What does Applied Materials do and what are its main business segments?

What is Applied Materials's latest dividend and current dividend yield?

What were the key takeaways from Applied Materials's earnings call?

What is Applied Materials's gross profit margin?

What were the key takeaways from Applied Materials’s earnings call?

What factors drove the changes in Applied Materials's revenue and profit?

What is the market's earnings forecast for Applied Materials next quarter?

What is the revenue and EPS growth rate for Applied Materials year over year?

**Record Growth Amid Challenges**: 6 straight years of revenue growth (12% CAGR) despite China market restrictions trimming 2025 growth rate.
- **2026 Outlook**: Second-half surge in leading-edge foundry logic (+AI compute) and DRAM, with 48.4% gross margin in Q1 expanding with volume in 2026H2.
- **Strategic Wins**: #1 in DRAM (50% growth in leading-edge customers), HBM (Kinex hybrid bonding), and gate-all-around transistors. PVD revenue up YoY with selective ALD/moly integration.
- **China Dynamics**: 25% market share in accessible segments, $600M in restricted shipments potentially returning in 2026H2.

**【CEO Summary Section】**
- Applied Materials achieved 6 consecutive years of revenue growth (12% CAGR) despite trade restrictions reducing China's market share to 25% of systems revenue in Q4 2025.
- Strong performance in leading-edge foundry logic (+50% growth in leading-edge DRAM customers over 4 quarters) and DRAM, with record revenue in Taiwan and Korea.
- Strategic focus on AI-driven segments: gate-all-around transistors, high-bandwidth memory (HBM), and advanced packaging (Kinex hybrid bonding system). 
- 2026 outlook: second-half growth driven by AI data center infrastructure, with leading-edge foundry logic and DRAM expected to be fastest-growing segments.

**【CFO Financial Commentary】**
- FY2025: Record revenue ($28.4B), gross margin (48.8%), and EPS ($10.15). Non-GAAP EPS up 9% YoY.
- Q4 2025: Revenue $7.1B (midpoint of guidance), non-GAAP EPS $2.20. Gross margin 48.4% (up 60bps YoY).
- Q1 2026 guidance: Revenue $6.85B (±$500M), non-GAAP EPS $2.18 (±$0.20). 
- 2026 outlook: Flat first-half growth, significant second-half acceleration in leading-edge foundry logic and DRAM. Free cash flow expected to remain strong (~$5.7B annualized). 

**【Q&A Highlights】**
- **China Market**: China's WFE spending expected to decline in 2026, but Applied maintains ~25% market share in accessible segments. $600M in restricted shipments may return in 2026H2.
- **Gross Margin**: 48.4% in Q1, improving with volume in 2026H2. 120bps margin expansion in FY2025 driven by pricing initiatives.
- **Supply Chain**: Customer visibility >2 years for advanced factories. Applied reducing headcount to improve efficiency while preparing for 2026H2 ramp.
- **Competitive Position**: #1 in DRAM, HBM, and leading-edge foundry logic. PVD revenue up YoY, with selective ALD/moly integration driving share gains.

Applied Materials, Inc. (AMAT) Q4 2025 Earnings Call Transcript

- **Record Q3, Sequential Decline Expected**: $7.3B revenue, 48.9% gross margin, but Q4 down 4.9% YoY to $6.7B due to China and leading-edge timing.
- **AI Growth Drivers**: 100+ new fabs, 30%+ revenue opportunity from gate-all-around nodes, packaging business doubling to >$3B.
- **Key Risks**: China export licenses backlog, single-customer concentration in leading-edge logic, slower fab builds.
- **U.S. Investment**: $200M AZ facility for AI components, part of $400M+ U.S. manufacturing expansion.
- **Service Resilience**: 67% subscription-based services, core services up 10% YoY.

**【CEO Summary Section】**
- Applied Materials delivered record Q3 performance with broad-based demand, but expects sequential decline in Q4 due to China uncertainties. 
- Long-term growth driven by AI investments: 100+ new fabs/expansions globally, 30%+ revenue opportunity from gate-all-around nodes.
- Key wins: $1.2B metal deposition in foundry, 50%+ DRAM revenue growth, packaging business on track to >$3B by 2027.
- U.S. manufacturing expansion: $200M AZ facility for AI components, part of $400M+ U.S. investment since 2020.

**【CFO Financial Commentary】**
- Q3 revenue: $7.3B (8% YoY), Non-GAAP EPS: $2.48 (17% YoY), gross margin: 48.9%.
- Semiconductor Systems: $5.43B (10% YoY), driven by gate-all-around nodes and DRAM.
- Applied Global Services: $1.6B (1% YoY), core services up 10% YoY.
- Q4 guidance: $6.7B (-4.9% YoY), EPS $2.11 (-9% YoY), China revenue ~29%.

**【Q&A Highlights】**
- **China Risk**: Q4 China revenue ~29% (vs. 35% in Q3), assumes no export license approvals. Digestion of 2023-2024 capacity build-out expected to last several quarters.
- **Leading-Edge Logic Weakness**: Nonlinear demand due to single-customer concentration, slower fab builds. Q4 gate-all-around revenue ~$4.5B (-10% YoY vs. prior $5B guide).
- **DRAM Strength**: Leading-edge DRAM customers up ~50% YoY, HBM3+ adoption driving growth. Service business 67% subscription-based, expanding share.
- **Power Electronics**: $9B+ market by 2030, Applied positioned with differentiated solutions for data center power semiconductors.


Applied Materials, Inc. (AMAT) Q3 2025 Earnings Call Transcript

- **Q2 Record Results**: $7.1B revenue (+7% YoY), $2.39 EPS (14% YoY), 49.2% gross margin (170bps YoY expansion).
- **AI-Driven Growth**: Foundry-logic revenue 30% higher per fab, HBM/DDR5 DRAM up >40% in 2025.
- **Service Resilience**: AGS subscriptions at 66%, targeting low double-digit growth despite China headwinds.
- **Q3 Guidance**: $7.2B revenue (6% YoY), $2.35 EPS (11% YoY), 48.3% gross margin.
- **China Trade Impact**: 25% of revenue exposed, 28nm share gains offsetting ICAPS node slowdown.
- **Margin Outlook**: 48.2%+ gross margin sustainable, pricing/cost management driving long-term expansion.


**【CEO Summary Section】**
- **Record Q2 Performance**: Delivered $7.1B revenue (+7% YoY), driven by leading-edge foundry-logic and DRAM investments. Non-GAAP EPS of $2.39, up 14% YoY.
- **AI-Driven Market Growth**: Advanced foundry-logic revenue opportunity 30% higher per fab capacity due to gate-all-around and backside power delivery. HBM and DDR5 DRAM revenue expected to grow >40% in 2025.
- **Service Business Momentum**: 66% of AGS revenue from subscriptions, targeting low double-digit growth despite China trade restrictions.
- **Long-Term Growth Drivers**: 2025+ semiconductor market expansion to $1T+ supported by AI, EVs, and IoT. Applied's EPIC R&D center set to open in Q2 2026 for high-velocity co-innovation.

**【CFO Financial Commentary】**
- **Q2 Financial Highlights**: 
  - Total revenue: $7.1B (+7% YoY)
  - Non-GAAP gross margin: 49.2% (+170bps YoY)
  - Semiconductor Systems: $5.26B (+7% YoY)
  - AGS: $1.57B (+2% YoY)
  - Free cash flow: $1.1B
- **Q3 Guidance**: 
  - Revenue: $7.2B ±$500M (6% YoY midpoint)
  - Non-GAAP EPS: $2.35 ±$0.20 (11% YoY midpoint)
  - Gross margin: ~48.3%
- **Capital Allocation**: $2B returned to shareholders in Q2 ($1.7B buybacks, $325M dividends). Board approves $10B additional share repurchase authorization.

**【Q&A Key Takeaways】**
- **China Trade Restrictions Impact**: AGS core growth at low double digits despite 200mm equipment sales decline. China semi revenue ~25% of total, well-positioned in 28nm node.
- **ICAPS Market Dynamics**: Mature logic growth mid-single digits, 28nm investments accelerating. Applied gains 10+pts DRAM share over 10 years, targeting 4F2 inflection.
- **NAND Outlook**: Q2/Q3 upgrades driving sequential growth, but utilization remains low.
- **Advanced Packaging**: 4x revenue growth in 5 years, leading in hybrid bonding with BESI collaboration.
- **Margin Trends**: Q2 gross margin 49.2% (highest since 2000). Q3 guide 48.3% reflects mix shift, targeting sustained improvement through pricing/cost management.


Applied Materials, Inc. (AMAT) Q2 2025 Earnings Call Transcript

- **Record Q1 Results**: $7.2B revenue (+7% YoY), $2.38 EPS (+12%), 48.9% gross margin.
- **GAA Growth Engine**: >50% share of incremental spending for GAA nodes, $2.5B+ 2024 revenue.
- **Packaging Dominance**: $1.7B 2024 packaging revenue, targeting double in coming years.
- **China Headwinds**: $400M 2025 impact, China revenue ~30% of total (down 5ppt YoY).
- **Profitability Strength**: 48.4% Q2 gross margin guidance, $1.6B annual shareholder returns.

**【CEO Summary Section】**
- Q1 2025 revenue reached $7.2 billion, up 7% YoY, driven by leading-edge foundry logic and advanced packaging. 
- Highlighted 30%+ TAM growth for gate-all-around (GAA) transistors with backside power delivery, positioning Applied for >50% share of incremental spending.
- Advanced packaging revenue grew 3x over 4 years to $1.7 billion in 2024, with plans to double this business.
- China-related export restrictions expected to reduce 2025 revenue by $400 million (~5.5% of total), primarily impacting AGS in H2.

**【CFO Financial Commentary】**
- Non-GAAP EPS of $2.38 (12% YoY growth), driven by 48.9% gross margin (highest since FY2000) and $1.6B shareholder returns.
- Semiconductor Systems revenue $5.36B (+9% YoY), led by 20% growth in foundry logic offsetting DRAM decline.
- AGS revenue $1.59B (+8% YoY), with 28% operating margin despite 200mm equipment decline.
- FY25 Q2 guidance: $7.1B revenue (+7% YoY), $2.3 EPS (+10% YoY), with China revenue ~5ppt below Q1 levels.

**【Q&A Key Themes】**
- **Market Outlook**: Leading-edge foundry logic growth (~20% YoY) offsetting slower ICAPS spending. NAND recovery from low base. 
- **China Impact**: 2025 China revenue ~30% of total (down from ~35% pre-sanctions), with H2 AGS headwinds.
- **Gross Margin Resilience**: 48.4% Q2 gross margin maintained despite mix shifts, supported by value-based pricing.
- **Packaging Leadership**: $1.7B 2024 packaging revenue, targeting double-digit growth driven by HBM and AI server architectures.
- **R&D Investment**: ~$1.3B Q1 operating expenses, focused on GAA, 4F² DRAM, and advanced packaging innovations.

Applied Materials, Inc. (AMAT) Q1 2025 Earnings Call Transcript

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