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Jan 26
Applied Materials Q1 2025 Earnings Report
Applied Materials reported strong revenue growth and margin expansion but faced a significant tax-related expense impacting GAAP earnings.
Key Takeaways
Applied Materials achieved record revenue of $7.17 billion, up 7% YoY, and improved operating margins. However, GAAP net income declined due to a $644 million tax expense from Singapore tax incentive changes. Non-GAAP EPS grew 12% YoY, reflecting strong operational performance.
Revenue reached $7.17 billion, a 7% increase YoY.
Non-GAAP EPS increased 12% YoY to $2.38.
GAAP net income declined 41% YoY due to a $644 million tax-related charge.
Semiconductor Systems segment saw strong growth, driving overall performance.
Applied Materials
Applied Materials
Applied Materials Revenue by Segment
Applied Materials Revenue by Geographic Location
Revenue by Segment
Semiconductor Systems Revenue
CapyFin.comApplied Global Services Revenue
CapyFin.comDisplay Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comEurope Revenue
CapyFin.comJapan Revenue
CapyFin.comKorea Revenue
CapyFin.comTaiwan Revenue
CapyFin.comSoutheast Asia Revenue
CapyFin.comChina Revenue
CapyFin.com Forward Guidance
Applied Materials expects revenue of $7.10B ± $400M and non-GAAP EPS of $2.30 ± $0.18 in Q2 FY2025. Growth is driven by continued demand for advanced semiconductor technology but faces challenges from export restrictions.
Positive Outlook
- Strong demand for AI and advanced semiconductor solutions.
- Continued margin expansion supporting profitability.
- Positive customer investment trends in leading-edge technology.
- Stable revenue outlook despite macroeconomic uncertainties.
- Strategic focus on high-velocity co-innovation with customers.
Challenges Ahead
- Export control headwinds impacting certain markets.
- Declining revenue from Display segment due to weaker demand.
- Higher tax-related expenses impacting GAAP net income.
- Lower free cash flow compared to prior year due to higher investments.
- Potential macroeconomic uncertainties affecting customer spending.
Revenue & Expenses
Visualization of income flow from segment revenue to net income