First quarter new orders were $4.24 billion, up 86% year over year. Net sales of $3.28 billion were up 45% year over year.
The company recorded first quarter gross margin of 44.1%, up 3.5 points year over year. Operating margin grew 8.9 points year over year to 24.6%, and diluted earnings per share (EPS) grew by 160% year over year to $0.65. On a non-GAAP adjusted basis, first quarter gross margin increased 3.0 points year over year to 45.4%, operating margin grew 8.2 points year over year to 26.0%, and diluted EPS grew by 158% year over year to $0.67.
The company generated $646 million in cash from operations and returned $238 million to shareholders through stock repurchases and cash dividends.
“We set new records for earnings and orders in our first quarter, and 2017 is shaping up to be an outstanding year for Applied Materials,” said Gary Dickerson, president and CEO. “Our inflection-focused innovation strategy is delivering results and we are increasingly confident that we can maintain our trajectory of sustainable growth and raise the ceiling on our performance.”