Did you analyze how Applied Materials (AMAT Quick QuoteAMAT - Free Report) fared in its international operations for the quarter ending October 2025? Given the widespread global presence of this maker of chipmaking equipment, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

In our recent assessment of AMAT's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

For the quarter, the company's total revenue amounted to $6.8 billion, experiencing a decline of 3.5% year over year. Next, we'll explore the breakdown of AMAT's international revenue to understand the importance of its overseas business operations.

A Look into AMAT's International Revenue Streams

During the quarter, Taiwan contributed $1.83 billion in revenue, making up 27% of the total revenue. When compared to the consensus estimate of $1.55 billion, this meant a surprise of +18.27%. Looking back, Taiwan contributed $1.84 billion, or 25.2%, in the previous quarter, and $1.28 billion, or 18.2%, in the same quarter of the previous year.

Southeast Asia generated $460 million in revenues for the company in the last quarter, constituting 6.8% of the total. This represented a surprise of +88.22% compared to the $244.4 million projected by Wall Street analysts. Comparatively, in the previous quarter, Southeast Asia accounted for $195 million (2.7%), and in the year-ago quarter, it contributed $314 million (4.5%) to the total revenue.

China accounted for 28.9% of the company's total revenue during the quarter, translating to $1.96 billion. Revenues from this region represented a surprise of -1.84%, with Wall Street analysts collectively expecting $2 billion. When compared to the preceding quarter and the same quarter in the previous year, China contributed $2.55 billion (34.9%) and $2.14 billion (30.3%) to the total revenue, respectively.

Of the total revenue, $1.22 billion came from Korea during the last fiscal quarter, accounting for 17.9%. This represented a surprise of -10.55% as analysts had expected the region to contribute $1.36 billion to the total revenue. In comparison, the region contributed $1.16 billion, or 15.9%, and $1.17 billion, or 16.6%, to total revenue in the previous and year-ago quarters, respectively.

Japan generated $448 million in revenues for the company in the last quarter, constituting 6.6% of the total. This represented a surprise of -18.94% compared to the $552.7 million projected by Wall Street analysts. Comparatively, in the previous quarter, Japan accounted for $713 million (9.8%), and in the year-ago quarter, it contributed $581 million (8.3%) to the total revenue.

During the quarter, Europe contributed $220 million in revenue, making up 3.2% of the total revenue. When compared to the consensus estimate of $303.98 million, this meant a surprise of -27.63%. Looking back, Europe contributed $160 million, or 2.2%, in the previous quarter, and $405 million, or 5.8%, in the same quarter of the previous year.

Revenue Projections for Overseas Markets

It is projected by analysts on Wall Street that Applied Materials will post revenues of $6.85 billion for the ongoing fiscal quarter, a decline of 4.4% from the year-ago quarter. The expected contributions from Taiwan, Southeast Asia, China, Korea, Japan and Europe to this revenue are 26.1%, 3.6%, 29.4%, 21.1%, 7.9%, and 3.9%, translating into $1.79 billion, $244.15 million, $2.01 billion, $1.44 billion, $541.25 million, and $266.39 million, respectively.

For the entire year, the company's total revenue is forecasted to be $28.94 billion, which is an improvement of 2% from the previous year. The revenue contributions from different regions are expected as follows: Taiwan will contribute 25.6% ($7.41 billion), Southeast Asia 3.4% ($977.28 million)China 28.5% ($8.26 billion)Korea 21.2% ($6.13 billion)Japan 8.3% ($2.4 billion) and Europe 3.8% ($1.09 billion) to the total revenue.

In Conclusion

Applied Materials' reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short-term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

At present, Applied Materials holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Examining the Latest Trends in Applied Materials' Stock Value

Over the past month, the stock has seen an increase of 0.3% in its value, whereas the Zacks S&P 500 composite has posted an increase of 0.2%. The Zacks Computer and Technology sector, Applied Materials' industry group, has ascended 0.1% over the identical span. In the past three months, there's been an increase of 41.2% in the company's stock price, against a rise of 3.8% in the S&P 500 index. The broader sector has increased by 8.2% during this interval.