Applied Materials

AMAT Q3 2025 Earnings

Reported Aug 14, 2025 at 4:05 PM ET · SEC Source

Q3 25 EPS

$2.48

BEAT +5.09%

Est. $2.36

Q3 25 Revenue

$7.30B

BEAT +1.23%

Est. $7.21B

vs S&P Since Q3 25

+129.9%

BEATING MARKET

AMAT +141.9% vs S&P +12.0%

Market Reaction

Did AMAT Beat Earnings? Q3 2025 Results

Applied Materials posted a strong fiscal third quarter, with revenue climbing 7.7% year over year to $7.30 billion against a consensus estimate of $7.21 billion, while non-GAAP diluted EPS of $2.48 cleared the $2.36 analyst estimate by 5.09%, marking… Read more Applied Materials posted a strong fiscal third quarter, with revenue climbing 7.7% year over year to $7.30 billion against a consensus estimate of $7.21 billion, while non-GAAP diluted EPS of $2.48 cleared the $2.36 analyst estimate by 5.09%, marking a record result for the period. The primary engine behind the beat was the Semiconductor Systems segment, which generated $5.43 billion in revenue as foundry and logic demand remained robust and flash memory spending recovered meaningfully, rising to 9% of segment revenue from just 4% a year earlier. China remained the company's largest market at $2.55 billion, or 35% of total revenue, a concentration that is now casting a shadow over the outlook. Applied Materials guided Q4 revenue of approximately $6.70 billion, well below prior expectations, citing capacity digestion among Chinese customers and non-linear demand from leading-edge clients due to fab timing, a forecast that sent shares sharply lower after the report. Management remained confident in the semiconductor industry's longer-term trajectory despite the near-term pressure.

Key Takeaways

  • Record Semiconductor Systems revenue of $5.43 billion, up from $4.92 billion year over year
  • Flash memory mix increased to 9% from 4% year over year within Semiconductor Systems
  • Display segment operating margin improved to 23.6% from 6.4% year over year
  • Non-GAAP gross margin expanded 1.5 percentage points year over year to 48.9%
  • Taiwan revenue surged to $1.84 billion (25% of total) from $1.15 billion (17%) year over year
  • China revenue grew to $2.55 billion (35% of total) from $2.15 billion (32%) year over year
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AMAT YoY Financials

Q3 2025 vs Q3 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 delivered record performance in our third fiscal quarter, and we are on track to deliver our sixth consecutive year of revenue growth in fiscal 2025.”

— Gary Dickerson, Q3 2025 Earnings Press Release