Applied Materials Posts 8% Gain

Applied Materials (NASDAQ:AMAT), a leading supplier of materials engineering solutions for the semiconductor and display industries, reported its fiscal third-quarter results on Aug. 14, 2025. The company delivered record quarterly revenue and profit, with both revenue and non-GAAP earnings per share exceeding analyst expectations. Revenue reached $7.3 billion, topping the consensus estimate by $80 million, while non-GAAP EPS was $2.48, $0.12 above projections.

The quarter saw improved non-GAAP operating margins. However, management issued a more cautious outlook for the fourth quarter, guiding to total net revenue of $6.7 billion (plus or minus $500 million), non-GAAP gross margin of 48.1%, and non-GAAP diluted EPS of $2.11 (plus or minus $0.20). This guidance reflects an expected sequential drop in revenue and non-GAAP diluted EPS, mainly due to a pause in customer purchases in China and at leading-edge manufacturing sites. Management cited near-term uncertainty as a key factor in the outlook.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q2 2025 earnings report.

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Source Fool.com