Applied Materials Announces Third Quarter 2025 Results
Applied Materials (NASDAQ: AMAT) reported strong Q3 FY2025 results with record revenue of $7.30 billion, up 8% year-over-year. The company achieved record non-GAAP EPS of $2.48, a 17% increase from the previous year, while GAAP EPS rose 8% to $2.22.
Despite the strong performance, AMAT forecasts Q4 FY2025 revenue to decline to approximately $6.70 billion (卤$500M) due to capacity digestion in China and non-linear demand from leading-edge customers. The company maintains strong market position with Semiconductor Systems revenue at $5.43 billion (74% of total revenue) and healthy margins, with non-GAAP gross margin at 48.9% and operating margin at 30.7%.
Applied Materials (NASDAQ: AMAT) ha annunciato risultati solidi per il terzo trimestre dell'esercizio 2025, con un fatturato record di 7,30 miliardi di dollari, in aumento dell'8% su base annua. L'azienda ha ottenuto un utile non-GAAP per azione record di 2,48 dollari, +17% rispetto all'anno precedente, mentre l'utile GAAP per azione 猫 salito dell'8% a 2,22 dollari.
Nonostante le buone performance, AMAT prevede per il quarto trimestre 2025 un calo del fatturato a circa 6,70 miliardi di dollari (卤500M), attribuito a una digestione di capacit脿 in Cina e a una domanda non lineare dai clienti all'avanguardia. L'azienda conserva una solida posizione di mercato, con ricavi di Semiconductor Systems pari a 5,43 miliardi di dollari (74% del totale) e margini robusti: margine lordo non-GAAP al 48,9% e margine operativo al 30,7%.
Applied Materials (NASDAQ: AMAT) present贸 s贸lidos resultados en el tercer trimestre del ejercicio 2025, con ingresos r茅cord de 7,30 mil millones de d贸lares, un aumento del 8% interanual. La compa帽铆a logr贸 un beneficio por acci贸n non-GAAP r茅cord de 2,48 d贸lares, un 17% m谩s que el a帽o anterior, mientras que el BPA GAAP subi贸 un 8% hasta 2,22 d贸lares.
A pesar del buen desempe帽o, AMAT pronostica que los ingresos del cuarto trimestre de 2025 disminuir谩n hasta aproximadamente 6,70 mil millones de d贸lares (卤500M), debido a la digesti贸n de capacidad en China y a una demanda no lineal por parte de clientes de vanguardia. La compa帽铆a mantiene una posici贸n de mercado fuerte, con ingresos de Semiconductor Systems de 5,43 mil millones de d贸lares (74% del total) y m谩rgenes saludables: margen bruto non-GAAP del 48,9% y margen operativo del 30,7%.
Applied Materials (NASDAQ: AMAT)電� 2025 須岅硠鞐半弰 3攵勱赴 鞁れ爜鞐愳劀 70鞏� 3觳滊 雼煬鞚� 旮半鞝� 毵れ稖鞚� 氤搓碃頃橂┌ 鞝勲厔 雽�牍� 8% 歃濌皜頃� 瓴“頃� 靹标臣毳� 氚滍憸頄堨姷雼堧嫟. 須岇偓電� 牍�-GAAP 欤茧嫻靾滌澊鞚�(EPS) 2.48雼煬搿� 靷儊 斓滉碃旃�毳� 旮半頃� 鞝勲厔 雽�牍� 17% 歃濌皜頄堨溂氅�, GAAP 旮办 EPS電� 8% 靸侅姽頃� 2.22雼煬鞓�鞀惦媹雼�.
臧曧暅 鞁れ爜鞐愲弰 攵堦惮頃橁碃 AMAT電� 欷戧淡 雮� 靹る箘 靻岉檾鞕� 斓滌波雼� 瓿犼皾鞚� 牍勳劆順� 靾橃殧搿� 鞚疙暣 2025 須岅硠鞐半弰 4攵勱赴 毵れ稖鞚� 鞎� 67鞏� 雼煬(卤5鞏� 雼煬)搿� 臧愳唽頃� 瓴冹溂搿� 鞝勲頃╇媹雼�. 須岇偓電� 氚橂弰觳� 鞁滌姢韰� 毵れ稖鞚� 54.3鞏� 雼煬(齑濍Г於滌潣 74%)搿� 鞁滌灔 雮� 瓴碃頃� 歆�鞙勲ゼ 鞙犾頃橁碃 鞛堨溂氅�, 牍�-GAAP 毵れ稖齑濎澊鞚惦 48.9%鞕� 鞓侅梾鞚挫澋毳� 30.7%鞚� 瓯挫爠頃� 毵堨鞚� 氤挫湢頃橁碃 鞛堨姷雼堧嫟.
Applied Materials (NASDAQ: AMAT) a annonc茅 de solides r茅sultats pour le troisi猫me trimestre de l'exercice 2025, avec un chiffre d'affaires record de 7,30 milliards de dollars, en hausse de 8 % sur un an. La soci茅t茅 a r茅alis茅 un b茅n茅fice non-GAAP par action record de 2,48 dollars, soit une hausse de 17 % par rapport 脿 l'ann茅e pr茅c茅dente, tandis que le b茅n茅fice par action GAAP a augment茅 de 8 % pour atteindre 2,22 dollars.
Malgr茅 cette performance, AMAT pr茅voit que le chiffre d'affaires du quatri猫me trimestre 2025 diminuera pour s'茅tablir autour de 6,70 milliards de dollars (卤500M), en raison d'une digestion des capacit茅s en Chine et d'une demande non lin茅aire de la part des clients de pointe. L'entreprise conserve une position de march茅 solide, avec des revenus de Semiconductor Systems 脿 5,43 milliards de dollars (74 % du chiffre d'affaires total) et des marges saines : marge brute non-GAAP de 48,9 % et marge op茅rationnelle de 30,7 %.
Applied Materials (NASDAQ: AMAT) meldete starke Ergebnisse f眉r das dritte Quartal des Gesch盲ftsjahres 2025 mit einem rekordverd盲chtigen Umsatz von 7,30 Milliarden US-Dollar, ein Plus von 8% gegen眉ber dem Vorjahr. Das Unternehmen erzielte ein rekordhohes non-GAAP-Gewinn je Aktie von 2,48 US-Dollar, ein Anstieg um 17% gegen眉ber dem Vorjahr, w盲hrend der GAAP-Gewinn je Aktie um 8% auf 2,22 US-Dollar stieg.
Trotz der starken Performance erwartet AMAT f眉r das vierte Quartal 2025 einen Umsatzr眉ckgang auf rund 6,70 Milliarden US-Dollar (卤500 Mio.), bedingt durch Kapazit盲tsanpassungen in China und nicht-lineare Nachfrage von f眉hrenden Kunden. Das Unternehmen beh盲lt eine starke Marktposition bei: Semiconductor Systems erzielte 5,43 Milliarden US-Dollar (74% des Gesamtumsatzes) und solide Margen mit einer non-GAAP-Bruttomarge von 48,9% sowie einer operativen Marge von 30,7%.
- Record quarterly revenue of $7.30B, up 8% year-over-year
- Record non-GAAP EPS of $2.48, increasing 17% year-over-year
- Non-GAAP gross margin improved to 48.9%, up 1.5 points
- Semiconductor Systems segment revenue grew to $5.43B with 36.4% operating margin
- On track for sixth consecutive year of revenue growth
- Expected revenue decline in Q4 FY2025 to $6.70B 卤$500M
- Increased uncertainty and lower visibility in near-term outlook
- Challenges in China business due to capacity digestion
- Non-linear demand from leading-edge customers
- Applied Global Services operating margin declined to 27.8% from 29.6% year-over-year
Insights
Applied Materials delivered record Q3 results but warns of coming headwinds in China and from leading-edge customers.
Applied Materials has posted record Q3 FY2025 results with revenue reaching
The Semiconductor Systems segment, which remains the company's largest revenue driver at
Despite these strong results, management's commentary and forward guidance reveal growing concerns. The company explicitly warned about increased uncertainty and lower visibility due to macroeconomic and policy challenges, particularly affecting their China business. This is reflected in their Q4 guidance, which projects revenue to decline to approximately
Management attributes this expected decline to two specific factors: capacity digestion in China and non-linear demand patterns from leading-edge customers due to market concentration and fab timing. The wider-than-typical guidance range (卤
While the Display segment showed impressive margin improvement (non-GAAP operating margin at
The company's ability to navigate these near-term challenges while maintaining its long-term growth trajectory will depend heavily on its global manufacturing footprint, supply chain resilience, and customer relationships 鈥� factors management specifically highlighted as strategic advantages in this uncertain environment.
- Record revenue
$7.30 billion , up 8 percent year over year - GAAP gross margin 48.8 percent and non-GAAP gross margin 48.9 percent
- GAAP operating margin 30.6 percent and non-GAAP operating margin 30.7 percent
- GAAP EPS
$2.22 and record non-GAAP EPS$2.48 , up 8 percent and 17 percent year over year, respectively
SANTA CLARA, Calif., Aug. 14, 2025 (GLOBE NEWSWIRE) -- Applied Materials, Inc. (NASDAQ: AMAT) today reported results for its third quarter ended Jul. 27, 2025.
鈥淎pplied Materials delivered record performance in our third fiscal quarter, and we are on track to deliver our sixth consecutive year of revenue growth in fiscal 2025,鈥� said Gary Dickerson, President and CEO. 鈥淲e are currently operating in a dynamic macroeconomic and policy environment, which is creating increased uncertainty and lower visibility in the near term, including for our China business. Despite this, we remain very confident in the longer-term growth opportunities for the semiconductor industry and Applied Materials.鈥�
鈥淲e are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and non-linear demand from leading-edge customers given market concentration and fab timing,鈥� said Brice Hill, Senior Vice President and CFO. 鈥淲e are navigating and adapting to the near-term uncertainties by leveraging our robust supply chain, global manufacturing footprint and deep customer relationships.鈥�
Results Summary
| 听 | Q3 FY2025 | 听 | Q3 FY2024 | 听 | Change | ||||
| 听 | (In millions, except per share amounts and percentages) | ||||||||
| Net revenue | $ | 7,302 | 听 | 听 | $ | 6,778 | 听 | 听 | |
| Gross margin | 听 | 48.8 | % | 听 | 听 | 47.3 | % | 听 | 1.5 points |
| Operating margin | 听 | 30.6 | % | 听 | 听 | 28.7 | % | 听 | 1.9 points |
| Net income | $ | 1,779 | 听 | 听 | $ | 1,705 | 听 | 听 | |
| Diluted earnings per share | $ | 2.22 | 听 | 听 | $ | 2.05 | 听 | 听 | |
| Non-GAAP Results | 听 | 听 | 听 | 听 | 听 | ||||
| Non-GAAP gross margin | 听 | 48.9 | % | 听 | 听 | 47.4 | % | 听 | 1.5 points |
| Non-GAAP operating margin | 听 | 30.7 | % | 听 | 听 | 28.8 | % | 听 | 1.9 points |
| Non-GAAP net income | $ | 1,989 | 听 | 听 | $ | 1,767 | 听 | 听 | |
| Non-GAAP diluted EPS | $ | 2.48 | 听 | 听 | $ | 2.12 | 听 | 听 | |
| Non-GAAP free cash flow | $ | 2,050 | 听 | 听 | $ | 2,088 | 听 | 听 | (2)% |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
A reconciliation of the GAAP and non-GAAP results is provided in the financial tables included in this release. See also 鈥淯se of Non-GAAP Financial Measures鈥� section.
Business Outlook
Applied鈥檚 total net revenue, non-GAAP gross margin and non-GAAP diluted EPS for the fourth quarter of fiscal 2025 are expected to be approximately as follows:
| 听 | 听 | 听 | 听 | 听 | 听 | |||
| 听 | 听 | 听 | Q4 FY2025 | |||||
| (In millions, except percentage and per share amounts) | 听 | |||||||
| Total net revenue | 听 | 听 | $ | 6,700 | 听 | +/- | $ | 500 |
| Non-GAAP gross margin | 听 | 听 | 听 | 48.1 | % | 听 | 听 | |
| Non-GAAP diluted EPS | 听 | 听 | $ | 2.11 | 听 | +/- | $ | 0.20 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
This outlook for non-GAAP diluted EPS excludes known charges related to completed acquisitions of
Third Quarter Reportable Segment Information
| Semiconductor Systems | Q3 FY2025 | 听 | Q3 FY2024 | ||||
| (in millions, except percentages) | 听 | ||||||
| Net revenue | $ | 5,427 | 听 | 听 | $ | 4,924 | 听 |
| Foundry, logic and other | 听 | 69 | % | 听 | 听 | 72 | % |
| DRAM | 听 | 22 | % | 听 | 听 | 24 | % |
| Flash memory | 听 | 9 | % | 听 | 听 | 4 | % |
| Operating income | $ | 1,966 | 听 | 听 | $ | 1,712 | 听 |
| Operating margin | 听 | 36.2 | % | 听 | 听 | 34.8 | % |
| Non-GAAP Results | 听 | 听 | |||||
| Non-GAAP operating income | $ | 1,977 | 听 | 听 | $ | 1,722 | 听 |
| Non-GAAP operating margin | 听 | 36.4 | % | 听 | 听 | 35.0 | % |
| Applied Global Services | Q3 FY2025 | 听 | Q3 FY2024 | ||||
| (in millions, except percentages) | 听 | ||||||
| Net revenue | $ | 1,600 | 听 | 听 | $ | 1,580 | 听 |
| Operating income | $ | 445 | 听 | 听 | $ | 467 | 听 |
| Operating margin | 听 | 27.8 | % | 听 | 听 | 29.6 | % |
| Non-GAAP Results | 听 | 听 | |||||
| Non-GAAP operating income | $ | 445 | 听 | 听 | $ | 467 | 听 |
| Non-GAAP operating margin | 听 | 27.8 | % | 听 | 听 | 29.6 | % |
| Display | Q3 FY2025 | 听 | Q3 FY2024 | ||||
| (in millions, except percentages) | 听 | ||||||
| Net revenue | $ | 263 | 听 | 听 | $ | 251 | 听 |
| Operating income | $ | 62 | 听 | 听 | $ | 16 | 听 |
| Operating margin | 听 | 23.6 | % | 听 | 听 | 6.4 | % |
| Non-GAAP Results | 听 | 听 | |||||
| Non-GAAP operating income | $ | 62 | 听 | 听 | $ | 16 | 听 |
| Non-GAAP operating margin | 听 | 23.6 | % | 听 | 听 | 6.4 | % |
| Corporate and Other | Q3 FY2025 | 听 | Q3 FY2024 | ||||
| (in millions) | 听 | ||||||
| Unallocated net revenue | $ | 12 | 听 | 听 | $ | 23 | 听 |
| Unallocated cost of products sold and expenses | 听 | (252 | ) | 听 | 听 | (276 | ) |
| Total | $ | (240 | ) | 听 | $ | (253 | ) |
| 听 | |||||||
Use of Non-GAAP Financial Measures
Applied provides investors with certain non-GAAP financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including certain items related to mergers and acquisitions; restructuring and severance charges and any associated adjustments; impairments of assets; gain or loss, dividends and impairments on strategic investments; certain income tax items and other discrete adjustments. On a non-GAAP basis, the tax effect related to share-based compensation is recognized ratably over the fiscal year. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.
Management uses these non-GAAP financial measures to evaluate the company鈥檚 operating and financial performance and for planning purposes, and as performance measures in its executive compensation program. Applied believes these measures enhance an overall understanding of its performance and investors鈥� ability to review the company鈥檚 business from the same perspective as the company鈥檚 management, and facilitate comparisons of this period鈥檚 results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Applied's ongoing operating performance. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.
Webcast Information
Applied Materials will discuss these results during an earnings call that begins at 1:30 p.m. Pacific Time today. A live webcast and related slide presentation will be available at . A replay will be available on the website beginning at 5:00 p.m. Pacific Time today.
Forward-Looking Statements
This press release contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, our business outlook for the fourth quarter of fiscal 2025 and beyond, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic, political and industry conditions, including changes in interest rates and prices for goods and services; the implementation of additional export regulations and license requirements and their interpretation, and their impact on our ability to export products and provide services to customers and on our results of operations; global trade issues and changes in trade and export license policies and our ability to obtain licenses or authorizations on a timely basis, if at all; imposition of new or increases in tariffs and any retaliatory measures, including their impact on demand for our products and services; our ability to effectively mitigate the impact of tariffs; the effects of geopolitical turmoil or conflicts; demand for semiconductor chips and electronic devices; customers鈥� technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; our ability to meet customer demand, and our suppliers鈥� ability to meet our demand requirements; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; cybersecurity incidents affecting our information systems or information contained in them, or affecting our operations, suppliers, customers or vendors; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; the effects of regional or global health epidemics; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations and other risks and uncertainties described in our SEC filings, including our recent Forms 10-Q and 8-K. All forward-looking statements are based on management鈥檚 current estimates, projections and assumptions, and we assume no obligation to update them.
About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions that are at the foundation of virtually every new semiconductor and advanced display in the world. The technology we create is essential to advancing AI and accelerating the commercialization of next-generation chips. At Applied, we push the boundaries of science and engineering to deliver material innovation that changes the world. Learn more at .
Investor Relations Contact:
Liz Morali (408) 986-7977
Media Contact:
Ricky Gradwohl (408) 235-4676
听 听
| APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | |||||||||||
| 听 | |||||||||||
| 听 | Three Months Ended | 听 | Nine Months Ended | ||||||||
| (In millions, except per share amounts) | July 27, 2025 | 听 | July 28, 2024 | 听 | July 27, 2025 | 听 | July 28, 2024 | ||||
| Net revenue | $ | 7,302 | 听 | $ | 6,778 | 听 | $ | 21,568 | 听 | $ | 20,131 |
| Cost of products sold | 听 | 3,740 | 听 | 听 | 3,573 | 听 | 听 | 11,025 | 听 | 听 | 10,569 |
| Gross profit | 听 | 3,562 | 听 | 听 | 3,205 | 听 | 听 | 10,543 | 听 | 听 | 9,562 |
| Operating expenses: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| Research, development and engineering | 听 | 901 | 听 | 听 | 836 | 听 | 听 | 2,653 | 听 | 听 | 2,375 |
| Marketing and selling | 听 | 224 | 听 | 听 | 205 | 听 | 听 | 646 | 听 | 听 | 621 |
| General and administrative | 听 | 204 | 听 | 听 | 222 | 听 | 听 | 667 | 听 | 听 | 745 |
| Total operating expenses | 听 | 1,329 | 听 | 听 | 1,263 | 听 | 听 | 3,966 | 听 | 听 | 3,741 |
| Income from operations | 听 | 2,233 | 听 | 听 | 1,942 | 听 | 听 | 6,577 | 听 | 听 | 5,821 |
| Interest expense | 听 | 66 | 听 | 听 | 63 | 听 | 听 | 198 | 听 | 听 | 181 |
| Interest and other income (expense), net | 听 | 396 | 听 | 听 | 81 | 听 | 听 | 625 | 听 | 听 | 617 |
| Income before income taxes | 听 | 2,563 | 听 | 听 | 1,960 | 听 | 听 | 7,004 | 听 | 听 | 6,257 |
| Provision for income taxes | 听 | 784 | 听 | 听 | 255 | 听 | 听 | 1,903 | 听 | 听 | 811 |
| Net income | $ | 1,779 | 听 | $ | 1,705 | 听 | $ | 5,101 | 听 | $ | 5,446 |
| Earnings per share: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| Basic | $ | 2.23 | 听 | $ | 2.06 | 听 | $ | 6.32 | 听 | $ | 6.57 |
| Diluted | $ | 2.22 | 听 | $ | 2.05 | 听 | $ | 6.29 | 听 | $ | 6.52 |
| Weighted average number of shares: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||
| Basic | 听 | 798 | 听 | 听 | 826 | 听 | 听 | 807 | 听 | 听 | 829 |
| Diluted | 听 | 802 | 听 | 听 | 833 | 听 | 听 | 811 | 听 | 听 | 835 |
| 听 | |||||||||||
| APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS | |||||
| 听 | |||||
| (In millions) | July 27, 2025 | 听 | October 27, 2024 | ||
| ASSETS | 听 | 听 | 听 | ||
| Current assets: | 听 | 听 | 听 | ||
| Cash and cash equivalents | $ | 5,384 | 听 | $ | 8,022 |
| Short-term investments | 听 | 1,630 | 听 | 听 | 1,449 |
| Accounts receivable, net | 听 | 5,772 | 听 | 听 | 5,234 |
| Inventories | 听 | 5,807 | 听 | 听 | 5,421 |
| Other current assets | 听 | 1,125 | 听 | 听 | 1,094 |
| Total current assets | 听 | 19,718 | 听 | 听 | 21,220 |
| Long-term investments | 听 | 4,133 | 听 | 听 | 2,787 |
| Property, plant and equipment, net | 听 | 4,124 | 听 | 听 | 3,339 |
| Goodwill | 听 | 3,748 | 听 | 听 | 3,732 |
| Purchased technology and other intangible assets, net | 听 | 238 | 听 | 听 | 249 |
| Deferred income taxes and other assets | 听 | 2,250 | 听 | 听 | 3,082 |
| Total assets | $ | 34,211 | 听 | $ | 34,409 |
| LIABILITIES AND STOCKHOLDERS鈥� EQUITY | 听 | 听 | 听 | ||
| Current liabilities: | 听 | 听 | 听 | ||
| Short-term debt | $ | 799 | 听 | $ | 799 |
| Accounts payable and accrued expenses | 听 | 4,614 | 听 | 听 | 4,820 |
| Contract liabilities | 听 | 2,470 | 听 | 听 | 2,849 |
| Total current liabilities | 听 | 7,883 | 听 | 听 | 8,468 |
| Long-term debt | 听 | 5,463 | 听 | 听 | 5,460 |
| Income taxes payable | 听 | 330 | 听 | 听 | 670 |
| Other liabilities | 听 | 1,031 | 听 | 听 | 810 |
| Total liabilities | 听 | 14,707 | 听 | 听 | 15,408 |
| Total stockholders鈥� equity | 听 | 19,504 | 听 | 听 | 19,001 |
| Total liabilities and stockholders鈥� equity | $ | 34,211 | 听 | $ | 34,409 |
| 听 | |||||
| APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||||
| 听 | |||||||||||||||
| (In millions) | Three Months Ended | 听 | Nine Months Ended | ||||||||||||
| July 27, 2025 | 听 | July 28, 2024 | July 27, 2025 | 听 | July 28, 2024 | ||||||||||
| Cash flows from operating activities: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Net income | $ | 1,779 | 听 | 听 | $ | 1,705 | 听 | 听 | $ | 5,101 | 听 | 听 | $ | 5,446 | 听 |
| Adjustments required to reconcile net income to cash provided by operating activities: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Depreciation and amortization | 听 | 113 | 听 | 听 | 听 | 95 | 听 | 听 | 听 | 321 | 听 | 听 | 听 | 282 | 听 |
| Share-based compensation | 听 | 158 | 听 | 听 | 听 | 132 | 听 | 听 | 听 | 512 | 听 | 听 | 听 | 436 | 听 |
| Deferred income taxes | 听 | 280 | 听 | 听 | 听 | (179 | ) | 听 | 听 | 952 | 听 | 听 | 听 | (385 | ) |
| Other | 听 | (284 | ) | 听 | 听 | 48 | 听 | 听 | 听 | (298 | ) | 听 | 听 | (199 | ) |
| Net change in operating assets and liabilities | 听 | 588 | 听 | 听 | 听 | 584 | 听 | 听 | 听 | (1,458 | ) | 听 | 听 | 522 | 听 |
| Cash provided by operating activities | 听 | 2,634 | 听 | 听 | 听 | 2,385 | 听 | 听 | 听 | 5,130 | 听 | 听 | 听 | 6,102 | 听 |
| Cash flows from investing activities: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Capital expenditures | 听 | (584 | ) | 听 | 听 | (297 | ) | 听 | 听 | (1,475 | ) | 听 | 听 | (783 | ) |
| Cash paid for acquisitions, net of cash acquired | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | (29 | ) | 听 | 听 | 鈥� | 听 |
| Proceeds from asset sale | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 33 | 听 | 听 | 听 | 鈥� | 听 |
| Proceeds from sales and maturities of investments | 听 | 793 | 听 | 听 | 听 | 382 | 听 | 听 | 听 | 3,937 | 听 | 听 | 听 | 1,495 | 听 |
| Purchases of investments | 听 | (2,176 | ) | 听 | 听 | (745 | ) | 听 | 听 | (5,109 | ) | 听 | 听 | (1,968 | ) |
| Cash used in investing activities | 听 | (1,967 | ) | 听 | 听 | (660 | ) | 听 | 听 | (2,643 | ) | 听 | 听 | (1,256 | ) |
| Cash flows from financing activities: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Debt borrowings, net of issuance costs | 听 | 鈥� | 听 | 听 | 听 | 694 | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 694 | 听 |
| Proceeds from issuance of commercial paper | 听 | 100 | 听 | 听 | 听 | 100 | 听 | 听 | 听 | 400 | 听 | 听 | 听 | 300 | 听 |
| Repayments of commercial paper | 听 | (100 | ) | 听 | 听 | (100 | ) | 听 | 听 | (400 | ) | 听 | 听 | (300 | ) |
| Proceeds from common stock issuances | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 129 | 听 | 听 | 听 | 119 | 听 |
| Common stock repurchases | 听 | (1,056 | ) | 听 | 听 | (861 | ) | 听 | 听 | (4,044 | ) | 听 | 听 | (2,381 | ) |
| Tax withholding payments for vested equity awards | 听 | (33 | ) | 听 | 听 | (25 | ) | 听 | 听 | (210 | ) | 听 | 听 | (258 | ) |
| Payments of dividends to stockholders | 听 | (368 | ) | 听 | 听 | (331 | ) | 听 | 听 | (1,019 | ) | 听 | 听 | (863 | ) |
| Payments of debt issuance costs | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | (2 | ) | 听 | 听 | 鈥� | 听 |
| Repayments of principal on finance leases | 听 | 鈥� | 听 | 听 | 听 | 1 | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | (12 | ) |
| Cash used in financing activities | 听 | (1,457 | ) | 听 | 听 | (522 | ) | 听 | 听 | (5,146 | ) | 听 | 听 | (2,701 | ) |
| Increase (decrease) in cash, cash equivalents and restricted cash equivalents | 听 | (790 | ) | 听 | 听 | 1,203 | 听 | 听 | 听 | (2,659 | ) | 听 | 听 | 2,145 | 听 |
| Cash, cash equivalents and restricted cash equivalents鈥攂eginning of period | 听 | 6,244 | 听 | 听 | 听 | 7,175 | 听 | 听 | 听 | 8,113 | 听 | 听 | 听 | 6,233 | 听 |
| Cash, cash equivalents and restricted cash equivalents听鈥� end of period | $ | 5,454 | 听 | 听 | $ | 8,378 | 听 | 听 | $ | 5,454 | 听 | 听 | $ | 8,378 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Reconciliation of cash, cash equivalents, and restricted cash equivalents | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Cash and cash equivalents | $ | 5,384 | 听 | 听 | $ | 8,288 | 听 | 听 | $ | 5,384 | 听 | 听 | $ | 8,288 | 听 |
| Restricted cash equivalents included in deferred income taxes and other assets | 听 | 70 | 听 | 听 | 听 | 90 | 听 | 听 | 听 | 70 | 听 | 听 | 听 | 90 | 听 |
| Total cash, cash equivalents, and restricted cash equivalents | $ | 5,454 | 听 | 听 | $ | 8,378 | 听 | 听 | $ | 5,454 | 听 | 听 | $ | 8,378 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Supplemental cash flow information: | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| Cash payments for income taxes | $ | 436 | 听 | 听 | $ | 213 | 听 | 听 | $ | 1,269 | 听 | 听 | $ | 819 | 听 |
| Cash refunds from income taxes | $ | 4 | 听 | 听 | $ | 2 | 听 | 听 | $ | 79 | 听 | 听 | $ | 7 | 听 |
| Cash payments for interest | $ | 51 | 听 | 听 | $ | 35 | 听 | 听 | $ | 171 | 听 | 听 | $ | 137 | 听 |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 | 听 |
Additional Information
| 听 | Q3 FY2025 | 听 | Q3 FY2024 | ||||
| Net Revenue by Geography (In millions) | 听 | ||||||
| United States | $ | 683 | 听 | 听 | $ | 1,053 | 听 |
| % of Total | 听 | 9 | % | 听 | 听 | 16 | % |
| Europe | $ | 160 | 听 | 听 | $ | 339 | 听 |
| % of Total | 听 | 2 | % | 听 | 听 | 5 | % |
| Japan | $ | 713 | 听 | 听 | $ | 555 | 听 |
| % of Total | 听 | 10 | % | 听 | 听 | 8 | % |
| Korea | $ | 1,160 | 听 | 听 | $ | 1,102 | 听 |
| % of Total | 听 | 16 | % | 听 | 听 | 16 | % |
| Taiwan | $ | 1,843 | 听 | 听 | $ | 1,148 | 听 |
| % of Total | 听 | 25 | % | 听 | 听 | 17 | % |
| Southeast Asia | $ | 195 | 听 | 听 | $ | 428 | 听 |
| % of Total | 听 | 3 | % | 听 | 听 | 6 | % |
| China | $ | 2,548 | 听 | 听 | $ | 2,153 | 听 |
| % of Total | 听 | 35 | % | 听 | 听 | 32 | % |
| 听 | 听 | 听 | 听 | ||||
| Employees(In thousands) | 听 | 听 | 听 | ||||
| Regular Full Time | 听 | 36.1 | 听 | 听 | 听 | 35.2 | 听 |
| APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||||||||||||
| 听 | |||||||||||||||
| 听 | Three Months Ended | 听 | Nine Months Ended | ||||||||||||
| (In millions, except percentages) | July 27, 2025 | 听 | July 28, 2024 | 听 | July 27, 2025 | 听 | July 28, 2024 | ||||||||
| Non-GAAP Gross Profit | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| GAAP reported gross profit | $ | 3,562 | 听 | 听 | $ | 3,205 | 听 | 听 | $ | 10,543 | 听 | 听 | $ | 9,562 | 听 |
| Certain items associated with acquisitions1 | 听 | 7 | 听 | 听 | 听 | 6 | 听 | 听 | 听 | 20 | 听 | 听 | 听 | 20 | 听 |
| Non-GAAP gross profit | $ | 3,569 | 听 | 听 | $ | 3,211 | 听 | 听 | $ | 10,563 | 听 | 听 | $ | 9,582 | 听 |
| Non-GAAP gross margin | 听 | 48.9 | % | 听 | 听 | 47.4 | % | 听 | 听 | 49.0 | % | 听 | 听 | 47.6 | % |
| Non-GAAP Operating Income | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| GAAP reported operating income | $ | 2,233 | 听 | 听 | $ | 1,942 | 听 | 听 | $ | 6,577 | 听 | 听 | $ | 5,821 | 听 |
| Certain items associated with acquisitions1 | 听 | 11 | 听 | 听 | 听 | 10 | 听 | 听 | 听 | 34 | 听 | 听 | 听 | 31 | 听 |
| Acquisition integration and deal costs | 听 | 1 | 听 | 听 | 听 | 1 | 听 | 听 | 听 | 4 | 听 | 听 | 听 | 9 | 听 |
| Non-GAAP operating income | $ | 2,245 | 听 | 听 | $ | 1,953 | 听 | 听 | $ | 6,615 | 听 | 听 | $ | 5,861 | 听 |
| Non-GAAP operating margin | 听 | 30.7 | % | 听 | 听 | 28.8 | % | 听 | 听 | 30.7 | % | 听 | 听 | 29.1 | % |
| Non-GAAP Net Income | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| GAAP reported net income | $ | 1,779 | 听 | 听 | $ | 1,705 | 听 | 听 | $ | 5,101 | 听 | 听 | $ | 5,446 | 听 |
| Certain items associated with acquisitions1 | 听 | 11 | 听 | 听 | 听 | 10 | 听 | 听 | 听 | 34 | 听 | 听 | 听 | 31 | 听 |
| Acquisition integration and deal costs | 听 | 1 | 听 | 听 | 听 | 1 | 听 | 听 | 听 | 4 | 听 | 听 | 听 | 9 | 听 |
| AG真人官方ized loss (gain), dividends and impairments on strategic investments, net | 听 | 16 | 听 | 听 | 听 | 16 | 听 | 听 | 听 | (11 | ) | 听 | 听 | 12 | 听 |
| Unrealized loss (gain) on strategic investments, net | 听 | (314 | ) | 听 | 听 | 25 | 听 | 听 | 听 | (288 | ) | 听 | 听 | (275 | ) |
| Foreign exchange loss (gain) related to purchase of strategic investment | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 23 | 听 | 听 | 听 | 鈥� | 听 |
| Loss (gain) on asset sale | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | (44 | ) | 听 | 听 | 鈥� | 听 |
| Income tax effect of share-based compensation2 | 听 | 7 | 听 | 听 | 听 | 8 | 听 | 听 | 听 | 1 | 听 | 听 | 听 | (7 | ) |
| Income tax effects related to intra-entity intangible asset transfers3 | 听 | 32 | 听 | 听 | 听 | 17 | 听 | 听 | 听 | 738 | 听 | 听 | 听 | 57 | 听 |
| Resolution of prior years鈥� income tax filings and other tax items4 | 听 | 460 | 听 | 听 | 听 | (11 | ) | 听 | 听 | 320 | 听 | 听 | 听 | 22 | 听 |
| Income tax effect of non-GAAP adjustments5 | 听 | (3 | ) | 听 | 听 | (4 | ) | 听 | 听 | (3 | ) | 听 | 听 | (2 | ) |
| Non-GAAP net income | $ | 1,989 | 听 | 听 | $ | 1,767 | 听 | 听 | $ | 5,875 | 听 | 听 | $ | 5,293 | 听 |
| 1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. |
| 听 | 听 |
| 2 | GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis. |
| 听 | 听 |
| 3 | Amount for the nine months ended July 27, 2025, included changes to income tax provision of |
| 听 | 听 |
| 4 | Amounts for the three and nine months ended July 27, 2025 included the impact of the recognition of a |
| 听 | 听 |
| 5 | Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. |
| 听 | 听 |
| APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||||||||||||
| 听 | |||||||||||||||
| 听 | Three Months Ended | 听 | Nine Months Ended | ||||||||||||
| (In millions, except per share amounts) | July 27, 2025 | 听 | July 28, 2024 | 听 | July 27, 2025 | 听 | July 28, 2024 | ||||||||
| Non-GAAP Earnings Per Diluted Share | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| GAAP reported earnings per diluted share | $ | 2.22 | 听 | 听 | $ | 2.05 | 听 | 听 | $ | 6.29 | 听 | 听 | $ | 6.52 | 听 |
| Certain items associated with acquisitions | 听 | 0.01 | 听 | 听 | 听 | 0.01 | 听 | 听 | 听 | 0.04 | 听 | 听 | 听 | 0.04 | 听 |
| Acquisition integration and deal costs | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 0.01 | 听 |
| AG真人官方ized loss (gain), dividends and impairments on strategic investments, net | 听 | 0.02 | 听 | 听 | 听 | 0.01 | 听 | 听 | 听 | (0.02 | ) | 听 | 听 | 0.01 | 听 |
| Unrealized loss (gain) on strategic investments, net | 听 | (0.39 | ) | 听 | 听 | 0.03 | 听 | 听 | 听 | (0.36 | ) | 听 | 听 | (0.33 | ) |
| Foreign exchange loss (gain) related to purchase of strategic investment | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | 0.03 | 听 | 听 | 听 | 鈥� | 听 |
| Loss (gain) on asset sale | 听 | 鈥� | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | (0.04 | ) | 听 | 听 | 鈥� | 听 |
| Income tax effect of share-based compensation | 听 | 0.01 | 听 | 听 | 听 | 0.01 | 听 | 听 | 听 | 鈥� | 听 | 听 | 听 | (0.01 | ) |
| Income tax effects related to intra-entity intangible asset transfers1 | 听 | 0.04 | 听 | 听 | 听 | 0.02 | 听 | 听 | 听 | 0.91 | 听 | 听 | 听 | 0.07 | 听 |
| Resolution of prior years鈥� income tax filings and other tax items2 | 听 | 0.57 | 听 | 听 | 听 | (0.01 | ) | 听 | 听 | 0.40 | 听 | 听 | 听 | 0.03 | 听 |
| Non-GAAP earnings per diluted share | $ | 2.48 | 听 | 听 | $ | 2.12 | 听 | 听 | $ | 7.25 | 听 | 听 | $ | 6.34 | 听 |
| Weighted average number of diluted shares | 听 | 802 | 听 | 听 | 听 | 833 | 听 | 听 | 听 | 811 | 听 | 听 | 听 | 835 | 听 |
| 1 | Amount for the nine months ended July 27, 2025, included changes to income tax provision of |
| 听 | 听 |
| 2 | Amounts for the three and nine months ended July 27, 2025 included a |
| 听 | 听 |
| APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||||||||||||
| 听 | |||||||||||||||
| 听 | Three Months Ended | 听 | Nine Months Ended | ||||||||||||
| (In millions, except percentages) | July 27, 2025 | 听 | July 28, 2024 | 听 | July 27, 2025 | 听 | July 28, 2024 | ||||||||
| Semiconductor Systems Non-GAAP Operating Income | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| GAAP reported operating income | $ | 1,966 | 听 | 听 | $ | 1,712 | 听 | 听 | $ | 5,852 | 听 | 听 | $ | 5,157 | 听 |
| Certain items associated with acquisitions1 | 听 | 11 | 听 | 听 | 听 | 10 | 听 | 听 | 听 | 34 | 听 | 听 | 听 | 30 | 听 |
| Non-GAAP operating income | $ | 1,977 | 听 | 听 | $ | 1,722 | 听 | 听 | $ | 5,886 | 听 | 听 | $ | 5,187 | 听 |
| Non-GAAP operating margin | 听 | 36.4 | % | 听 | 听 | 35.0 | % | 听 | 听 | 36.7 | % | 听 | 听 | 35.2 | % |
| Applied Global Services Non-GAAP Operating Income | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| GAAP reported operating income | $ | 445 | 听 | 听 | $ | 467 | 听 | 听 | $ | 1,338 | 听 | 听 | $ | 1,320 | 听 |
| Non-GAAP operating income | $ | 445 | 听 | 听 | $ | 467 | 听 | 听 | $ | 1,338 | 听 | 听 | $ | 1,320 | 听 |
| Non-GAAP operating margin | 听 | 27.8 | % | 听 | 听 | 29.6 | % | 听 | 听 | 28.1 | % | 听 | 听 | 28.8 | % |
| Display Non-GAAP Operating Income | 听 | 听 | 听 | 听 | 听 | 听 | 听 | ||||||||
| GAAP reported operating income | $ | 62 | 听 | 听 | $ | 16 | 听 | 听 | $ | 144 | 听 | 听 | $ | 46 | 听 |
| Non-GAAP operating income | $ | 62 | 听 | 听 | $ | 16 | 听 | 听 | $ | 144 | 听 | 听 | $ | 46 | 听 |
| Non-GAAP operating margin | 听 | 23.6 | % | 听 | 听 | 6.4 | % | 听 | 听 | 20.4 | % | 听 | 听 | 6.8 | % |
| 1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. |
| 听 | 听 |
Note: The reconciliation of GAAP and non-GAAP segment results above does not include certain revenues, costs of products sold and operating expenses that are reported within corporate and other and included in consolidated operating income.
| APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE | |||
| 听 | |||
| 听 | Three Months Ended | ||
| (In millions, except percentages) | July 27, 2025 | ||
| 听 | 听 | ||
| GAAP provision for income taxes(a) | $ | 784 | 听 |
| Income tax effect of share-based compensation | 听 | (7 | ) |
| Income tax effects related to intra-entity intangible asset transfers | 听 | (32 | ) |
| Resolutions of prior years鈥� income tax filings and other tax items | 听 | (460 | ) |
| Income tax effect of non-GAAP adjustments | 听 | 3 | 听 |
| Non-GAAP provision for income taxes(b) | $ | 288 | 听 |
| 听 | 听 | ||
| GAAP income before income taxes(c) | $ | 2,563 | 听 |
| Certain items associated with acquisitions | 听 | 11 | 听 |
| Acquisition integration and deal costs | 听 | 1 | 听 |
| AG真人官方ized loss (gain), dividends and impairments on strategic investments, net | 听 | 16 | 听 |
| Unrealized loss (gain) on strategic investments, net | 听 | (314 | ) |
| Non-GAAP income before income taxes(d) | $ | 2,277 | 听 |
| 听 | 听 | ||
| GAAP effective income tax rate(a/c) | 听 | 30.6 | % |
| 听 | 听 | ||
| Non-GAAP effective income tax rate(b/d) | 听 | 12.6 | % |
| 听 | |||
| UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW | |||||||||||||||
| 听 | |||||||||||||||
| 听 | Three Months Ended | 听 | Nine Months Ended | ||||||||||||
| (In millions) | July 27, 2025 | 听 | July 28, 2024 | 听 | July 27, 2025 | 听 | July 28, 2024 | ||||||||
| Cash provided by operating activities | $ | 2,634 | 听 | 听 | $ | 2,385 | 听 | 听 | $ | 5,130 | 听 | 听 | $ | 6,102 | 听 |
| Capital expenditures | 听 | (584 | ) | 听 | 听 | (297 | ) | 听 | 听 | (1,475 | ) | 听 | 听 | (783 | ) |
| Non-GAAP free cash flow | $ | 2,050 | 听 | 听 | $ | 2,088 | 听 | 听 | $ | 3,655 | 听 | 听 | $ | 5,319 | 听 |
FAQ
What were Applied Materials' Q3 2025 earnings results?
What is Applied Materials' revenue guidance for Q4 2025?
How did AMAT's Semiconductor Systems segment perform in Q3 2025?
What challenges is Applied Materials facing in its business?
What was Applied Materials' gross margin in Q3 2025?
