Applied Materials Announces Third Quarter 2024 Results
Applied Materials (NASDAQ: AMAT) reported strong Q3 2024 results with record revenue of $6.78 billion, up 5% year-over-year. GAAP EPS increased 11% to $2.05, while non-GAAP EPS rose 12% to $2.12. The company's GAAP operating margin improved to 28.7%, and non-GAAP operating margin reached 28.8%. Applied Materials generated $2.39 billion in cash from operations and returned $1.19 billion to shareholders through share repurchases and dividends. The company's CEO, Gary Dickerson, attributed the strong performance to increased demand for AI-related products and services. For Q4 2024, Applied Materials expects revenue of approximately $6.93 billion and non-GAAP EPS between $2.00 and $2.36.
Applied Materials (NASDAQ: AMAT) ha riportato risultati robusti per il terzo trimestre del 2024 con un fatturato record di 6,78 miliardi di dollari, in aumento del 5% rispetto all'anno precedente. L'EPS GAAP è aumentato dell'11% a 2,05 dollari, mentre l'EPS non-GAAP è cresciuto del 12% a 2,12 dollari. Il margine operativo GAAP dell'azienda è migliorato al 28,7%, e il margine operativo non-GAAP ha raggiunto il 28,8%. Applied Materials ha generato 2,39 miliardi di dollari in cassa dalle operazioni e ha restituito 1,19 miliardi di dollari agli azionisti tramite riacquisti di azioni e dividendi. Il CEO dell'azienda, Gary Dickerson, ha attribuito la forte performance all'aumento della domanda per prodotti e servizi legati all'IA. Per il quarto trimestre del 2024, Applied Materials prevede un fatturato di circa 6,93 miliardi di dollari e un EPS non-GAAP compreso tra 2,00 e 2,36 dollari.
Applied Materials (NASDAQ: AMAT) reportó resultados sólidos para el tercer trimestre de 2024 con ingresos récord de 6,78 mil millones de dólares, un aumento del 5% en comparación con el año anterior. El EPS GAAP aumentó un 11% a 2,05 dólares, mientras que el EPS no GAAP subió un 12% a 2,12 dólares. El margen operativo GAAP de la compañía mejoró al 28,7%, y el margen operativo no GAAP alcanzó el 28,8%. Applied Materials generó 2,39 mil millones de dólares en efectivo de las operaciones y devolvió 1,19 mil millones de dólares a los accionistas a través de recompras de acciones y dividendos. El CEO de la compañía, Gary Dickerson, atribuyó el sólido desempeño a la creciente demanda de productos y servicios relacionados con la IA. Para el cuarto trimestre de 2024, Applied Materials espera ingresos de aproximadamente 6,93 mil millones de dólares y un EPS no GAAP entre 2,00 y 2,36 dólares.
Applied Materials (NASDAQ: AMAT)는 2024년 3분기 실적을 발표했으며, 78억 달러의 기록적인 매출을 올리며 전년 대비 5% 증가했습니다. GAAP 기준 EPS는 11% 증가하여 2.05달러에 도달했으며, 비-GAAP 기준 EPS는 12% 상승하여 2.12달러에 달했습니다. 회사의 GAAP 운영 마진은 28.7%로 개선되었으며, 비-GAAP 운영 마진은 28.8%에 도달했습니다. Applied Materials는 운영에서 23억9천만 달러의 현금을 창출하고, 재매입 및 배당금을 통해 11억9천만 달러를 주주에게 반환했습니다. Gary Dickerson CEO는 강력한 성과를 AI 관련 제품 및 서비스에 대한 수요 증가로 설명했습니다. 2024년 4분기 동안 Applied Materials는 약 69억3천만 달러의 매출과 비-GAAP EPS가 2.00달러에서 2.36달러 사이일 것으로 예상하고 있습니다.
Applied Materials (NASDAQ: AMAT) a annoncé des résultats solides pour le troisième trimestre 2024 avec un chiffre d'affaires record de 6,78 milliards de dollars, en hausse de 5% par rapport à l'année précédente. Le BPA GAAP a augmenté de 11% pour atteindre 2,05 dollars, tandis que le BPA non-GAAP a progressé de 12% pour s'établir à 2,12 dollars. La marge opérationnelle GAAP de l'entreprise s'est améliorée à 28,7%, et la marge opérationnelle non-GAAP a atteint 28,8%. Applied Materials a généré 2,39 milliards de dollars de flux de trésorerie provenant des opérations et a restitué 1,19 milliard de dollars aux actionnaires par le biais de rachats d'actions et de dividendes. Le PDG de l'entreprise, Gary Dickerson, a attribué cette forte performance à une demande accrue pour les produits et services liés à l'IA. Pour le quatrième trimestre 2024, Applied Materials prévoit un chiffre d'affaires d'environ 6,93 milliards de dollars et un BPA non-GAAP entre 2,00 et 2,36 dollars.
Applied Materials (NASDAQ: AMAT) hat für das dritte Quartal 2024 starke Ergebnisse berichtet, mit einem Rekordumsatz von 6,78 Milliarden Dollar, was einem Anstieg von 5% im Jahresvergleich entspricht. Der GAAP EPS ist um 11% auf 2,05 Dollar gestiegen, während der Non-GAAP EPS um 12% auf 2,12 Dollar gestiegen ist. Die GAAP-Betriebsrendite des Unternehmens verbesserte sich auf 28,7%, und die Non-GAAP-Betriebsrendite erreichte 28,8%. Applied Materials generierte 2,39 Milliarden Dollar an Cashflow aus der Betriebstätigkeit und gab 1,19 Milliarden Dollar an die Aktionäre durch Aktieneinkäufe und Dividenden zurück. Der CEO des Unternehmens, Gary Dickerson, führte die starke Leistung auf die gestiegene Nachfrage nach KI-bezogenen Produkten und Dienstleistungen zurück. Für das vierte Quartal 2024 erwartet Applied Materials einen Umsatz von etwa 6,93 Milliarden Dollar und Non-GAAP EPS zwischen 2,00 und 2,36 Dollar.
- Record revenue of $6.78 billion, up 5% year-over-year
- GAAP EPS increased 11% to $2.05
- Non-GAAP EPS rose 12% to $2.12
- GAAP operating margin improved to 28.7%
- Non-GAAP operating margin reached 28.8%
- Generated $2.39 billion in cash from operations
- Returned $1.19 billion to shareholders through share repurchases and dividends
- Strong demand for AI-related products and services
- Non-GAAP free cash flow decreased by 10% year-over-year
- Display and Adjacent Markets segment operating margin declined from 13.6% to 6.4%
Insights
Applied Materials' Q3 2024 results demonstrate solid financial performance. Revenue increased by
Notably, the Semiconductor Systems segment, which accounts for the majority of revenue, saw a
The company's robust cash generation of
Applied Materials' strong performance underscores the growing demand for advanced semiconductor technologies, particularly in AI applications. The company's CEO highlighted the "race for AI leadership" as a key driver of demand for their products and services, positioning Applied Materials to outperform the market in the long term.
The shift in revenue mix towards DRAM (
The slight decline in the Display and Adjacent Markets segment's operating margin (from
Applied Materials' ability to maintain strong margins and grow revenue in a competitive semiconductor equipment market demonstrates its technological leadership and ability to capitalize on emerging trends in the industry.
- Revenue
$6.78 billion , up 5 percent year over year - GAAP operating margin 28.7 percent and non-GAAP operating margin 28.8 percent, up 0.7 points and 0.5 points year over year, respectively
- GAAP EPS
$2.05 and non-GAAP EPS$2.12 , up 11 percent and 12 percent year over year, respectively - Generated
$2.39 billion in cash from operations
SANTA CLARA, Calif., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Applied Materials, Inc. (NASDAQ: AMAT) today reported results for its third quarter ended Jul. 28, 2024.
Third Quarter Results
Applied generated record revenue of
On a non-GAAP basis, the company reported gross margin of 47.4 percent, operating income of
The company generated
“Applied Materials is delivering strong results in 2024 with record revenues in our fiscal third quarter and earnings towards the high end of our guided range,” said Gary Dickerson, President and CEO. “The race for AI leadership is fueling demand for our unique and connected portfolio of products and services, positioning Applied to outperform our markets over the longer term.”
Results Summary
| Q3 FY2024 | Q3 FY2023 | Change | ||||||||
| (In millions, except per share amounts and percentages) | ||||||||||
| Net revenue | $ | 6,778 | $ | 6,425 | 5 | % | ||||
| Gross margin | 47.3 | % | 46.3 | % | 1.0 point | |||||
| Operating margin | 28.7 | % | 28.0 | % | 0.7 points | |||||
| Net income | $ | 1,705 | $ | 1,560 | 9 | % | ||||
| Diluted earnings per share | $ | 2.05 | $ | 1.85 | 11 | % | ||||
| Non-GAAP Results | ||||||||||
| Non-GAAP gross margin | 47.4 | % | 46.4 | % | 1.0 point | |||||
| Non-GAAP operating margin | 28.8 | % | 28.3 | % | 0.5 points | |||||
| Non-GAAP net income | $ | 1,767 | $ | 1,600 | 10 | % | ||||
| Non-GAAP diluted EPS | $ | 2.12 | $ | 1.90 | 12 | % | ||||
| Non-GAAP free cash flow | $ | 2,088 | $ | 2,328 | (10 | )% | ||||
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 fourth 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
Third 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 | Q3 FY2024 | Q3 FY2023 | |||||
| (In millions, except percentages) | |||||||
| Net revenue | $ | 4,924 | $ | 4,676 | |||
| Foundry, logic and other | 72 | % | 79 | % | |||
| DRAM | 24 | % | 17 | % | |||
| Flash memory | 4 | % | 4 | % | |||
| Operating income | $ | 1,712 | $ | 1,568 | |||
| Operating margin | 34.8 | % | 33.5 | % | |||
| Non-GAAP Results | |||||||
| Non-GAAP operating income | $ | 1,722 | $ | 1,578 | |||
| Non-GAAP operating margin | 35.0 | % | 33.7 | % | |||
| Applied Global Services | Q3 FY2024 | Q3 FY2023 | |||||
| (In millions, except percentages) | |||||||
| Net revenue | $ | 1,580 | $ | 1,464 | |||
| Operating income | $ | 467 | $ | 399 | |||
| Operating margin | 29.6 | % | 27.3 | % | |||
| Non-GAAP Results | |||||||
| Non-GAAP operating income | $ | 467 | $ | 399 | |||
| Non-GAAP operating margin | 29.6 | % | 27.3 | % | |||
| Display and Adjacent Markets | Q3 FY2024 | Q3 FY2023 | |||||
| (In millions, except percentages) | |||||||
| Net revenue | $ | 251 | $ | 235 | |||
| Operating income | $ | 16 | $ | 32 | |||
| Operating margin | 6.4 | % | 13.6 | % | |||
| Non-GAAP Results | |||||||
| Non-GAAP operating income | $ | 16 | $ | 32 | |||
| Non-GAAP operating margin | 6.4 | % | 13.6 | % | |||
| Corporate and Other | |||||||
| (In millions) | Q3 FY2024 | Q3 FY2023 | |||||
| Unallocated net revenue | $ | 23 | $ | 50 | |||
| Unallocated cost of products sold and expenses | (276 | ) | (247 | ) | |||
| Total | $ | (253 | ) | $ | (197 | ) | |
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 fourth 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 changes in interest rates and prices for goods and services; the implementation of additional export regulations and license requirements and their interpretation, 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; cybersecurity incidents affecting our information systems or information contained in them, or affecting our operations, suppliers, customers or vendors; 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 | Nine Months Ended | ||||||||||
| (In millions, except per share amounts) | July 28, 2024 | July 30, 2023 | July 28, 2024 | July 30, 2023 | |||||||
| Net revenue | $ | 6,778 | $ | 6,425 | $ | 20,131 | $ | 19,794 | |||
| Cost of products sold | 3,573 | 3,449 | 10,569 | 10,579 | |||||||
| Gross profit | 3,205 | 2,976 | 9,562 | 9,215 | |||||||
| Operating expenses: | |||||||||||
| Research, development and engineering | 836 | 767 | 2,375 | 2,313 | |||||||
| Marketing and selling | 205 | 193 | 621 | 584 | |||||||
| General and administrative | 222 | 214 | 745 | 635 | |||||||
| Total operating expenses | 1,263 | 1,174 | 3,741 | 3,532 | |||||||
| Income from operations | 1,942 | 1,802 | 5,821 | 5,683 | |||||||
| Interest expense | 63 | 60 | 181 | 180 | |||||||
| Interest and other income (expense), net | 81 | 64 | 617 | 41 | |||||||
| Income before income taxes | 1,960 | 1,806 | 6,257 | 5,544 | |||||||
| Provision for income taxes | 255 | 246 | 811 | 692 | |||||||
| Net income | $ | 1,705 | $ | 1,560 | $ | 5,446 | $ | 4,852 | |||
| Earnings per share: | |||||||||||
| Basic | $ | 2.06 | $ | 1.86 | $ | 6.57 | $ | 5.76 | |||
| Diluted | $ | 2.05 | $ | 1.85 | $ | 6.52 | $ | 5.73 | |||
| Weighted average number of shares: | |||||||||||
| Basic | 826 | 838 | 829 | 842 | |||||||
| Diluted | 833 | 843 | 835 | 846 | |||||||
| APPLIED MATERIALS, INC. | |||||
| UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS | |||||
| (In millions) | July 28, 2024 | October 29, 2023 | |||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 8,288 | $ | 6,132 | |
| Short-term investments | 815 | 737 | |||
| Accounts receivable, net | 4,970 | 5,165 | |||
| Inventories | 5,568 | 5,725 | |||
| Other current assets | 1,030 | 1,388 | |||
| Total current assets | 20,671 | 19,147 | |||
| Long-term investments | 2,981 | 2,281 | |||
| Property, plant and equipment, net | 3,100 | 2,723 | |||
| Goodwill | 3,732 | 3,732 | |||
| Purchased technology and other intangible assets, net | 262 | 294 | |||
| Deferred income taxes and other assets | 2,901 | 2,552 | |||
| Total assets | $ | 33,647 | $ | 30,729 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Short-term debt | $ | 99 | $ | 100 | |
| Accounts payable and accrued expenses | 4,387 | 4,297 | |||
| Contract liabilities | 2,742 | 2,975 | |||
| Total current liabilities | 7,228 | 7,372 | |||
| Long-term debt | 6,158 | 5,461 | |||
| Income taxes payable | 671 | 833 | |||
| Other liabilities | 750 | 714 | |||
| Total liabilities | 14,807 | 14,380 | |||
| Total stockholders’ equity | 18,840 | 16,349 | |||
| Total liabilities and stockholders’ equity | $ | 33,647 | $ | 30,729 | |
| APPLIED MATERIALS, INC. | |||||||||||||||
| UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||||
| (In millions) | Three Months Ended | Nine Months Ended | |||||||||||||
| July 28, 2024 | July 30, 2023 | July 28, 2024 | July 30, 2023 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net income | $ | 1,705 | $ | 1,560 | $ | 5,446 | $ | 4,852 | |||||||
| Adjustments required to reconcile net income to cash provided by operating activities: | |||||||||||||||
| Depreciation and amortization | 95 | 136 | 282 | 385 | |||||||||||
| Share-based compensation | 132 | 114 | 436 | 375 | |||||||||||
| Deferred income taxes | (179 | ) | (38 | ) | (385 | ) | (174 | ) | |||||||
| Other | 48 | 15 | (199 | ) | 189 | ||||||||||
| Net change in operating assets and liabilities | 584 | 796 | 522 | 1,518 | |||||||||||
| Cash provided by operating activities | 2,385 | 2,583 | 6,102 | 7,145 | |||||||||||
| Cash flows from investing activities: | |||||||||||||||
| Capital expenditures | (297 | ) | (255 | ) | (783 | ) | (797 | ) | |||||||
| Cash paid for acquisitions, net of cash acquired | — | (7 | ) | — | (25 | ) | |||||||||
| Proceeds from sales and maturities of investments | 382 | 302 | 1,495 | 971 | |||||||||||
| Purchases of investments | (745 | ) | (465 | ) | (1,968 | ) | (1,195 | ) | |||||||
| Cash used in investing activities | (660 | ) | (425 | ) | (1,256 | ) | (1,046 | ) | |||||||
| Cash flows from financing activities: | |||||||||||||||
| Debt borrowings, net of issuance costs | 694 | — | 694 | — | |||||||||||
| Proceeds from issuance of commercial paper | 100 | 297 | 300 | 892 | |||||||||||
| Repayments of commercial paper | (100 | ) | (300 | ) | (300 | ) | (700 | ) | |||||||
| Proceeds from common stock issuances | — | — | 119 | 111 | |||||||||||
| Common stock repurchases | (861 | ) | (439 | ) | (2,381 | ) | (1,489 | ) | |||||||
| Tax withholding payments for vested equity awards | (25 | ) | (11 | ) | (258 | ) | (165 | ) | |||||||
| Payments of dividends to stockholders | (331 | ) | (268 | ) | (863 | ) | (707 | ) | |||||||
| Repayments of principal on finance leases | 1 | 1 | (12 | ) | (8 | ) | |||||||||
| Cash used in financing activities | (522 | ) | (720 | ) | (2,701 | ) | (2,066 | ) | |||||||
| Increase (decrease) in cash, cash equivalents and restricted cash equivalents | 1,203 | 1,438 | 2,145 | 4,033 | |||||||||||
| Cash, cash equivalents and restricted cash equivalents—beginning of period | 7,175 | 4,695 | 6,233 | 2,100 | |||||||||||
| Cash, cash equivalents and restricted cash equivalents — end of period | $ | 8,378 | $ | 6,133 | $ | 8,378 | $ | 6,133 | |||||||
| Reconciliation of cash, cash equivalents, and restricted cash equivalents | |||||||||||||||
| Cash and cash equivalents | $ | 8,288 | $ | 6,025 | $ | 8,288 | $ | 6,025 | |||||||
| Restricted cash equivalents included in deferred income taxes and other assets | 90 | 108 | 90 | 108 | |||||||||||
| Total cash, cash equivalents, and restricted cash equivalents | $ | 8,378 | $ | 6,133 | $ | 8,378 | $ | 6,133 | |||||||
| Supplemental cash flow information: | |||||||||||||||
| Cash payments for income taxes | $ | 213 | $ | 197 | $ | 819 | $ | 418 | |||||||
| Cash refunds from income taxes | $ | 2 | $ | — | $ | 7 | $ | 51 | |||||||
| Cash payments for interest | $ | 35 | $ | 35 | $ | 137 | $ | 137 | |||||||
| Additional Information | |||||||
| Q3 FY2024 | Q3 FY2023 | ||||||
| Net Revenue by Geography (In millions) | |||||||
| United States | $ | 1,053 | $ | 1,039 | |||
| % of Total | 16 | % | 16 | % | |||
| Europe | $ | 339 | $ | 661 | |||
| % of Total | 5 | % | 10 | % | |||
| Japan | $ | 555 | $ | 478 | |||
| % of Total | 8 | % | 8 | % | |||
| Korea | $ | 1,102 | $ | 988 | |||
| % of Total | 16 | % | 15 | % | |||
| Taiwan | $ | 1,148 | $ | 1,345 | |||
| % of Total | 17 | % | 21 | % | |||
| Southeast Asia | $ | 428 | $ | 180 | |||
| % of Total | 6 | % | 3 | % | |||
| China | $ | 2,153 | $ | 1,734 | |||
| % of Total | 32 | % | 27 | % | |||
| Employees (In thousands) | |||||||
| Regular Full Time | 35.2 | 34.5 | |||||
| APPLIED MATERIALS, INC. | |||||||||||||||
| UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (In millions, except percentages) | July 28, 2024 | July 30, 2023 | July 28, 2024 | July 30, 2023 | |||||||||||
| Non-GAAP Gross Profit | |||||||||||||||
| GAAP reported gross profit | $ | 3,205 | $ | 2,976 | $ | 9,562 | $ | 9,215 | |||||||
| Certain items associated with acquisitions1 | 6 | 7 | 20 | 21 | |||||||||||
| Non-GAAP gross profit | $ | 3,211 | $ | 2,983 | $ | 9,582 | $ | 9,236 | |||||||
| Non-GAAP gross margin | 47.4 | % | 46.4 | % | 47.6 | % | 46.7 | % | |||||||
| Non-GAAP Operating Income | |||||||||||||||
| GAAP reported operating income | $ | 1,942 | $ | 1,802 | $ | 5,821 | $ | 5,683 | |||||||
| Certain items associated with acquisitions1 | 10 | 10 | 31 | 32 | |||||||||||
| Acquisition integration and deal costs | 1 | 6 | 9 | 20 | |||||||||||
| Non-GAAP operating income | $ | 1,953 | $ | 1,818 | $ | 5,861 | $ | 5,735 | |||||||
| Non-GAAP operating margin | 28.8 | % | 28.3 | % | 29.1 | % | 29.0 | % | |||||||
| Non-GAAP Net Income | |||||||||||||||
| GAAP reported net income | $ | 1,705 | $ | 1,560 | $ | 5,446 | $ | 4,852 | |||||||
| Certain items associated with acquisitions1 | 10 | 10 | 31 | 32 | |||||||||||
| Acquisition integration and deal costs | 1 | 6 | 9 | 20 | |||||||||||
| Realized loss (gain), dividends and impairments on strategic investments, net | 16 | (4 | ) | 12 | 109 | ||||||||||
| Unrealized loss (gain) on strategic investments, net | 25 | 6 | (275 | ) | 13 | ||||||||||
| Income tax effect of share-based compensation2 | 8 | 5 | (7 | ) | (6 | ) | |||||||||
| Income tax effects related to intra-entity intangible asset transfers | 17 | 9 | 57 | 25 | |||||||||||
| Resolution of prior years’ income tax filings and other tax items | (11 | ) | 10 | 22 | (22 | ) | |||||||||
| Income tax effect of non-GAAP adjustments3 | (4 | ) | (2 | ) | (2 | ) | (7 | ) | |||||||
| Non-GAAP net income | $ | 1,767 | $ | 1,600 | $ | 5,293 | $ | 5,016 | |||||||
| 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 | Nine Months Ended | |||||||||||||
| (In millions, except per share amounts) | July 28, 2024 | July 30, 2023 | July 28, 2024 | July 30, 2023 | ||||||||||
| Non-GAAP Earnings Per Diluted Share | ||||||||||||||
| GAAP reported earnings per diluted share | $ | 2.05 | $ | 1.85 | $ | 6.52 | $ | 5.73 | ||||||
| Certain items associated with acquisitions | 0.01 | 0.01 | 0.04 | 0.04 | ||||||||||
| Acquisition integration and deal costs | — | 0.01 | 0.01 | 0.02 | ||||||||||
| Realized loss (gain), dividends and impairments on strategic investments, net | 0.01 | — | 0.01 | 0.13 | ||||||||||
| Unrealized loss (gain) on strategic investments, net | 0.03 | — | (0.33 | ) | 0.01 | |||||||||
| Income tax effect of share-based compensation | 0.01 | 0.01 | (0.01 | ) | (0.01 | ) | ||||||||
| Income tax effects related to intra-entity intangible asset transfers | 0.02 | 0.01 | 0.07 | 0.03 | ||||||||||
| Resolution of prior years’ income tax filings and other tax items | (0.01 | ) | 0.01 | 0.03 | (0.02 | ) | ||||||||
| Non-GAAP earnings per diluted share | $ | 2.12 | $ | 1.90 | $ | 6.34 | $ | 5.93 | ||||||
| Weighted average number of diluted shares | 833 | 843 | 835 | 846 | ||||||||||
| APPLIED MATERIALS, INC. | |||||||||||||||
| UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (In millions, except percentages) | July 28, 2024 | July 30, 2023 | July 28, 2024 | July 30, 2023 | |||||||||||
| Semiconductor Systems Non-GAAP Operating Income | |||||||||||||||
| GAAP reported operating income | $ | 1,712 | $ | 1,568 | $ | 5,157 | $ | 5,138 | |||||||
| Certain items associated with acquisitions1 | 10 | 10 | 30 | 29 | |||||||||||
| Non-GAAP operating income | $ | 1,722 | $ | 1,578 | $ | 5,187 | $ | 5,167 | |||||||
| Non-GAAP operating margin | 35.0 | % | 33.7 | % | 35.2 | % | 34.9 | % | |||||||
| Applied Global Services Non-GAAP Operating Income | |||||||||||||||
| GAAP reported operating income | $ | 467 | $ | 399 | $ | 1,320 | $ | 1,128 | |||||||
| Non-GAAP operating income | $ | 467 | $ | 399 | $ | 1,320 | $ | 1,128 | |||||||
| Non-GAAP operating margin | 29.6 | % | 27.3 | % | 28.8 | % | 26.5 | % | |||||||
| Display and Adjacent Markets Non-GAAP Operating Income | |||||||||||||||
| GAAP reported operating income | $ | 16 | $ | 32 | $ | 46 | $ | 51 | |||||||
| Non-GAAP operating income | $ | 16 | $ | 32 | $ | 46 | $ | 51 | |||||||
| Non-GAAP operating margin | 6.4 | % | 13.6 | % | 6.8 | % | 8.9 | % | |||||||
| 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) | July 28, 2024 | ||
| GAAP provision for income taxes (a) | $ | 255 | |
| Income tax effect of share-based compensation | (8 | ) | |
| Income tax effects related to intra-entity intangible asset transfers | (17 | ) | |
| Resolutions of prior years’ income tax filings and other tax items | 11 | ||
| Income tax effect of non-GAAP adjustments | 4 | ||
| Non-GAAP provision for income taxes (b) | $ | 245 | |
| GAAP income before income taxes (c) | $ | 1,960 | |
| Certain items associated with acquisitions | 10 | ||
| Acquisition integration and deal costs | 1 | ||
| Realized loss (gain), dividends and impairments on strategic investments, net | 16 | ||
| Unrealized loss (gain) on strategic investments, net | 25 | ||
| Non-GAAP income before income taxes (d) | $ | 2,012 | |
| GAAP effective income tax rate (a/c) | 13.0 | % | |
| Non-GAAP effective income tax rate (b/d) | 12.2 | % | |
| UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (In millions) | July 28, 2024 | July 30, 2023 | July 28, 2024 | July 30, 2023 | |||||||||||
| Cash provided by operating activities | $ | 2,385 | $ | 2,583 | $ | 6,102 | $ | 7,145 | |||||||
| Capital expenditures | (297 | ) | (255 | ) | (783 | ) | (797 | ) | |||||||
| Non-GAAP free cash flow | $ | 2,088 | $ | 2,328 | $ | 5,319 | $ | 6,348 | |||||||
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