Applied Materials Announces Second Quarter 2024 Results
Applied Materials (NASDAQ: AMAT) announced its second-quarter 2024 results, with stable revenue of $6.65 billion compared to the same period last year. On a GAAP basis, the operating margin stood at 28.8%, while non-GAAP operating margin was 29.0%, reflecting a slight decline of 0.1 percentage points year over year. GAAP EPS increased by 11% to $2.06, and non-GAAP EPS rose by 5% to $2.09. The company generated $1.39 billion in cash from operations and returned $1.09 billion to shareholders through share repurchases and dividends. Looking ahead to Q3, Applied Materials expects revenue around $6.65 billion and non-GAAP EPS between $1.83 and $2.19.
- Revenue stable at $6.65 billion compared to the previous year.
- GAAP EPS increased by 11% to $2.06.
- Non-GAAP EPS rose by 5% to $2.09.
- Generated $1.39 billion in cash from operations.
- Returned $1.09 billion to shareholders through share repurchases and dividends.
- Gross margin improved by 0.7 percentage points to 47.4% on a GAAP basis.
- Applied Global Services segment revenue increased to $1.53 billion from $1.43 billion.
- Non-GAAP free cash flow decreased by 44% to $1.135 billion.
- Non-GAAP operating margin slightly declined by 0.1 percentage points to 29.0%.
- Display and Adjacent Markets segment saw operating income drop to $5 million from $16 million.
- Corporate and Other segment reported a higher loss of $230 million compared to $204 million.
Insights
The results reported by Applied Materials for Q2 2024 show a stable performance with a revenue of $6.65 billion, which is flat year over year. Notably, the GAAP EPS increased by 11% to $2.06 and the non-GAAP EPS rose by 5% to $2.09. This EPS growth indicates some efficiency gains, likely driven by their operational strategies even though overall revenue remained constant. The operating margin remained consistent at 28.8% on a GAAP basis, signaling stable operational efficiency.
However, the significant decrease in free cash flow by 44% year over year to $1.14 billion could be seen as a concern, possibly indicating increased capital expenditures or operational costs. Investors should keep an eye on whether this trend continues as it could affect the company's flexibility in future investments or shareholder returns. Nonetheless, the company’s ability to generate $1.39 billion in cash from operations and return $1.09 billion to shareholders through dividends and repurchases demonstrates robust cash management and a strong commitment to shareholder value.
Applied Materials’ positioning in the key sectors of AI, IoT, electric vehicles and clean energy is noteworthy. Their claim of having the most enabling portfolio of materials engineering technologies is supported by the consistent revenue streams from their Semiconductor Systems, with net revenue of $4.9 billion this quarter. The sector's operating income remained stable, which is a positive indicator of the sustained demand in semiconductor manufacturing, especially as these technologies advance.
The diversification within their semiconductor segment, especially the increase in DRAM revenue share from 11% to 32%, reflects a shift in market dynamics and potentially higher demand for memory components. This diversification can provide resilience against sector-specific downturns and position the company well to capitalize on specific technological shifts.
- Revenue
$6.65 billion , flat year over year - GAAP operating margin 28.8 percent and non-GAAP operating margin 29.0 percent, flat and down 0.1 point year over year, respectively
- GAAP EPS
$2.06 and non-GAAP EPS$2.09 , up 11 percent and 5 percent year over year, respectively - Generated
$1.39 billion in cash from operations
SANTA CLARA, Calif., May 16, 2024 (GLOBE NEWSWIRE) -- Applied Materials, Inc. (NASDAQ: AMAT) today reported results for its second quarter ended Apr. 28, 2024.
Second Quarter Results
Applied generated revenue of
On a non-GAAP basis, the company reported gross margin of 47.5 percent, operating income of
The company generated
“Applied Materials continues to deliver strong performance in 2024, with fiscal second quarter revenue and earnings towards the high end of our guided range,” said Gary Dickerson, President and CEO. “Applied Materials has the most enabling portfolio of materials engineering technologies for chips that underpin tectonic shifts in technology including AI, IoT, electric vehicles and clean energy, which puts us in a great position to grow along with these long-term, secular trends.”
| Results Summary | ||||||||||
| Q2 FY2024 | Q2 FY2023 | Change | ||||||||
| (In millions, except per share amounts and percentages) | ||||||||||
| Net revenue | $ | 6,646 | $ | 6,630 | — | |||||
| Gross margin | 0.7 points | |||||||||
| Operating margin | — | |||||||||
| Net income | $ | 1,722 | $ | 1,575 | 9 | % | ||||
| Diluted earnings per share | $ | 2.06 | $ | 1.86 | 11 | % | ||||
| Non-GAAP Results | ||||||||||
| Non-GAAP gross margin | 0.7 points | |||||||||
| Non-GAAP operating margin | (0.1) point | |||||||||
| Non-GAAP net income | $ | 1,744 | $ | 1,692 | 3 | % | ||||
| Non-GAAP diluted EPS | $ | 2.09 | $ | 2.00 | 5 | % | ||||
| Non-GAAP free cash flow | $ | 1,135 | $ | 2,037 | (44 | )% | ||||
A reconciliation of the GAAP and non-GAAP results is provided in the financial tables included in this release. See also “Use of Non-GAAP Financial Measures” section.
Business Outlook
In the third quarter of fiscal 2024, Applied expects net revenue to be approximately
This outlook for non-GAAP diluted EPS excludes known charges related to completed acquisitions of
Second Quarter Reportable Segment Information
Effective in the first quarter of fiscal 2024, management began including share-based compensation expense in the evaluation of reportable segments' performance. Prior-year numbers have been recast to conform to the current-year presentation.
| Semiconductor Systems | Q2 FY2024 | Q2 FY2023 | |||||
| (In millions, except percentages) | |||||||
| Net revenue | $ | 4,901 | $ | 4,977 | |||
| Foundry, logic and other | |||||||
| DRAM | |||||||
| Flash memory | |||||||
| Operating income | $ | 1,701 | $ | 1,715 | |||
| Operating margin | |||||||
| Non-GAAP Results | |||||||
| Non-GAAP operating income | $ | 1,711 | $ | 1,725 | |||
| Non-GAAP operating margin | |||||||
| Applied Global Services | Q2 FY2024 | Q2 FY2023 | |||||
| (In millions, except percentages) | |||||||
| Net revenue | $ | 1,530 | $ | 1,428 | |||
| Operating income | $ | 436 | $ | 384 | |||
| Operating margin | 28.5 | % | 26.9 | % | |||
| Non-GAAP Results | |||||||
| Non-GAAP operating income | $ | 436 | $ | 384 | |||
| Non-GAAP operating margin | 28.5 | % | 26.9 | % | |||
| Display and Adjacent Markets | Q2 FY2024 | Q2 FY2023 | |||||
| (In millions, except percentages) | |||||||
| Net revenue | $ | 179 | $ | 168 | |||
| Operating income | $ | 5 | $ | 16 | |||
| Operating margin | 2.8 | % | 9.5 | % | |||
| Non-GAAP Results | |||||||
| Non-GAAP operating income | $ | 5 | $ | 16 | |||
| Non-GAAP operating margin | 2.8 | % | 9.5 | % | |||
| Corporate and Other | |||||||
| (In millions) | Q2 FY2024 | Q2 FY2023 | |||||
| Unallocated net revenue | $ | 36 | $ | 57 | |||
| Unallocated cost of products sold and expenses | (266 | ) | (261 | ) | |||
| Total | $ | (230 | ) | $ | (204 | ) | |
Use of Non-GAAP Financial Measures
Applied provides investors with certain non-GAAP financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including certain items related to mergers and acquisitions; restructuring and severance charges and any associated adjustments; impairments of assets; gain or loss, dividends and impairments on strategic investments; certain income tax items and other discrete adjustments. On a non-GAAP basis, the tax effect related to share-based compensation is recognized ratably over the fiscal year. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.
Management uses these non-GAAP financial measures to evaluate the company’s operating and financial performance and for planning purposes, and as performance measures in its executive compensation program. Applied believes these measures enhance an overall understanding of its performance and investors’ ability to review the company’s business from the same perspective as the company’s management, and facilitate comparisons of this period’s results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Applied's ongoing operating performance. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.
Webcast Information
Applied Materials will discuss these results during an earnings call that begins at 1:30 p.m. Pacific Time today. A live webcast and related slide presentation will be available at www.appliedmaterials.com. A replay will be available on the website beginning at 5:00 p.m. Pacific Time today.
Forward-Looking Statement
This press release contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, our business outlook for the third quarter of fiscal 2024 and beyond, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic, political and industry conditions, including rising inflation and interest rates; the implementation and interpretation of export regulations and license requirements, and their impact on our ability to export products and provide services to customers and on our results of operations; global trade issues and changes in trade and export license policies; our ability to obtain licenses or authorizations on a timely basis, if at all; the effects of geopolitical turmoil or conflicts; consumer demand for electronic products; the demand for semiconductors; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; our ability to meet customer demand, and our suppliers' ability to meet our demand requirements; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; the effects of regional or global health epidemics; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations and other risks and uncertainties described in our SEC filings, including our recent Forms 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.
About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future. Learn more at www.appliedmaterials.com.
Contact:
Ricky Gradwohl (editorial/media) 408.235.4676
Michael Sullivan (financial community) 408.986.7977
| APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| (In millions, except per share amounts) | April 28, 2024 | April 30, 2023 | April 28, 2024 | April 30, 2023 | |||||||||
| Net revenue | $ | 6,646 | $ | 6,630 | $ | 13,353 | $ | 13,369 | |||||
| Cost of products sold | 3,493 | 3,536 | 6,996 | 7,130 | |||||||||
| Gross profit | 3,153 | 3,094 | 6,357 | 6,239 | |||||||||
| Operating expenses: | |||||||||||||
| Research, development and engineering | 785 | 775 | 1,539 | 1,546 | |||||||||
| Marketing and selling | 209 | 194 | 416 | 391 | |||||||||
| General and administrative | 247 | 214 | 523 | 421 | |||||||||
| Total operating expenses | 1,241 | 1,183 | 2,478 | 2,358 | |||||||||
| Income from operations | 1,912 | 1,911 | 3,879 | 3,881 | |||||||||
| Interest expense | 59 | 61 | 118 | 120 | |||||||||
| Interest and other income (expense), net | 141 | (73 | ) | 536 | (23 | ) | |||||||
| Income before income taxes | 1,994 | 1,777 | 4,297 | 3,738 | |||||||||
| Provision for income taxes | 272 | 202 | 556 | 446 | |||||||||
| Net income | $ | 1,722 | $ | 1,575 | $ | 3,741 | $ | 3,292 | |||||
| Earnings per share: | |||||||||||||
| Basic | $ | 2.08 | $ | 1.87 | $ | 4.50 | $ | 3.90 | |||||
| Diluted | $ | 2.06 | $ | 1.86 | $ | 4.47 | $ | 3.88 | |||||
| Weighted average number of shares: | |||||||||||||
| Basic | 830 | 843 | 831 | 844 | |||||||||
| Diluted | 836 | 847 | 837 | 848 | |||||||||
| APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS | |||||
| (In millions) | April 28, 2024 | October 29, 2023 | |||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 7,085 | $ | 6,132 | |
| Short-term investments | 472 | 737 | |||
| Accounts receivable, net | 4,778 | 5,165 | |||
| Inventories | 5,691 | 5,725 | |||
| Other current assets | 1,239 | 1,388 | |||
| Total current assets | 19,265 | 19,147 | |||
| Long-term investments | 2,983 | 2,281 | |||
| Property, plant and equipment, net | 2,958 | 2,723 | |||
| Goodwill | 3,732 | 3,732 | |||
| Purchased technology and other intangible assets, net | 273 | 294 | |||
| Deferred income taxes and other assets | 2,738 | 2,552 | |||
| Total assets | $ | 31,949 | $ | 30,729 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Short-term debt | $ | 99 | $ | 100 | |
| Accounts payable and accrued expenses | 4,174 | 4,297 | |||
| Contract liabilities | 2,611 | 2,975 | |||
| Total current liabilities | 6,884 | 7,372 | |||
| Long-term debt | 5,463 | 5,461 | |||
| Income taxes payable | 656 | 833 | |||
| Other liabilities | 747 | 714 | |||
| Total liabilities | 13,750 | 14,380 | |||
| Total stockholders’ equity | 18,199 | 16,349 | |||
| Total liabilities and stockholders’ equity | $ | 31,949 | $ | 30,729 | |
| APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||||
| (In millions) | Three Months Ended | Six Months Ended | |||||||||||||
| April 28, 2024 | April 30, 2023 | April 28, 2024 | April 30, 2023 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net income | $ | 1,722 | $ | 1,575 | $ | 3,741 | $ | 3,292 | |||||||
| Adjustments required to reconcile net income to cash provided by operating activities: | |||||||||||||||
| Depreciation and amortization | 96 | 129 | 187 | 249 | |||||||||||
| Share-based compensation | 134 | 113 | 304 | 261 | |||||||||||
| Deferred income taxes | (134 | ) | (115 | ) | (206 | ) | (136 | ) | |||||||
| Other | (12 | ) | 167 | (247 | ) | 174 | |||||||||
| Net change in operating assets and liabilities | (414 | ) | 423 | (62 | ) | 722 | |||||||||
| Cash provided by operating activities | 1,392 | 2,292 | 3,717 | 4,562 | |||||||||||
| Cash flows from investing activities: | |||||||||||||||
| Capital expenditures | (257 | ) | (255 | ) | (486 | ) | (542 | ) | |||||||
| Cash paid for acquisitions, net of cash acquired | — | 2 | — | (18 | ) | ||||||||||
| Proceeds from sales and maturities of investments | 582 | 255 | 1,113 | 669 | |||||||||||
| Purchases of investments | (474 | ) | (324 | ) | (1,223 | ) | (730 | ) | |||||||
| Cash used in investing activities | (149 | ) | (322 | ) | (596 | ) | (621 | ) | |||||||
| Cash flows from financing activities: | |||||||||||||||
| Proceeds from issuance of commercial paper | 100 | 297 | 200 | 595 | |||||||||||
| Repayments of commercial paper | (100 | ) | (300 | ) | (200 | ) | (400 | ) | |||||||
| Proceeds from common stock issuances | 119 | 111 | 119 | 111 | |||||||||||
| Common stock repurchases | (820 | ) | (800 | ) | (1,520 | ) | (1,050 | ) | |||||||
| Tax withholding payments for vested equity awards | (41 | ) | (18 | ) | (233 | ) | (154 | ) | |||||||
| Payments of dividends to stockholders | (266 | ) | (219 | ) | (532 | ) | (439 | ) | |||||||
| Repayments of principal on finance leases | (14 | ) | 1 | (13 | ) | (9 | ) | ||||||||
| Cash used in financing activities | (1,022 | ) | (928 | ) | (2,179 | ) | (1,346 | ) | |||||||
| Increase (decrease) in cash, cash equivalents and restricted cash equivalents | 221 | 1,042 | 942 | 2,595 | |||||||||||
| Cash, cash equivalents and restricted cash equivalents—beginning of period | 6,954 | 3,653 | 6,233 | 2,100 | |||||||||||
| Cash, cash equivalents and restricted cash equivalents — end of period | $ | 7,175 | $ | 4,695 | $ | 7,175 | $ | 4,695 | |||||||
| Reconciliation of cash, cash equivalents, and restricted cash equivalents | |||||||||||||||
| Cash and cash equivalents | $ | 7,085 | $ | 4,588 | $ | 7,085 | $ | 4,588 | |||||||
| Restricted cash equivalents included in deferred income taxes and other assets | 90 | 107 | 90 | 107 | |||||||||||
| Total cash, cash equivalents, and restricted cash equivalents | $ | 7,175 | $ | 4,695 | $ | 7,175 | $ | 4,695 | |||||||
| Supplemental cash flow information: | |||||||||||||||
| Cash payments for income taxes | $ | 467 | $ | 152 | $ | 606 | $ | 221 | |||||||
| Cash refunds from income taxes | $ | 3 | $ | 47 | $ | 5 | $ | 51 | |||||||
| Cash payments for interest | $ | 68 | $ | 68 | $ | 102 | $ | 102 | |||||||
| Additional Information | |||||||
| Q2 FY2024 | Q2 FY2023 | ||||||
| Net Revenue by Geography (In millions) | |||||||
| United States | $ | 853 | $ | 1,113 | |||
| % of Total | 13 | % | 17 | % | |||
| Europe | $ | 289 | $ | 477 | |||
| % of Total | 4 | % | 7 | % | |||
| Japan | $ | 453 | $ | 460 | |||
| % of Total | 7 | % | 7 | % | |||
| Korea | $ | 988 | $ | 1,583 | |||
| % of Total | 15 | % | 24 | % | |||
| Taiwan | $ | 1,019 | $ | 1,435 | |||
| % of Total | 15 | % | 22 | % | |||
| Southeast Asia | $ | 213 | $ | 157 | |||
| % of Total | 3 | % | 2 | % | |||
| China | $ | 2,831 | $ | 1,405 | |||
| % of Total | 43 | % | 21 | % | |||
| Employees(In thousands) | |||||||
| Regular Full Time | 34.8 | 34.2 | |||||
| APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (In millions, except percentages) | April 28, 2024 | April 30, 2023 | April 28, 2024 | April 30, 2023 | |||||||||||
| Non-GAAP Gross Profit | |||||||||||||||
| GAAP reported gross profit | $ | 3,153 | $ | 3,094 | $ | 6,357 | $ | 6,239 | |||||||
| Certain items associated with acquisitions1 | 7 | 7 | 14 | 14 | |||||||||||
| Non-GAAP gross profit | $ | 3,160 | $ | 3,101 | $ | 6,371 | $ | 6,253 | |||||||
| Non-GAAP gross margin | 47.5 | % | 46.8 | % | 47.7 | % | 46.8 | % | |||||||
| Non-GAAP Operating Income | |||||||||||||||
| GAAP reported operating income | $ | 1,912 | $ | 1,911 | $ | 3,879 | $ | 3,881 | |||||||
| Certain items associated with acquisitions1 | 10 | 11 | 21 | 22 | |||||||||||
| Acquisition integration and deal costs | 5 | 8 | 8 | 14 | |||||||||||
| Non-GAAP operating income | $ | 1,927 | $ | 1,930 | $ | 3,908 | $ | 3,917 | |||||||
| Non-GAAP operating margin | 29.0 | % | 29.1 | % | 29.3 | % | 29.3 | % | |||||||
| Non-GAAP Net Income | |||||||||||||||
| GAAP reported net income | $ | 1,722 | $ | 1,575 | $ | 3,741 | $ | 3,292 | |||||||
| Certain items associated with acquisitions1 | 10 | 11 | 21 | 22 | |||||||||||
| Acquisition integration and deal costs | 5 | 8 | 8 | 14 | |||||||||||
| Realized loss (gain), dividends and impairments on strategic investments, net | (3 | ) | 117 | (4 | ) | 113 | |||||||||
| Unrealized loss (gain) on strategic investments, net | (20 | ) | 11 | (300 | ) | 7 | |||||||||
| Income tax effect of share-based compensation2 | 11 | 3 | (15 | ) | (11 | ) | |||||||||
| Income tax effects related to intra-entity intangible asset transfers | 18 | (1 | ) | 40 | 16 | ||||||||||
| Resolution of prior years’ income tax filings and other tax items | — | (27 | ) | 33 | (32 | ) | |||||||||
| Income tax effect of non-GAAP adjustments3 | 1 | (5 | ) | 2 | (5 | ) | |||||||||
| Non-GAAP net income | $ | 1,744 | $ | 1,692 | $ | 3,526 | $ | 3,416 | |||||||
| 1 These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | |||||||||||||||
| 2 GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis. | |||||||||||||||
| 3 Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. | |||||||||||||||
| APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (In millions, except per share amounts) | April 28, 2024 | April 30, 2023 | April 28, 2024 | April 30, 2023 | |||||||||||
| Non-GAAP Earnings Per Diluted Share | |||||||||||||||
| GAAP reported earnings per diluted share | $ | 2.06 | $ | 1.86 | $ | 4.47 | $ | 3.88 | |||||||
| Certain items associated with acquisitions | 0.01 | 0.01 | 0.02 | 0.03 | |||||||||||
| Acquisition integration and deal costs | 0.01 | 0.01 | 0.01 | 0.01 | |||||||||||
| Realized loss (gain), dividends and impairments on strategic investments, net | — | 0.14 | — | 0.13 | |||||||||||
| Unrealized loss (gain) on strategic investments, net | (0.02 | ) | 0.01 | (0.36 | ) | 0.01 | |||||||||
| Income tax effect of share-based compensation | 0.01 | — | (0.02 | ) | (0.01 | ) | |||||||||
| Income tax effects related to intra-entity intangible asset transfers | 0.02 | — | 0.05 | 0.02 | |||||||||||
| Resolution of prior years’ income tax filings and other tax items | — | (0.03 | ) | 0.04 | (0.04 | ) | |||||||||
| Non-GAAP earnings per diluted share | $ | 2.09 | $ | 2.00 | $ | 4.21 | $ | 4.03 | |||||||
| Weighted average number of diluted shares | 836 | 847 | 837 | 848 | |||||||||||
| APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (In millions, except percentages) | April 28, 2024 | April 30, 2023 | April 28, 2024 | April 30, 2023 | |||||||||||
| Semiconductor Systems Non-GAAP Operating Income | |||||||||||||||
| GAAP reported operating income | $ | 1,701 | $ | 1,715 | $ | 3,445 | $ | 3,570 | |||||||
| Certain items associated with acquisitions1 | 10 | 10 | 20 | 19 | |||||||||||
| Non-GAAP operating income | $ | 1,711 | $ | 1,725 | $ | 3,465 | $ | 3,589 | |||||||
| Non-GAAP operating margin | 34.9 | % | 34.7 | % | 35.3 | % | 35.4 | % | |||||||
| Applied Global Services Non-GAAP Operating Income | |||||||||||||||
| GAAP reported operating income | $ | 436 | $ | 384 | $ | 853 | $ | 729 | |||||||
| Non-GAAP operating income | $ | 436 | $ | 384 | $ | 853 | $ | 729 | |||||||
| Non-GAAP operating margin | 28.5 | % | 26.9 | % | 28.4 | % | 26.1 | % | |||||||
| Display and Adjacent Markets Non-GAAP Operating Income | |||||||||||||||
| GAAP reported operating income | $ | 5 | $ | 16 | $ | 30 | $ | 19 | |||||||
| Non-GAAP operating income | $ | 5 | $ | 16 | $ | 30 | $ | 19 | |||||||
| Non-GAAP operating margin | 2.8 | % | 9.5 | % | 7.1 | % | 5.7 | % | |||||||
| 1 These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | |||||||||||||||
Note: The reconciliation of GAAP and non-GAAP segment results above does not include certain revenues, costs of products sold and operating expenses that are reported within corporate and other and included in consolidated operating income.
| APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE | |||
| Three Months Ended | |||
| (In millions, except percentages) | April 28, 2024 | ||
| GAAP provision for income taxes(a) | $ | 272 | |
| Income tax effect of share-based compensation | (11 | ) | |
| Income tax effects related to intra-entity intangible asset transfers | (18 | ) | |
| Income tax effect of non-GAAP adjustments | (1 | ) | |
| Non-GAAP provision for income taxes(b) | $ | 242 | |
| GAAP income before income taxes(c) | $ | 1,994 | |
| Certain items associated with acquisitions | 10 | ||
| Acquisition integration and deal costs | 5 | ||
| Realized loss (gain), dividends and impairments on strategic investments, net | (3 | ) | |
| Unrealized loss (gain) on strategic investments, net | (20 | ) | |
| Non-GAAP income before income taxes(d) | $ | 1,986 | |
| GAAP effective income tax rate(a/c) | 13.6 | % | |
| Non-GAAP effective income tax rate(b/d) | 12.2 | % | |
| UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| (In millions) | April 28, 2024 | April 30, 2023 | April 28, 2024 | April 30, 2023 | |||||||||||
| Cash provided by operating activities | $ | 1,392 | $ | 2,292 | $ | 3,717 | $ | 4,562 | |||||||
| Capital expenditures | (257 | ) | (255 | ) | (486 | ) | (542 | ) | |||||||
| Non-GAAP free cash flow | $ | 1,135 | $ | 2,037 | $ | 3,231 | $ | 4,020 | |||||||
FAQ
What are Applied Materials' Q2 2024 revenue and EPS?
What is Applied Materials' forecast for Q3 2024 revenue and EPS?
How did Applied Materials' cash from operations perform in Q2 2024?
How much did Applied Materials return to shareholders in Q2 2024?
What was Applied Materials' gross margin for Q2 2024?
