Applied Materials (Applied Materials (AMAT)) reported its fiscal second-quarter results after the bell on Thursday, and they were a clear win. The chip equipment maker posted revenue of $7.91 billion, beating the analyst consensus of $7.65 billion, and adjusted earnings of $2.86 per share, topping estimates of $2.66 per share.
Revenue climbed 11% from a year ago. Gross margin came in at 49.9% (50% on an adjusted basis), and the company generated $845 million in cash from operations. It returned $765 million to shareholders through buybacks and dividends, and ended the quarter with about $6.3 billion in cash.
CEO Gary Dickerson credited the strong performance to the global AI buildout: “The rapid global build-out of AI computing infrastructure, combined with Applied’s strong leadership positions in leading-edge logic, DRAM and advanced packaging, provides an exceptionally strong foundation for sustained, multi-year revenue and profit growth.”
Looking ahead, Applied Materials guided for third-quarter revenue of $8.95 billion (plus or minus $500 million), well above the $8.09 billion analysts were expecting. Adjusted earnings are expected between $3.16 and $3.56 per share, versus the $2.88 consensus. The company also raised its calendar-year growth forecast for its semiconductor equipment business to more than 30%, up from a prior 20%.
Investors liked what they heard. Shares of Applied Materials rose 3.5% in after-hours trading to $455.99. The company will discuss the quarter in more detail on its earnings call at 4:30 p.m. ET.
