Applied Materials today reported results for its second quarter ended April 27, 2025. Our press release, earnings presentation and other materials are available on our Investor Relations site. Below are highlights from the quarter.
- In the second quarter, Applied Materials delivered strong results across the board, including robust year-over-year revenue growth, gross margin expansion and record earnings per share.
- - Revenue of $7.1B was up 7% year-over-year, with growth across all our business segments.
- - We achieved record non-GAAP earnings per share (EPS) of $2.39 and non-GAAP gross margin of 49.2% – our highest quarterly gross margin since fiscal 2000.
- The race to deliver high-performance, energy-efficient AI computing remains the dominant driver of the semiconductor industry’s roadmap.
- - Despite the dynamic economic and trade environment, we have not seen significant changes to demand.
- - Our customers remain focused on winning the race to be first-to-market with transformative new technologies.
- - AI datacenter innovation and investments are driving shifts in the wafer fab equipment (WFE) spending mix toward leading-edge foundry-logic and DRAM.
- - Applied’s Q2 results reflect the strong end-market demand for AI-enabling semiconductors.
- Applied is best positioned at the major device architecture inflections that will enable the semiconductor roadmap.
- - We are working closely with our customers and partners to accelerate innovations in logic, compute memory, advanced packaging and power devices.
- - These technology inflections grow the WFE market, increase the relative mix of materials engineering technologies, and provide opportunities for Applied to gain market share.
- - Across both advanced foundry-logic and DRAM, Applied is introducing innovative new solutions that are being rapidly adopted by the market.
- - Our Sym3™ Y Magnum™ etch system combines deposition and etch in the same chamber, making EUV line patterns smoother before they are etched into the wafer. The system has generated more than $1.2B of revenue since it was launched in February 2024.
- - Another example is our Cold Field Emission (CFE) eBeam technology, which was most recently deployed in our SEMVision™ H20 system to enable better and faster analysis of buried nanoscale defects in the world’s most advanced chips. CFE technology supported record revenues for our Process Diagnostics and Control (PDC) business this past quarter.
We are gaining traction with our high-velocity co-innovation strategy for earlier and deeper collaboration with customers and partners.
- - With this new approach, our goal is to increase the speed of developing and commercializing next-generation technologies.
- - Applied’s global EPIC Platform is designed to support this strategy by providing unique physical and digital infrastructure to accelerate learning rates and optimize R&D resources.
- - Construction of our new flagship R&D facility – the EPIC Center in Silicon Valley – is progressing on schedule, and we expect the center to start operations in spring 2026.