"Our tools under subscription agreement increased by 8% year-over-year and our installed base of chambers surpassed 200,000 for the first time."
— Brice Hill
03Detailed Report
AMAT
Applied Materials Inc
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 14, 2026
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Executive Summary
Applied Materials Inc delivered robust financial performance for the second quarter of fiscal 2024, reporting revenues of $6.65 billion, which reflects a 3.44% increase year-over-year (YoY). Growth was mainly driven by significant demand in semiconductor manufacturing equipment and services, as ongoing technological transitions emphasize the critical role of the company's offerings in the evolving technological landscape. Furthermore, the continued momentum in advanced packaging, high-bandwidth memory, and logic nodes positions Applied Materials favorably for future revenue expansion. Completion of ongoing collaboration with leading-edge customers has also bolstered confidence in sustaining double-digit growth for the services segment, which generated $1.53 billion in revenue this quarter. Management attributes these achievements to strategic investments in R&D and a focus on enhancing their service business, expecting further double-digit increase in 2025 as adoption of gate-all-around technologies accelerates.
### Profitability Metrics
- Gross Profit: $3.15 billion (Gross margin: 47.50%, improved by 70 bps YoY)
- Operating Income: $1.91 billion (Operating margin: 28.76%)
- Net Income: $1.72 billion (Net margin: 25.92%, up 10.38% YoY)
- Earnings Per Share (EPS): $2.07, a 11.29% increase YoY
### Balance Sheet Health
- Total Assets: $31.95 billion
- Total Liabilities: $13.75 billion
- Total Equity: $18.20 billion
- Current Ratio: 2.80, strong liquidity position
### Cash Flow Metrics
- Net Cash from Operating Activities: $1.39 billion
- Free Cash Flow: $1.14 billion (consistent generation of cash facilitates shareholder returns)
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
6.65B
3.44%
-0.91%
Gross Profit
3.15B
5.95%
-1.59%
Operating Income
1.91B
6.10%
-2.80%
Net Income
1.72B
10.38%
-14.71%
EPS
2.07
11.29%
-14.81%
Key Financial Ratios
Gross Profit Margin
Good
47.40%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Excellent
28.80%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
25.90%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
5.39%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
9.46%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
2.80
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Moderate
0.33
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Fair Value
24.73x
P/E ratio in line with market averages
Price to Book
High Premium
9.36x
Very high premium suggests asset-light business model or lofty expectations
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