Applied Materials Announces Fourth Quarter and Fiscal Year 2025 Results

Core Insights - Applied Materials reported its sixth consecutive year of growth in fiscal 2025, driven by AI adoption and substantial investment in advanced semiconductors and wafer fab equipment [2] - The company is preparing for higher demand starting in the second half of calendar 2026, focusing on R&D investments to create faster and more energy-efficient technologies [2] Financial Performance - Q4 FY2025 net revenue was $6.80 billion, a decrease of 3% year-over-year, while FY2025 total net revenue reached a record $28.37 billion, up 4% from FY2024 [3][5] - Gross margin for Q4 FY2025 was 48.0%, an increase of 0.7 percentage points from Q4 FY2024, while operating margin decreased to 25.2%, down 3.8 percentage points year-over-year [3] - Net income for Q4 FY2025 was $1.90 billion, up 10% from $1.73 billion in Q4 FY2024, with diluted earnings per share (EPS) of $2.38, a 14% increase [3][5] Segment Performance - Semiconductor Systems segment net revenue for Q4 FY2025 was $4.76 billion, down from $5.18 billion in Q4 FY2024, with an operating income of $1.53 billion [7] - Applied Global Services segment net revenue was $1.63 billion for Q4 FY2025, slightly down from $1.64 billion in Q4 FY2024, with an operating income of $454 million [7] Geographic Revenue Distribution - In Q4 FY2025, revenue from China was $1.96 billion, accounting for 29% of total revenue, while revenue from Taiwan was $1.83 billion, representing 27% [19][20] - The United States contributed $655 million, or 10% of total revenue, down from 16% in the previous year [19][20] Business Outlook - For Q1 FY2026, Applied Materials expects total net revenue of approximately $6.85 billion, with non-GAAP diluted EPS projected at $2.18 [4][5]