Applied Materials (AMAT) fourth quarter fiscal 2025 results and outlook surpassed market expectations as the company prepares to meet stronger demand during the second half of 2026.
Shares were down 2% during early post-market action on Thursday.
For the period ended October 26, the semiconductor equipment manufacturer reported adjusted earnings per share of $2.17 compared to the consensus estimate of $2.10. GAAP EPS was $2.38 versus the $2.06 estimate.
Revenue for the fourth quarter totaled $6.8B, which was more than the estimate of $6.67B. Semiconductor Systems accounted for $4.76B, and Applied Global Services raked in $1.63B. Total revenue was down 3% year over year. Its adjusted gross margin of 48.1% matched the consensus estimate.
Revenue for the entirety of fiscal 2025 totaled $28.37B, which was a year-over-year increase of 4% and a new company record.
For the first quarter of fiscal 2026, Applied Materials expects an adjusted EPS midpoint of $2.18 versus the estimate of $2.11. It expects revenue ranging from $6.35B to $7.35B, with a midpoint of $6.85B more than the $6.81B estimate.
“As AI adoption drives substantial investment in advanced semiconductors and wafer fab equipment, Applied Materials delivered its sixth consecutive year of growth in fiscal 2025,” said Applied Materials CEO Gary Dickerson. “We are well positioned at the highest value technology inflections in the fastest growing areas of the market, enabling us to extend our leadership in leading-edge logic, DRAM and advanced packaging as next-generation technologies ramp in volume production over the coming years.”
Applied Materials CFO Brice Hill said the company is preparing itself to meet higher demand materializing during the second half of calendar year 2026.
“We have targeted our R&D investments to create new products and technologies that will enable even faster and more energy-efficient transistors, chips and systems and drive our growth in the years ahead,” Hill said.
Competitors such as Lam Research (LRCX) and ASML Holding (ASML) were down 0.7% and up 0.3%, respectively, during early post-market trading.