Applied Materials, Inc. announced record-breaking financial results for its second fiscal quarter ended April 27, 2025, demonstrating continued strength across its core markets amid a dynamic global landscape.

Financial Highlights – Q2 FY2025 (GAAP)

  • Revenue: $7.10 billion, up 7% year over year
  • Gross Margin: 49.1%
  • Operating Margin: 30.5%
  • Net Income: $2.14 billion, up 24%
  • Earnings Per Share (EPS): $2.63, a record, up 28% YoY
  • Cash from Operations: $1.57 billion
  • Shareholder Returns: $2.0 billion returned via $1.67B in share repurchases and $325M in dividends

Non-GAAP Performance

  • Gross Margin: 49.2%
  • Operating Margin: 30.7%
  • EPS: $2.39, up 14% YoY
  • Net Income: $1.94 billion
  • Free Cash Flow: $1.06 billion

“Applied Materials’ broad capabilities and connected product portfolio are driving strong results in 2025 amidst a highly dynamic macro environment,” said Gary Dickerson, President and CEO. “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 delivered strong performance in our second fiscal quarter with 7% year-over-year revenue growth, record earnings per share, and shareholder distributions of nearly $2 billion,” said Brice Hill, CFO. “Despite the dynamic economic and trade environment, we have not seen significant changes to customer demand and are well-equipped to navigate evolving conditions with our robust global supply chain and diversified manufacturing footprint.”

Business Segment Highlights

Semiconductor Systems

  • Revenue: $5.26B (up from $4.90B YoY)
  • Operating Margin: 36.2% GAAP; 36.4% Non-GAAP
  • Segment driven by strong demand in foundry, logic, and improving NAND/DRAM investment.

Applied Global Services

  • Revenue: $1.57B
  • Operating Margin: 28.5% GAAP and Non-GAAP
  • Continued stability and long-term service contracts contribute to consistent profitability.

Display and Adjacent Markets

  • Revenue: $259M (up from $179M YoY)
  • Operating Margin: 26.3% GAAP and Non-GAAP
  • Sharp recovery driven by next-gen display investments.

Q3 FY2025 Guidance (Non-GAAP)

  • Revenue: $7.20B ± $500M
  • Gross Margin: ~48.3%
  • EPS: $2.35 ± $0.20

Applied expects continued momentum in AI-enabling technologies and mature node innovations to support sustained growth through the remainder of the fiscal year.

Original – Applied Materials