Applied Materials reported strong first-quarter results driven by increased industry investments in AI computing, particularly in high-growth areas like leading-edge logic and advanced packaging. The company is focused on expanding manufacturing capacity to meet rising demand for its innovative products and services.
GAAP EPS increased 75% year over year to $2.54, while non-GAAP EPS remained flat at $2.38.
positiveNon-GAAP free cash flow increased 91% year over year to $1,040 million.
positiveSemiconductor Systems achieved record DRAM revenue.
positiveApplied Global Services delivered record services and spares revenue.
positiveNon-GAAP operating margin was 30.0%, a slight decrease from 30.6% in the prior year.
neutralRevenue decreased 2% year over year to $7.01 billion.
negativeGAAP operating margin decreased 4.3 percentage points year over year to 26.1%.
negativeNon-GAAP operating margin decreased 0.6 percentage points year over year to 30.0%.
attentionThe company reported a legal settlement charge of $253 million related to an export controls compliance matter.
attentionRestructuring charges of $12 million were incurred related to a workforce reduction plan.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Semiconductor Systems | N/A | — | — | — |
Applied Global Services | N/A | — | — | — |
Other | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Applied Materials delivered strong results in our fiscal first quarter, fueled by the acceleration of industry investments in AI computing.
The need for higher performance and more energy-efficient chips is driving high growth rates for leading-edge logic, high-bandwidth memory and advanced packaging.
These are areas where Applied is the process equipment leader, and we expect to grow our semiconductor equipment business over 20 percent this calendar year.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.