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Applied Materials Inc. AMAT reported second-quarter fiscal 2025 non-GAAP earnings of $2.39 per share, which beat the Zacks Consensus Estimate by 3.5%. This company reported earnings of $2.09 per share a year ago.
AMAT reported revenues of $7.1 billion for the quarter ended April 2025, missing the Zacks Consensus Estimate by 0.28%. This top line increased from the year-ago quarter’s $6.65 billion.
AMAT shares have plunged 18.4% in the past year against the Zacks Electronics - Semiconductors industry’s growth of 20.7%.
AMAT’s Segments in Detail
Semiconductor Systems generated revenues worth $5.26 billion, which contributed 74.1% to its net revenues, reflecting growth of 7.2% from the year-ago quarter. The figure missed the Zacks Consensus Estimate of $5.3 billion.
Applied Materials, Inc. Price, Consensus and EPS Surprise
Applied Materials, Inc. price-consensus-eps-surprise-chart | Applied Materials, Inc. Quote
Applied Global Services reported revenues of $1.57 billion (22.1% of net revenues), up 2.4% from the prior-year quarter. The figure surpassed the Zacks Consensus Estimate of $1.547 billion.
Revenues from Display and Adjacent Markets were $259 million (3.6% of net revenues), up 44.7% from the year-ago quarter. The figure beat the consensus estimate of $250.2 billion.
Corporate and Other revenues were $20 million (0.3% of revenues), down 44.4% year over year.
Revenues by Geography
Revenues in the United States, Europe, Japan, Korea, Taiwan, Southeast Asia and China were $808 million, $252 million, $572 million, $1.56 billion, $1.997 billion, $135 million and $1.774 billion, contributing 11%, 4%, 8%, 22%, 28%, 2% and 25% to net sales, respectively.
Revenues in Japan, Korea, and Taiwan increased 26.3%, 58.1% and 96%, respectively, from the year-ago quarter. Revenues in the United States and Southeast Asia decreased 5.3% and 36.6%, respectively. Revenues in Europe and China fell 12.8% and 37.4%, respectively, from the year-ago quarter.
Operating Results
The non-GAAP gross margin was 49.2%, which expanded 170 basis points (bps) from the year-ago quarter.
Operating expenses were $1.31 billion, up 6.3% from the year-ago quarter. As a percentage of sales, the figure contracted 10 bps from the year-earlier quarter to 18.5%.
The non-GAAP operating margin of 30.7% expanded 170 bps year over year.
Balance Sheet & Cash Flow of AMAT
As of April 27, 2025, cash, cash equivalent balances and short-term investments were $6.75 billion, down from $8.02 billion as of Jan. 28, 2025.
Inventories were $5.66 billion in the fiscal second quarter compared with $5.5 billion in first-quarter fiscal 2025. Accounts receivables increased to $6.19 billion from $5.9 billion in the previous quarter.