"We generated more than $2.5 billion of revenue from advanced nodes in fiscal year 2024 and expect those revenues to approximately double in 2025."
— Gary Dickerson
03Detailed Report
AMAT
Applied Materials Inc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 14, 2026
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Executive Summary
Applied Materials Inc (AMAT) delivered an impressive quarter, with record revenue of $7.05 billion, up nearly 5% year-over-year, marking the fifth consecutive year of growth for the company. The growth was fueled by robust demand in its Semiconductor Systems and Applied Global Services segments. Management highlighted substantial advancements in materials engineering and technology innovations, positioning the company favorably for the future. While revenue from China normalized to approximately 30%, management emphasized strong momentum in leading-edge foundry and memory technology deployments, particularly driven by AI and energy-efficient computing trends.
The company reported a non-GAAP operating margin of 35.4% and generated free cash flow of $2.2 billion in Q4, reinforcing its shareholder return strategy while maintaining significant cash reserves to support future investments. As growth continues, investors should monitor key drivers such as evolving semiconductor demand and Applied Materials' position within this dynamic market.
Balance Sheet and Cash Flow Metrics:
- Cash and Cash Equivalents: $8.0 billion
- Total Debt: $6.3 billion; Net Debt: -$1.7 billion (indicating strong liquidity)
- Free Cash Flow: $2.2 billion, with total operating cash flow of $8.7 billion for the fiscal year.
Outlook: Management anticipates Q1 2025 revenues of $7.15 billion, indicating continuation of upward momentum amid strong demand, particularly within leading-edge logic and ICAPS nodes.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
7.05B
4.79%
3.94%
Gross Profit
3.34B
5.24%
4.06%
Operating Income
2.05B
3.81%
5.36%
Net Income
1.73B
-13.62%
1.52%
EPS
2.11
-12.08%
2.43%
Key Financial Ratios
Gross Profit Margin
Good
47.30%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Excellent
29.00%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
24.60%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
5.03%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
9.11%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
2.51
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
22.00x
P/E ratio in line with market averages
Price to Book
High Premium
8.02x
Very high premium suggests asset-light business model or lofty expectations
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