Applied Materials, Inc. Q3 2025 Earnings Recap

Applied Materials reported record performance in Q3 FY2025, driven by strong demand for semiconductor systems, though it anticipates a slight revenue decline in Q4 due to uncertainties in the China market.

Key Takeaways

• Revenue from the metal deposition business reached nearly $1.2 billion, reflecting robust performance in leading-edge foundries.
• The etch business surged past $1 billion in quarterly revenue for the first time, driven by strong demand from DRAM customers.
• Applied is investing over $200 million in Arizona to enhance U.S. manufacturing capacity, reinforcing its commitment to the American semiconductor supply chain.
• The company expects continued market share gains in leading-edge foundry, DRAM, and advanced packaging segments as new technologies ramp up production.
• Overall, Applied is positioned for mid-single-digit revenue growth in FY2025, marking the sixth consecutive year of growth, despite near-term headwinds.