Applied Materials Q4 Adjusted EPS Range $1.91-$2.31: A Closer Look at the Semiconductor Industry Leader's Expectations

Applied Materials, Inc. expects Q4 adjusted EPS to be between $1.91 and $2.31. The company specializes in equipment for producing integrated circuits and semiconductor components, with net sales primarily from the semiconductor industry (73.3%) and other sectors (23.5%). Geographically, net sales are distributed across the United States, China, Korea, Taiwan, Japan, Asia, and Europe.

Applied Materials, Inc. (NASDAQ: AMAT) reported robust third-quarter (Q3) 2025 financial results, highlighting a 8% year-over-year (YoY) increase in net revenue to $7.30 billion. The company's gross margin improved to 48.8% (GAAP) and 48.9% (non-GAAP), while operating margins reached 30.6% (GAAP) and 30.7% (non-GAAP). Earnings per share (EPS) also rose to $2.22 (GAAP) and $2.48 (non-GAAP), marking an 8% and 17% YoY increase, respectively [1].

Gary Dickerson, President and CEO, commented, "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." Despite the dynamic macroeconomic environment and policy uncertainties, the company remains confident in the long-term growth prospects of the semiconductor industry and Applied Materials [1].

For the fourth quarter (Q4) of fiscal 2025, Applied Materials expects total net revenue to be approximately $6,700 million, with non-GAAP gross margin at 48.1% and non-GAAP diluted EPS at $2.11. These estimates exclude known charges related to completed acquisitions of $0.01 per share and include a net income tax benefit of $0.04 per share [1].

The semiconductor systems segment, which accounts for 69% of net revenue, reported a 16% YoY increase in net revenue to $5,427 million. Operating income for this segment rose to $1,966 million, with a 36.2% operating margin. The display segment, contributing 9.3% of net revenue, saw a 5% YoY increase in net revenue to $263 million, with an operating margin of 23.6% [1].

Applied Materials' strong performance in Q3 2025 underscores its leadership in the semiconductor equipment industry. The company's ability to navigate macroeconomic uncertainties and maintain robust financial performance positions it well for continued growth in the coming quarters.

References:
[1] Applied Materials, Inc. (2025). News Release: Applied Materials Announces Third Quarter 2025 Results. Retrieved from https://ir.appliedmaterials.com/news-releases/news-release-details/applied-materials-announces-third-quarter-2025-results