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Applied Materials reported quarterly revenue of $7.1 billion, below the analyst consensusApplied Materials (AMAT) reported fiscal second-quarter revenue that missed analysts' expectations as sales in China declined.
The semiconductor equipment manufacturer reported revenue of $7.1 billion, up 7% year-over-year but below the analyst consensus from Visible Alpha. China sales totaled $1.77 billion, representing a quarter of total revenue, down from $2.83 billion accounting for 43% of the company's revenue a year ago. It was the third quarter in a row that China sales fell from a year earlier.
The company's adjusted net income of $1.94 billion, or $2.39 per share, rose from $1.74 billion, or $2.09 per share, in the year-ago quarter, topping estimates.
Looking ahead, Applied Materials said it expects fiscal third-quarter adjusted earnings per share of $2.15 to $2.55 on revenue of $6.7 billion to $7.2 billion, slightly above Wall Street's projections at the midpoints.
“Despite the dynamic economic and trade environment, we have not seen significant changes to customer demand and are well-equipped to navigate evolving conditions," CFO Brice Hill said.
Applied Materials shares dropped close to 5% in after-hours trading. The stock was up roughly 8% for 2025 through Thursday’s close.
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