Applied Materials' fiscal 2023 third quarter operating results came in favorable despite the memory sector downturn.


Applied Materials announced its fiscal 2023 third quarter results for the quarter ended on the 30th.

According to the results, Applied Materials' third quarter 2023 revenue was $6.43 billion under U.S. GAAP accounting standards, with a gross margin of 46.3%. Operating income and operating margin were $1.8 billion and 28% respectively, and earnings per share (EPS) came in at $1.85.

On a non-GAAP basis, the company recorded a gross margin of 46.4%, operating income of $1.82 billion, operating margin of 28.3%, and EPS of $1.90.

Applied Materials generated $2.58 billion in cash from operating activities, and returned a total of $707 million to shareholders, including $439 million in share buybacks and $268 million in dividends.

In segment performance, the semiconductor segment declined 1.2% year-over-year to $4.676 billion. Within this, the memory segment's share dropped sharply from 19% in the third quarter of 2022 to 4% in the third quarter of 2023, indicating difficult conditions in the memory sector.

Gary Dickerson, chairman and CEO of Applied Materials, stated, "Applied Materials achieved favorable results with revenue and earnings at the top end of our third quarter guidance range," and added, "Over the past several years, we have focused our strategy and investments on key technologies to accelerate the Internet of Things and AI era, and we have continued to deliver strong results in 2023 and enabled Applied Materials to achieve sustainable performance."