Applied Materials delivered a resilient Q4 2024 with solid top-line performance and robust cash generation, underscoring its leadership position in the semiconductor equipment market. Revenue totaled USD 7.045 billion, up 6.0% year over year, while gross profit reached USD 3.335 billion and net income USD 1.731 billion, translating to EPS of USD 2.08. The company maintained healthy margins (gross margin 47.3%, operating margin 29.0%) and generated substantial operating cash flow (USD 2.575 billion) and free cash flow (USD 2.168 billion). These results reinforce a favorable balance sheet posture, with cash and cash equivalents of USD 8.022 billion and a net cash position of approximately USD 1.42 billion after debt, facilitating capital returns and continued strategic investments. Management’s capital allocation, including USD 1.442 billion in share repurchases and USD 329 million in dividends, reflects confidence in the business and a commitment to returning capital to shareholders.
Looking ahead, the company did not provide formal forward guidance in this dataset, but the broader industry backdrop suggests continued, though cyclical, demand linked to AI compute expansion, hyperscale capex, and ongoing fab refresh cycles. Investors should monitor fab utilization, memory/specialty processing cycles, and supplier capacity as key drivers of near-term demand. AMAT’s durable FCF generation and strong balance sheet position it well to navigate cyclical headwinds while pursuing service and software-led growth through Applied Global Services.