Companies /Technology

Applied Materials Inc

NASDAQ: AMAT Semiconductor Equipment & Materials
$454.01
▼ $14.84 (−3.17%) today
Markets closed · 7:30pm ET

Q2 2025 Earnings

Reported May 15, 2025, 4:03pm ET · SEC source
$2.39
Beat +3.45%
EPS · est. $2.31
$7.1B
Miss −0.33%
Revenue · est. $7.1B
+3.8%
Beating market
AMAT vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−3%0+3%May 15May 16report 4:03pm ETearnings−0.4%−4.0%
−3%0+3%May 15May 16earnings−0.4%−4.0%
AMAT −4.0%S&P 500 −0.4%
−3%0+3%May 15May 16report 4:03pm ETearnings−0.9%−4.0%
−3%0+3%May 15May 16earnings−0.9%−4.0%
AMAT −4.0%NASDAQ −0.9%
−4%0+4%May 14May 23report 4:03pm ETearnings−1.9%−5.5%
−4%0+4%May 14May 23earnings−1.9%−5.5%
AMAT −5.5%S&P 500 −1.9%
−4%0+4%May 14May 23report 4:03pm ETearnings−2.0%−5.5%
−4%0+4%May 14May 23earnings−2.0%−5.5%
AMAT −5.5%NASDAQ −2.0%
−5.25%
Day of report
+0.22%
Next session
−4.87%
One week
+4.39%
30 days

S&P 500 over the same 30 days: +0.55%.

Did AMAT Beat Earnings? Q2 2025 Results

Applied Materials delivered a mixed but broadly solid fiscal Q2 2025, beating earnings expectations while falling just short on revenue, a combination that sent shares tumbling more than 5% in after-hours trading. The chip equipment giant reported adjusted EPS of $2.39, clearing the $2.31 consensus estimate by 3.45%, as gross margin expanded 1.7 percentage points year over year to 49.2% on a non-GAAP basis, reflecting favorable product mix and pricing discipline. Revenue grew 6.8% year over year to $7.10 billion, missing the $7.12 billion consensus by a slim 0.33%, with the Semiconductor Systems segment contributing $5.25 billion and AI-driven demand for leading-edge logic and foundry applications accounting for 65% of that total. A dramatic geographic reshuffling was equally notable, as China revenue fell sharply to $1.77 billion from $2.83 billion a year ago amid export restrictions, while Taiwan surged to $2.00 billion. Looking ahead, management guided Q3 revenue of approximately $7.20 billion and non-GAAP EPS of roughly $2.35, with executives emphasizing that customer demand has remained stable despite a fluid trade environment.

Key Takeaways
  • 7% year-over-year revenue growth driven by Semiconductor Systems strength
  • High-performance, energy-efficient AI computing as dominant driver of semiconductor innovation
  • Gross margin expansion of 1.7 percentage points year over year on both GAAP and non-GAAP basis
  • Foundry, logic and other applications comprised 65% of Semiconductor Systems revenue
  • Flash memory revenue share increased to 8% from 3% year over year
  • Taiwan and Korea revenue surged, offsetting significant decline in China

“Applied Materials' broad capabilities and connected product portfolio are driving strong results in 2025 amidst a highly dynamic macro environment. High-performance, energy-efficient AI computing remains the dominant driver of semiconductor innovation, and Applied is working closely with our customers and partners to accelerate the industry's roadmap. We are very well positioned at major technology inflections in fast-growing areas of the market, which supports our multi-year growth trajectory.”

Applied Materials CEO, on the earnings call

Forward Guidance & Outlook

For Q3 FY2025, Applied Materials expects total net revenue of approximately $7.2 billion (+/- $500 million), non-GAAP gross margin of approximately 48.3%, and non-GAAP diluted EPS of approximately $2.35 (+/- $0.20). Management noted they have not seen significant changes to customer demand despite the dynamic economic and trade environment and are well-equipped to navigate evolving conditions with a robust global supply chain and diversified manufacturing footprint. The CEO emphasized the company is well positioned at major technology inflections supporting a multi-year growth trajectory.

AMAT YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$2.0B$4.0B$6.0B$6.6B$7.1BRevenue$3.2B$3.5BGross Profit$1.9B$2.2BOperating Income$1.7B$2.1BNet Income
$0$2.0B$4.0B$6.0BRevenueGross ProfitOperating IncomeNet Income

AMAT Revenue by Segment

Semiconductor Systems$5.3B
Applied Global Services$1.6B
Display$259.0M
Other (including Display)

AMAT Revenue by Geography

China$1.8B
Taiwan$2.0B
South Korea$1.6B
United States$808.0M
Japan$572.0M
Europe$252.0M
Southeast Asia$135.0M

Figures from SEC filings and company reports. Not investment advice.