Core Insights - Applied Materials Inc. (AMAT) reported fourth-quarter fiscal 2025 non-GAAP earnings of $2.17 per share, exceeding the Zacks Consensus Estimate by 2.8%, although this represents a 6.5% decline from the previous year's figure [1] - The company achieved revenues of $6.8 billion in the fourth quarter, surpassing the Zacks Consensus Estimate by 1.5%, but down 3% year over year [2] Financial Performance - Segment-wise, Semiconductor Systems generated revenues of $4.76 billion, accounting for 70% of total revenues, which is an 8.1% decline from the year-ago quarter and below the Zacks Consensus Estimate of $4.79 billion [3] - Applied Global Services reported revenues of $1.63 billion, representing 23.9% of total revenues, a slight decline of 0.9% year over year, but above the Zacks Consensus Estimate of $1.60 billion [3] - Corporate and Other revenues totaled $415 million, up 81.2% year over year, with Display segment revenues included under this category amounting to $355 million [4] Geographic Revenue Breakdown - Revenues from various regions included: - United States: $655 million (10%) - Europe: $220 million (3%) - Japan: $448 million (6%) - Korea: $1.22 billion (18%) - Taiwan: $1.83 billion (27%) - Southeast Asia: $460 million (7%) - China: $1.96 billion (29%) [4] - Year-over-year revenue changes by region showed growth in Korea (4%), Taiwan (42.7%), and Southeast Asia (46.5%), while declines were noted in Japan (22.9%), Europe (45.7%), China (8.1%), and the United States (43.2%) [5] Margins and Expenses - The non-GAAP gross margin was reported at 48.1%, an increase of 60 basis points year over year [6] - Non-GAAP operating expenses were $1.33 billion, remaining roughly flat year over year, and represented 19.5% of sales, a decrease from the prior year [6] - The non-GAAP operating margin was 28.6%, down 70 basis points from the year-ago quarter [6] Balance Sheet and Cash Flow - As of October 26, 2025, cash and cash equivalents plus short-term investments stood at $8.57 billion, an increase from $7.01 billion at the end of the previous quarter [7] - Long-term debt was reported at $6.46 billion [7] - The company generated non-GAAP free cash flow of $2.04 billion and returned $1.22 billion to shareholders, including $851 million in share repurchases and $365 million in dividends for the quarter [7] Guidance - For the fiscal first quarter of 2026, AMAT expects net sales of $6.85 billion, with a variance of +/- $500 million, compared to the Zacks Consensus Estimate of $6.89 billion [8] - Projected sales for segments include Semiconductor Systems at $5.03 billion, Applied Global Services at $1.52 billion, and Display at $305 million [10] - The company anticipates a non-GAAP gross margin of approximately 48.4% and non-GAAP operating expenses of around $1.33 billion, with a projected non-GAAP earnings per share of $2.18 [10]

Core Insights - Applied Materials (AMAT) reported $6.8 billion in revenue for the quarter ended October 2025, reflecting a year-over-year decline of 3.5% and an EPS of $2.17, down from $2.32 a year ago, but exceeding the Zacks Consensus Estimate for revenue and EPS [1] Financial Performance - Revenue of $6.8 billion surpassed the Zacks Consensus Estimate of $6.7 billion by +1.52% - EPS of $2.17 exceeded the consensus estimate of $2.11 by +2.84% [1] Geographic Net Sales - United States: $655 million, -43.2% year-over-year, below the estimated $723.94 million - Europe: $220 million, -45.7% year-over-year, below the estimated $303.98 million - Japan: $448 million, -22.9% year-over-year, below the estimated $552.7 million - China: $1.96 billion, -8.1% year-over-year, below the estimated $2 billion - Taiwan: $1.83 billion, +42.8% year-over-year, above the estimated $1.55 billion - Southeast Asia: $460 million, +46.5% year-over-year, above the estimated $244.4 million - Korea: $1.22 billion, +4% year-over-year, below the estimated $1.36 billion [4] Segment Performance - Applied Global Services: $1.63 billion, -0.9% year-over-year, above the estimated $1.6 billion - Semiconductor Systems: $4.76 billion, -8.1% year-over-year, above the estimated $4.75 billion - Display: $355 million, +68.3% year-over-year, above the estimated $350.77 million - Operating Income for Corporate and Other: -$269 million, below the estimated -$227.28 million - Operating Income for Display: $91 million, above the estimated $33.97 million [4] Stock Performance - Shares of Applied Materials returned +1.4% over the past month, compared to the Zacks S&P 500 composite's +4.6% change - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Insights - Overall display area demand is projected to grow by 6% year-over-year in 2026, according to Omdia's Display long-term demand forecast tracker [1] - Unit growth is expected to decline by 2% due to uncertainty surrounding US import tariff policies and a slowing economic growth rate [1] - The display market is projected to grow only 2% in area by 2025, indicating a slower growth rate than in 2024 [1] Industry Summary - Increased demand for large displays is driving robust area growth despite the decline in unit growth [1] - The display market's growth rate is expected to slow down, with only a 2% increase in area projected for 2025 [1]

Core Viewpoint - Analysts forecast a decline in Applied Materials' quarterly earnings and revenues, indicating potential challenges for the company in the upcoming earnings report [1][2]. Financial Projections - Expected earnings per share (EPS) for the upcoming quarter is $2.11, reflecting a year-over-year decline of 9.1% [1]. - Anticipated revenues are projected to be $6.7 billion, which represents a decrease of 4.8% compared to the same quarter last year [1]. Earnings Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised downward by 0.4%, indicating a shift in analysts' expectations [2]. - Changes in earnings projections are crucial for predicting investor reactions and short-term stock price movements [3]. Key Revenue Metrics - 'Net Revenue- Applied Global Services' is projected to be $1.60 billion, down 2.2% year-over-year [5]. - 'Net Revenue- Semiconductor Systems' is expected to reach $4.75 billion, reflecting an 8.3% decline from the prior year [5]. - 'Net Revenue- Display' is forecasted at $350.77 million, showing a significant increase of 66.2% year-over-year [5]. Geographic Sales Estimates - 'Geographic Net Sales- United States' is expected to be $723.94 million, down 37.2% from the previous year [6]. - 'Geographic Net Sales- Europe' is projected at $303.98 million, indicating a decline of 24.9% year-over-year [6]. - 'Geographic Net Sales- China' is anticipated to reach $2.00 billion, reflecting a decrease of 6.3% compared to the prior year [7]. Positive Trends in Specific Regions - 'Geographic Net Sales- Taiwan' is expected to be $1.55 billion, showing a year-over-year increase of 20.8% [8]. - 'Geographic Net Sales- Korea' is projected at $1.36 billion, indicating a growth of 16.3% year-over-year [8]. Operating Income - 'Operating Income- Display' is forecasted to be $33.97 million, a significant increase from $5.00 million reported in the same quarter last year [8]. Stock Performance - Over the past month, shares of Applied Materials have increased by 9.6%, outperforming the Zacks S&P 500 composite, which saw a change of 0.3% [9].

Core Insights - Applied Materials Inc. (AMAT) reported third-quarter fiscal 2025 non-GAAP earnings of $2.48 per share, exceeding the Zacks Consensus Estimate by 5.1% and up from $2.12 per share a year ago [1][9] - The company reported revenues of $7.3 billion for the quarter, which was a 7.7% increase year over year but missed the Zacks Consensus Estimate by 1.4% [1][9] Financial Performance - Semiconductor Systems generated revenues of $5.43 billion, accounting for 74.3% of total net revenues, marking a 10.2% increase from the previous year and surpassing the consensus estimate of $5.38 billion [3][9] - Applied Global Services reported revenues of $1.60 billion, representing 21.9% of total net revenues, up 1.3% year over year and above the consensus estimate of $1.57 billion [3] - Display segment revenues were $263 million, improving 4.8% from the year-ago quarter and exceeding the consensus estimate of $259 million [4] Geographic Revenue Breakdown - Revenues by geography included: - United States: $683 million (9%) - Europe: $160 million (2%) - Japan: $713 million (10%) - Korea: $1.16 billion (16%) - Taiwan: $1.843 billion (25%) - Southeast Asia: $195 million (3%) - China: $2.548 billion (35%) [5] - Notable year-over-year revenue increases were seen in Japan (28.5%), Taiwan (60.5%), and China (18.4%), while revenues in the United States, Europe, and Southeast Asia decreased significantly [6] Operating Results - The non-GAAP gross margin was 48.9%, an increase of 150 basis points year over year [7] - Operating expenses totaled $1.33 billion, up 5.2% from the previous year, but decreased as a percentage of sales to 18.1% [7] - The non-GAAP operating margin improved to 30.7%, up 190 basis points year over year [7] Balance Sheet & Cash Flow - As of July 27, 2025, cash and cash equivalents plus short-term investments were $7.01 billion, down from $9.47 billion as of April 27, 2025 [8] - Inventories increased to $5.81 billion from $5.66 billion in the prior quarter, while accounts receivable decreased to $5.77 billion from $6.19 billion [10] - The company generated a non-GAAP free cash flow of $2.05 billion, significantly up from $1.06 billion in the prior quarter, and returned $1.42 billion to shareholders [11] Guidance - For the fiscal fourth quarter, AMAT expects net sales of $6.7 billion (+/- $500 million), with the Zacks Consensus Estimate at $7.31 billion [12] - Projected sales for segments include Semiconductor Systems at $4.70 billion, Applied Global Services at $1.60 billion, and Display at $350 million [12] - Management anticipates a non-GAAP gross margin of 48.1% and non-GAAP operating expenses of $1.31 billion, with expected non-GAAP earnings per share of $2.11 (+/- $0.20) [12][13]