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May 01, 2022

Applied Materials Q2 2022 Earnings Report

Applied Materials reported Q2 2022 results with revenue up 12% year over year and GAAP EPS of $1.74.

Key Takeaways

Applied Materials announced its second quarter 2022 results, with revenue reaching $6.25 billion, a 12% increase year over year. The company's GAAP EPS was $1.74, up by 22% compared to the previous year. However, ongoing supply chain issues continue to pose constraints.

Quarterly revenue reached $6.25 billion, reflecting a 12% increase year-over-year.

GAAP operating margin was 30.3%, while non-GAAP operating margin was 30.6%.

GAAP EPS stood at $1.74, marking a 22% increase year-over-year.

Non-GAAP EPS was $1.85, a 13% increase year-over-year.

Total Revenue
$6.25B
Previous year: $5.58B
+11.9%
EPS
$1.85
Previous year: $1.63
+13.5%
Gross Margin
46.9%
Previous year: 47.5%
-1.3%
Operating Margin
30.3%
Previous year: 28.3%
+7.1%
Non-GAAP Gross Margin
47%
Previous year: 47.7%
-1.5%
Gross Profit
$2.93B
Previous year: $2.65B
+10.3%
Cash and Equivalents
$3.33B
Previous year: $6.31B
-47.2%
Free Cash Flow
$205M
Previous year: $983M
-79.1%
Total Assets
$25.5B
Previous year: $24.1B
+5.7%

Applied Materials

Applied Materials

Applied Materials Revenue by Segment

Applied Materials Revenue by Geographic Location

Forward Guidance

In the third quarter of fiscal 2022, Applied expects net sales to be approximately $6.25 billion, plus or minus $400 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.59 to $1.95.

Positive Outlook

  • Net sales are expected to be approximately $6.25 billion, plus or minus $400 million.
  • Includes the normalized tax benefit of share-based compensation of $0.02 per share
  • Includes a net income tax benefit related to intra-entity intangible asset transfers of $0.02 per share

Challenges Ahead

  • Outlook includes the expected impact of ongoing supply chain challenges.
  • Excludes known charges related to completed acquisitions of $0.01 per share
  • 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
  • Does not reflect other tax related items
  • The company is not able to predict without unreasonable efforts due to their inherent uncertainty.

Revenue & Expenses

Visualization of income flow from segment revenue to net income