By Kelly Cloonan

Applied Materials reported higher profit and revenue in the latest quarter as demand for its semiconductor equipment remains stable.

The Santa Clara, Calif., company on Thursday posted a profit of $2.14 billion, or $2.63 a share, compared with $1.72 billion, or $2.06 a share, a year earlier.

Adjusted earnings per share were $2.39, ahead of estimates of $2.31 a share according to analysts polled by FactSet.

Revenue rose 7%, to $7.1 billion. Analysts expected $7.13 billion.

The company's semiconductor-systems unit saw revenue of $5.26 billion, up 7.2% from a year earlier as applied global-services revenue rose 2.4%, to $1.57 billion. Sales in the company's display segment rose 45%, to $259 million.

Chief Financial Officer Brice Hill said demand remains unchanged, even amid tariff and macroeconomic headwinds.

"Despite the dynamic economic and trade environment, we have not seen significant changes to customer demand and are well-equipped to navigate evolving conditions with our robust global supply chain and diversified manufacturing footprint," Hill said.

For its fiscal third quarter, Applied Materials guided for adjusted per-share earnings of $2.15 to $2.55, compared with estimates of $2.31, and revenue of $6.7 billion to $7.7 billion, the midpoint of which was roughly in line with the $7.22 billion analysts expected.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

May 15, 2025 16:22 ET (20:22 GMT)

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