Applied Materials (AMAT) Q4 2024 earnings summary

Executive summary

• Achieved record revenue and earnings in Q4 and fiscal 2024, marking five consecutive years of growth and strong performance across key metrics.

• Strengthened positions in logic, DRAM, and advanced packaging, with double-digit growth in parts and services and operational improvements.

• Focused on energy-efficient computing and AI as key industry growth drivers, with technology leadership and execution highlighted.

• Advanced R&D collaboration and expanded service offerings to address increasing industry complexity.

Financial highlights

• Fiscal 2024 net sales reached $27.2B, up 2.5% year-over-year, with gross profit of $12.9B and growth across all segments.

• Q4 net sales were $7.05B, up 5% year-over-year; non-GAAP EPS hit a record $2.32, up 9% year-over-year.

• Non-GAAP gross margin for the year was 47.6%, the highest since 2000; Q4 gross margin was 47.5%.

• Operating cash flow for the year was $8.7B; free cash flow was $7.5B.

• $5B returned to shareholders via dividends and buybacks in FY24.

Outlook and guidance

• Q1 FY25 revenue expected at $7.15B (+/- $400M), up ~7% year-over-year; non-GAAP EPS of $2.29 (+/- $0.18).

• Non-GAAP gross margin guided to 48.4% for Q1, with ongoing improvements in cost and pricing.

• Semiconductor systems revenue projected at $5.3B (+8% YoY), AGS at $1.65B (+12% YoY), display at $175M.