The earnings call conveyed a generally positive sentiment with record-breaking revenue and growth, substantial advancements in AI and packaging, and significant shareholder returns. However, there are notable challenges, including trade restrictions with China impacting revenues and a decline in DRAM sales. The company's innovation and market positioning remain strong, but geopolitical and market-specific challenges present headwinds.

Company Guidance

During the first quarter of fiscal 2025, Applied Materials reported record revenues, surpassing previous highs, with total net sales of approximately $7.2 billion, reflecting a 7% year-over-year increase. The company achieved a non-GAAP gross margin of 48.9%, marking a 100 basis point improvement from the previous year and the highest quarterly gross margin since fiscal 2000. Non-GAAP EPS reached a record $2.38, up 12% year-over-year, supported by semiconductor systems sales of $5.36 billion, a 9% increase, and applied global services revenue of $1.59 billion, up 8%. Despite facing a $400 million revenue impact due to trade restrictions with China, Applied Materials anticipates continued growth, with Q2 revenue projected at $7.1 billion, representing another 7% year-over-year rise, and non-GAAP EPS expected at $2.30, up 10%. The company is focused on leveraging its leadership in advanced semiconductors and materials engineering to navigate major technology inflections in AI, foundry logic, DRAM, and advanced packaging, with plans to double its packaging revenue over the next few years.

Record-Breaking Revenue and Growth

Applied Materials delivered record revenues in Q1 FY2025, surpassing the prior high set last quarter, with total net sales of approximately $7.2 billion, up 7% year over year.

Strong Performance in Leading-Edge Foundry Logic

Foundry logic saw a 20% growth, driving semiconductor system sales to $5.36 billion for Q1, up 9% year over year.

Advanced Packaging and AI Innovations

Applied Materials captured more than half of the advanced packaging market and is on track to double revenues over the next several years, with significant innovations in energy-efficient AI solutions.

Positive Outlook for Non-GAAP Earnings

Non-GAAP earnings per share grew by 12% year over year to a record $2.38, driven by revenue growth, profitability improvements, and share repurchases.

Increased Shareholder Returns

The company distributed $1.6 billion to shareholders through $1.3 billion of share repurchases and $326 million of dividends.

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Applied Materials (AMAT) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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AMAT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 15, 2025	2025 (Q2)	2.31 / -	2.09	―	―	―
Feb 13, 2025	2025 (Q1)	2.28 / 2.38	2.13	11.74% (+0.25)
Nov 14, 2024	2024 (Q4)	2.19 / 2.32	2.12	9.43% (+0.20)
Aug 15, 2024	2024 (Q3)	2.03 / 2.12	1.9	11.58% (+0.22)
May 16, 2024	2024 (Q2)	1.99 / 2.09	2	4.50% (+0.09)
Feb 15, 2024	2024 (Q1)	1.90 / 2.13	2.03	4.93% (+0.10)
Nov 16, 2023	2023 (Q4)	1.99 / 2.12	2.03	4.43% (+0.09)
Aug 17, 2023	2023 (Q3)	1.74 / 1.90	1.94	-2.06% (-0.04)
May 18, 2023	2023 (Q2)	1.84 / 2.00	1.85	8.11% (+0.15)
Feb 16, 2023	2023 (Q1)	1.93 / 2.03	1.89	7.41% (+0.14)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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AMAT Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 13, 2025	$183.85	$168.81	-8.18%
Nov 14, 2024	$185.14	$168.10	-9.20%
Aug 15, 2024	$210.44	$206.54	-1.85%
May 16, 2024	$212.24	$210.31	-0.91%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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