Delaware | 000-06920 | 94-1655526 | ||||||||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Common Stock, par value $.01 per share | AMAT | The NASDAQ Stock Market LLC |
Emerging Growth Company | ☐ |
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL) |
Applied Materials, Inc. (Registrant) |
||||||||||||||
Date: | February 13, 2025 | By: | /s/ Teri A. Little | |||||||||||
Teri A. Little | ||||||||||||||
Senior Vice President, Chief Legal Officer and Corporate Secretary |
Q1 FY2025 | Q1 FY2024 | Change | |||||||||||||||
(In millions, except per share amounts and percentages) | |||||||||||||||||
Net revenue | $ | 7,166 | $ | 6,707 | 7% | ||||||||||||
Gross margin | 48.8 | % | 47.8 | % | 1.0 point | ||||||||||||
Operating margin | 30.4 | % | 29.3 | % | 1.1 points | ||||||||||||
Net income | $ | 1,185 | $ | 2,019 | (41)% | ||||||||||||
Diluted earnings per share | $ | 1.45 | $ | 2.41 | (40)% | ||||||||||||
Non-GAAP Results | |||||||||||||||||
Non-GAAP gross margin | 48.9 | % | 47.9 | % | 1.0 point | ||||||||||||
Non-GAAP operating margin | 30.6 | % | 29.5 | % | 1.1 points | ||||||||||||
Non-GAAP net income | $ | 1,946 | $ | 1,782 | 9% | ||||||||||||
Non-GAAP diluted EPS | $ | 2.38 | $ | 2.13 | 12% | ||||||||||||
Non-GAAP free cash flow | $ | 544 | $ | 2,096 | (74)% |
Q2 FY2025 | |||||||||||||||||
(In millions, except percentage and per share amounts) | |||||||||||||||||
Total net revenue | $ | 7,100 | +/- | $ | 400 | ||||||||||||
Non-GAAP gross margin | 48.4 | % | |||||||||||||||
Non-GAAP diluted EPS | $ | 2.30 | +/- | $ | 0.18 |
Semiconductor Systems | Q1 FY2025 | Q1 FY2024 | |||||||||
(In millions, except percentages) | |||||||||||
Net revenue | $ | 5,356 | $ | 4,909 | |||||||
Foundry, logic and other | 68 | % | 62 | % | |||||||
DRAM | 28 | % | 34 | % | |||||||
Flash memory | 4 | % | 4 | % | |||||||
Operating income | $ | 1,986 | $ | 1,744 | |||||||
Operating margin | 37.1 | % | 35.5 | % | |||||||
Non-GAAP Results | |||||||||||
Non-GAAP operating income | $ | 1,998 | $ | 1,754 | |||||||
Non-GAAP operating margin | 37.3 | % | 35.7 | % |
Applied Global Services | Q1 FY2025 | Q1 FY2024 | |||||||||
(In millions, except percentages) | |||||||||||
Net revenue | $ | 1,594 | $ | 1,476 | |||||||
Operating income | $ | 447 | $ | 417 | |||||||
Operating margin | 28.0 | % | 28.3 | % | |||||||
Non-GAAP Results | |||||||||||
Non-GAAP operating income | $ | 447 | $ | 417 | |||||||
Non-GAAP operating margin | 28.0 | % | 28.3 | % |
Display | Q1 FY2025 | Q1 FY2024 | |||||||||
(In millions, except percentages) | |||||||||||
Net revenue | $ | 183 | $ | 244 | |||||||
Operating income | $ | 14 | $ | 25 | |||||||
Operating margin | 7.7 | % | 10.2 | % | |||||||
Non-GAAP Results | |||||||||||
Non-GAAP operating income | $ | 14 | $ | 25 | |||||||
Non-GAAP operating margin | 7.7 | % | 10.2 | % |
Corporate and Other | Q1 FY2025 | Q1 FY2024 | |||||||||
(In millions) | |||||||||||
Unallocated net revenue | $ | 33 | $ | 78 | |||||||
Unallocated cost of products sold and expenses | (305) | (297) | |||||||||
Total | $ | (272) | $ | (219) |
Three Months Ended | |||||||||||
(In millions, except per share amounts) | January 26, 2025 |
January 28, 2024 |
|||||||||
Net revenue | $ | 7,166 | $ | 6,707 | |||||||
Cost of products sold | 3,670 | 3,503 | |||||||||
Gross profit | 3,496 | 3,204 | |||||||||
Operating expenses: | |||||||||||
Research, development and engineering | 859 | 754 | |||||||||
Marketing and selling | 206 | 207 | |||||||||
General and administrative | 256 | 276 | |||||||||
Total operating expenses | 1,321 | 1,237 | |||||||||
Income from operations | 2,175 | 1,967 | |||||||||
Interest expense | 64 | 59 | |||||||||
Interest and other income (expense), net | 8 | 395 | |||||||||
Income before income taxes | 2,119 | 2,303 | |||||||||
Provision for income taxes | 934 | 284 | |||||||||
Net income | $ | 1,185 | $ | 2,019 | |||||||
Earnings per share: | |||||||||||
Basic | $ | 1.46 | $ | 2.43 | |||||||
Diluted | $ | 1.45 | $ | 2.41 | |||||||
Weighted average number of shares: | |||||||||||
Basic | 814 | 831 | |||||||||
Diluted | 819 | 837 |
(In millions) | January 26, 2025 |
October 27, 2024 |
|||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 6,264 | $ | 8,022 | |||||||
Short-term investments | 1,949 | 1,449 | |||||||||
Accounts receivable, net | 5,998 | 5,234 | |||||||||
Inventories | 5,501 | 5,421 | |||||||||
Other current assets | 982 | 1,094 | |||||||||
Total current assets | 20,694 | 21,220 | |||||||||
Long-term investments | 2,686 | 2,787 | |||||||||
Property, plant and equipment, net | 3,563 | 3,339 | |||||||||
Goodwill | 3,768 | 3,732 | |||||||||
Purchased technology and other intangible assets, net | 237 | 249 | |||||||||
Deferred income taxes and other assets | 2,390 | 3,082 | |||||||||
Total assets | $ | 33,338 | $ | 34,409 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term debt | $ | 799 | $ | 799 | |||||||
Accounts payable and accrued expenses | 4,485 | 4,820 | |||||||||
Contract liabilities | 2,452 | 2,849 | |||||||||
Total current liabilities | 7,736 | 8,468 | |||||||||
Long-term debt | 5,461 | 5,460 | |||||||||
Income taxes payable | 684 | 670 | |||||||||
Other liabilities | 832 | 810 | |||||||||
Total liabilities | 14,713 | 15,408 | |||||||||
Total stockholders’ equity | 18,625 | 19,001 | |||||||||
Total liabilities and stockholders’ equity | $ | 33,338 | $ | 34,409 |
(In millions) | Three Months Ended | ||||||||||
January 26, 2025 |
January 28, 2024 |
||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 1,185 | $ | 2,019 | |||||||
Adjustments required to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation and amortization | 105 | 91 | |||||||||
Share-based compensation | 195 | 170 | |||||||||
Deferred income taxes | 668 | (72) | |||||||||
Other | 95 | (235) | |||||||||
Net change in operating assets and liabilities | (1,323) | 352 | |||||||||
Cash provided by operating activities | 925 | 2,325 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (381) | (229) | |||||||||
Cash paid for acquisitions, net of cash acquired | (28) | — | |||||||||
Proceeds from sales and maturities of investments | 1,223 | 531 | |||||||||
Purchases of investments | (1,711) | (749) | |||||||||
Cash used in investing activities | (897) | (447) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of commercial paper | 200 | 100 | |||||||||
Repayments of commercial paper | (200) | (100) | |||||||||
Common stock repurchases | (1,318) | (700) | |||||||||
Tax withholding payments for vested equity awards | (142) | (192) | |||||||||
Payments of dividends to stockholders | (326) | (266) | |||||||||
Repayments of principal on finance leases | — | 1 | |||||||||
Cash used in financing activities | (1,786) | (1,157) | |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash equivalents | (1,758) | 721 | |||||||||
Cash, cash equivalents and restricted cash equivalents—beginning of period | 8,113 | 6,233 | |||||||||
Cash, cash equivalents and restricted cash equivalents — end of period | $ | 6,355 | $ | 6,954 | |||||||
Reconciliation of cash, cash equivalents, and restricted cash equivalents | |||||||||||
Cash and cash equivalents | $ | 6,264 | $ | 6,854 | |||||||
Restricted cash equivalents included in deferred income taxes and other assets | 91 | 100 | |||||||||
Total cash, cash equivalents, and restricted cash equivalents | $ | 6,355 | $ | 6,954 | |||||||
Supplemental cash flow information: | |||||||||||
Cash payments for income taxes | $ | 70 | $ | 139 | |||||||
Cash refunds from income taxes | $ | 70 | $ | 2 | |||||||
Cash payments for interest | $ | 52 | $ | 34 |
Q1 FY2025 | Q1 FY2024 | ||||||||||
Net Revenue by Geography (In millions) |
|||||||||||
United States | $ | 917 | $ | 759 | |||||||
% of Total | 13 | % | 11 | % | |||||||
Europe | $ | 330 | $ | 410 | |||||||
% of Total | 4 | % | 6 | % | |||||||
Japan | $ | 540 | $ | 565 | |||||||
% of Total | 8 | % | 9 | % | |||||||
Korea | $ | 1,667 | $ | 1,231 | |||||||
% of Total | 23 | % | 18 | % | |||||||
Taiwan | $ | 1,183 | $ | 559 | |||||||
% of Total | 17 | % | 8 | % | |||||||
Southeast Asia | $ | 286 | $ | 186 | |||||||
% of Total | 4 | % | 3 | % | |||||||
China | $ | 2,243 | $ | 2,997 | |||||||
% of Total | 31 | % | 45 | % | |||||||
Employees (In thousands) |
|||||||||||
Regular Full Time | 36.0 | 34.5 |
Three Months Ended | |||||||||||
(In millions, except percentages) | January 26, 2025 |
January 28, 2024 |
|||||||||
Non-GAAP Gross Profit | |||||||||||
GAAP reported gross profit | $ | 3,496 | $ | 3,204 | |||||||
Certain items associated with acquisitions1 |
7 | 7 | |||||||||
Non-GAAP gross profit | $ | 3,503 | $ | 3,211 | |||||||
Non-GAAP gross margin | 48.9 | % | 47.9 | % | |||||||
Non-GAAP Operating Income | |||||||||||
GAAP reported operating income | $ | 2,175 | $ | 1,967 | |||||||
Certain items associated with acquisitions1 |
12 | 11 | |||||||||
Acquisition integration and deal costs | 3 | 3 | |||||||||
Non-GAAP operating income | $ | 2,190 | $ | 1,981 | |||||||
Non-GAAP operating margin | 30.6 | % | 29.5 | % | |||||||
Non-GAAP Net Income | |||||||||||
GAAP reported net income | $ | 1,185 | $ | 2,019 | |||||||
Certain items associated with acquisitions1 |
12 | 11 | |||||||||
Acquisition integration and deal costs | 3 | 3 | |||||||||
Realized loss (gain), dividends and impairments on strategic investments, net | (9) | (1) | |||||||||
Unrealized loss (gain) on strategic investments, net | 106 | (280) | |||||||||
Income tax effect of share-based compensation2 |
(10) | (26) | |||||||||
Income tax effects related to intra-entity intangible asset transfers3 |
674 | 22 | |||||||||
Resolution of prior years’ income tax filings and other tax items | (16) | 33 | |||||||||
Income tax effect of non-GAAP adjustments4 |
1 | 1 | |||||||||
Non-GAAP net income | $ | 1,946 | $ | 1,782 |
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | ||||
2 | GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis. | ||||
3 | Amount for the three months ended January 26, 2025, included changes to income tax provision of $30 million from amortization of intangibles and a $644 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in fiscal 2025. | ||||
4 | Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. | ||||
Three Months Ended | |||||||||||
(In millions, except per share amounts) | January 26, 2025 |
January 28, 2024 |
|||||||||
Non-GAAP Earnings Per Diluted Share | |||||||||||
GAAP reported earnings per diluted share | $ | 1.45 | $ | 2.41 | |||||||
Certain items associated with acquisitions | 0.01 | 0.01 | |||||||||
Realized loss (gain), dividends and impairments on strategic investments, net | (0.01) | — | |||||||||
Unrealized loss (gain) on strategic investments, net | 0.13 | (0.33) | |||||||||
Income tax effect of share-based compensation | (0.01) | (0.03) | |||||||||
Income tax effects related to intra-entity intangible asset transfers1 |
0.83 | 0.03 | |||||||||
Resolution of prior years’ income tax filings and other tax items | (0.02) | 0.04 | |||||||||
Non-GAAP earnings per diluted share | $ | 2.38 | $ | 2.13 | |||||||
Weighted average number of diluted shares | 819 | 837 |
1 | Amount for the three months ended January 26, 2025, included changes to income tax provision of $0.04 per diluted share from amortization of intangibles and $0.79 per diluted share from a remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in fiscal 2025. | ||||
Three Months Ended | |||||||||||
(In millions, except percentages) | January 26, 2025 |
January 28, 2024 |
|||||||||
Semiconductor Systems Non-GAAP Operating Income | |||||||||||
GAAP reported operating income | $ | 1,986 | $ | 1,744 | |||||||
Certain items associated with acquisitions1 |
12 | 10 | |||||||||
Non-GAAP operating income | $ | 1,998 | $ | 1,754 | |||||||
Non-GAAP operating margin | 37.3 | % | 35.7 | % | |||||||
Applied Global Services Non-GAAP Operating Income | |||||||||||
GAAP reported operating income | $ | 447 | $ | 417 | |||||||
Non-GAAP operating income | $ | 447 | $ | 417 | |||||||
Non-GAAP operating margin | 28.0 | % | 28.3 | % | |||||||
Display Non-GAAP Operating Income | |||||||||||
GAAP reported operating income | $ | 14 | $ | 25 | |||||||
Non-GAAP operating income | $ | 14 | $ | 25 | |||||||
Non-GAAP operating margin | 7.7 | % | 10.2 | % | |||||||
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | ||||
Three Months Ended | |||||
(In millions, except percentages) | January 26, 2025 | ||||
GAAP provision for income taxes (a) |
$ | 934 | |||
Income tax effect of share-based compensation | 10 | ||||
Income tax effects related to intra-entity intangible asset transfers | (674) | ||||
Resolutions of prior years’ income tax filings and other tax items | 16 | ||||
Income tax effect of non-GAAP adjustments | (1) | ||||
Non-GAAP provision for income taxes (b) |
$ | 285 | |||
GAAP income before income taxes (c) |
$ | 2,119 | |||
Certain items associated with acquisitions | 12 | ||||
Acquisition integration and deal costs | 3 | ||||
Realized loss (gain), dividends and impairments on strategic investments, net | (9) | ||||
Unrealized loss (gain) on strategic investments, net | 106 | ||||
Non-GAAP income before income taxes (d) |
$ | 2,231 | |||
GAAP effective income tax rate (a/c) |
44.1 | % | |||
Non-GAAP effective income tax rate (b/d) |
12.8 | % |
Three Months Ended | |||||||||||
(In millions) | January 26, 2025 |
January 28, 2024 |
|||||||||
Cash provided by operating activities | $ | 925 | $ | 2,325 | |||||||
Capital expenditures | (381) | (229) | |||||||||
Non-GAAP free cash flow | $ | 544 | $ | 2,096 |