Applied Materials Hikes Dividend For 8th Year, Greenlights $10 Billion Buyback to Reward Investors

On Monday, Applied Materials, Inc AMAT announced that its board of directors had approved a 15% increase in the quarterly cash dividend, marking eight consecutive years of higher dividends.

The increase results in a quarterly dividend of 46 cents per share, payable on June 12, to shareholders of record as of May 22, 2025, up from prior 40 cents per share.

The Board also approved a new share repurchase to buy back an additional $10 billion of its shares over time.

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This supplements the previous authorization, which had approximately $7.6 billion remaining at the end of the first quarter of fiscal 2025.

CFO Brice Hill noted that over the past 10 fiscal years, Applied Materials has distributed nearly 90% of free cash flow to shareholders.

Applied Materials generated $925 million in cash from operations during the January 26, 2025 quarter and held $8.21 billion in cash and equivalents.

Applied Materials reported first-quarter revenue of 7.17 billion, up by 7%, topping the analyst consensus estimate of $7.14 billion. It reported an adjusted EPS of $2.38, beating the analyst consensus estimate of $2.29.

Applied Materials expects second-quarter revenue of $6.7 billion–$7.5 billion versus the analyst consensus estimate of $7.21 billion. The company expects adjusted EPS of $2.12–$2.48 versus the analyst consensus estimate of $2.30.

Goldman Sachs’ Toshiya Hari noted Applied Materials as a long-term share gainer within the broader Wafer Fab Equipment market.

KeyBanc’s Steve Barger expects new trade restrictions with China to have a ~$400 million impact in fiscal 2025.

Price Action: AMAT stock is down 2.11% at $152.40 premarket at last check Monday.

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