Applied Materials Announces Second Quarter 2024 Results

Core Insights - Applied Materials reported second quarter revenue of $6.65 billion, remaining flat year over year [1][4] - The company achieved a GAAP operating margin of 28.8% and a non-GAAP operating margin of 29.0%, both showing minimal change from the previous year [1][4] - GAAP EPS increased by 11% to $2.06, while non-GAAP EPS rose by 5% to $2.09 [1][4] - Cash generated from operations amounted to $1.39 billion [1][2] Financial Performance - Revenue: $6.65 billion, unchanged from Q2 FY2023 [4] - GAAP Gross Margin: 47.4%, up 0.7 points from 46.7% in Q2 FY2023 [4] - Non-GAAP Gross Margin: 47.5%, an increase from 46.8% in Q2 FY2023 [4] - Operating Income: GAAP $1.91 billion (28.8% margin), Non-GAAP $1.93 billion (29.0% margin) [2][4] - Net Income: GAAP $1.72 billion, Non-GAAP $1.74 billion [4][26] - Cash from Operations: $1.39 billion [2][4] Shareholder Returns - The company distributed $1.09 billion to shareholders, including $820 million in share repurchases and $266 million in dividends [2][4] Business Outlook - For Q3 FY2024, Applied Materials expects net revenue to be approximately $6.65 billion, with a potential variance of $400 million [5] - Non-GAAP diluted EPS is projected to range from $1.83 to $2.19 [5] Segment Performance - Semiconductor Systems revenue was $4.90 billion, a slight decrease from $4.98 billion in Q2 FY2023 [8] - Applied Global Services revenue increased to $1.53 billion from $1.43 billion in Q2 FY2023 [9] - Display and Adjacent Markets revenue was $179 million, up from $168 million in Q2 FY2023 [10] Geographic Revenue Distribution - Revenue from China was $2.83 billion, significantly up from $1.41 billion in Q2 FY2023, representing 43% of total revenue [25] - Revenue from the United States decreased to $853 million from $1.11 billion, accounting for 13% of total revenue [25]