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Jan 26, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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