APPLIED MATERIALS INC /DE SEC 10-Q Report

Applied Materials Inc., a leading company in the semiconductor and display manufacturing equipment industry, has released its latest Form 10-Q report, showcasing robust financial and operational performance. The report highlights significant growth in key financial metrics and strategic advancements in business operations, driven by increased customer investments in leading-edge manufacturing technologies.

Financial Highlights

• Net Revenue: $7,100 million, a 7% increase compared to the same period last year, driven by higher customer investments in leading-edge manufacturing technologies.
• Gross Profit: $3,485 million, with a gross margin of 49.1%, up 1.7 percentage points from the previous year, primarily due to favorable changes in customer and product mix and lower material and manufacturing costs.
• Operating Income: $2,169 million, representing an operating margin of 30.5%, an increase of 1.7 percentage points from the prior year, reflecting higher net revenue and improved cost efficiencies.
• Net Income: $2,137 million, an increase of $415 million from the previous year, despite a higher effective tax rate in the first six months of fiscal 2025.
• Diluted EPS: $2.63, up $0.57 from the same period last year, reflecting strong operational performance and effective cost management.

Business Highlights

• Revenue Segments: The Semiconductor Systems segment remains the largest contributor to net revenue, driven by strategic investments in new capacity and technology transitions. Foundry and logic customer spending increased due to higher investments in leading-edge manufacturing technologies. Memory customer spending showed mixed results, with increased investments in NAND fabrication equipment upgrades but decreased investments in DRAM technology transitions.
• Geographical Performance: Revenue from Korea and Taiwan increased significantly due to investments in semiconductor equipment and spending on spares and services. Conversely, revenue from China decreased due to lower investments in semiconductor equipment, although there was an increase in spending on spares, services, and display fabrication equipment. The United States saw a decrease in revenue in the three months ended April 27, 2025, due to reduced investments in 200mm equipment, but an increase over six months due to higher investments in semiconductor equipment.
• Sales Units: The AGS segment saw increased revenue from long-term service agreements and customer spending on spares, although there was a decline in spending on 200mm equipment.
• New Product Launches: The company continues to prioritize RD&E investments to support product development initiatives, focusing on solving key technical challenges in patterning, transistor, interconnect, process control, and packaging performance.
• Future Outlook: The company anticipates continued growth driven by strategic investments in RD&E to support new product development and technology transitions. The focus remains on expanding market opportunities in the semiconductor and display industries, with an emphasis on developing new materials engineering capabilities.

SEC Filing: APPLIED MATERIALS INC /DE [ AMAT ] - 10-Q - May. 22, 2025