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Aug 01, 2021

Applied Materials Q3 2021 Earnings Report

Applied Materials achieved record quarterly revenue driven by strong demand for semiconductors.

Key Takeaways

Applied Materials reported record third-quarter results with revenue of $6.20 billion, up 41% year over year. GAAP EPS was $1.87, and non-GAAP EPS was $1.90, representing increases of 105% and 79% year-over-year, respectively.

Record quarterly revenue of $6.20 billion, up 41 percent year over year

Record quarterly GAAP operating margin of 32.5 percent, up 7.3 points year over year

Record non-GAAP operating margin of 32.7 percent, up 6.3 points year over year

Record quarterly GAAP EPS of $1.87 and record non-GAAP EPS of $1.90, up 105 percent and 79 percent year over year, respectively

Total Revenue
$6.2B
Previous year: $4.4B
+41.0%
EPS
$1.9
Previous year: $1.06
+79.2%
Gross Margin
47.9%
Previous year: 44.5%
+7.6%
Operating Margin
32.5%
Previous year: 25.2%
+29.0%
Non-GAAP Gross Margin
48%
Previous year: 45%
+6.7%
Gross Profit
$2.97B
Previous year: $1.96B
+51.8%
Cash and Equivalents
$6.07B
Previous year: $4.35B
+39.4%
Free Cash Flow
$1.55B
Previous year: $780M
+98.6%
Total Assets
$24.5B
Previous year: $21.2B
+15.6%

Applied Materials

Applied Materials

Applied Materials Revenue by Segment

Applied Materials Revenue by Geographic Location

Forward Guidance

For the fourth quarter of fiscal 2021, Applied expects net sales to be approximately $6.33 billion, plus or minus $250 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.87 to $2.01.

Positive Outlook

  • Net sales are expected to be approximately $6.33 billion, plus or minus $250 million.
  • Non-GAAP adjusted diluted EPS is expected to be in the range of $1.87 to $2.01.
  • Outlook excludes known charges related to completed acquisitions of $0.01 per share.
  • Includes the normalized tax benefit of share-based compensation of $0.01 per share.
  • Includes a net income tax benefit related to intra-entity intangible asset transfers of $0.03 per share.

Challenges Ahead

  • Outlook does not reflect any items that are unknown at this time.
  • Excludes any additional charges related to acquisitions or other non-operational or unusual items.
  • Does not include other tax-related items.
  • Uncertainty in predicting items without unreasonable efforts due to their inherent uncertainty.
  • Forward-looking statements are subject to risks and uncertainties.

Revenue & Expenses

Visualization of income flow from segment revenue to net income