Slide 1: Fourth Quarter Fiscal 2025 Earnings Presentation
Fourth Quarter Fiscal 2025 Earnings Presentation NOVEMBER 13, 2025 Applied Materials External
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, ou
Slide 3: Gary Dickerson, President and Chief Executive Officer
Gary Dickerson President and Chief Executive Officer Applied Materials External
Slide 4: Fiscal Year 2025 Record Performance
FISCAL YEAR 2025 NON-GAAP NON-GAAP REVENUE EARNINGS PER SHARE* GROSS MARGIN* $28.4B $9.42 Record Performance 48.8% 4% YoY 9% YoY 120 bps Sixth Consecutive Year of Growth Over this period, Applied has grown revenue at ~12% CAGR and earnings at ~20% CAGR * For reconciliation of GAAP to non-GAAP res
Slide 5: Revenue growth across segments
▪ Revenue growth across segments » Semiconductor Systems Group | $20.8B, 4% YoY » Applied Global Services | $6.4B, 3% YoY FY25 ▪ Growth in FY25 tempered by increased trade restrictions and unfavorable market mix REVIEW ▪ Expect FY26 spending mix to play to Applied’s strengths in leading-edge found
Slide 6: AI Accelerating Investment in Computing Infrastructure
AI Accelerating Investment in Computing Infrastructure Demand for AI compute Compute demand drives semiconductor growth VIRTUOUS » Semiconductor industry CYCLE Advances forecast to grow at 10-15% of Innovation in AI CAGR over next five years and Demand computing » Customer ramps will support healthy
Slide 7: Energy-Efficient Computing Enabled by Materials Engineering
Energy-Efficient Computing Enabled by Materials Engineering MATERIALS ENGINEERING AI DATA CENTER ENABLERS INFLECTIONS LEADERSHIP Gate-all-around transistors Leading-Edge Logic Backside power delivery ✓ 4F2 High-Performance DRAM 3D DRAM ✓ DRAM Die Stacking High-Bandwidth Memory (HBM) ✓ Hybrid bonding
Slide 8: Inflection-Focused Innovation
Partner with customers to see technology inflections early INFLECTION- Focus R&D on the most critical and valuable FOCUSED challenges using deep co-innovation models INNOVATION Create highly differentiated solutions by connecting our broad portfolio 8 | Applied Materials External
Slide 9: New Products Exemplify Inflection-Focused Innovation Strategy
New Products Exemplify Inflection-Focused Innovation Strategy Applied Centura Kinex Integrated Die-to-Wafer PROVision 10 Xtera Epi Hybrid Bonding System eBeam Metrology Cold Field Emission (CFE) » Creates void-free structures for » Enables improvement in » Extends eBeam leadership with first higher
Slide 10: On Track to Begin Operations in 2026
ON TRACK TO BEGIN OPERATIONS IN 2026 » Home to Applied’s high-velocity co-innovation model » Provides earlier access to next- generation process technology » Accelerates new chip and system architectures 10 | Applied Materials External
Slide 11: Applied Global Services
APPLIED GLOBAL SERVICES® ▪ Helping customers manage increasing complexity as they ramp next generation technology into high volume manufacturing Core parts and services ▪ Greater than two-thirds of Core AGS revenue is business delivered from subscriptions double-digit growth in FY25 ▪ Rapidly adopti
Slide 12: CEO Summary
CEO ▪ Sixth consecutive year of growth, despite trade restrictions and unfavorable market mix SUMMARY ▪ Substantial investment in AI computing infrastructure expected to drive growth in semiconductors and WFE ▪ Inflection-focused innovation strategy positions us well at the highest-value technology
Slide 13: Brice Hill, SVP, Chief Financial Officer
Brice Hill SVP, Chief Financial Officer Applied Materials External
Slide 14: CFO Overview
▪ FY25: Record revenue, gross margin dollars, operating profit and EPS ▪ Applied in a great position to benefit from favorable market trends ▪ AI data center driving leading-edge foundry-logic, DRAM and CFO OVERVIEW HBM to be the fastest growing areas of the semiconductor equipment market – Applied
Slide 15: FY2025 Non-GAAP Financial Results
FY2025 Non-GAAP Financial Results YEAR-OVER-YEAR HIGHLIGHTS: $M, except EPS FY2024 FY2025 YoY ▪ Growth across all segments ▪ Record revenue in Taiwan and Korea Revenue 27,176 28,368 4% ▪ Semi Systems +4% Y/Y, even as impact of trade restrictions significantly reduced Gross Margin* 47.6% 48.8% 120bps
Slide 16: Cash Flows and Shareholder Distributions
Cash Flows and Shareholder Distributions CASH FLOWS ($M) FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 FY25 Operating Cash Flow 2,575 925 1,571 2,634 2,828 7,958 Free Cash Flow* 2,168 544 1,061 2,050 2,043 5,698 SHAREHOLDER DISTRIBUTIONS ($M) Total Shareholder Distributions (1,771) (1,644) (1,995) (1,424) (1,2
Slide 17: FQ4'25 Non-GAAP Financial Results
FQ4'25 Non-GAAP Financial Results $M, except EPS FQ4'24 FQ3'25 FQ4'25 YoY Revenue 7,045 7,302 6,800 (3)% Gross Margin* 47.5% 48.9% 48.1% 60bps Operating Expenses* 1,281 1,324 1,325 3% Operating Income* 2,063 2,245 1,947 (6)% Operating Margin* 29.3% 30.7% 28.6% -70bps EPS* $2.32 $2.48 $2.17 (6)% * Fo
Slide 18: FQ4'25 Segment Results
FQ4’25 Segment Results SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES Non-GAAP Operating Margin* 37% 36% 36% 35% Non-GAAP Operating Margin* 32% 30% 29% 5,427 28% 28% 28% 5,356 5,255 5,177 4,760 1,639 1,625 1,600 1,594 1,566 Revenue ($M) Revenue ($M) Q4F24 Q1F25 Q2F25 Q3F25 Q4F25 Q4F24 Q1F25 Q2F25 Q3F
Slide 19: Reporting Changes
▪ Implementing several reporting changes to help drive further efficiency gains and give investors more visibility into our semiconductor and services businesses REPORTING ▪ Display business being reported in Corporate and Other, as of FQ4’25 » No change to our Display strategy CHANGES ▪ 200mm equip
Slide 20: First Quarter Fiscal 2026 Business Outlook
Business Outlook Total Revenue ~$6.850B ± $500M First OUTLOOK* Non-GAAP EPS* ~$2.18 ± $0.20 QUARTER FISCAL 2026 Semiconductor Systems (now includes 200mm equipment) ~$5.025B** REVENUE Applied Global Services ~$1.520B** (now excludes 200mm equipment) Corporate and Other ~$305M Non-GAAP Gross Margin*
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Slide 22: Capital Allocation Strategy
Capital Allocation Strategy 1. Invest in R&D and infrastructure OVER PAST 10 FISCAL YEARS (through FY25) to enable profitable growth » Reinvested nearly $25B in R&D and >$8B in capital additions » Distributed nearly 90% of FCF* 2. Grow dividend per share and use » Grew dividend per share at 16% CAGR
Slide 23: Strong Investment-Grade Balance Sheet
Strong Investment-Grade Balance Sheet CASH AND INVESTMENTS ($M) FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 Cash and Cash Equivalents 8,022 6,264 6,169 5,384 7,241 Short-Term Investments 1,449 1,949 578 1,630 1,332 Long-Term Investments 2,787 2,686 3,638 4,133 4,327 Total Cash and Investments 12,258 10,899 1
Slide 24: Latest 3rd Party ESG Ratings
LATEST 3rd PARTY ESG RATINGS CDP Climate B CDP Water A- MSCI AAA Sustainalytics Risk Rating Low ISS (E/S/G) 3/3/1 Links: 2024 Impact Report 24 | Applied Materials External
Slide 25: Additional Resources
Additional Resources Investor Relations Home Page LINK Newsroom LINK 2025 SEMICON West Technology Breakfast LINK 2025: Applied Materials Panel Discussion during SPIE Conference LINK 2024: SEMICON West Technology Breakfast LINK 2024: 2023 WFE Market Summary LINK 2024: Applied Materials Panel Discussi
Slide 26: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 26 | Applied Materials External
Slide 27: Use of Non-GAAP Adjusted Financial Measures
Use of Non-GAAP Adjusted Financial Measures Applied provides investors with certain non-GAAP financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including certain items related to mergers and acquisitions; restructuring and severance charges and any as
Slide 28: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PERCENTAGES FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 Non-GAAP Gross Profit GAAP reported gross profit $ 3,335 $ 3,496 $ 3,485 $ 3,562 $ 3,265 Certain items associated with acquisitions 1 6 7 6 7 7 Impairment of lon
Slide 29: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 Non-GAAP Earnings Per Diluted Share GAAP reported earnings per diluted share $ 2.09 $ 1.45 $ 2.63 $ 2.22 $ 2.38 Certain items associated with acquisitions1
Slide 30: Quarterly Reconciliation of GAAP to Non-GAAP Segment Operating Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP SEGMENT OPERATING RESULTS IN MILLIONS, EXCEPT PERCENTAGES FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 Semiconductor Systems Non-GAAP Operating Income GAAP reported operating income $ 1,824 $ 1,986 $ 1,900 $ 1,966 $ 1,527 Certain items associated with acq
Slide 31: Quarterly Reconciliation of GAAP to Non-GAAP Operating Expenses
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES IN MILLIONS FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 GAAP reported Operating Expenses $ 1,289 $ 1,321 $ 1,316 $ 1,329 $ 1,553 Certain items associated with acquisitions1 (5) (5) (5) (4) (4) Acquisition integration and deal costs (3)
Slide 32: Quarterly Reconciliation of Non-GAAP Free Cash Flow
UNAUDITED QUARTERLY RECONCILIATION OF NON-GAAP FREE CASH FLOW IN MILLIONS FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 Non-GAAP Free Cash Flows1 Cash provided by operating activities $ 2,575 $ 925 $ 1,571 $ 2,634 $ 2,828 Capital expenditures (407) (381) (510) (584) (785) Non-GAAP free cash flow $ 2,168 $ 544
Slide 33: Full Year Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PERCENTAGES FY2024 FY2025 Non-GAAP Gross Profit GAAP reported gross profit $ 12,897 $ 13,808 Certain items associated with acquisitions 1 26 27 Impairment of long-lived assets 3 — Non-GAAP gross profit $ 12,9
Slide 34: Full Year Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS FY2024 FY2025 Non-GAAP Earnings Per Diluted Share GAAP reported earnings per diluted share $ 8.61 $ 8.66 Certain items associated with acquisitions1 0.05 0.05 Acquisition integration and dea
Slide 35: Full Year Reconciliation of GAAP to Non-GAAP Segment Operating Results
UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP SEGMENT OPERATING RESULTS IN MILLIONS, EXCEPT PERCENTAGES FY2024 FY2025 Semiconductor Systems Non-GAAP Operating Income GAAP reported operating income $ 6,981 $ 7,379 Certain items associated with acquisitions1 40 45 Non-GAAP operating income $
Slide 36: Full Year Reconciliation of GAAP to Non-GAAP Operating Expenses
UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES IN MILLIONS FY2024 FY2025 GAAP reported Operating Expenses $ 5,030 $ 5,519 Certain items associated with acquisitions1 (16) (18) Acquisition integration and deal costs (12) (6) Impairment of goodwill and other long-lived asset
Slide 37: Full Year Reconciliation of Non-GAAP Free Cash Flow
UNAUDITED FULL YEAR RECONCILIATION OF NON-GAAP FREE CASH FLOW IN MILLIONS FY2016 FY2017 FY2018 FY2019 FY2020 Non-GAAP Free Cash Flows1 Cash provided by operating activities $ 2,566 $ 3,789 $ 3,787 $ 3,247 $ 3,804 Capital expenditures (253) (345) (622) (441) (422) Non-GAAP free cash flow $ 2,313 $ 3,
Slide 38: Reconciliation Information for Business Outlook
RECONCILIATION INFORMATION FOR BUSINESS OUTLOOK Non-GAAP outlook for the first quarter of fiscal 2026 (including non-GAAP gross margin, operating margin, operating expenses and EPS) excludes known charges related to completed acquisitions of approximately $11 million and includes a net income tax be
Slide 39: Applied Materials
APPLIED MATERIALS.. Material Innovation