Applied Materials 2025 Q4 Earnings Beats Expectations with 13.3% EPS Growth and 9.6% Net Income Increase

Applied Materials(AMAT), ranking 74th by market capitalization, reported its fiscal 2025 Q4 earnings on Nov 13th, 2025. The company delivered results that exceeded Wall Street expectations, with both revenue and earnings surpassing forecasts. Guidance for Q1 2026 revenue and non-GAAP EPS aligned with consensus estimates, reflecting cautious optimism amid strategic challenges.

Revenue

The total revenue of Applied Materials decreased by 3.5% to $6.80 billion in 2025 Q4, down from $7.04 billion in 2024 Q4.

Earnings/Net Income

Applied Materials's EPS rose 13.3% to $2.39 in 2025 Q4 from $2.11 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $1.90 billion in 2025 Q4, marking 9.6% growth from $1.73 billion in 2024 Q4. The EPS increase of 13.3% and 9.6% net income growth indicate strong profitability despite revenue decline.

Post-Earnings Price Action Review

The stock price of Applied Materials has edged down 1.83% during the latest trading day, has dropped 4.41% during the most recent full trading week, and has edged up 2.31% month-to-date. Post-earnings, the stock closed at $226.35 in aftermarket trading, down 1.9% from the previous close, reflecting investor caution amid geopolitical and market headwinds.

CEO Commentary

Gary Dickerson, President, CEO & Executive Director, highlighted fiscal 2025 as Applied’s sixth consecutive year of growth, with revenue and earnings growing at 12% and 20% annualized rates. He noted challenges from trade restrictions and unfavorable market mix, particularly China’s 28% revenue contribution in 2025 (25% in Q4). Strategic priorities include inflection-focused innovation, co-innovation with customers, and new product launches like Xtera, Kinex, and PROVision 10 to lead in AI-driven semiconductor advancements. Dickerson emphasized optimism, stating AI computing accelerates demand for advanced silicon, positioning Applied to extend leadership in logic, DRAM, and packaging as 2026 ramps. He underscored confidence in gaining share at high-value technology inflections, with “next-generation technologies ramping in volume production” driving growth.

Guidance

Brice Hill guided Q1 2026 revenue of $6.85B ±$500M, non-GAAP EPS of $2.18 ±$0.20, and non-GAAP gross margin of 48.4.

Additional News

Applied Materials announced a global workforce reduction of approximately 1,400 positions (4% of its total staff) to enhance productivity and competitiveness. The company also unveiled a $10 billion share repurchase program and a 15% increase in its quarterly cash dividend, signaling commitment to shareholder returns. Additionally, export restrictions to China are projected to reduce fiscal 2026 revenue by $600 million, underscoring strategic risks in the sector.