amat-20250213
0000006951FALSEAPPLIED MATERIALS INC /DE00000069512025-02-132025-02-13


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________
FORM 8-K
 ____________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 13, 2025
____________________________________________________________________
 Applied Materials, Inc.
(Exact name of registrant as specified in its charter)
____________________________________________________________________
Delaware000-0692094-1655526
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
3050 Bowers Avenue
P.O. Box 58039
Santa Clara, CA 95052-8039
(Address of principal executive offices)

Registrant’s telephone number, including area code: (408) 727-5555
N/A
(Former name or former address, if changed since last report.)
 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, par value $.01 per shareAMATThe NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act).   ☐



Item 2.02 Results of Operations and Financial Condition.
On February 13, 2025, Applied Materials, Inc. (“Applied Materials”) announced its financial results for its first quarter ended January 26, 2025. A copy of Applied Materials’ press release is attached hereto as Exhibit 99.1.
The information in this Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section, and shall not be deemed to be incorporated by reference in any filing of Applied Materials under the Securities Act of 1933, as amended, or the Exchange Act, unless expressly incorporated by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.Description
99.1
104Cover Page Interactive Data File (formatted as inline XBRL)
 



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Applied Materials, Inc.
 (Registrant)
  
Date:February 13, 2025By:/s/ Teri A. Little
Teri A. Little
Senior Vice President, Chief Legal Officer
and Corporate Secretary
 





Exhibit 99.1
applied_prlogoxcmykblueresa.jpg

Investor Relations Contact:
Liz Morali (408) 986-7977
[email protected]

Media Contact:
Ricky Gradwohl (408) 235-4676
[email protected]



APPLIED MATERIALS ANNOUNCES FIRST QUARTER 2025 RESULTS
•Revenue $7.17 billion, up 7 percent year over year
•GAAP gross margin 48.8 percent and non-GAAP gross margin 48.9 percent
•GAAP operating margin 30.4 percent and non-GAAP operating margin 30.6 percent
•GAAP EPS $1.45 and non-GAAP EPS $2.38, down 40 percent and up 12 percent year over year, respectively
•Generated $925 million in cash from operations and distributed $1.64 billion to shareholders including $1.32 billion in share repurchases and $326 million in dividends

SANTA CLARA, Calif., Feb. 13, 2025 — Applied Materials, Inc. (NASDAQ: AMAT) today reported results for its first quarter ended Jan. 26, 2025.
“The industry drive to accelerate the development of advanced compute and more sophisticated AI is gaining momentum,” said Gary Dickerson, President and CEO. “Applied Materials is enabling the major device architecture inflections critical for energy-efficient AI and our focus on high-velocity co-innovation creates unique collaboration opportunities with our customers and partners, positioning Applied for continued growth and outperformance in the years to come.”
“We delivered strong financial performance in the first fiscal quarter, with record revenue, gross margin expansion and robust shareholder distributions,” said Brice Hill, Senior Vice President and CFO. “ For the second fiscal quarter, we are encouraged by the trends supporting continued customer investments to enable leading-edge technology inflections, while also taking into account export control related headwinds.”


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Results Summary
Q1 FY2025Q1 FY2024Change
(In millions, except per share amounts and percentages)
Net revenue$7,166 $6,707 7%
Gross margin48.8 %47.8 %1.0 point
Operating margin30.4 %29.3 %1.1 points
Net income$1,185 $2,019 (41)%
Diluted earnings per share$1.45 $2.41 (40)%
Non-GAAP Results
Non-GAAP gross margin48.9 %47.9 %1.0 point
Non-GAAP operating margin30.6 %29.5 %1.1 points
Non-GAAP net income$1,946 $1,782 9%
Non-GAAP diluted EPS$2.38 $2.13 12%
Non-GAAP free cash flow$544 $2,096 (74)%

A reconciliation of the GAAP and non-GAAP results is provided in the financial tables included in this release. See also “Use of Non-GAAP Financial Measures” section.
Impact of Singapore Tax Incentives
As a result of new tax incentive agreements in Singapore in fiscal 2025, the company recorded a $644 million, or $0.79 per diluted share, income tax expense due to the remeasurement of deferred tax assets in Singapore.

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Business Outlook

Applied’s total net revenue, non-GAAP gross margin and non-GAAP diluted EPS for the second quarter of fiscal 2025, including the estimated impact of recently announced U.S. export regulations, are expected to be approximately as follows:
Q2 FY2025
(In millions, except percentage and per share amounts)
Total net revenue$7,100 +/-$400 
Non-GAAP gross margin48.4 %
Non-GAAP diluted EPS$2.30 +/-$0.18 
This outlook for non-GAAP diluted EPS excludes known charges related to completed acquisitions of $0.01 per share and a gain on asset sale of $0.05 per share, and includes a net income tax benefit related to intra-entity intangible asset transfers of $0.04 per share, but 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, as well as other tax-related items, which we are not able to predict without unreasonable efforts due to their inherent uncertainty.
First Quarter Reportable Segment Information
Semiconductor SystemsQ1 FY2025Q1 FY2024
 (In millions, except percentages)
Net revenue$5,356 $4,909 
Foundry, logic and other68 %62 %
DRAM28 %34 %
Flash memory4 %4 %
Operating income$1,986 $1,744 
Operating margin37.1 %35.5 %
Non-GAAP Results
Non-GAAP operating income$1,998 $1,754 
Non-GAAP operating margin37.3 %35.7 %
Applied Global ServicesQ1 FY2025Q1 FY2024
 (In millions, except percentages)
Net revenue$1,594 $1,476 
Operating income$447 $417 
Operating margin28.0 %28.3 %
Non-GAAP Results
Non-GAAP operating income$447 $417 
Non-GAAP operating margin28.0 %28.3 %

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DisplayQ1 FY2025Q1 FY2024
 (In millions, except percentages)
Net revenue$183 $244 
Operating income$14 $25 
Operating margin7.7 %10.2 %
Non-GAAP Results
Non-GAAP operating income$14 $25 
Non-GAAP operating margin7.7 %10.2 %

Corporate and OtherQ1 FY2025Q1 FY2024
(In millions)
Unallocated net revenue$33 $78 
Unallocated cost of products sold and expenses(305)(297)
Total $(272)$(219)
Use of Non-GAAP Financial Measures
Applied provides investors with certain non-GAAP financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including certain items related to mergers and acquisitions; restructuring and severance charges and any associated adjustments; impairments of assets; gain or loss, dividends and impairments on strategic investments; certain income tax items and other discrete adjustments. On a non-GAAP basis, the tax effect related to share-based compensation is recognized ratably over the fiscal year. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.
Management uses these non-GAAP financial measures to evaluate the company’s operating and financial performance and for planning purposes, and as performance measures in its executive compensation program. Applied believes these measures enhance an overall understanding of its performance and investors’ ability to review the company’s business from the same perspective as the company’s management, and facilitate comparisons of this period’s results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Applied's ongoing operating performance. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.
Webcast Information
Applied Materials will discuss these results during an earnings call that begins at 1:30 p.m. Pacific Time today. A live webcast and related slide presentation will be available at https://ir.appliedmaterials.com. A replay will be available on the website beginning at 5:00 p.m. Pacific Time today.

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Forward-Looking Statements
This press release contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, our business outlook for the second quarter of fiscal 2025 and beyond, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic, political and industry conditions, including changes in interest rates and prices for goods and services; the implementation of additional export regulations and license requirements and their interpretation, and their impact on our ability to export products and provide services to customers and on our results of operations; global trade issues and changes in trade and export license policies and our ability to obtain licenses or authorizations on a timely basis, if at all; imposition of new or increases in tariffs and any retaliatory measures; the effects of geopolitical turmoil or conflicts; demand for semiconductor chips and electronic devices; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; our ability to meet customer demand, and our suppliers’ ability to meet our demand requirements; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; cybersecurity incidents affecting our information systems or information contained in them, or affecting our operations, suppliers, customers or vendors; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; the effects of regional or global health epidemics; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations and other risks and uncertainties described in our SEC filings, including our recent Forms 10-K and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.
About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future. Learn more at www.appliedmaterials.com.


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APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
 
 Three Months Ended
(In millions, except per share amounts)January 26,
2025		January 28,
2024
Net revenue$7,166 $6,707 
Cost of products sold3,670 3,503 
Gross profit3,496 3,204 
Operating expenses:
Research, development and engineering859 754 
Marketing and selling206 207 
General and administrative256 276 
Total operating expenses1,321 1,237 
Income from operations2,175 1,967 
Interest expense64 59 
Interest and other income (expense), net8 395 
Income before income taxes2,119 2,303 
Provision for income taxes934 284 
Net income$1,185 $2,019 
Earnings per share:
Basic $1.46 $2.43 
Diluted$1.45 $2.41 
Weighted average number of shares:
Basic814 831 
Diluted819 837 



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APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
 
(In millions)January 26,
2025		October 27,
2024
ASSETS
Current assets:
Cash and cash equivalents$6,264 $8,022 
Short-term investments1,949 1,449 
Accounts receivable, net5,998 5,234 
Inventories5,501 5,421 
Other current assets982 1,094 
Total current assets20,694 21,220 
Long-term investments2,686 2,787 
Property, plant and equipment, net3,563 3,339 
Goodwill3,768 3,732 
Purchased technology and other intangible assets, net237 249 
Deferred income taxes and other assets2,390 3,082 
Total assets$33,338 $34,409 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt$799 $799 
Accounts payable and accrued expenses4,485 4,820 
Contract liabilities2,452 2,849 
Total current liabilities7,736 8,468 
Long-term debt5,461 5,460 
Income taxes payable 684 670 
Other liabilities832 810 
Total liabilities14,713 15,408 
Total stockholders’ equity18,625 19,001 
Total liabilities and stockholders’ equity$33,338 $34,409 




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APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
 
(In millions)Three Months Ended
January 26,
2025		January 28,
2024
Cash flows from operating activities:
Net income $1,185 $2,019 
Adjustments required to reconcile net income to cash provided by operating activities:
Depreciation and amortization105 91 
Share-based compensation195 170 
Deferred income taxes668 (72)
Other95 (235)
Net change in operating assets and liabilities(1,323)352 
Cash provided by operating activities925 2,325 
Cash flows from investing activities:
Capital expenditures (381)(229)
Cash paid for acquisitions, net of cash acquired(28)— 
Proceeds from sales and maturities of investments1,223 531 
Purchases of investments(1,711)(749)
Cash used in investing activities(897)(447)
Cash flows from financing activities:
Proceeds from issuance of commercial paper200 100 
Repayments of commercial paper(200)(100)
Common stock repurchases(1,318)(700)
Tax withholding payments for vested equity awards(142)(192)
Payments of dividends to stockholders(326)(266)
Repayments of principal on finance leases— 1 
Cash used in financing activities(1,786)(1,157)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents(1,758)721 
Cash, cash equivalents and restricted cash equivalents—beginning of period8,113 6,233 
Cash, cash equivalents and restricted cash equivalents — end of period$6,355 $6,954 
Reconciliation of cash, cash equivalents, and restricted cash equivalents
       Cash and cash equivalents$6,264 $6,854 
Restricted cash equivalents included in deferred income taxes and other assets91 100 
Total cash, cash equivalents, and restricted cash equivalents$6,355 $6,954 
Supplemental cash flow information:
Cash payments for income taxes$70 $139 
Cash refunds from income taxes$70 $2 
Cash payments for interest$52 $34 

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Additional Information
 Q1 FY2025Q1 FY2024
Net Revenue by Geography (In millions)
United States$917 $759 
% of Total13 %11 %
Europe$330 $410 
% of Total4 %6 %
Japan$540 $565 
% of Total8 %9 %
Korea$1,667 $1,231 
% of Total23 %18 %
Taiwan$1,183 $559 
% of Total17 %8 %
Southeast Asia$286 $186 
% of Total4 %3 %
China$2,243 $2,997 
% of Total31 %45 %
Employees (In thousands)
  
Regular Full Time36.0 34.5 



 










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APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
 Three Months Ended
(In millions, except percentages)January 26,
2025		January 28,
2024
Non-GAAP Gross Profit
GAAP reported gross profit$3,496 $3,204 
Certain items associated with acquisitions1
7 7 
Non-GAAP gross profit$3,503 $3,211 
Non-GAAP gross margin48.9 %47.9 %
Non-GAAP Operating Income
GAAP reported operating income$2,175 $1,967 
Certain items associated with acquisitions1
12 11 
Acquisition integration and deal costs3 3 
Non-GAAP operating income$2,190 $1,981 
Non-GAAP operating margin30.6 %29.5 %
Non-GAAP Net Income
GAAP reported net income$1,185 $2,019 
Certain items associated with acquisitions1
12 11 
Acquisition integration and deal costs3 3 
Realized loss (gain), dividends and impairments on strategic investments, net(9)(1)
Unrealized loss (gain) on strategic investments, net106 (280)
Income tax effect of share-based compensation2
(10)(26)
Income tax effects related to intra-entity intangible asset transfers3
674 22 
Resolution of prior years’ income tax filings and other tax items(16)33 
Income tax effect of non-GAAP adjustments4
1 1 
Non-GAAP net income$1,946 $1,782 

1 These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets.
2GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis.
3Amount for the three months ended January 26, 2025, included changes to income tax provision of $30 million from amortization of intangibles and a $644 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in fiscal 2025.
4Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes.


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APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS

 Three Months Ended
(In millions, except per share amounts)January 26,
2025		January 28,
2024
Non-GAAP Earnings Per Diluted Share
GAAP reported earnings per diluted share$1.45 $2.41 
Certain items associated with acquisitions 0.01 0.01 
Realized loss (gain), dividends and impairments on strategic investments, net(0.01)— 
Unrealized loss (gain) on strategic investments, net0.13 (0.33)
Income tax effect of share-based compensation(0.01)(0.03)
Income tax effects related to intra-entity intangible asset transfers1
0.83 0.03 
Resolution of prior years’ income tax filings and other tax items(0.02)0.04 
Non-GAAP earnings per diluted share$2.38 $2.13 
Weighted average number of diluted shares819 837 
1Amount for the three months ended January 26, 2025, included changes to income tax provision of $0.04 per diluted share from amortization of intangibles and $0.79 per diluted share from a remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in fiscal 2025.



Applied Materials, Inc.
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APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
 
 Three Months Ended
(In millions, except percentages)January 26,
2025		January 28,
2024
Semiconductor Systems Non-GAAP Operating Income
GAAP reported operating income$1,986 $1,744 
Certain items associated with acquisitions1
12 10 
Non-GAAP operating income$1,998 $1,754 
Non-GAAP operating margin37.3 %35.7 %
Applied Global Services Non-GAAP Operating Income
GAAP reported operating income$447 $417 
Non-GAAP operating income$447 $417 
Non-GAAP operating margin28.0 %28.3 %
Display Non-GAAP Operating Income
GAAP reported operating income$14 $25 
Non-GAAP operating income$14 $25 
Non-GAAP operating margin7.7 %10.2 %
 
1 These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets.

Note: The reconciliation of GAAP and non-GAAP segment results above does not include certain revenues, costs of products sold and operating expenses that are reported within corporate and other and included in consolidated operating income.

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APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE
 
Three Months Ended
(In millions, except percentages)January 26, 2025
GAAP provision for income taxes (a)
$934 
Income tax effect of share-based compensation10 
Income tax effects related to intra-entity intangible asset transfers(674)
Resolutions of prior years’ income tax filings and other tax items16 
Income tax effect of non-GAAP adjustments(1)
Non-GAAP provision for income taxes (b)
$285 
GAAP income before income taxes (c)
$2,119 
Certain items associated with acquisitions12 
Acquisition integration and deal costs3 
Realized loss (gain), dividends and impairments on strategic investments, net(9)
Unrealized loss (gain) on strategic investments, net106 
Non-GAAP income before income taxes (d)
$2,231 
GAAP effective income tax rate (a/c)
44.1 %
Non-GAAP effective income tax rate (b/d)
12.8 %



UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW

 Three Months Ended
(In millions)January 26,
2025		January 28,
2024
Cash provided by operating activities$925 $2,325 
Capital expenditures(381)(229)
Non-GAAP free cash flow$544 $2,096