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Jan 29, 2023

Applied Materials Q1 2023 Earnings Report

Applied Materials reported strong first quarter results, with revenue up 7% year over year and EPS exceeding expectations.

Key Takeaways

Applied Materials announced its Q1 2023 results, reporting revenue of $6.74 billion, a 7% increase year over year. The company's GAAP EPS was $2.02, and non-GAAP EPS was $2.03. They generated $2.27 billion in cash from operations and returned $470 million to shareholders.

Revenue reached $6.74 billion, up 7% year over year.

GAAP operating margin was 29.2%, while non-GAAP operating margin was 29.5%.

GAAP EPS was $2.02, and non-GAAP EPS was $2.03, reflecting increases of 1% and 7% year over year, respectively.

Cash from operations totaled $2.27 billion.

Total Revenue
$6.74B
Previous year: $6.27B
+7.5%
EPS
$2.03
Previous year: $1.89
+7.4%
Gross Margin
46.7%
Previous year: 47.2%
-1.1%
Operating Margin
29.2%
Previous year: 31.5%
-7.3%
Non-GAAP Gross Margin
46.8%
Previous year: 47.3%
-1.1%
Gross Profit
$3.15B
Previous year: $2.96B
+6.3%
Cash and Equivalents
$3.55B
Previous year: $5.26B
-32.6%
Free Cash Flow
$1.98B
Previous year: $2.66B
-25.4%
Total Assets
$28B
Previous year: $25.4B
+10.0%

Applied Materials

Applied Materials

Applied Materials Revenue by Segment

Applied Materials Revenue by Geographic Location

Forward Guidance

For the second quarter of fiscal 2023, Applied expects net sales to be approximately $6.40 billion, plus or minus $400 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.66 to $2.02.

Challenges Ahead

  • Net sales to be approximately $6.40 billion, plus or minus $400 million, which includes ongoing supply chain challenges.
  • Includes a negative estimated impact of $250 million dollars related to a cybersecurity event recently announced by one of our suppliers.
  • Non-GAAP adjusted diluted EPS is expected to be in the range of $1.66 to $2.02.

Revenue & Expenses

Visualization of income flow from segment revenue to net income