Applied Materials Earnings vs Intel Foundry Losses

Applied Materials generated nearly $28.4 billion in revenue for fiscal 2025, a 4.4% increase year-over-year, resulting in net income of approximately $7 billion. The company’s net margin declined slightly to 24.7% from 26.4%, reflecting shifts in its product mix. According to GN stocks/chips data, the firm maintained a debt-to-equity ratio of 0.3 and a current ratio of 2.6. Free cash flow stood at $5.7 billion, supporting ongoing research investments while preserving financial stability.

Intel reported roughly $52.9 billion in revenue for the same period, remaining essentially flat compared to the prior year. The chipmaker posted a net loss of $267 million, an improvement from its fiscal 2024 results, though its net margin remained negative at -0.5%. Intel’s debt-to-equity ratio was approximately 0.4, and the current ratio was 2.0. However, free cash flow was negative at $4.9 billion, a result driven by heavy capital expenditures for its foundry expansion. Stock-based compensation accounted for 25.1% of operating cash flow, inflating reported cash generation metrics.

Financial Health Diverges

Applied Materials faces regulatory risks, including a $252 million settlement in February 2026 for export violations involving Semiconductor Manufacturing International. The company also contends with cyclical demand for manufacturing equipment. In contrast, Intel carries significant financial risk following a $15 billion equity raise, which dilutes existing shareholders. The firm is also navigating shareholder litigation regarding a 10% equity stake deal granted to the U.S. government while managing intense capital expenditure requirements.

Strategic Positions Differ

Applied Materials supplies essential equipment to the semiconductor industry, with two major customers accounting for 19% and 15% of net revenue. This customer concentration adds risk to its business model. Intel is shifting focus toward becoming a global foundry, currently relying on a limited number of confirmed partners. Tesla is the only publicly confirmed customer for Intel’s 14A foundry services. This strategic pivot requires massive fabrication plant construction, making the business model highly capital-intensive compared to Applied Materials’ equipment sales.