Applied Materials, Inc.'s Stock Analysis

Applied Materials Faces Revenue Impact from New Export Restrictions

On September 29, 2025, the U.S. Department of Commerce introduced a new rule that expands export restrictions affecting certain companies, including Applied Materials. The company anticipates that these restrictions will limit its ability to export specific products and provide services to certain customers in China without a license. As a result, Applied Materials estimates a reduction in net revenue of approximately $110 million for the fourth quarter of fiscal 2025 and about $600 million for the entire fiscal year 2026.

These developments indicate a significant financial impact due to regulatory changes, which could influence investor sentiment. The company has expressed that the restrictions will affect its operations and revenue generation capabilities, highlighting the potential challenges it may face in maintaining its market position amid evolving international trade policies.

Oct 02, 2025 16:33:45

Applied Materials Secures $2 Billion Revolving Credit Facility

Applied Materials, Inc. has entered into a credit agreement for a 364-day revolving credit facility totaling $2.0 billion with Bank of America as the administrative agent. This facility allows for unsecured borrowings, with the option to increase the total amount to $3.0 billion, subject to lender commitments. The agreement stipulates various interest rates based on Applied's credit ratings and includes commitment fees on unused amounts.

The credit agreement mandates that Applied maintains a financial covenant requiring a minimum ratio of consolidated adjusted EBITDA to consolidated net interest expense of 3.00 to 1.00 as of each fiscal quarter's end. While no borrowings have been made under this agreement as of the report date, the proceeds from any future borrowings will be used for general corporate purposes. The maturity date for the credit facility is set for September 24, 2026, with options for conversion to term loans under certain conditions.

Sep 26, 2025 16:15:12

Applied Materials Raises $1 Billion Through Senior Unsecured Notes

On September 18, 2025, Applied Materials, Inc. completed a public offering of $1 billion in senior unsecured notes, consisting of $550 million in 4.000% notes due 2031 and $450 million in 4.600% notes due 2036. The company plans to use part of the proceeds to repay its existing $700 million notes due October 1, 2025, with the remaining funds allocated for general corporate purposes. Interest on the notes will be paid semi-annually, starting January 15, 2026.

The notes are governed by an indenture that includes certain covenants limiting the company’s ability to incur additional secured debt or engage in significant asset transactions. In the case of a change in control and a downgrade of the notes below investment grade, Applied may be required to repurchase the notes. Events of default could accelerate the repayment of the entire principal amount, depending on specific conditions such as payment failures or bankruptcy events.

Sep 19, 2025 16:15:18

Board Member Resignation at Applied Materials Announced

Yvonne McGill has resigned from the Board of Directors of Applied Materials, effective September 12, 2025. Her resignation was not due to any disagreements regarding the Company's operations, policies, or practices.

Sep 15, 2025 07:51:29

Applied Materials Reports Record Revenue and Earnings for Q3 2025

Applied Materials, Inc. announced its financial results for the third quarter of 2025, reporting record revenue of $7.30 billion, an increase of 8% year-over-year. The company achieved a GAAP gross margin of 48.8% and a non-GAAP gross margin of 48.9%. Earnings per share (EPS) were recorded at $2.22 on a GAAP basis and $2.48 on a non-GAAP basis, reflecting an 8% and 17% increase year-over-year, respectively.

Despite the strong quarterly performance, the company anticipates a decline in revenue for the fourth quarter due to factors such as capacity digestion in China and variable demand from customers. Management highlighted ongoing uncertainties in the macroeconomic environment but expressed confidence in the long-term growth opportunities within the semiconductor industry. The company plans to adapt to these challenges by leveraging its supply chain and customer relationships.

Aug 14, 2025 16:05:06

Applied Materials Elects Jim Anderson to Board of Directors

On July 18, 2025, Applied Materials, Inc. appointed James R. Anderson to its Board of Directors and the Strategy and Investment Committee. Anderson will receive standard compensation for non-employee directors, including a $100,000 annual retainer, an additional $10,000 for his committee role, and restricted stock units valued at $240,000, which will vest on March 1, 2026, pending his continued service. He will also enter into a standard indemnification agreement with the company.

Mr. Anderson brings over 25 years of experience in the technology and semiconductor industries, having served as CEO of Coherent Corp. and held leadership roles at Lattice Semiconductor and Advanced Micro Devices, among others. His educational background includes degrees from the Massachusetts Institute of Technology, Purdue University, and the University of Minnesota. The company announced his appointment in a press release dated July 22, 2025.

Jul 22, 2025 07:46:48

Applied Materials Reports Q2 2025 Revenue Growth and Earnings

Applied Materials, Inc. announced its financial results for the second quarter of fiscal 2025, reporting revenue of $7.10 billion, which represents a 7 percent increase year over year. The company achieved a record GAAP earnings per share (EPS) of $2.63, a 28 percent rise compared to the previous year, while non-GAAP EPS was $2.39, reflecting a 14 percent increase. The gross margin was reported at 49.1 percent, and the operating margin was 30.5 percent, both showing improvements from the prior year. The company generated $1.57 billion in cash from operations and returned $2.00 billion to shareholders through share repurchases and dividends during the quarter.

Despite a dynamic economic environment, Applied Materials indicated stable customer demand and highlighted its robust supply chain and diversified manufacturing capabilities. For the upcoming third quarter, the company anticipates total net revenue of approximately $7.20 billion, with a non-GAAP gross margin of 48.3 percent and non-GAAP diluted EPS expected to be around $2.35. The semiconductor systems segment remains a significant contributor, with continued investment and focus on high-performance AI computing driving growth in the industry.

May 15, 2025 16:03:34

Applied Materials Acquires 9% Stake in BE Semiconductor Industries

Applied Materials, Inc. has announced the purchase of 9 percent of the outstanding shares of BE Semiconductor Industries N.V. This investment follows four years of collaboration focused on hybrid bonding technology, which is essential for advanced semiconductor packaging. The companies aim to co-develop an integrated equipment solution that enhances chip performance and efficiency, especially in the context of AI-driven applications. The investment reflects Applied Materials' commitment to advancing this critical technology without seeking board representation or additional shares in the future.

On the negative side, the press release does not provide specific financial metrics or details regarding the financial implications of the investment. There is also no mention of potential risks associated with the collaboration or market conditions that could affect the success of the hybrid bonding technology. The lack of regulatory approval requirements for the transaction might not address any potential market concerns regarding competition or market stability.

Apr 14, 2025 16:54:24

Applied Materials Establishes New $2 Billion Credit Agreement

Applied Materials has entered into a new Credit Agreement allowing for unsecured borrowings up to $2 billion, with an option to increase to $2.5 billion. The agreement includes a provision for letters of credit totaling up to $400 million and outlines various interest rate options and fees based on the company's credit ratings. The maturity date for this agreement is set for February 24, 2030, and it requires maintaining a financial ratio of consolidated adjusted EBITDA to consolidated net interest expense of at least 3.00 to 1.00.

On the negative side, the new Credit Agreement replaces a previous $1.5 billion credit agreement that was due to expire in 2026, which has now been terminated. As of the date of this announcement, Applied Materials has not made any borrowings under the new Credit Agreement. Additionally, the agreement includes customary events of default that could allow lenders to terminate commitments and demand repayment if certain conditions are met.

Feb 27, 2025 16:46:24

Applied Materials Reports $7.17 Billion Revenue in Q1 2025

Applied Materials, Inc. reported a revenue of $7.17 billion for the first quarter of fiscal 2025, marking a 7% increase compared to the same period last year. The company also achieved a gross margin of 48.8% and a non-GAAP operating margin of 30.6%. They generated $925 million in cash from operations and returned $1.64 billion to shareholders through share repurchases and dividends, indicating a focus on returning value to investors despite challenges in the market.

However, the company faced a decline in net income, which dropped 41% to $1.18 billion year-over-year, and a significant 40% decrease in GAAP earnings per share, which fell to $1.45. Additionally, non-GAAP free cash flow saw a substantial decline of 74%, totaling $544 million, compared to $2.1 billion in the previous year. These negative trends highlight challenges that could impact future performance amid evolving market conditions.

Feb 13, 2025 16:05:46