Applied Materials Inc (AMAT) delivered an impressive quarter, with record revenue of $7.05 billion, up nearly 5% year-over-year, marking the fifth consecutive year of growth for the company. The growth was fueled by robust demand in its Semiconductor Systems and Applied Global Services segments. Management highlighted substantial advancements in materials engineering and technology innovations, positioning the company favorably for the future. While revenue from China normalized to approximately 30%, management emphasized strong momentum in leading-edge foundry and memory technology deployments, particularly driven by AI and energy-efficient computing trends.
The company reported a non-GAAP operating margin of 35.4% and generated free cash flow of $2.2 billion in Q4, reinforcing its shareholder return strategy while maintaining significant cash reserves to support future investments. As growth continues, investors should monitor key drivers such as evolving semiconductor demand and Applied Materials' position within this dynamic market.