"In our first fiscal quarter of 2025, Applied Materials delivered record revenues surpassing the prior high we set last quarter."
— Gary Dickerson, CEO
03Detailed Report
AMAT
Applied Materials Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 14, 2026
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Executive Summary
In the first quarter of fiscal 2025, Applied Materials Inc achieved record revenues of $7.166 billion, reflecting a 6.84% increase year-over-year and a slight 1.72% growth quarter-over-quarter. This growth is primarily driven by robust performance in the Semiconductor Systems segment, which saw a revenue increase of 9% year-over-year. Despite facing challenges from export restrictions impacting sales, particularly in China, management remains optimistic about future revenue growth and innovation potential in advanced semiconductor technologies. Key milestones in AI-related demand and strategic investments in leading-edge technologies are set to position Applied Materials for continued success.
Key Performance Indicators
Revenue
Increasing
7.17B
QoQ: 1.72% | YoY: 6.84%
Gross Profit
Increasing
3.50B
48.79% margin
QoQ: 4.83% | YoY: 9.11%
Operating Income
Increasing
2.18B
QoQ: 6.30% | YoY: 10.57%
Net Income
Decreasing
1.19B
QoQ: -31.54% | YoY: -41.31%
EPS
Decreasing
1.46
QoQ: -30.81% | YoY: -39.92%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and Earnings Performance:
- Total Revenue: $7.166 billion (YoY growth: 6.84%, QoQ growth: 1.72%)
- Gross Profit Margin: 48.7%, a 100 basis point improvement YoY
- Net Income: $1.185 billion (YoY decline of 41.31%, QoQ decline of 31.54%)
- EPS (Diluted): $1.45, down 39.92% YoY
Balance Sheet and Cash Flow:
- Cash and Cash Equivalents: $6.264 billion
- Total Debt: $6.588 billion, resulting in a net debt position of $324 million
- Operating Cash Flow: $925 million, with free cash flow of $544 million
- Dividends Paid: $326 million, with significant share repurchases totaling $1.3 billion
Key Ratios:
- Current Ratio: 2.68, indicating sound liquidity
- Net Profit Margin: 16.5%, showcasing profitability resilience despite challenges
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
7.17B
6.84%
1.72%
Gross Profit
3.50B
9.11%
4.83%
Operating Income
2.18B
10.57%
6.30%
Net Income
1.19B
-41.31%
-31.54%
EPS
1.46
-39.92%
-30.81%
Key Financial Ratios
Gross Profit Margin
Good
48.80%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Excellent
30.40%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Good
16.50%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Fair
3.55%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
6.36%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
2.68
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Moderate
0.35
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Growth
29.98x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
7.63x
Very high premium suggests asset-light business model or lofty expectations
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