Applied Materials increased its quarterly cash dividend to $0.46 per share, a 15 % rise from the $0.40 dividend paid in the prior year. The board’s decision follows the company’s eighth consecutive year of dividend growth and is backed by a robust free‑cash‑flow position of $5.7 billion in fiscal 2025.
Fiscal 2025 was a record year for the company, with revenue of $28.37 billion and a non‑GAAP earnings per share of $2.17, beating consensus estimates by $0.05. Gross margin expanded to 48.8 %, up 120 basis points, driven by a higher mix of advanced semiconductor systems that command premium pricing and by operational leverage as production volumes grew.
The surge in demand for artificial‑intelligence infrastructure has been a key driver of the company’s performance. Advanced memory and logic chips, which are essential for AI workloads, saw strong sales growth, while the company’s display and adjacent markets continued to contribute steady revenue. CEO Gary Dickerson noted that “the company delivered its sixth consecutive year of growth in fiscal 2025, driven by AI adoption and demand for advanced semiconductors.”
Applied Materials has returned nearly $6.3 billion to shareholders in FY 2025 through dividends and share repurchases, and it still has $14 billion of share‑repurchase authorization available. The dividend increase signals confidence in the company’s ability to sustain cash generation while funding future growth initiatives.
Headwinds remain, notably U.S. export restrictions and a decline in revenue from China, which accounted for 29 % of total revenue in Q4 2025. Management has expressed confidence that the company’s strategic focus on AI and advanced packaging will offset these challenges, and analysts have maintained a positive outlook on the company’s long‑term trajectory.
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