Applied Materials Announces Second Quarter 2025 Results

Core Insights - Applied Materials reported strong performance in Q2 FY2025 with a 7% year-over-year revenue growth, reaching $7.1 billion, and record earnings per share of $2.63, up 28% from the previous year [2][3][5] - The company is well-positioned in the semiconductor industry, particularly in high-performance, energy-efficient AI computing, which is driving innovation [2][3] - Despite a dynamic economic environment, customer demand remains stable, supported by a robust global supply chain [2][3] Financial Performance - Q2 FY2025 net revenue was $7,100 million, compared to $6,646 million in Q2 FY2024, reflecting a 7% increase [3][5] - Gross margin improved to 49.1% from 47.4% year-over-year, while operating margin increased to 30.5% from 28.8% [3][5] - Net income for Q2 FY2025 was $2,137 million, a 24% increase from $1,722 million in Q2 FY2024 [3][5] Non-GAAP Results - Non-GAAP gross margin was 49.2%, up from 47.5% year-over-year, and non-GAAP operating margin was 30.7%, compared to 29.0% [3][5] - Non-GAAP net income reached $1,940 million, an 11% increase from $1,744 million in the previous year [3][5] - Non-GAAP diluted earnings per share were $2.39, up 14% from $2.09 in Q2 FY2024 [3][5] Business Outlook - For Q3 FY2025, Applied Materials expects total net revenue to be approximately $7,200 million, with a non-GAAP gross margin of 48.3% [4] - The company anticipates continued growth driven by its strategic positioning in key technology areas [2][4] Segment Performance - Semiconductor Systems segment revenue was $5,255 million, up from $4,901 million, with an operating margin of 36.2% [7] - Applied Global Services segment revenue increased to $1,566 million from $1,530 million, maintaining an operating margin of 28.5% [7] - Display segment revenue rose significantly to $259 million from $179 million, with a notable increase in operating margin to 26.3% [7] Geographic Revenue Distribution - Revenue from China decreased to $1,774 million, down from $2,831 million, representing 25% of total revenue [19] - Taiwan's revenue increased to $1,997 million from $1,019 million, now accounting for 28% of total revenue [19] - Korea's revenue also saw significant growth, reaching $1,562 million, up from $988 million, representing 22% of total revenue [19]