"We are not currently seeing significant changes in customer demand, and we have agility in our global operations to adapt to a range of scenarios." - Gary Dickerson
— Gary Dickerson
03Detailed Report
AMAT
Applied Materials Inc
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 14, 2026
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Executive Summary
In the second quarter of fiscal 2025, Applied Materials (AMAT) reported robust financial results, reflecting a revenue increase of 7% year-over-year, totaling $7.1 billion. This growth was driven by increased investments in leading-edge foundry-logic and a stable demand for advanced DRAM. The company achieved a gross margin of 49.2%, marking the highest levels since 2000. Management emphasized the company's agility in a dynamic macro environment and affirmed their confidence in sustaining profitable growth, primarily fueled by AI and other semiconductor innovations.
Management's commentary during the earnings call highlighted a strong operational execution and the strategic position of Applied Materials in capitalizing on significant technology inflections in the semiconductor space. Looking forward, AMAT anticipates continued demand growth and robust contribution from its investments in product innovations, particularly in AI technologies and semiconductor manufacturing advancements.
Key Performance Indicators
Revenue
Increasing
7.10B
QoQ: -0.92% | YoY: 6.83%
Gross Profit
Increasing
3.49B
49.08% margin
QoQ: -0.31% | YoY: 10.53%
Operating Income
Increasing
2.17B
QoQ: -0.28% | YoY: 13.44%
Net Income
Increasing
2.14B
QoQ: 80.34% | YoY: 24.10%
EPS
Increasing
2.64
QoQ: 80.82% | YoY: 27.54%
Revenue Trend
Margin Analysis
Financial Highlights
### Financial Metrics Analysis
- Revenue: $7.1 billion (up 7% YoY)
- Gross Profit: $3.49 billion (gross profit margin of 49.2%, up 170 bps YoY)
- Operating Income: $2.17 billion (operating margin at 30.4%, up 480 bps YoY)
- Net Income: $2.14 billion (net margin of 30.0%, a significant increase from the previous year)
### Year-over-Year and Quarter-over-Quarter Comparisons
- Revenue increased by 6.83% YoY and decreased by 0.92% QoQ.
- Gross profit reflects a strong year-over-year improvement of 10.53%.
- Operating profits improved significantly as operational efficiencies were realized in product mix and R&D expenditures.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
7.10B
6.83%
-0.92%
Gross Profit
3.49B
10.53%
-0.31%
Operating Income
2.17B
13.44%
-0.28%
Net Income
2.14B
24.10%
80.34%
EPS
2.64
27.54%
80.82%
Key Financial Ratios
Gross Profit Margin
Good
49.10%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Excellent
30.50%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
30.10%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
6.35%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
11.30%
Return on equity is acceptable but below top-tier companies
Current Ratio
Healthy
2.46
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Moderate
0.33
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Value
14.31x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
High Premium
6.45x
Very high premium suggests asset-light business model or lofty expectations
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