Applied Materials Q3 rev. $7.3 bln, up 8% YoY, EPS $2.22.

• Applied Materials reports Q3 revenue of $7.30 bln, up 8% YoY. • Record non-GAAP EPS of $2.48, up 17% YoY. • GAAP gross margin at 48.8%, non-GAAP at 48.9%. • GAAP operating margin at 30.6%, non-GAAP at 30.7%. • Santa Clara-based company reports sixth consecutive year of revenue growth in fiscal 2025.

Applied Materials, Inc. (AMAT), a leading semiconductor equipment manufacturer, reported robust third-quarter (Q3) financial results, showcasing its resilience in a dynamic market. The Santa Clara-based company reported a 8 percent year-over-year (YoY) increase in net revenue to $7.3 billion, a significant milestone [1]. This growth was driven by strong performance across its semiconductor systems and global services segments.

The company also achieved a record non-GAAP earnings per share (EPS) of $2.48, marking a 17 percent YoY increase. This performance was supported by a GAAP gross margin of 48.8 percent and a non-GAAP gross margin of 48.9 percent, indicating strong operational efficiency [1]. The GAAP operating margin stood at 30.6 percent, while the non-GAAP operating margin was 30.7 percent, highlighting the company's profitability.

President and CEO Gary Dickerson highlighted the company's strategic positioning, stating, "Applied Materials delivered record performance in our third fiscal quarter, and we are on track to deliver our sixth consecutive year of revenue growth in fiscal 2025" [1]. The company's commitment to technological innovation and domestic manufacturing is evident in its recent strategic partnerships and expansions, including a $200 million investment in a new manufacturing site in Chandler, Arizona [2].

However, the company acknowledged the challenges posed by trade restrictions on China-related revenue, which remain a significant risk factor. Despite these headwinds, the company remains optimistic about the longer-term growth opportunities in the semiconductor industry.

Analysts had expected a per-share earnings of $2.34, representing a 10.4 percent YoY increase, and revenues of $7.2 billion, a 6.2 percent YoY growth [2]. The actual results exceeded these expectations, reflecting the company's strong performance and resilience in the face of market uncertainties.

The company's stock has experienced a recent downturn, returning -6.6 percent over the past month compared to the Zacks S&P 500 composite's +2.7 percent change. However, the Zacks Rank #2 (Buy) suggests potential outperformance in the near future [2].

References:
[1] https://www.nasdaq.com/articles/applied-materials-posts-higher-revenue-and-earnings-q3
[2] https://www.ainvest.com/news/applied-materials-q3-earnings-analysts-predict-10-4-eps-growth-6-2-revenue-increase-2508/