Applied Materials Inc. Stock

Applied Materials (AMAT) — FY2025 Annual Report

Applied Materials appears to have delivered another year of record revenue, reaching roughly $28.4 billion, alongside operating income that continued its steady climb. Yet net income slipped modestly to just under $7 billion, a rare instance where the bottom line moved in the opposite direction from the top line. This divergence seems largely attributable to a sharp jump in the tax provision, which more than doubled year-over-year, and appears to have offset otherwise solid operational performance.

The revenue and margin story is notable for its stability. Gross margin edged up to around 48.7% and operating margin held near 29%, continuing a multi-year pattern of gradual improvement. What stands out more is the geographic reshuffling beneath the surface: China revenue declined meaningfully from the prior year's elevated level, while Taiwan roughly doubled and Korea grew substantially. Europe, by contrast, appears to have contracted for a second consecutive year to a fraction of its FY2023 level. This churn in regional mix could reflect the shifting cadence of customer investment cycles across foundry and logic geographies. The appearance of a $181 million restructuring charge under a newly disclosed Fiscal 2025 plan also breaks from prior years, which carried none.