Applied Materials, Inc. reported record performance for its third fiscal quarter ended July 27, 2025, with revenue reaching $7.3 billion, a 7.7% increase year-over-year. The company posted adjusted earnings of $2.48 per share, surpassing LSEG expectations of $2.39 per share, and net income of $1.78 billion, or $2.22 per diluted share.
Despite the strong Q3 results, Applied Materials issued a weak outlook for the fourth fiscal quarter of 2025, projecting total net revenue of $6.7 billion, significantly below LSEG estimates of $7.34 billion. The non-GAAP diluted EPS guidance of $2.11 also fell short of the $2.39 per share expected by analysts.
CFO Brice Hill attributed the anticipated decline in Q4 revenue to a 'digestion of capacity in China' and 'non-linear demand from leading-edge customers,' citing increased uncertainty and lower visibility, particularly within its China business. Management expects lower China business to persist for several more quarters, impacting the company's near-term outlook.
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