Applied Materials, Inc. reported a net revenue of $28.4 billion for the fiscal year ending October 26, 2025, marking a 4% increase from $27.2 billion in the previous year. The company's gross margin improved to 48.7%, up from 47.5% in fiscal 2024, driven by higher net revenue, favorable product mix, and lower material costs. Operating income also rose to $8.3 billion, a 5% increase from $7.9 billion, while net income decreased slightly to $7.0 billion from $7.2 billion, resulting in earnings per diluted share of $8.66, compared to $8.61 in the prior year.
The Semiconductor Systems segment, which constitutes the majority of Applied Materials' revenue, generated $20.8 billion, a 4% increase from $19.9 billion. This growth was attributed to increased customer investments in leading-edge manufacturing technologies and NAND fabrication equipment upgrades. The Applied Global Services segment also saw a revenue increase to $6.4 billion, up from $6.2 billion, primarily due to higher spending on long-term service agreements. However, the Corporate and Other segment reported a 14% increase in revenue to $1.2 billion, reflecting a shift in reporting as the display segment is no longer considered significant.
In terms of operational metrics, Applied Materials' backlog reached $15.0 billion, with approximately 31% expected to be filled within the next 12 months. The company employed approximately 36,500 full-time employees as of October 26, 2025, a slight increase from the previous year. Geographically, revenue from China decreased by 16% to $8.5 billion, while revenue from Korea increased by 25% to $5.6 billion, and Taiwan saw a significant 71% increase to $6.9 billion.
Strategically, Applied Materials has been focusing on expanding its service offerings and enhancing its product portfolio. The company announced a restructuring plan in the fourth quarter of fiscal 2025, which is expected to impact about 4% of its global workforce, aimed at improving competitiveness and productivity. Additionally, the company has been actively investing in research and development, with expenses rising to $3.6 billion, reflecting its commitment to innovation and addressing customer needs in a rapidly evolving semiconductor market.
Looking ahead, Applied Materials anticipates continued strong demand driven by advancements in artificial intelligence, data centers, and other emerging technologies. The company remains focused on leveraging its comprehensive portfolio to meet the increasing complexity of semiconductor manufacturing and expects to maintain its competitive position in the market.
About APPLIED MATERIALS INC /DE
Applied Materials, Inc. is a leading provider of materials engineering solutions for the semiconductor and display industries. The company specializes in manufacturing equipment for semiconductor fabrication and display technologies, targeting markets such as personal computing, AI, and consumer electronics. With a focus on innovation, Applied Materials is expanding its portfolio to meet the growing demand for advanced technologies, including AI and clean energy applications, while enhancing customer productivity through its global services.
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