Applied Materials Reports 6.8% Revenue Growth to $7.1 Billion in Q2 Fiscal 2025

Applied Materials, Inc. reported a notable increase in financial performance for the second quarter of fiscal 2025, ending April 27, 2025. The company achieved net revenue of $7.1 billion, a 6.8% increase from $6.6 billion in the same quarter of the previous year. For the first half of the fiscal year, net revenue reached $14.3 billion, up from $13.4 billion, marking a 6.8% year-over-year growth. Gross profit for the quarter was $3.5 billion, yielding a gross margin of 49.1%, compared to 47.4% in the prior year. Net income for the quarter was $2.1 billion, or $2.63 per diluted share, reflecting a significant increase from $1.7 billion, or $2.06 per diluted share, in the same period last year.

The company’s operating income also saw an increase, rising to $2.2 billion for the quarter, up from $1.9 billion a year earlier. This growth was attributed to higher net revenue and favorable changes in customer and product mix, alongside lower material and manufacturing costs. Research, development, and engineering expenses increased to $893 million from $785 million, driven by additional headcount to support ongoing product development initiatives. Marketing and selling expenses remained relatively stable, while general and administrative expenses decreased significantly, contributing to improved operating margins.

In terms of strategic developments, Applied Materials continued to focus on expanding its market presence and enhancing its product offerings. The Semiconductor Systems segment remained the largest contributor to revenue, with net revenue increasing to $5.3 billion, driven by customer investments in leading-edge manufacturing technologies. The Applied Global Services segment also reported growth, with revenue rising to $1.6 billion, primarily due to increased spending on long-term service agreements and spares. The Display segment experienced a revenue increase as well, attributed to higher investments in display fabrication equipment for IT products.

Geographically, the company reported varied performance across regions. Revenue from customers in Korea and Taiwan increased significantly, while revenue from China decreased due to lower investments in semiconductor equipment. The company’s total assets as of April 27, 2025, were $33.6 billion, with cash and cash equivalents totaling $6.2 billion, down from $8.0 billion at the end of the previous fiscal year. The company’s total liabilities decreased to $14.7 billion, contributing to a solid balance sheet.

Looking ahead, Applied Materials expressed optimism about future growth, driven by ongoing investments in research and development and the expansion of its product portfolio. The company anticipates continued demand for its products and services, particularly in the semiconductor and display industries, despite potential challenges posed by global economic conditions and trade regulations. The company remains committed to maintaining its competitive advantage through innovation and strategic investments, positioning itself for long-term success in a rapidly evolving market.