Applied Materials (AMAT) FY2025 results: revenue $28.4 billion, up 4.4% on the year

Applied Materials designs, develops, produces and services the wafer fabrication tools semiconductor manufacturers use to make chips. The chips its customers make go into personal computing devices, mobile phones, AI and data centre servers, automobiles, connected devices, industrial applications and consumer electronics. The company was incorporated in 1967 as a Delaware corporation, and its fiscal year ends on the last Sunday in October. There are two reportable segments, Semiconductor Systems and Applied Global Services, with the display business and other activities reported in Corporate and Other.

Semiconductor Systems

This segment designs, develops, manufactures and sells the equipment used to fabricate chips. Its products cover steps across materials engineering, process control and advanced packaging: converting patterns into device structures, transistor and interconnect fabrication, metrology, inspection and review, and packaging technologies for connecting finished die. Beyond supplying equipment for individual process steps, the company combines and integrates its technologies into single solutions.

The patterning systems address shrinking pattern dimensions and the vertical stacking in advanced devices. The transistor and interconnect products work on the power and performance of 3D transistors. The process control systems use optical and eBeam technologies so a customer can inspect and review chip architectures through the manufacturing process, which helps yield. The advanced packaging systems let a customer connect multiple chips through heterogeneous integration, taking a design beyond a single chip.

The filing states that sales go to three customer markets: foundry, logic and other; dynamic random access memory; and flash memory. Foundry, logic and other splits into what it describes as leading-edge, being customers producing on the most advanced technology nodes, defined as 7 nanometers and smaller, and non-leading edge, which serves internet of things, communications, automotive, power and sensors.

Applied Global Services

This segment provides services, spares and factory automation software to customer fabrication plants globally, bought on transactional and subscription terms to keep the installed base of equipment running and to improve plant performance and productivity. Demand is met through a global distribution system and field engineers based near customer sites.

Through 26 October 2025 the segment also made and sold 200 millimetre and other equipment to customers the filing describes as serving non-leading-edge markets. The filing states that from the first quarter of fiscal 2026 the 200 millimetre equipment business moves into Semiconductor Systems.

The order book

Backlog covers orders for which written authorisations have been accepted or shipment has occurred without revenue being recognised, plus contractual service revenue and maintenance fees. At 26 October 2025 it stood at $15,002 million, split $7,105 million in Semiconductor Systems, being 47%, $7,141 million in Applied Global Services, 48%, and $756 million in Corporate and Other, 5%. Approximately 31% of that total is not reasonably expected to be filled within the next 12 months. The filing cautions that backlog on any particular date is not necessarily indicative of actual sales for any future period, since orders can be amended or cancelled, deliveries delayed, and export rules changed.

How it is made and sold

Manufacturing is mainly assembly, integration and test of proprietary and commercial parts, components and subassemblies, run on a distributed model across the United States, Singapore, Japan, China, Korea, Taiwan, Israel and other countries in Asia and Europe, using qualified vendors including contract manufacturers. The filing notes that while it makes reasonable efforts to keep parts available from multiple qualified suppliers, some key parts come from a single qualified supplier or a limited group.

Product development and engineering and process support run primarily in the United States, India and Israel, and customer demonstrations primarily in the United States, China, Taiwan, Israel and South Korea. Because the products are highly technical, they are marketed and sold worldwide almost entirely through a direct sales force. The business depends on capital equipment investment by semiconductor and other manufacturers, whose spending turns on general economic conditions, expected demand and pricing for semiconductors, new technology, factory utilisation, capital resources and financing, trade policies and export regulations, and government incentives. During fiscal 2025 two customers accounted for approximately 19% and 15% of net revenue.

From Applied Materials' annual report on Form 10-K for the year ended 26 October 2025. The filing

Written from the 10-K filed 12 December 2025: read the full 10-K.