Applied Materials, Inc. Q4 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter & Full-Year Highlights

  • Q4 revenue reached $7.05B, up nearly 5% year-over-year.
  • Full-year FY24 revenue was $27.2B, growing 2.5% year-over-year and marking the company’s fifth consecutive year of growth.
  • Non-GAAP EPS for Q4 was a record $2.32 (up 9% YoY); full-year EPS reached $8.65 (up 7.5% YoY).
  • Non-GAAP gross margin for FY24 rose to 47.6%, the highest since FY2000 (+80 bps YoY), driven by value-based pricing and operational improvements.
  • Operating cash flow for FY24 was $8.7B, with $5B returned to shareholders (75% increase in share repurchases vs. FY23).

Business Momentum & Strategic Themes

  • The company emphasized AI as a key secular driver, citing the industry's need for 10,000× higher computing performance-per-watt over 15 years.
  • Major device architecture inflections such as gate-all-around (GAA), backside power distribution, 4F² DRAM, 3D DRAM, and advanced packaging are increasingly reliant on materials engineering—Applied’s core strength.
  • Integrated Materials Solutions (IMS) — combined deposition, etch, and modification in one system — now represent about 30% of Semiconductor Systems revenue and are expected to grow further.
  • Parts and services (AGS) achieved its 21st consecutive quarter of YoY revenue growth and a record year with strong subscription-based agreements.

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Operator: Welcome to the Applied Materials Fourth Quarter Fiscal 2024 Earnings Conference Call. During the prepared remarks, all participants will be in a listen-only mode. Afterwards, there will be a question-and-answer session. I would now like to turn the call over to Liz Morali, Vice President of Investor Relations. Liz, you may begin. Liz Morali: Thank you. Good afternoon, and thank you for joining us for today's call. With me today are Gary Dickerson, President and CEO; and Brice Hill, CFO. Before we continue, let me remind you that today's discussion contains forward-looking statements within the meaning of the federal securities laws, including predictions, estimates, projections, or other statements about future events. Actual results may differ materially from those mentioned in these forward-looking statements, as a result of risks and uncertainties. Information concerning these risks and uncertainties is discussed in our most recent Form 10-Q and 8-K filings with the SEC. We do not intend to update any forward-looking statements. During today's call, we will also reference non-GAAP financial measures. Reconciliations of GAAP to non-GAAP results can be found in today's earnings press release and in our quarterly earnings materials, which are available on our Investor Relations website at ir.appliedmaterials.com. I will now turn the call over to Gary. Gary Dickerson: Thanks, Liz. With record revenue and earnings in our fourth quarter, Applied Materials delivered a s

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