Applied Materials Announces Fourth Quarter and Fiscal Year 2025 Results

About this update from Applied Materials, Inc.

Record annual revenue $28.37 billion , up 4 percent year over year Record annual GAAP EPS $8.66 and record non-GAAP EPS $9.42 , up 1 percent and 9 percent year over year, respectively Quarterly revenue $6.80 billion , down 3 percent year over year Quarterly GAAP EPS $2.38 and non-GAAP EPS $2.17 , up 14 percent and down 6 percent year over year, respectively SANTA CLARA, Calif. , Nov. 13, 2025 (GLOBE NEWSWIRE) -- Applied Materials, Inc. (NASDAQ: AMAT) today reported results for its fourth quarter and fiscal year ended Oct. 26, 2025 . “As AI adoption drives substantial investment in advanced semiconductors and wafer fab equipment, Applied Materials delivered its sixth consecutive year of growth in fiscal 2025,” said Gary Dickerson , President and CEO. “We are well positioned at the highest value technology inflections in the fastest growing areas of the market, enabling us to extend our leadership in leading-edge logic, DRAM and advanced packaging as next-generation technologies ramp in volume production over the coming years.” “Based on our conversations with our customers and partners, we are preparing Applied’s operations and service organizations to be ready to support higher demand beginning in the second half of calendar 2026,” said Brice Hill , Senior Vice President and CFO. “We have targeted our R&D investments to create new products and technologies that will enable even faster and more energy-efficient transistors, chips and systems and drive our growth in the years ahead.” Results Summary Change Q4 FY2025 Q4 FY2024 FY2025 FY2024 Q4 FY2025 vs. Q4 FY2024 FY2025 vs. FY2024 (In millions, except per share amounts and percentages) Net revenue $ 6,800 $ 7,045 $ 28,368 $ 27,176 (3)% 4% Gross margin 48.0 % 47.3 % 48.7 % 47.5 % 0.7 points 1.2 points Operating margin 25.2 % 29.0 % 29.2 % 28.9 % (3.8) points 0.3 points Net income $ 1,897 $ 1,731 $ 6,998 $ 7,177 10% (2)% Diluted earnings per share $ 2.38 $ 2.09 $ 8.66 $ 8.61 14% 1% Non-GAAP Results Non-GAAP gross margin 48.1 % 47.5 % 48.8 % 47.6 % 0.6 points 1.2 points Non-GAAP operating margin 28.6 % 29.3 % 30.2 % 29.2 % (0.7) points 1.0 point Non-GAAP net income $ 1,732 $ 1,917 $ 7,607 $ 7,210 (10)% 6% Non-GAAP diluted EPS $ 2.17 $ 2.32 $ 9.42 $ 8.65 (6)% 9% Non-GAAP free cash flow $ 2,043 $ 2,168 $ 5,698 $ 7,487 (6)% (24)% A reconciliation of the GAAP and non-GAAP results is provided in the financial tables included in this release. See also “Use of Non-GAAP Financial Measures” section. Business Outlook Applied’s total net revenue and non-GAAP diluted EPS for the first quarter of fiscal 2026 are expected to be as follows: Q1 FY2026 (In millions, except per share amounts) Total net revenue $ 6,850 +/- $ 500 Non-GAAP diluted EPS $ 2.18 +/- $ 0.20 This outlook for non-GAAP diluted EPS excludes known charges related to completed acquisitions of $0.01 per share and includes a net income tax benefit related to intra-entity intangible asset transfers of $0.04 per share, but does not reflect any items that are unknown at this time, such as any additional charges related to acquisitions or other non-operational or unusual items, as well as other tax-related items, which we are not able to predict without unreasonable efforts due to their inherent uncertainty. Fourth Quarter and Fiscal Year Reportable Segment Information Semiconductor Systems Q4 FY2025 Q4 FY2024 FY2025 FY2024 (in millions, except percentages) Net revenue $ 4,760 $ 5,177 $ 20,798 $ 19,911 Foundry, logic and other 65 % 73 % 67 % 68 % DRAM 29 % 23 % 26 % 28 % Flash memory 6 % 4 % 7 % 4 % Operating income $ 1,527 $ 1,824 $ 7,379 $ 6,981 Operating margin 32.1 % 35.2 % 35.5 % 35.1 % Non-GAAP Results Non-GAAP operating income $ 1,538 $ 1,834 $ 7,424 $ 7,021 Non-GAAP operating margin 32.3 % 35.4 % 35.7 % 35.3 % Applied Global Services Q4 FY2025 Q4 FY2024 FY2025 FY2024 (in millions, except percentages) Net revenue $ 1,625 $ 1,639 $ 6,385 $ 6,225 Operating income $ 454 $ 492 $ 1,792 $ 1,812 Operating margin 27.9 % 30.0 % 28.1 % 29.1 % Non-GAAP Results Non-GAAP operating income $ 454 $ 492 $ 1,792 $ 1,812 Non-GAAP operating margin 27.9 % 30.0 % 28.1 % 29.1 % Corporate and Other Q4 FY2025 Q4 FY2024 FY2025 FY2024 (in millions) Net revenue $ 415 $ 229 $ 1,185 $ 1,040 Unallocated cost of products sold and expenses (503 ) (499 ) (1,886 ) (1,966 ) Restructuring charges (181 ) — (181 ) — Operating loss $ (269 ) $ (270 ) $ (882 ) $ (926 ) Corporate and Other amounts for the three and twelve months ended October 26, 2025 included Display net revenue of $355 million and $1.06 billion , respectively, and Display operating income of $91 million and $235 million , respectively. Corporate and Other amounts for the three and twelve months ended October 27, 2024 included Display net revenue of $211 million and $885 million , respectively, and Display operating income of $5 million and $51 million , respectively. Use of Non-GAAP 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 associated adjustments; impairments of assets; gain or loss, dividends and impairments on strategic investments; certain income tax items and other discrete adjustments. On a non-GAAP basis, the tax effect related to share-based compensation is recognized ratably over the fiscal year. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release. Management uses these non-GAAP financial measures to evaluate the company’s operating and financial performance and for planning purposes, and as performance measures in its executive compensation program. Applied believes these measures enhance an overall understanding of its performance and investors’ ability to review the company’s business from the same perspective as the company’s management, and facilitate comparisons of this period’s results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Applied's ongoing operating performance. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Webcast Information Applied Materials will discuss these results during an earnings call that begins at 1:30 p.m. Pacific Time today. A live webcast and related slide presentation will be available at https://ir.appliedmaterials.com . A replay will be available on the website beginning at 5:00 p.m. Pacific Time today. Forward-Looking Statements This press release 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, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, our business outlook for the first quarter of fiscal 2026 and beyond, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic, political and industry conditions, including changes in interest rates and prices for goods and services; the implementation of additional export regulations and license requirements and their interpretation, and their impact on our ability to export products and provide services to customers and on our results of operations; global trade issues and changes in trade and export license policies and our ability to obtain licenses or authorizations on a timely basis, if at all; imposition of new or increases in tariffs and any retaliatory measures, including their impact on demand for our products and services; our ability to effectively mitigate the impact of tariffs; the effects of geopolitical turmoil or conflicts; demand for semiconductor chips and electronic devices; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; our ability to meet customer demand, and our suppliers’ ability to meet our demand requirements; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; cybersecurity incidents affecting our information systems or information contained in them, or affecting our operations, suppliers, customers or vendors; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; the effects of regional or global health epidemics; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations and other risks and uncertainties described in our SEC filings, including our recent Forms 10-Q and 8- K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them. About Applied Materials Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions that are at the foundation of virtually every new semiconductor and advanced display in the world. The technology we create is essential to advancing AI and accelerating the commercialization of next-generation chips. At Applied, we push the boundaries of science and engineering to deliver material innovation that changes the world. Learn more at www.appliedmaterials.com . Investor Relations Contact: Mike Sullivan (408) 986-7977 [email protected] Media Contact: Ricky Gradwohl (408) 235-4676 [email protected] APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS Three Months Ended Twelve Months Ended (In millions, except per share amounts) October 26 ,2025 October 27 ,2024 October 26 ,2025 October 27 ,2024 Net revenue $ 6,800 $ 7,045 $ 28,368 $ 27,176 Cost of products sold 3,535 3,710 14,560 14,279 Gross profit 3,265 3,335 13,808 12,897 Operating expenses: Research, development and engineering 917 858 3,570 3,233 Marketing and selling 212 215 858 836 General and administrative 243 216 910 961 Restructuring charges 181 — 181 — Total operating expenses 1,553 1,289 5,519 5,030 Income from operations 1,712 2,046 8,289 7,867 Interest expense 71 66 269 247 Interest and other income (expense), net 626 (85 ) 1,251 532 Income before income taxes 2,267 1,895 9,271 8,152 Provision for income taxes 370 164 2,273 975 Net income $ 1,897 $ 1,731 $ 6,998 $ 7,177 Earnings per share: Basic $ 2.39 $ 2.11 $ 8.71 $ 8.68 Diluted $ 2.38 $ 2.09 $ 8.66 $ 8.61 Weighted average number of shares: Basic 794 822 804 827 Diluted 798 828 808 834 APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS (In millions) October 26 ,2025 October 27 ,2024 ASSETS Current assets: Cash and cash equivalents $ 7,241 $ 8,022 Short-term investments 1,332 1,449 Accounts receivable, net 5,185 5,234 Inventories 5,915 5,421 Other current assets 1,208 1,094 Total current assets 20,881 21,220 Long-term investments 4,327 2,787 Property, plant and equipment, net 4,610 3,339 Goodwill 3,707 3,732 Purchased technology and other intangible assets, net 226 249 Deferred income taxes and other assets 2,548 3,082 Total assets $ 36,299 $ 34,409 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 100 $ 799 Accounts payable and accrued expenses 5,333 4,820 Contract liabilities 2,566 2,849 Total current liabilities 7,999 8,468 Long-term debt 6,455 5,460 Income taxes payable 356 670 Other liabilities 1,074 810 Total liabilities 15,884 15,408 Total stockholders’ equity 20,415 19,001 Total liabilities and stockholders’ equity $ 36,299 $ 34,409 APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (In millions) Three Months Ended Twelve Months Ended October 26 ,2025 October 27 ,2024 October 26 ,2025 October 27 ,2024 Cash flows from operating activities: Net income $ 1,897 $ 1,731 $ 6,998 $ 7,177 Adjustments required to reconcile net income to cash provided by operating activities: Depreciation and amortization 114 110 435 392 Restructuring charges 179 — 179 — Deferred income taxes (313 ) (248 ) 639 (633 ) (Gain) loss and impairments on investments, net (522 ) 241 (792 ) (15 ) Share-based compensation 156 141 668 577 Other 59 5 31 62 Net change in operating assets and liabilities 1,258 595 (200 ) 1,117 Cash provided by operating activities 2,828 2,575 7,958 8,677 Cash flows from investing activities: Capital expenditures (785 ) (407 ) (2,260 ) (1,190 ) Cash paid for acquisitions, net of cash acquired — — (29 ) — Proceeds from asset sale — — 33 — Proceeds from sales and maturities of investments 1,591 956 5,528 2,451 Purchases of investments (945 ) (1,620 ) (6,054 ) (3,588 ) Cash used in investing activities (139 ) (1,071 ) (2,782 ) (2,327 ) Cash flows from financing activities: Debt borrowings, net of issuance costs 991 — 991 694 Debt repayments (700 ) — (700 ) — Proceeds from commercial paper 103 101 503 401 Repayments of commercial paper (102 ) (100 ) (502 ) (400 ) Proceeds from common stock issuances 132 124 261 243 Common stock repurchases (851 ) (1,442 ) (4,895 ) (3,823 ) Tax withholding payments for vested equity awards (38 ) (33 ) (248 ) (291 ) Payments of dividends to stockholders (365 ) (329 ) (1,384 ) (1,192 ) Payments of debt issuance costs (1 ) — (3 ) — Repayments of principal on finance leases — (90 ) — (102 ) Cash used in financing activities (831 ) (1,769 ) (5,977 ) (4,470 ) Increase (decrease) in cash, cash equivalents and restricted cash equivalents 1,858 (265 ) (801 ) 1,880 Cash, cash equivalents and restricted cash equivalents—beginning of period 5,454 8,378 8,113 6,233 Cash, cash equivalents and restricted cash equivalents — end of period $ 7,312 $ 8,113 $ 7,312 $ 8,113 Reconciliation of cash, cash equivalents, and restricted cash equivalents Cash and cash equivalents $ 7,241 $ 8,022 $ 7,241 $ 8,022 Restricted cash equivalents included in deferred income taxes and other assets 71 91 71 91 Total cash, cash equivalents, and restricted cash equivalents $ 7,312 $ 8,113 $ 7,312 $ 8,113 Supplemental cash flow information: Cash payments for income taxes $ 235 $ 138 $ 1,504 $ 957 Cash refunds from income taxes $ 11 $ 8 $ 90 $ 15 Cash payments for interest $ 68 $ 68 $ 239 $ 205 Additional Information Q4 FY2025 Q4 FY2024 FY2025 FY2024 Net Revenue by Geography ( In millions ) United States $ 655 $ 1,153 $ 3,063 $ 3,818 % of Total 10 % 16 % 11 % 14 % Europe $ 220 $ 405 $ 962 $ 1,443 % of Total 3 % 6 % 3 % 5 % Japan $ 448 $ 581 $ 2,273 $ 2,154 % of Total 6 % 8 % 8 % 8 % Korea $ 1,219 $ 1,172 $ 5,608 $ 4,493 % of Total 18 % 17 % 20 % 17 % Taiwan $ 1,834 $ 1,284 $ 6,857 $ 4,010 % of Total 27 % 18 % 24 % 15 % Southeast Asia $ 460 $ 314 $ 1,076 $ 1,141 % of Total 7 % 5 % 4 % 4 % China $ 1,964 $ 2,136 $ 8,529 $ 10,117 % of Total 29 % 30 % 30 % 37 % Employees (In thousands) Regular Full Time 36.5 35.7 APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS Three Months Ended Twelve Months Ended (In millions, except percentages) October 26 ,2025 October 27 ,2024 October 26 ,2025 October 27 ,2024 Non-GAAP Gross Profit GAAP reported gross profit $ 3,265 $ 3,335 $ 13,808 $ 12,897 Certain items associated with acquisitions1 7 6 27 26 Impairment of long-lived assets — 3 — 3 Non-GAAP gross profit $ 3,272 $ 3,344 $ 13,835 $ 12,926 Non-GAAP gross margin 48.1 % 47.5 % 48.8 % 47.6 % Non-GAAP Operating Income GAAP reported operating income $ 1,712 $ 2,046 $ 8,289 $ 7,867 Certain items associated with acquisitions1 11 11 45 42 Acquisition integration and deal costs 2 3 6 12 Impairment of goodwill and other long-lived assets 41 3 41 3 Restructuring charges2 181 — 181 — Non-GAAP operating income $ 1,947 $ 2,063 $ 8,562 $ 7,924 Non-GAAP operating margin 28.6 % 29.3 % 30.2 % 29.2 % Non-GAAP Net Income GAAP reported net income $ 1,897 $ 1,731 $ 6,998 $ 7,177 Certain items associated with acquisitions1 11 11 45 42 Acquisition integration and deal costs 2 3 6 12 Impairment of goodwill and other long-lived assets 41 3 41 3 Restructuring charges2 181 — 181 — Realized loss (gain), dividends and impairments on strategic investments, net (55 ) (1 ) (66 ) 11 Unrealized loss (gain) on strategic investments, net (467 ) 244 (755 ) (31 ) Foreign exchange loss (gain) related to purchase of strategic investment — — 23 — Loss (gain) on asset sale — — (44 ) — Income tax effect of share-based compensation3 (1 ) 7 — — Income tax effects related to intra-entity intangible asset transfers4 39 (33 ) 777 24 Resolution of prior years’ income tax filings and other tax items5 (7 ) (47 ) 313 (25 ) Income tax effect of non-GAAP adjustments6 91 (1 ) 88 (3 ) Non-GAAP net income $ 1,732 $ 1,917 $ 7,607 $ 7,210 1 These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. 2 The restructuring charges related to a workforce reduction plan announced in the fourth quarter of fiscal 2025. 3 GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis. 4 Amount for the twelve months ended October 26, 2025 , included changes to the income tax provision of $118 million from amortization of intangibles and a $659 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in the first quarter of fiscal 2025. 5 Amounts for the twelve months ended October 26, 2025 included the impact of the recognition of a $403 million valuation allowance against deferred tax assets related to corporate alternative minimum tax credits in the third quarter of fiscal 2025. 6 Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS Three Months Ended Twelve Months Ended (In millions, except per share amounts) October 26 ,2025 October 27 ,2024 October 26 ,2025 October 27 ,2024 Non-GAAP Earnings Per Diluted Share GAAP reported earnings per diluted share $ 2.38 $ 2.09 $ 8.66 $ 8.61 Certain items associated with acquisitions 0.01 0.01 0.05 0.05 Acquisition integration and deal costs — — 0.01 0.01 Impairment of goodwill and other long-lived assets 0.05 — 0.05 — Restructuring charges 0.19 — 0.19 — Realized loss (gain), dividends and impairments on strategic investments, net (0.07 ) — (0.08 ) 0.01 Unrealized loss (gain) on strategic investments, net (0.43 ) 0.30 (0.80 ) (0.03 ) Foreign exchange loss (gain) related to purchase of strategic investment — — 0.03 — Loss (gain) on asset sale — — (0.04 ) — Income tax effect of share-based compensation — 0.01 — — Income tax effects related to intra-entity intangible asset transfers1 0.05 (0.04 ) 0.96 0.03 Resolution of prior years’ income tax filings and other tax items2 (0.01 ) (0.05 ) 0.39 (0.03 ) Non-GAAP earnings per diluted share $ 2.17 $ 2.32 $ 9.42 $ 8.65 Weighted average number of diluted shares 798 828 808 834 1 Amount for the twelve months ended October 26, 2025 , included changes to the income tax provision of $0.14 per diluted share from amortization of intangibles and $0.82 per diluted share from a remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in the first quarter of fiscal 2025. 2 Amounts for the twelve months ended October 26, 2025 included a $0.50 per diluted share impact of the recognition of a valuation allowance against deferred tax assets related to corporate alternative minimum tax credits in the third quarter of fiscal 2025. APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS Three Months Ended Twelve Months Ended (In millions, except percentages) October 26 ,2025 October 27 ,2024 October 26 ,2025 October 27 ,2024 Semiconductor Systems Non-GAAP Operating Income GAAP reported operating income $ 1,527 $ 1,824 $ 7,379 $ 6,981 Certain items associated with acquisitions1 11 10 45 40 Non-GAAP operating income $ 1,538 $ 1,834 $ 7,424 $ 7,021 Non-GAAP operating margin 32.3 % 35.4 % 35.7 % 35.3 % Applied Global Services Non-GAAP Operating Income GAAP reported operating income $ 454 $ 492 $ 1,792 $ 1,812 Non-GAAP operating income $ 454 $ 492 $ 1,792 $ 1,812 Non-GAAP operating margin 27.9 % 30.0 % 28.1 % 29.1 % 1 These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. Note: The reconciliation of GAAP and non-GAAP segment results above does not include certain revenues, costs of products sold and operating expenses that are reported within corporate and other and included in consolidated operating income. APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE Three Months Ended (In millions, except percentages) October 26, 2025 GAAP provision for income taxes (a) $ 370 Income tax effect of share-based compensation 1 Income tax effects related to intra-entity intangible asset transfers (39 ) Resolutions of prior years’ income tax filings and other tax items 7 Income tax effect of non-GAAP adjustments (91 ) Non-GAAP provision for income taxes (b) $ 248 GAAP income before income taxes (c) $ 2,267 Certain items associated with acquisitions 11 Acquisition integration and deal costs 2 Restructuring charges 181 Impairment of goodwill and other long-lived assets 41 Realized loss (gain), dividends and impairments on strategic investments, net (55 ) Unrealized loss (gain) on strategic investments, net (467 ) Non-GAAP income before income taxes (d) $ 1,980 GAAP effective income tax rate (a/c) 16.3 % Non-GAAP effective income tax rate (b/d) 12.5 % UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW Three Months Ended Twelve Months Ended (In millions) October 26 ,2025 October 27 ,2024 October 26 ,2025 October 27 ,2024 Cash provided by operating activities $ 2,828 $ 2,575 $ 7,958 $ 8,677 Capital expenditures (785 ) (407 ) (2,260 ) (1,190 ) Non-GAAP free cash flow $ 2,043 $ 2,168 $ 5,698 $ 7,487 Source: Applied Materials, Inc.

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