Applied Materials

AMAT Q2 2025 Earnings

Reported May 15, 2025 at 4:03 PM ET · SEC Source

Q2 25 EPS

$2.39

BEAT +3.45%

Est. $2.31

Q2 25 Revenue

$7.10B

MISS 0.33%

Est. $7.12B

vs S&P Since Q2 25

+116.9%

BEATING MARKET

AMAT +138.2% vs S&P +21.3%

Market Reaction

Did AMAT Beat Earnings? Q2 2025 Results

Applied Materials delivered a mixed but broadly solid fiscal Q2 2025, beating earnings expectations while falling just short on revenue, a combination that sent shares tumbling more than 5% in after-hours trading. The chip equipment giant reported ad… Read more Applied Materials delivered a mixed but broadly solid fiscal Q2 2025, beating earnings expectations while falling just short on revenue, a combination that sent shares tumbling more than 5% in after-hours trading. The chip equipment giant reported adjusted EPS of $2.39, clearing the $2.31 consensus estimate by 3.45%, as gross margin expanded 1.7 percentage points year over year to 49.2% on a non-GAAP basis, reflecting favorable product mix and pricing discipline. Revenue grew 6.8% year over year to $7.10 billion, missing the $7.12 billion consensus by a slim 0.33%, with the Semiconductor Systems segment contributing $5.25 billion and AI-driven demand for leading-edge logic and foundry applications accounting for 65% of that total. A dramatic geographic reshuffling was equally notable, as China revenue fell sharply to $1.77 billion from $2.83 billion a year ago amid export restrictions, while Taiwan surged to $2.00 billion. Looking ahead, management guided Q3 revenue of approximately $7.20 billion and non-GAAP EPS of roughly $2.35, with executives emphasizing that customer demand has remained stable despite a fluid trade environment.

Key Takeaways

  • 7% year-over-year revenue growth driven by Semiconductor Systems strength
  • High-performance, energy-efficient AI computing as dominant driver of semiconductor innovation
  • Gross margin expansion of 1.7 percentage points year over year on both GAAP and non-GAAP basis
  • Foundry, logic and other applications comprised 65% of Semiconductor Systems revenue
  • Flash memory revenue share increased to 8% from 3% year over year
  • Taiwan and Korea revenue surged, offsetting significant decline in China
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AMAT YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

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AMAT Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26
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AMAT Revenue by Geography

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Applied Materials' broad capabilities and connected product portfolio are driving strong results in 2025 amidst a highly dynamic macro environment. High-performance, energy-efficient AI computing remains the dominant driver of semiconductor innovation, and Applied is working closely with our customers and partners to accelerate the industry's roadmap. We are very well positioned at major technology inflections in fast-growing areas of the market, which supports our multi-year growth trajectory.”

— Gary Dickerson, Q2 2025 Earnings Press Release