Applied Materials CFO: Government-backed foundry moves won't impact forecast.

Applied Materials CFO says government-backed foundry moves won't change forecast. The company specializes in equipment for producing integrated circuits and semiconductor components, with net sales primarily from the semiconductor industry. Sales are geographically distributed across the US, China, Korea, Taiwan, Japan, Asia, and Europe.

Applied Materials Inc. (NASDAQ: AMAT), a leading provider of equipment for producing integrated circuits and semiconductor components, reported its Q3 FY 2025 financial results, showcasing strong performance despite macroeconomic uncertainties. The company's CFO, Gary Dickerson, stated that government-backed foundry moves will not change the company's forecast for the remainder of the year.

The company reported record revenue of $7.30 billion for Q3 FY 2025, up 8% year-on-year (YoY) and exceeding the consensus estimate of $7.21 billion. Semiconductor Systems revenue was $5.43 billion, up 10% YoY, while Applied Global Services revenue was $1.60 billion, up 1% YoY. The Display and Adjacent Markets segment delivered $263 million in revenue, up 5% YoY.

Despite the solid quarterly performance, the company cautioned that macroeconomic uncertainty and policy pressures, particularly in China, will weigh on near-term visibility. Dickerson noted that the company remains confident in the longer-term growth opportunities for the semiconductor industry and Applied Materials. He emphasized that while the company is facing near-term headwinds, particularly in China, the long-term growth drivers remain intact.

The company's outlook for Q4 FY 2025 is guided revenue to ~$6.7 billion (+/- $500 million), non-GAAP gross margin of ~48.1%, and non-GAAP operating expenses of ~$1.31 billion. Dickerson cited three primary factors muting the near-term outlook: digestion of capacity in China, a large backlog of pending export license applications, and non-linear demand from leading-edge customers tied to market concentration and fab timing.

Dickerson's statement underscores the company's resilience and confidence in its long-term growth prospects despite near-term challenges. The government-backed foundry moves, while significant, are not expected to alter the company's forecast due to the robust supply chain, global manufacturing footprint, and deep customer relationships that Applied Materials possesses.

[1] https://futurumgroup.com/insights/applied-materials-q3-fy-2025-results-show-solid-quarterly-performance/