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Applied Materials External Fourth Quarter Fiscal 2025 Earnings Presentation NOVEMBER 13, 2025
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| Applied Materials External Forward-Looking Statements This presentation contains forward-looking statements, including those regarding anticipated growth and trends in our businessesand markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, our business outlook for the first quarter of fiscal 2026 and beyond, the anticipated impact of escalated trade tensions and increased tariffs and trade restrictions, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic, political and industry conditions, including changes in interest rates andprices for goods and services; the implementation of additional export regulations and license requirements and their interpretation, and their impact on our ability to export products and provide services to customers and on our results of operations; global trade issues and changes in trade and export license policies and our ability to obtain licenses or authorizations on a timely basis, if at all; imposition of new or increases intariffs and any retaliatory measures, including their impact on demand for our products and services; our ability to effectively mitigate the impact of tariffs; the effects of geopolitical turmoil or conflicts; demand for semiconductor chips and electronic devices; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; our ability to meet customer demand, and our suppliers’ ability to meet our demand requirements; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; cybersecurity incidents affecting our information systems or information contained in them, or affecting our operations, suppliers, customers or vendors; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; the effects of regional or global health epidemics; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations and other risks and uncertainties described in our SEC filings, including our recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them. 2
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Applied Materials External Gary Dickerson President and Chief Executive Officer
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| Applied Materials External Record Performance FISCAL YEAR 2025 4% YoY 9% YoY 120 bps $28.4B $9.42 48.8% * For reconciliation of GAAP to non-GAAP results, see appendix of this presentation and non-GAAP reconciliation on the investor relations page at www.appliedmaterials.com REVENUE NON-GAAP EARNINGS PER SHARE* NON-GAAP GROSS MARGIN* Sixth Consecutive Year of Growth Over this period, Applied has grown revenue at ~12% CAGR and earnings at ~20% CAGR 4
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| Applied Materials External FY25 REVIEW ▪ Revenue growth across segments » Semiconductor Systems Group | $20.8B, 4% YoY » Applied Global Services | $6.4B, 3% YoY ▪ Growth in FY25 tempered by increased trade restrictions and unfavorable market mix ▪ Expect FY26 spending mix to play to Applied’s strengths in leading-edge foundry logic, DRAM, and advanced packaging 5
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| Applied Materials External AI Accelerating Investment in Computing Infrastructure Compute demand drives semiconductor growth » Semiconductor industry forecast to grow at 10-15% CAGR over next five years » Customer ramps will support healthy growth in WFE VIRTUOUS CYCLE of Innovation and Demand Advances in AI computing New AI applications Demand for AI compute 6
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| Applied Materials External Energy-Efficient Computing Enabled by Materials Engineering Inflections grow the WFE market, increase relative mix of materials engineering, and provide opportunity to gain share AI DATA CENTER ENABLERS INFLECTIONS MATERIALS ENGINEERING LEADERSHIP Leading-Edge Logic Gate-all-around transistors Backside power delivery ✓ High-Performance DRAM 4F2 3D DRAM ✓ DRAM Die Stacking High-Bandwidth Memory (HBM) Hybrid bonding Substrates ✓ Advanced Packaging ✓ Power Electronics Compound semi (SiC, GaN) ✓ 7
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| Applied Materials External Partner with customers to see technology inflections early Focus R&D on the most critical and valuable challenges using deep co-innovation models Create highly differentiated solutions by connecting our broad portfolio INFLECTION- FOCUSED INNOVATION 8
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| Applied Materials External Kinex Integrated Die-to-Wafer Hybrid Bonding System PROVision 10 eBeam Metrology Applied Centura Xtera Epi New Products Exemplify Inflection-Focused Innovation Strategy » Extends eBeam leadership with first use of CFE for metrology in industry » Designed to improve yield, increase image resolution and speed for 3D devices » Enables improvement in performance, power and cost for complex multi-chip packages » Provides higher-accuracy bonding, smaller interconnect pitches, and higher yields Cold Field Emission (CFE) » Creates void-free structures for higher transistor speeds » Integrates epi, cleaning and etch to improve uniformity and lower gas usage 9
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| Applied Materials External ON TRACK TO BEGIN OPERATIONS IN 2026 » Home to Applied’s high-velocity co-innovation model » Provides earlier access to next- generation process technology » Accelerates new chip and system architectures 10
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| Applied Materials External APPLIED GLOBAL SERVICES ® ▪ Helping customers manage increasing complexity as they ramp next generation technology into high volume manufacturing ▪ Greater than two-thirds of Core AGS revenue is from subscriptions ▪ Rapidly adopting AI and digital tools to drive higher velocity and productivity Core parts and services business delivered double-digit growth in FY25 11
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| Applied Materials External CEO SUMMARY ▪ Sixth consecutive year of growth, despite trade restrictions and unfavorable market mix ▪ Substantial investment in AI computing infrastructure expected to drive growth in semiconductors and WFE ▪ Inflection-focused innovation strategy positions us well at the highest-value technology infections ▪ Extending leadership in logic, DRAM, and packaging as next-generation technologies ramp in volume production 12
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Applied Materials External Brice Hill SVP, Chief Financial Officer
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| Applied Materials External CFO OVERVIEW ▪ FY25: Record revenue, gross margin dollars, operating profit and EPS ▪ Applied in a great position to benefit from favorable market trends ▪ AI data center driving leading-edge foundry-logic, DRAM and HBM to be the fastest growing areas of the semiconductor equipment market – Applied has strong leadership in these segments today ▪ R&D focused on new technologies to enable faster and more energy-efficient transistors, chips and systems ▪ Preparing our operations and service organizations to support higher demand beginning in the second half of calendar 2026, based on customer conversations 14
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| Applied Materials External * For reconciliation of GAAP to non-GAAP results, see appendix of this presentation and non-GAAP reconciliation on the investor relations website at ir.appliedmaterials.com $M, except EPS FY2024 FY2025 YoY Revenue 27,176 28,368 4 % Gross Margin* 47.6% 48.8% 120bps Operating Expenses* 5,002 5,273 5 % Operating Income* 7,924 8,562 8 % Operating Margin* 29.2% 30.2% 100bps EPS* $8.65 $9.42 9 % FY2025 Non-GAAP Financial Results YEAR-OVER-YEAR HIGHLIGHTS: ▪ Growth across all segments ▪ Record revenue in Taiwan and Korea ▪ Semi Systems +4% Y/Y , even as impact of trade restrictions significantly reduced China market access » Record foundry revenue globally » Record DRAM sales outside China ▪ AGS record revenue, +3% Y/Y » Recurring parts, services and software grew double digits; 200mm business declined ▪ Highest GM% in 25 years » Price increases and richer mix of advanced systems more than offset cost increases ▪ Opex growth driven by 10% R&D increase 15
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| Applied Materials External CASH FLOWS ($M) FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 FY25 Operating Cash Flow 2,575 925 1,571 2,634 2,828 7,958 Free Cash Flow* 2,168 544 1,061 2,050 2,043 5,698 SHAREHOLDER DISTRIBUTIONS ($M) Total Shareholder Distributions (1,771) (1,644) (1,995) (1,424) (1,216) (6,279) Share Repurchases (1,442) (1,318) (1,670) (1,056) (851) (4,895) Dividends (329) (326) (325) (368) (365) (1,384) Committed to distribute 80–100% of FCF to shareholders over time $14.0B remaining on share repurchase authorization at end of FQ4'25 * For reconciliation of GAAP to non-GAAP results, see appendix of this presentation and non-GAAP reconciliation on the investor relations website at ir.appliedmaterials.com Cash Flows and Shareholder Distributions 16
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| Applied Materials External * For reconciliation of GAAP to non-GAAP results, see appendix of this presentation and non-GAAP reconciliation on the investor relations website at ir.appliedmaterials.com $M, except EPS FQ4'24 FQ3'25 FQ4'25 YoY Revenue 7,045 7,302 6,800 (3)% Gross Margin* 47.5% 48.9% 48.1% 60bps Operating Expenses* 1,281 1,324 1,325 3 % Operating Income* 2,063 2,245 1,947 (6)% Operating Margin* 29.3% 30.7% 28.6% -70bps EPS* $2.32 $2.48 $2.17 (6)% FQ4'25 Non-GAAP Financial Results 17
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| Applied Materials External SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES FQ4’25 Segment Results 1,639 1,594 1,566 1,600 1,625 30% 28% 29% 28% 28% Q4F24 Q1F25 Q2F25 Q3F25 Q4F25 Non-GAAP Operating Margin* 5,177 5,356 5,255 5,427 4,760 35% 37% 36% 36% 32% Q4F24 Q1F25 Q2F25 Q3F25 Q4F25 * For reconciliation of GAAP to non-GAAP results, see appendix of this presentation and non-GAAP reconciliation on the investor relations website at ir.appliedmaterials.com Non-GAAP Operating Margin* Revenue ($M) Revenue ($M) 18
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| Applied Materials External ▪ Implementing several reporting changes to help drive further efficiency gains and give investors more visibility into our semiconductor and services businesses ▪ Display business being reported in Corporate and Other, as of FQ4’25 » No change to our Display strategy ▪ 200mm equipment business moving from AGS to Semi Systems, as of FQ1’26 » Increase operational efficiency and enable visibility to all our semiconductor systems revenue in one place » AGS will consist entirely of recurring revenue, making it easier to track our subscription-like growth in services ▪ Fully allocating corporate support costs to our businesses, as of FQ1’26 » Give our teams better visibility and opportunity to optimize these costs REPORTING CHANGES 19
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| Applied Materials External First QUARTER FISCAL 2026 OUTLOOK* Total Revenue ~$6.850B ± $500M Non-GAAP EPS* ~$2.18 ± $0.20 REVENUE Semiconductor Systems (now includes 200mm equipment) ~$5.025B** Applied Global Services (now excludes 200mm equipment) ~$1.520B** Corporate and Other ~$305M OTHER Non-GAAP Gross Margin* ~48.4% Non-GAAP Operating Expenses* ~$1.330B Non-GAAP Tax Rate* ~13% * For reconciliation of GAAP to non-GAAP results, see appendix of this presentation and non-GAAP reconciliation on the investor relations website at ir.appliedmaterials.com **200mm equipment business is in Semiconductor Systems effective FQ1’26. Previously, 200mm equipment business in Applied Global Services Business Outlook 20
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&
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| Applied Materials External Shares Outstanding at FY End Quarterly Dividend per Share OVER PAST 10 FISCAL YEARS (through FY25) » Reinvested nearly $25B in R&D and >$8B in capital additions » Distributed nearly 90% of FCF* » Grew dividend per share at 16% CAGR » Reduced shares outstanding by ~32% 1. Invest in R&D and infrastructure to enable profitable growth 2. Grow dividend per share and use buybacks to distribute excess FCF Committed to distribute 80–100% of FCF to shareholders over time (Millions) $14.0B remaining on share repurchase authorization at end of FQ4'25 * For reconciliation of GAAP to non-GAAP results, see appendix of this presentation and non-GAAP reconciliation on the investor relations website at ir.appliedmaterials.com - 200 400 600 800 1,000 1,200 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Capital Allocation Strategy 22
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| Applied Materials External CASH AND INVESTMENTS ($M) FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 Cash and Cash Equivalents 8,022 6,264 6,169 5,384 7,241 Short-Term Investments 1,449 1,949 578 1,630 1,332 Long-Term Investments 2,787 2,686 3,638 4,133 4,327 Total Cash and Investments 12,258 10,899 10,385 11,147 12,900 DEBT ($M) Short-Term Debt* Current ratings (Moody’s / S&P): P-1 / A-1 799 799 799 799 100 Long-Term Debt Current ratings (Moody’s / S&P): A2 / A 5,460 5,461 5,462 5,463 6,455 Total Debt 6,259 6,260 6,261 6,262 6,555 * Includes commercial paper and current portion of long-term debt Strong Investment-Grade Balance Sheet 23
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| Applied Materials External LATEST 3rd PARTY ESG RATINGS CDP Climate B CDP Water A- MSCI AAA Sustainalytics Risk Rating Low ISS (E/S/G) 3/3/1 Links: 2024 Impact Report 24
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| Applied Materials External Investor Relations Home Page LINK Newsroom LINK 2025 SEMICON West Technology Breakfast LINK 2025: Applied Materials Panel Discussion during SPIE Conference LINK 2024: SEMICON West Technology Breakfast LINK 2024: 2023 WFE Market Summary LINK 2024: Applied Materials Panel Discussion during SPIE Conference LINK 25 Additional Resources
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| Applied Materials External Appendix GAAP to Non-GAAP Reconciliations 26
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| Applied Materials External Use of Non-GAAP Adjusted Financial Measures Applied provides investors with certain non-GAAP financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including certain items related to mergers and acquisitions; restructuring and severance charges and any associated adjustments; impairments of assets; gain or loss, dividends and impairments on strategic investments; certain income tax items and other discrete adjustments. On a non-GAAP basis, the tax effect related to share-based compensation is recognized ratably over the fiscal year. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the appendix to this presentation and on Applied’s website, ir.appliedmaterials.com. Management uses these non-GAAP financial measures to evaluate the company’s operating and financial performance and for planning purposes, and as performance measures in its executive compensation program. Applied believes these measures enhance an overall understanding of its performance and investors’ ability to review the company’s business from the same perspective as the company’s management, and facilitate comparisons of this period’s results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Applied's ongoing operating performance. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. 27
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| Applied Materials External UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PERCENTAGES FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 Non-GAAP Gross Profit GAAP reported gross profit $ 3,335 $ 3,496 $ 3,485 $ 3,562 $ 3,265 Certain items associated with acquisitions 1 6 7 6 7 7 Impairment of long-lived assets 3 — — — — Non-GAAP gross profit $ 3,344 $ 3,503 $ 3,491 $ 3,569 $ 3,272 Non-GAAP gross margin 47.5 % 48.9 % 49.2 % 48.9 % 48.1 % Non-GAAP Operating Income GAAP reported operating income $ 2,046 $ 2,175 $ 2,169 $ 2,233 $ 1,712 Certain items associated with acquisitions1 11 12 11 11 11 Acquisition integration and deal costs 3 3 — 1 2 Impairment of goodwill and other long-lived assets 3 — — — 41 Restructuring charges2 — — — — 181 Non-GAAP operating income $ 2,063 $ 2,190 $ 2,180 $ 2,245 $ 1,947 Non-GAAP operating margin 29.3 % 30.6 % 30.7 % 30.7 % 28.6 % Non-GAAP Net Income GAAP reported net income $ 1,731 $ 1,185 $ 2,137 $ 1,779 $ 1,897 Certain items associated with acquisitions1 11 12 11 11 11 Acquisition integration and deal costs 3 3 — 1 2 Impairment of goodwill and other long-lived assets 3 — — — 41 Restructuring charges2 — — — — 181 Realized loss (gain), dividends and impairments on strategic investments, net (1) (9) (18) 16 (55) Unrealized loss (gain) on strategic investments, net 244 106 (80) (314) (467) Foreign exchange loss (gain) related to purchase of strategic investment — — 23 — — Loss (gain) on asset sale — — (44) — — Income tax effect of share-based compensation3 7 (10) 4 7 (1) Income tax effect related to intra-entity intangible asset transfers4 (33) 674 32 32 39 Resolution of prior years' income tax filings and other tax items5 (47) (16) (124) 460 (7) Income tax effect of non-GAAP adjustments6 (1) 1 (1) (3) 91 Non-GAAP net income $ 1,917 $ 1,946 $ 1,940 $ 1,989 $ 1,732 FOOTNOTES: 1. These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. 2. The restructuring charges related to a workforce reduction plan announced in the fourth quarter of fiscal 2025. 3. GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis. 4. Amount for the first quarter of fiscal 2025 included changes to the income tax provision of $30 million from amortization of intangibles and a $644 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in fiscal 2025. 5. Amount for the third quarter of fiscal 2025 included the impact of the recognition of a $410 million valuation allowance against deferred tax assets related to corporate alternative minimum tax credits. 6. Adjustment to provision for income taxes related to non- GAAP adjustments reflected in income before income taxes. 28
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| Applied Materials External FOOTNOTES: 1. These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. 2. The restructuring charges related to a workforce reduction plan announced in the fourth quarter of fiscal 2025. 3. GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis. 4. Amount for the first quarter of fiscal 2025 included changes to the income tax provision of $0.04 per diluted share from amortization of intangibles and $0.79 per diluted share from a remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in fiscal 2025. 5. Amount for the third quarter of fiscal 2025 included a $0.51 per diluted share impact of the recognition of a valuation allowance against deferred tax assets related to corporate alternative minimum tax credits. UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 Non-GAAP Earnings Per Diluted Share GAAP reported earnings per diluted share $ 2.09 $ 1.45 $ 2.63 $ 2.22 $ 2.38 Certain items associated with acquisitions1 0.01 0.01 0.01 0.01 0.01 Impairment of goodwill and other long-lived assets — — — — 0.05 Restructuring charges2 — — — — 0.19 Realized loss (gain), dividends and impairments on strategic investments, net — (0.01) (0.02) 0.02 (0.07) Unrealized loss (gain) on strategic investments, net 0.30 0.13 (0.10) (0.39) (0.43) Foreign exchange loss (gain) related to purchase of strategic investment — — 0.03 — — Loss (gain) on asset sale — — (0.05) — — Income tax effect of share-based compensation3 0.01 (0.01) — 0.01 — Income tax effects related to intra-entity intangible asset transfers4 (0.04) 0.83 0.04 0.04 0.05 Resolution of prior years' income tax filings and other tax items5 (0.05) (0.02) (0.15) 0.57 (0.01) Non-GAAP earnings per diluted share $ 2.32 $ 2.38 $ 2.39 $ 2.48 $ 2.17 Weighted average number of diluted shares 828 819 812 802 798 29
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| Applied Materials External UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP SEGMENT OPERATING RESULTS NOTE: The reconciliation of GAAP and non-GAAP adjusted segment results above does not include certain revenues, costs of products sold and operating expenses that are reported within corporate and other and included in consolidated operating income. FOOTNOTE: 1. These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. IN MILLIONS, EXCEPT PERCENTAGES FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 Semiconductor Systems Non-GAAP Operating Income GAAP reported operating income $ 1,824 $ 1,986 $ 1,900 $ 1,966 $ 1,527 Certain items associated with acquisitions1 10 12 11 11 11 Non-GAAP operating income $ 1,834 $ 1,998 $ 1,911 $ 1,977 $ 1,538 Non-GAAP operating margin 35.4 % 37.3 % 36.4 % 36.4 % 32.3 % AGS Non-GAAP Operating Income GAAP reported operating income $ 492 $ 447 $ 446 $ 445 $ 454 Non-GAAP operating income $ 492 $ 447 $ 446 $ 445 $ 454 Non-GAAP operating margin 30.0 % 28.0 % 28.5 % 27.8 % 27.9 % 30
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| Applied Materials External UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES IN MILLIONS FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 GAAP reported Operating Expenses $ 1,289 $ 1,321 $ 1,316 $ 1,329 $ 1,553 Certain items associated with acquisitions1 (5) (5) (5) (4) (4) Acquisition integration and deal costs (3) (3) — (1) (2) Impairment of goodwill and other long-lived assets — — — — (41) Restructuring charges2 — — — — (181) Non-GAAP operating expenses $ 1,281 $ 1,313 $ 1,311 $ 1,324 $ 1,325 FOOTNOTE: 1. These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. 2. The restructuring charges related to a workforce reduction plan announced in the fourth quarter of fiscal 2025. 31
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| Applied Materials External UNAUDITED QUARTERLY RECONCILIATION OF NON-GAAP FREE CASH FLOW IN MILLIONS FQ4'24 FQ1'25 FQ2'25 FQ3'25 FQ4'25 Non-GAAP Free Cash Flows1 Cash provided by operating activities $ 2,575 $ 925 $ 1,571 $ 2,634 $ 2,828 Capital expenditures (407) (381) (510) (584) (785) Non-GAAP free cash flow $ 2,168 $ 544 $ 1,061 $ 2,050 $ 2,043 FOOTNOTE: 1. Free cash flow is a non-GAAP measure and is defined as net cash provided by operating activities less capital expenditures. 32
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| Applied Materials External UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PERCENTAGES FY2024 FY2025 Non-GAAP Gross Profit GAAP reported gross profit $ 12,897 $ 13,808 Certain items associated with acquisitions 1 26 27 Impairment of long-lived assets 3 — Non-GAAP gross profit $ 12,926 $ 13,835 Non-GAAP gross margin 47.6 % 48.8 % Non-GAAP Operating Income GAAP reported operating income $ 7,867 $ 8,289 Certain items associated with acquisitions1 42 45 Acquisition integration and deal costs 12 6 Impairment of goodwill and other long-lived assets 3 41 Restructuring charges2 — 181 Non-GAAP operating income $ 7,924 $ 8,562 Non-GAAP operating margin 29.2 % 30.2 % Non-GAAP Net Income GAAP reported net income $ 7,177 $ 6,998 Certain items associated with acquisitions1 42 45 Acquisition integration and deal costs 12 6 Impairment of goodwill and other long-lived assets 3 41 Restructuring charges2 — 181 Realized loss (gain), dividends and impairments on strategic investments, net 11 (66) Unrealized loss (gain) on strategic investments, net (31) (755) Foreign exchange loss (gain) related to purchase of strategic investment — 23 Loss (gain) on asset sale — (44) Income tax effect related to intra-entity intangible asset transfers3 24 777 Resolution of prior years' income tax filings and other tax items4 (25) 313 Income tax effect of non-GAAP adjustments5 (3) 88 Non-GAAP net income $ 7,210 $ 7,607 FOOTNOTES: 1. These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. 2. The restructuring charges related to a workforce reduction plan announced in the fourth quarter of fiscal 2025. 3. Amount for the fiscal 2025 included changes to the income tax provision of $118 million from amortization of intangibles and a $659 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in fiscal 2025. 4. Amount for the fiscal 2025 included the impact of the recognition of a $403 million valuation allowance against deferred tax assets related to corporate alternative minimum tax credits. 5. Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. 33
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| Applied Materials External FOOTNOTES: 1. These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. 2. The restructuring charges related to a workforce reduction plan announced in the fourth quarter of fiscal 2025. 3. Amount for the fiscal 2025 included changes to the income tax provision of $0.14 per diluted share from amortization of intangibles and $0.82 per diluted share from a remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in fiscal 2025. 4. Amount for the fiscal 2025 included a $0.50 per diluted share impact of the recognition of a valuation allowance against deferred tax assets related to corporate alternative minimum tax credits. UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS FY2024 FY2025 Non-GAAP Earnings Per Diluted Share GAAP reported earnings per diluted share $ 8.61 $ 8.66 Certain items associated with acquisitions1 0.05 0.05 Acquisition integration and deal costs 0.01 0.01 Impairment of goodwill and other long-lived assets — 0.05 Restructuring charges2 — 0.19 Realized loss (gain), dividends and impairments on strategic investments, net 0.01 (0.08) Unrealized loss (gain) on strategic investments, net (0.03) (0.80) Foreign exchange loss (gain) related to purchase of strategic investment — 0.03 Loss (gain) on asset sale — (0.04) Income tax effects related to intra-entity intangible asset transfers3 0.03 0.96 Resolution of prior years' income tax filings and other tax items4 (0.03) 0.39 Non-GAAP earnings per diluted share $ 8.65 $ 9.42 Weighted average number of diluted shares 834 808 34
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| Applied Materials External UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP SEGMENT OPERATING RESULTS NOTE: The reconciliation of GAAP and non-GAAP adjusted segment results above does not include certain revenues, costs of products sold and operating expenses that are reported within corporate and other and included in consolidated operating income. FOOTNOTE: 1. These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. IN MILLIONS, EXCEPT PERCENTAGES FY2024 FY2025 Semiconductor Systems Non-GAAP Operating Income GAAP reported operating income $ 6,981 $ 7,379 Certain items associated with acquisitions1 40 45 Non-GAAP operating income $ 7,021 $ 7,424 Non-GAAP operating margin 35.3 % 35.7 % AGS Non-GAAP Operating Income GAAP reported operating income $ 1,812 $ 1,792 Non-GAAP operating income $ 1,812 $ 1,792 Non-GAAP operating margin 29.1 % 28.1 % 35
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| Applied Materials External UNAUDITED FULL YEAR RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES IN MILLIONS FY2024 FY2025 GAAP reported Operating Expenses $ 5,030 $ 5,519 Certain items associated with acquisitions1 (16) (18) Acquisition integration and deal costs (12) (6) Impairment of goodwill and other long-lived assets — (41) Restructuring charges2 — (181) Non-GAAP operating expenses $ 5,002 $ 5,273 FOOTNOTE: 1. These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. 2. The restructuring charges related to a workforce reduction plan announced in the fourth quarter of fiscal 2025. 36
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| Applied Materials External UNAUDITED FULL YEAR RECONCILIATION OF NON-GAAP FREE CASH FLOW FOOTNOTE: 1. Free cash flow is a non-GAAP measure and is defined as net cash provided by operating activities less capital expenditures. IN MILLIONS FY2016 FY2017 FY2018 FY2019 FY2020 Non-GAAP Free Cash Flows1 Cash provided by operating activities $ 2,566 $ 3,789 $ 3,787 $ 3,247 $ 3,804 Capital expenditures (253) (345) (622) (441) (422) Non-GAAP free cash flow $ 2,313 $ 3,444 $ 3,165 $ 2,806 $ 3,382 IN MILLIONS FY2021 FY2022 FY2023 FY2024 FY2025 Non-GAAP Free Cash Flows1 Cash provided by operating activities $ 5,442 $ 5,399 $ 8,700 $ 8,677 $ 7,958 Capital expenditures (668) (787) (1,106) (1,190) (2,260) Non-GAAP free cash flow $ 4,774 $ 4,612 $ 7,594 $ 7,487 $ 5,698 37
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| Applied Materials External RECONCILIATION INFORMATION FOR BUSINESS OUTLOOK Non-GAAP outlook for the first quarter of fiscal 2026 (including non-GAAP gross margin, operating margin, operating expenses and EPS) excludes known charges related to completed acquisitions of approximately $11 million and includes a net income tax benefit related to intra-entity intangible asset transfers of approximately $33 million, but does not reflect any items that are unknown at this time, such as any additional charges related to acquisitions or other non-operational or unusual items, as well as other tax-related items, which we are not able to predict without unreasonable efforts due to their inherent uncertainty. 38