Applied Materials(AMAT) - 2025 Q4 - Annual Results

Revenue Performance - Record annual revenue of $28.37 billion, up 4% year over year[4] - Quarterly revenue of $6.80 billion, down 3% year over year[4] - Display segment revenue for FY2025 at $1.06 billion, up from $885 million in FY2024[7] - Revenue from China accounted for 29% of total revenue in Q4 FY2025, slightly down from 30% in Q4 FY2024[17] Earnings and Profitability - Record annual GAAP EPS of $8.66, up 1% year over year, and record non-GAAP EPS of $9.42, up 9% year over year[4] - The company reported a diluted earnings per share of $2.38 for Q4 FY2025, compared to $2.09 in Q4 FY2024, reflecting a growth of 13.88%[13] - Non-GAAP earnings per diluted share for the three months ended October 26, 2025, was $2.17, compared to $2.32 in the prior year, a decrease of 6.5%[24] - GAAP reported net income for the three months ended October 26, 2025, was $1,897 million, an increase of 9.6% from $1,731 million in the same period last year[19] - Net income for FY2025 was $6,998 million, a decrease of 2.49% from $7,177 million in FY2024[13] Margins - Operating margin for Q4 FY2025 at 25.2%, down from 29.0% in Q4 FY2024[5] - Non-GAAP operating margin for FY2025 at 30.2%, up from 29.2% in FY2024[5] - Non-GAAP operating margin for Semiconductor Systems was 32.3% for the three months ended October 26, 2025, compared to 35.4% in the prior year[26] - Non-GAAP gross margin improved to 48.1% for the three months ended October 26, 2025, compared to 47.5% in the prior year[19] Expenses and Investments - Research, development, and engineering expenses increased to $917 million in Q4 FY2025 from $858 million in Q4 FY2024, representing a 6.87% increase[13] - Capital expenditures for FY2025 were $2,260 million, significantly higher than $1,190 million in FY2024, indicating increased investment in growth[16] - Restructuring charges of $181 million were recorded for the three months ended October 26, 2025, related to a workforce reduction plan[20] Cash Flow and Assets - Cash provided by operating activities for FY2025 was $7,958 million, down from $8,677 million in FY2024[16] - Cash provided by operating activities for the three months ended October 26, 2025, was $2,828 million, compared to $2,575 million in the same period last year, an increase of 9.8%[31] - Non-GAAP free cash flow for the twelve months ended October 26, 2025, was $5,698 million, down from $7,487 million in 2024, a decrease of 23.9%[31] - Total assets increased to $36,299 million in FY2025 from $34,409 million in FY2024, marking a growth of 5.49%[15] - Total stockholders' equity rose to $20,415 million in FY2025, compared to $19,001 million in FY2024, an increase of 7.43%[15] Future Outlook - Company is preparing for higher demand starting in the second half of calendar 2026, focusing on R&D for faster and more energy-efficient technologies[3] Tax and Valuation - The company recognized a $403 million valuation allowance against deferred tax assets related to corporate alternative minimum tax credits in the third quarter of fiscal 2025[22]