Applied Materials Stock Falls After Mixed Q2 Guidance Despite Strong Q1 Results

The semiconductor equipment giant beat Q1 earnings expectations but issued revenue forecasts below analysts' estimates, unsettling investors.

Applied Materials reported Q1 earnings of $2.38 per share, surpassing the $2.29 consensus estimate, with $7.17 billion in revenue, slightly above expectations.
The company's Q2 guidance projected earnings of $2.12-$2.48 per share and revenue of $6.7-$7.5 billion, with revenue below the $7.21 billion analyst consensus.
Shares dropped by over 5% in premarket trading, reflecting investor concerns about the weaker-than-expected revenue outlook.
CEO Gary Dickerson emphasized the company's role in advancing AI and energy-efficient technologies, citing long-term growth opportunities despite near-term challenges.
Analysts noted declining revenues from China and potential normalization in wafer fabrication equipment demand as factors influencing future performance.