Applied Materials, Inc. announced its financial results for the fourth quarter and fiscal year ended October 26, 2025. The company delivered its sixth consecutive year of growth, driven by strong demand in advanced semiconductors and wafer fabrication equipment fueled by ongoing AI adoption.
President and Chief Executive Officer Gary Dickerson commented, “As AI adoption drives substantial investment in advanced semiconductors and wafer fab equipment, Applied Materials delivered its sixth consecutive year of growth in fiscal 2025. We are well positioned at the highest value technology inflections in the fastest growing areas of the market, enabling us to extend our leadership in leading-edge logic, DRAM, and advanced packaging as next-generation technologies ramp in volume production over the coming years.”
Brice Hill, Senior Vice President and Chief Financial Officer, added, “Based on our conversations with our customers and partners, we are preparing Applied’s operations and service organizations to be ready to support higher demand beginning in the second half of calendar 2026. We have targeted our R&D investments to create new products and technologies that will enable even faster and more energy-efficient transistors, chips, and systems and drive our growth in the years ahead.”
Fourth Quarter and Fiscal Year 2025 Results:
| Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | Q4 YoY Change | FY YoY Change |
|---|---|---|---|---|---|---|
| Net Revenue | $6.80 billion | $7.05 billion | $28.37 billion | $27.18 billion | -3% | +4% |
| Gross Margin | 48.0% | 47.3% | 48.7% | 47.5% | +0.7 pts | +1.2 pts |
| Operating Margin | 25.2% | 29.0% | 29.2% | 28.9% | -3.8 pts | +0.3 pts |
| Net Income | $1.90 billion | $1.73 billion | $6.99 billion | $7.18 billion | +10% | -2% |
| Diluted EPS | $2.38 | $2.09 | $8.66 | $8.61 | +14% | +1% |
Non-GAAP Results:
| Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | Q4 YoY Change | FY YoY Change |
|---|---|---|---|---|---|---|
| Gross Margin | 48.1% | 47.5% | 48.8% | 47.6% | +0.6 pts | +1.2 pts |
| Operating Margin | 28.6% | 29.3% | 30.2% | 29.2% | -0.7 pts | +1.0 pts |
| Net Income | $1.73 billion | $1.92 billion | $7.61 billion | $7.21 billion | -10% | +6% |
| Diluted EPS | $2.17 | $2.32 | $9.42 | $8.65 | -6% | +9% |
| Free Cash Flow | $2.04 billion | $2.17 billion | $5.70 billion | $7.49 billion | -6% | -24% |
Business Outlook for Q1 FY2026:
- Total net revenue expected to be approximately $6.85 billion, plus or minus $500 million
- Non-GAAP diluted earnings per share projected at $2.18, plus or minus $0.20
Applied Materials continues to align its investments and operational capacity with the expected growth in demand for advanced semiconductor solutions, preparing to support increased customer needs in the second half of 2026.
Original – Applied Materials