"Performance" Applied Materials' quarterly sales fell short of expectations, and the stock price dropped 5.7% after the market

American chip equipment manufacturer Applied Materials (AMAT.US) announced its fiscal second quarter results for the fiscal year 2025 ending April 27. Quarterly net profit rose 24% year-on-year to $2.137 billion, with diluted earnings per share of $2.63, adjusted to $2.39, exceeding market expectations of $2.31. Quarterly net revenue increased 7% year-on-year to $7.1 billion, while market expectations were $7.13 billion.

The company's quarterly chip systems segment revenue was $5.26 billion, falling short of market expectations of $5.32 billion. The company stated that investments in the Internet of Things, communications, automotive, power, and sensors have slowed, partially offset by advanced chip investments. Due to U.S. export controls, the proportion of sales to China during the quarter fell 18 percentage points year-on-year to 25%. The company forecasts net revenue for the current fiscal quarter to be between $6.7 billion and $7.7 billion, while market expectations are $7.19 billion; adjusted diluted earnings per share are expected to be between $2.15 and $2.55.

Applied Materials' stock price fell 5.7% in after-hours trading, closing at $164.85