Applied Materials Beats Earnings Estimates
Applied Materials reported record fiscal fourth-quarter 2026 revenue of $10.41 billion, representing 53% year-over-year growth and exceeding market expectations of approximately $10.3 billion.
GAAP earnings per share reached $3.40, while adjusted EPS surged 92% to $4.16, surpassing analysts' estimates of approximately $4.05–$4.06. The company also posted GAAP operating income of $3.66 billion, supported by strong semiconductor equipment demand.
Semiconductor Systems revenue increased 64% to approximately $8 billion as investment in advanced AI chip manufacturing accelerated. Applied Materials projected fiscal first-quarter revenue of approximately $11.1 billion and adjusted EPS of around $4.35, both above market expectations. Full-year fiscal 2026 revenue rose 21% to a record $34.45 billion, reinforcing management's positive outlook for continued semiconductor industry investment.
| Metric | Actual | Estimate / comparison |
|---|---|---|
| Quarterly revenue | $10.41B | Approximately $10.3B |
| Revenue growth | 53% | Year over year |
| GAAP EPS | $3.40 | Up 43% year over year |
| Adjusted EPS | $4.16 | Approximately $4.05–$4.06 |
| GAAP gross margin | 50.4% | Up 240 basis points |
| Adjusted gross margin | 50.6% | Up 250 basis points |
| Next-quarter revenue guidance | Approximately $11.1B | Consensus $10.85B–$10.89B |
| Next-quarter adjusted EPS guidance | Approximately $4.35 | Consensus approximately $4.24 |