Applied Materials forecasts a significant decline in revenue and profit for the current quarter. The company expects adjusted earnings per share of $2.11 (±$0.20) compared to $2.32 in the previous year. Revenue is likely to fall to $6.7 billion (±$0.5 billion) from $7.05 billion a year earlier. Both figures are below analyst estimates of $2.39 per share and $7.33 billion revenue.

CFO Brice Hill points to an expected cooling in China after two years of intense investment—exacerbated by unexpectedly fluctuating demand from leading semiconductor customers. Many companies delayed final production commitments, which Hill attributes to uncertainties resulting from recent tax and trade policies. The greater dependence on a dominant major customer also makes it more difficult to achieve consistent factory utilization.

The third quarter, on the other hand, turned out better than expected: Net profit rose by 4% to $1.78 billion, adjusted earnings per share increased to $2.48 (previous year: $2.36 expected: $2.36). Revenue increased by 8% to $7.3 billion, driven by a 10% increase in the Semiconductor Systems segment to $5.43 billion.

Despite the Weaker Outlook, Applied Materials Relies on Growth Impulses from Rising Demand for AI Technologies. In Parallel, the Company Expands its US Presence: It Supplies Manufacturing Equipment for Apple's Cooperation with Texas Instruments and Invests Over $200 Million in a New Plant in Arizona.