Applied Materials 2025 Q3 Earnings Strong Performance as Net Income Rises 4.3%

Applied Materials (AMAT) reported its fiscal 2025 Q3 earnings on August 21, 2025, delivering revenue growth that exceeded expectations. The company’s 7.7% year-over-year revenue increase and 4.3% rise in net income signaled robust performance, though the company did not provide a formal guidance revision for the quarter.

Revenue
Driven by strong demand in key markets, Applied Materials reported total revenue of $7.30 billion, reflecting a 7.7% increase from $6.78 billion in the same period last year. Semiconductor Systems, the company’s largest revenue contributor, generated $5.43 billion. Applied Global Services added $1.60 billion, while the Display segment brought in $263 million. A smaller Corporate and Other segment accounted for $12 million, rounding out the total revenue.

Earnings/Net Income
Earnings per share (EPS) rose to $2.23 in 2025 Q3, an 8.3% increase from $2.06 in 2024 Q3. The company also posted net income of $1.78 billion, up 4.3% from $1.71 billion in the prior-year period, reflecting improved profitability and efficient cost management.

Price Action
Following the earnings report, the stock experienced a mixed response, with a slight 0.06% drop on the latest trading day but a sharper 15.09% decline for the week and 14.59% month-to-date.

Post Earnings Price Action Review
A historical strategy of purchasing AMAT shares post-earnings and holding for 30 days has shown strong returns over the past three years, achieving a 64.31% return—10.47% above the benchmark—and a 18.67% compound annual growth rate. This strategy also demonstrated a maximum drawdown of 0.00%, highlighting its effectiveness in capturing gains while managing downside risk.

CEO Commentary
CEO Michael Splinter praised the company’s performance in Q3, emphasizing revenue exceeding $7.3 billion and EPS of $2.23. He highlighted sustained demand in the semiconductor and display sectors, ongoing progress in the company’s technology roadmap, and a commitment to innovation and sustainable growth. Splinter expressed cautious optimism for the near-term outlook but reiterated confidence in Applied Materials' leadership in materials science and manufacturing.

Guidance
Applied Materials expects total revenue of $6.7 billion, plus or minus $500 million, for the upcoming quarter. This guidance reflects current market conditions and the company’s strategy to align supply with demand while maintaining operational flexibility.

Additional News
Recent developments include Applied Materials joining forces with Apple and Texas Instruments to strengthen U.S. chip manufacturing, demonstrating the company’s strategic focus on domestic semiconductor growth. On July 22, 2025, the company appointed Jim Anderson to its Board of Directors, signaling leadership continuity. Additionally, on June 10, 2025, Applied Materials announced a cash dividend, reinforcing its commitment to returning value to shareholders. Other notable updates include a joint lab expansion with CEA-Leti to drive innovation in specialty chips and the company’s participation in multiple investor conferences in the second half of 2025.