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Applied Materials Increases Quarterly Cash Dividend by 15 Percent and Announces New $10 Billion Share Repurchase Authorization

1. AMAT announces a 15% increase in quarterly cash dividend. 2. New share repurchase authorization of $10 billion approved. 3. Eight consecutive years of dividend increases reflect strong confidence. 4. 90% of free cash flow distributed to shareholders over the last decade. 5. Future dividends depend on ample cash flow and market conditions.

Shares Buyback
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-2.97%S&P 500
$155.6803/10 07:45 AM EDTEvent Start
$148.53503/11 02:22 PM EDTLatest Updated
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FAQ

Why Very Bullish?

The increase in dividends and a significant share repurchase program generally indicate strong financial health. Historically, similar announcements have led to positive stock performance for AMAT.

How important is it?

The announcement demonstrates AMAT's commitment to shareholder value and financial health, making it very pertinent to investor interests.

Why Short Term?

The immediate nature of dividend increases and share buybacks typically boosts investor sentiment quickly. Past events show a rapid stock reaction post-announcement of similar initiatives.

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March 10, 2025 07:30 ET  | Source: Applied Materials, Inc. SANTA CLARA, Calif., March 10, 2025 (GLOBE NEWSWIRE) -- Applied Materials, Inc. today announced that its Board of Directors has approved a 15-percent increase in the quarterly cash dividend, marking eight consecutive years of higher dividends. The increase results in a quarterly dividend of $0.46 per share payable on June 12, 2025 to shareholders of record as of May 22, 2025. The Board also approved a new share repurchase authorization enabling Applied to buy back an additional $10 billion of its shares over time. This supplements the previous authorization which had approximately $7.6 billion remaining at the end of the first quarter of fiscal 2025. “Over the past 10 fiscal years, Applied Materials has distributed nearly 90 percent of free cash flow to shareholders,” said Brice Hill, Senior Vice President and CFO. “The dividend increase and new share repurchase authorization we are announcing today indicate our confidence in Applied’s business prospects and bolster our ability to distribute excess cash to shareholders in the coming years.” Forward-Looking Statements This press release may contain forward-looking statements, express or implied, regarding future rates of cash dividends, our share repurchase program, and our business prospects and ability to outperform the market. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. While we expect to continue to pay dividends in the future, the declaration of any future dividends or dividends at any particular rate is subject to the discretion of the Board of Directors and will depend on our financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination by the Board of Directors that dividends are in the best interests of our stockholders. The timing and amount of share repurchases will depend on market conditions, our other funding requirements and other considerations. Additional factors that could cause actual results to differ materially from those expressed or implied by such statements are described in our SEC filings, including our recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them. Use of Non-GAAP Financial MeasureFor reconciliation of the GAAP to non-GAAP financial measure related to free cash flow, see non-GAAP reconciliation materials on the Investor Relations website at ir.appliedmaterials.com. About Applied MaterialsApplied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future. Learn more at www.appliedmaterials.com. Contact:Ricky Gradwohl (editorial/media) 408.235.4676Liz Morali (financial community) 408.986.7977

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