Applied Materials: Dividend Strength Meets Market Skepticism

As semiconductor equipment providers navigate the AI revolution, Applied Materials presents a compelling dichotomy: record-breaking profitability and shareholder returns on one side, growing analyst concerns and competitive pressures on the other. The company’s ability to leverage its financial power into sustained growth remains the central question for investors.

Applied Materials continues to demonstrate operational excellence, delivering third-quarter 2025 results that surpassed market expectations. The company reported earnings per share of $2.48, exceeding the projected $2.36, while revenue reached $7.30 billion compared to anticipated $7.21 billion?representing a 7.7% year-over-year increase.

Margin expansion remains particularly impressive, with non-GAAP gross margins climbing 150 basis points and operating margins advancing 190 basis points in Q3 2025. The company achieved a gross margin of 49.2% in Q2 2025, marking its highest level since 2000 and... Read more...