Companies /Technology

Applied Materials Inc

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

Q3 2025 Earnings

Reported Aug 14, 2025, 4:05pm ET · SEC source
$2.48
Beat +5.09%
EPS · est. $2.36
$7.3B
Beat +1.23%
Revenue · est. $7.2B
+7.7%
Beating market
AMAT vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+6%+12%Aug 14Aug 15report 4:05pm ETearnings−0.2%−3.1%
0+6%+12%Aug 14Aug 15earnings−0.2%−3.1%
AMAT −3.1%S&P 500 −0.2%
0+6%+12%Aug 14Aug 15report 4:05pm ETearnings−0.3%−3.1%
0+6%+12%Aug 14Aug 15earnings−0.3%−3.1%
AMAT −3.1%NASDAQ −0.3%
0+6%+12%Aug 13Aug 22report 4:05pm ETearnings+0.0%−0.5%
0+6%+12%Aug 13Aug 22earnings+0.0%−0.5%
AMAT −0.5%S&P 500 +0.0%
0+6%+12%Aug 13Aug 22report 4:05pm ETearnings−1.2%−0.5%
0+6%+12%Aug 13Aug 22earnings−1.2%−0.5%
AMAT −0.5%NASDAQ −1.2%
−14.07%
Day of report
+1.09%
Next session
+0.45%
One week
+10.12%
30 days

S&P 500 over the same 30 days: +2.45%.

Did AMAT Beat Earnings? Q3 2025 Results

Applied Materials posted a strong fiscal third quarter, with revenue climbing 7.7% year over year to $7.30 billion against a consensus estimate of $7.21 billion, while non-GAAP diluted EPS of $2.48 cleared the $2.36 analyst estimate by 5.09%, marking a record result for the period. The primary engine behind the beat was the Semiconductor Systems segment, which generated $5.43 billion in revenue as foundry and logic demand remained robust and flash memory spending recovered meaningfully, rising to 9% of segment revenue from just 4% a year earlier. China remained the company's largest market at $2.55 billion, or 35% of total revenue, a concentration that is now casting a shadow over the outlook. Applied Materials guided Q4 revenue of approximately $6.70 billion, well below prior expectations, citing capacity digestion among Chinese customers and non-linear demand from leading-edge clients due to fab timing, a forecast that sent <a href="https://247wallst.com/investing/2025/08/14/live-will-applied-materials-amat-pop-after-tonights-earnings/">shares sharply lower</a> after the report. Management remained confident in the semiconductor industry's longer-term trajectory despite the near-term pressure.

Key Takeaways
  • Record Semiconductor Systems revenue of $5.43 billion, up from $4.92 billion year over year
  • Flash memory mix increased to 9% from 4% year over year within Semiconductor Systems
  • Display segment operating margin improved to 23.6% from 6.4% year over year
  • Non-GAAP gross margin expanded 1.5 percentage points year over year to 48.9%
  • Taiwan revenue surged to $1.84 billion (25% of total) from $1.15 billion (17%) year over year
  • China revenue grew to $2.55 billion (35% of total) from $2.15 billion (32%) year over year

“Applied 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.”

Applied Materials CEO, on the earnings call

Forward Guidance & Outlook

For Q4 FY2025, Applied Materials expects total net revenue of approximately $6.70 billion (+/- $500 million), non-GAAP gross margin of approximately 48.1%, and non-GAAP diluted EPS of approximately $2.11 (+/- $0.20). The company expects a sequential revenue decline driven by capacity digestion in China and non-linear demand from leading-edge customers due to market concentration and fab timing. Management is navigating near-term uncertainties by leveraging its robust supply chain, global manufacturing footprint, and deep customer relationships. Despite the near-term headwinds, the company remains confident in longer-term growth opportunities for the semiconductor industry and is on track to deliver its sixth consecutive year of revenue growth in fiscal 2025.

AMAT YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$3.0B$6.0B$6.8B$7.3BRevenue$3.2B$3.6BGross Profit$1.9B$2.2BOperating Income$1.7B$1.8BNet Income
$0$3.0B$6.0BRevenueGross ProfitOperating IncomeNet Income

AMAT Revenue by Segment

Semiconductor Systems$5.4B
Applied Global Services$1.6B
Display$263.0M
Other (including Display)

AMAT Revenue by Geography

China$2.5B
Taiwan$1.8B
South Korea$1.2B
United States$683.0M
Japan$713.0M
Europe$160.0M
Southeast Asia$195.0M

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