Predicted revenues drop for Q4 to $6.7 billion by Applied Materials amidst uncertainty in China and delayed progress in leading-edge logic
On a recent earnings call, Applied Materials (AMAT) shared its financial status for the third quarter of 2025 and provided insights into the expectations for the fourth quarter. The call, which is a common practice for publicly traded companies, is a significant event for investors and financial analysts.
During the call, Gary Dickerson, President and CEO of AMAT, reported a "record performance" for Q3 2025, with the company's financial performance being "fueled by strong broad-based demand for semiconductor systems and services." However, Dickerson also announced that "we expect revenue and earnings to be sequentially lower in our fourth quarter."
The anticipated lower revenue and earnings in Q4 2025 are primarily due to several factors. One of these factors is the increasing uncertainty and lower visibility due to the challenging macroeconomic environment globally. Another factor is trade issues, particularly impacting AMAT's business in China, including pending export license approvals not yet received.
Additionally, there is the issue of digestion of capacity in China following heavy equipment investments in 2023 and 2024, leading to softer near-term demand. Furthermore, nonlinear demand from leading-edge customers, caused by market concentration and timing issues with semiconductor fabs, particularly delaying leading-edge logic production, is also affecting the company's Q4 2025 financial performance.
These factors led the company to guide Q4 2025 revenue of $6.7 billion and adjusted EPS of $2.11, both notably below Wall Street estimates and prior quarter results ($7.3 billion revenue, $2.48 EPS).
The Q4 2025 financial performance expectations for Applied Materials may impact the company's stock price and market position. The anticipated lower revenue and earnings could potentially influence future investment decisions regarding the company. The call was a public event, likely accessible to shareholders and financial analysts.
In conclusion, while AMAT reported a record performance for Q3 2025, the anticipated lower revenue and earnings in Q4 2025 are a cause for concern. The company is facing several challenges, including the challenging macroeconomic environment, trade issues, and digestion of capacity in China, among others. Investors and financial analysts will be closely watching these developments as they unfold.
[1] Wall Street Journal [2] Reuters [3] MarketWatch
The financial performance expectations for Applied Materials, as guided for Q4 2025, could potentially influence future investment decisions in the finance industry, especially since these expectations are notably below Wall Street estimates and prior quarter results. In the technology sector, these anticipations may impact the company's stock price and market position, given the challenges faced by AMAT, such as the challenging macroeconomic environment, trade issues, and digestion of capacity in China, among others.
