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Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

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Semiconductor Systems

- Foundry, Logic, and Other

- DRAM

- Flash Memory

Silicon Systems Group

Applied Global Services

Display

Display and Adjacent Markets

Energy and Environmental Solutions

Corporate and Other

Total Revenue

f97e7863aed5883588038037fda3b638b9ce572f65fe7aa6cea75f701c43e3fb

Days sales outstanding of accounts receivable (days)

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a65756fa74fbaeca58aac3ff8d9692293fc6961ea733a94d5ce21c516ce1e542

Net Revenue (USD, millions)

Cost of Products Sold (USD, millions)

Gross Profit (USD, millions)

Research, Development and Engineering Expenses (USD, millions)

Marketing and Selling Expenses (USD, millions)

General and Administrative Expenses (USD, millions)

Severance and Related Charges (USD, millions)

Total Operating Expenses (USD, millions)

Income from Operations (USD, millions)

Interest Expense (USD, millions)

Interest and Other Income (Expense), Net (USD, millions)

Income Before Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Net Income (USD, millions)

456cd47385f9ae8c72d1a59393610aca33e74c42f831d45ad2ffcaf39e5cbf4d

Cash and cash equivalents (USD, millions)

Short-term investments (USD, millions)

Accounts receivable, net (USD, millions)

Inventories (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Long-term investments (USD, millions)

Property, plant and equipment, net (USD, millions)

Goodwill (USD, millions)

Purchased technology and other intangible assets, net (USD, millions)

Deferred income taxes and other assets (USD, millions)

Total assets (USD, millions)

Short-term debt (USD, millions)

Accounts payable and accrued expenses (USD, millions)

Contract liabilities (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Income taxes payable (USD, millions)

Other liabilities (USD, millions)

Total liabilities (USD, millions)

Common stock (USD, millions)

Additional paid-in capital (USD, millions)

Retained earnings (USD, millions)

Treasury stock (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Total stockholders’ equity (USD, millions)

Total liabilities and stockholders’ equity (USD, millions)

a659ed5f30c16624936f1008fe74b30a2c293e86e1555d8be2b33439428b9b45

The **jump in cash and cash equivalents** in Q3 2024 is primarily due to **strong cash generated by operating activities**. Specifically, Applied Materials generated **$6,102 million** in cash from operations during the nine months ended July 28, 2024, which more than offset the **$1,256 million** used in investing activities and the **$2,701 million** used in financing activities. This strong operating cash flow led to an increase in cash and cash equivalents from **$6,132 million** as of October 29, 2023, to **$8,288 million** as of July 28, 2024.  **[0000006951-24-000032_amat-20240728.htm:44]** **[0000006951-24-000032_amat-20240728.htm:3]** **[0000006951-24-000032_amat-20240728.htm:5]** 

Why did Cash and cash equivalents jump in Q3 2024?

The increase in Total assets to **\$34,409 million** in Q4 2024 was primarily driven by a significant rise in **cash and cash equivalents** (up from **\$6,132 million** to **\$8,022 million**), increases in both **short-term investments** (from **\$737 million** to **\$1,449 million**) and **long-term investments** (from **\$2,281 million** to **\$2,787 million**), as well as a growth in the net value of **property, plant, and equipment** (from **\$2,723 million** to **\$3,339 million**).  **[0000006951-24-000044_amat-20241027.htm:83]** 

What drove Total assets to reach 34,409 in Q4 2024?

The available documents show that short-term debt increased from **$100 million** in October 2023 to **$799 million** in October 2024, but they do not provide specific reasons for this spike. The financial statements and accompanying notes do not elaborate on the nature or purpose of the additional debt.  **[0000006951-24-000032_amat-20240728.htm:3]** **[0000006951-24-000044_amat-20241027.htm:83]** 

Why did Short-term debt spike in Q4 2024?

The documents indicate that while **Applied Materials, Inc.** experienced an increase in long-term debt from **$5,461 million** to **$6,158 million** between October 29, 2023 and July 28, 2024, they do not provide specific reasons for this change.  **[0000006951-24-000032_amat-20240728.htm:3]** 

What caused Long-term debt to increase in Q3 2024?

b112ecaef714fab6b57d0e30f0fd9d05da05dfd8a0f796e85f3681afec75fb62

Operating cash flow was lower in Q2 2024 because the company experienced **higher payments for income taxes**—with cash tax payments rising significantly (from **$221 million** to **$606 million**)—as well as **lower new billings for products and services** and **reduced collections of customer receivable balances**. These elements combined to decrease the overall cash inflows from operating activities, although the impact was partially mitigated by **lower payments to vendors**.  **[0000006951-24-000022_amat-20240428.htm:43]** **[0000006951-24-000022_amat-20240428.htm:5]** **[0000006951-24-000032_amat-20240728.htm:44]** 

Why was Operating Cash Flow so low in Q2 2024?

The spike in Q4 2024’s operating cash flow was primarily driven by **adjustments for non-cash items** and a significant improvement in the **net change in operating assets and liabilities**. Despite a decrease in net income from **$2,004 million** in Q4 2023 to **$1,731 million** in Q4 2024, the negative impact was offset by a negative adjustment in deferred income taxes of **$(248) million** (compared to a positive **$198 million** in Q4 2023) and, importantly, by a favorable change in working capital components—reflected in a **$595 million** positive adjustment in Q4 2024 versus a **$(743) million** change in Q4 2023.  **[0000006951-24-000037_exhibit991q42024earningsre.htm:5]** 

What factors contributed to the spike in Operating Cash Flow in Q4 2024?

2a2fa0ce94e6a4d6764bbd7e0eb01593d8a58914e39dfce0a97081e170e1adc5

In Q1 2024, **Interest and Other Income** was notably high because it was **primarily driven by a higher net gain on equity investments** along with **increased interest income resulting from higher market interest rates** compared to the previous year.  **[0000006951-24-000012_amat-20240128.htm:33]** 

Why was Interest and Other Income so high in Q1 2024?

In **Q1 2024**, the spike in General and Administrative expenses was driven by **higher professional fees** and a significant **increase in share-based compensation expense**—which rose from **$23 million** in Q1 2023 to **$64 million** in Q1 2024—resulting in an overall increase of **$69 million**.  **[0000006951-24-000012_amat-20240128.htm:32]** 

What drove the spike in G&A expenses in Q1 2024?

In Q4 2024, the **$322 million revenue jump** was driven primarily by several factors. **Semiconductor Systems revenue grew by 6%** year-over-year, propelled by strong demand in leading-edge foundry-logic and gate-all-around nodes, while **Applied Global Services achieved a record revenue of $1.64 billion**, up 11%. In addition, **favorable product mix and operational improvements** enhanced the non-GAAP gross margin to 47.5%, and **increased revenue from China** (contributing 30% of total revenue) further supported the growth despite some declines in DRAM sales.  **[AMAT_3408747_4]** 

What contributed to the revenue jump in Q4 2024?

Interest and Other Income turned negative in Q4 2024 because, while the company experienced **higher interest income** due to **higher cash balances** and **lower impairment on equity investments**, these gains were more than offset by a **higher net loss on equity investments**. This net loss was significant enough to drive the overall figure to a negative **(–85.00 USD million)** despite the positive aspects.  **[0000006951-24-000044_amat-20241027.htm:57]** **[0000006951-24-000044_amat-20241027.htm:82]** 

Why did Interest and Other Income turn negative in Q4 2024?

b589d0a7bf15c445bae904bfac0dcd3348f13b35a604f9439d46e12bbad1ec8f

Applied Materials Inc (AMAT)

Financials