Applied Materials, Inc. (4336.HK) Q4 2025 Earnings Report

Applied Materials, Inc. reported Q4 2025 revenue of $6.80 billion, with a gross profit of $3.265 billion and a net income of $1.898 billion, translating to an EPS of $2.39. While top-line performance declined year over year by 3.5% and quarter over quarter by 6.9%, the company delivered healthy profitability with an operating margin of ~25.2% and a net margin of ~27.9%. The result underscores a resilient cost structure and favorable product mix that supported earnings even as the revenue base softened in a cyclical semiconductor equipment cycle.

Balance sheet and cash-flow metrics remain robust. The current ratio stands at 2.61 and cash per share is $10.80, with free cash flow per share of $2.73 and operating cash flow per share of $3.24. The company maintains a moderate leverage profile (debt to capitalization ~24.3%) and high interest coverage (~24x), supporting a payout ratio of 17.3% and a cash-generative profile. However, working-capital intensity remains a point of focus, as days inventory outstanding run around 150.6 days and the cash conversion cycle is approximately 219 days, signaling working-capital-heavy operations typical of capital equipment businesses.

Looking ahead, explicit management guidance for QQ1–QQ4 2026 was not disclosed in the provided data. Investors should monitor semiconductor capex cycles, AI/datacenter equipment demand, and the pace of recovery in end-market spending, as well as ongoing efficiency programs that sustain margins amidst volume fluctuations.