right?) Hi there, thanks for coming to my profile page! My name is Kumquat Research (but you can call me Jeremy) and I've been writing for Seeking Alpha on and off for going on ten years now, beginning with my inaugural published ...

Applied Materials reported record revenue in its fiscal 2025 first quarter, but a significant overseas tax charge impacted its bottom line.Applied Materials (AMAT 1.87%), a leader in semiconductor manufacturing equipment, announced its fiscal 2025 first-quarter earnings on Feb. 13. The company reported record revenue of $7.17 billion, a 7% increase from the same period last year. That was just above the midpoint of management's guidance range of $6.75 billion to $7.55 billion. Non-GAAP earnings per share (E ...

For the quarter ended January 2025, Applied Materials (AMAT) reported revenue of $7.17 billion, up 6.8% over the same period last year. EPS came in at $2.38, compared to $2.13 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $7.15 billion, representing a surprise of +0.18%. The company delivered an EPS surprise of +4.39%, with the consensus EPS estimate being $2.28.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

Financial Performance - Record revenue of $7.17 billion and Non-GAAP EPS of $2.38 in FQ1'25[6] - Semiconductor Systems revenue reached $5.36 billion in FQ1'25, a 9% year-over-year increase[31] - Applied Global Services (AGS) revenue was $1.59 billion in FQ1'25, up 8% year-over-year[33] - The company anticipates Q2'25 revenue of approximately $7.1 billion, plus or minus $400 million, and Non-GAAP EPS of around $2.30, plus or minus $0.18[38] Market and Technology Trends - Transition from FinFET to Gate-All-Around (GAA) is expected to grow Applied's transistor Served Addressable Market (SAM) from approximately $6 billion to about $7 billion[14] - Introduction of Backside Power Delivery (BPD) is projected to increase Applied's wiring SAM from roughly $6 billion to around $7 billion[14] - Expect Applied revenues to grow by ~30% for the equivalent fab capacity from FinFET nodes to nodes with Gate-All-Around and Backside Power Delivery[14] Capital Allocation - $7.6 billion remaining on share repurchase authorization at the end of Q1FY25[36, 43] - Committed to distribute 80–100% of Free Cash Flow (FCF) to shareholders over time[36, 43]

Revenue and Earnings - Revenue for Q1 FY2025 was $7.17 billion, representing a 7% increase year over year[4] - Non-GAAP diluted EPS for Q1 FY2025 was $2.38, a 12% increase compared to $2.13 in Q1 FY2024[5] - Net income decreased by 41% to $1.185 billion from $2.019 billion in the same quarter last year[5] - Non-GAAP net income for the three months ended January 26, 2025, was $1,946 million, an increase of 9.2% from $1,782 million in the same period last year[21] - Non-GAAP earnings per diluted share rose to $2.38, compared to $2.13 for the same period in 2024, marking an increase of 11.7%[24] Margins and Profitability - GAAP gross margin improved to 48.8%, up 1.0 percentage point from 47.8% in Q1 FY2024[5] - Non-GAAP gross profit increased to $3,503 million, up from $3,211 million, resulting in a non-GAAP gross margin of 48.9%, compared to 47.9% in the previous year[21] - The Semiconductor Systems segment reported a non-GAAP operating income of $1,998 million, up from $1,754 million, with a non-GAAP operating margin of 37.3% compared to 35.7% in the previous year[26] - Applied Global Services segment revenue increased to $1.594 billion from $1.476 billion, maintaining an operating margin of 28.0%[8] Cash Flow and Shareholder Returns - The company generated $925 million in cash from operations and returned $1.64 billion to shareholders, including $1.32 billion in share repurchases[4] - Cash provided by operating activities decreased to $925 million from $2,325 million, reflecting a decline of 60.3% year-over-year[18] - Non-GAAP free cash flow for the three months ended January 26, 2025, was $544 million, a significant decrease from $2,096 million in the same period last year[30] - Total cash, cash equivalents, and restricted cash equivalents at the end of the period was $6,355 million, down from $6,954 million a year earlier[18] Tax and Expenses - The company recorded a $644 million income tax expense due to new tax incentive agreements in Singapore[6] - The company reported a GAAP effective income tax rate of 44.1% for the three months ended January 26, 2025[28] Future Outlook - For Q2 FY2025, total net revenue is expected to be approximately $7.1 billion, with a non-GAAP gross margin of 48.4%[7] - The outlook for non-GAAP diluted EPS for Q2 FY2025 is projected at $2.30, with a potential variance of +/- $0.18[7] Segment Performance - Semiconductor Systems segment revenue was $5.356 billion, up from $4.909 billion in Q1 FY2024, with an operating margin of 37.1%[8] - Capital expenditures increased to $381 million from $229 million, reflecting a rise of 66.1% year-over-year[18]

Revenue $7.17 billion, up 7 percent year over yearGAAP gross margin 48.8 percent and non-GAAP gross margin 48.9 percentGAAP operating margin 30.4 percent and non-GAAP operating margin 30.6 percentGAAP EPS $1.45 and non-GAAP EPS $2.38, down 40 percent and up 12 percent year over year, respectivelyGenerated $925 million in cash from operations and distributed $1.64 billion to shareholders including $1.32 billion in share repurchases and $326 million in dividends SANTA CLARA, Calif., Feb. 13, 2025 (GLOBE NEWSW ...

Applied Materials (AMAT) is scheduled to report first-quarter fiscal 2025 results on Feb. 13.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.For the fiscal first quarter, AMAT expects net sales of $7.15 billion (+/-$400 million). The Zacks Consensus Estimate for revenues is pegged at $7.16 billion, suggesting a rise of 6.7% from the year-ago quarter’s reading.Applied Materials projects non-GAAP earnings in the range of $2.11-$2.47 per share. The Zacks Consensus Estimate for earnings ...

Despite holding on tight to its 10% gain for 2025, pressure sits sharply overhead at the $180 level for shares of semiconductor name Applied Materials (AMAT). Also keeping gains in check have been both the 20- and 200-day moving averages, the latter thwarting a breakout attempt and ending a six-day win streak on Jan. 22. This overhead resistance may be preceding a correction, however, as AMAT has landed on Senior Quantitative Analyst Rocky White’s list of the 25 best stocks to own in February.Specifically, ...

Shares of Applied Materials Inc. AMAT have risen by 9.11% this year despite last week’s declines in semiconductor-linked companies fueled by the emergence of DeepSeek’s V3 chatbot. Here’s what the company’s technical and fundamental metrics reveal.What Happened: Applied Materials is a U.S. company that provides equipment, services, and software for manufacturing semiconductors, displays, and solar products to chipmakers.While most semiconductor-linked and chipmaker stocks took a hit after DeepSeek’s chatbot ...