Applied Materials Sets Revenue Record

Applied Materials(NASDAQ:AMAT) reported third-quarter fiscal 2025 results on August 14, 2025, delivering record quarterly revenue of $7.3 billion (up 8% year over year), record non-GAAP earnings per share (EPS) of $2.48 (up 17% year over year (non-GAAP)), and a non-GAAP gross margin of 48.9%. Management guided for sequential declines in revenue and non-GAAP EPS in the fourth quarter, driven by reduced demand in China and non-linear orders from leading-edge customers, yet reaffirmed mid-single-digit full-year growth guidance and highlighted multiple strategic milestones in advanced semiconductor and packaging technologies.

Non-GAAP gross margin improved 150 basis points year over year, reaching a non-GAAP gross margin of 48.9%, with a record non-GAAP EPS of $2.48 on robust top-line growth. The company achieved its second-highest quarterly cash from operations at approximately $2.6 billion, or 36% of revenue.

The strong margin in the third quarter was driven by a combination of product and segment mix, as well as pricing, as the company worked to offset tariff-related headwinds.

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Source Fool.com