Applied Materials Reports Q2 Earnings Beat Amid Revenue Growth

Applied Materials reported strong second-quarter earnings for fiscal 2025, with adjusted earnings per share rising to $2.39 and net sales increasing to $7.10 billion, reflecting stable demand in the semiconductor market. The company projects a 6% revenue increase to $7.2 billion in fiscal Q3 2025, slightly exceeding analyst expectations, supported by robust demand in semiconductor systems and DRAM investments. Despite the solid earnings beat, Applied Materials shares dropped over 5% in after-hours trading due to revenue falling short of projections and broader tech sector challenges. Wall Street analysts maintain an "Outperform" rating on AMAT with an average price target of $201.02, implying a potential upside of about 15%, though GuruFocus estimates a slight downside fair value of $168.87. CEO Gary Dickerson highlighted the company’s broad product portfolio and strong long-term revenue growth, signaling confidence amidst a dynamic macroeconomic environment.