Applied Materials Tops Revenue Estimates at $10.41 Billion as AI Demand Lifts Results

Applied Materials (Nasdaq: AMAT) reported fourth-quarter fiscal 2026 revenue of $10.41 billion, above the $10.30 billion analysts expected, and adjusted EPS of $4.16 against the $4.06 consensus estimate, in an 8-K furnished Thursday, Nov. 12, 2026.

Revenue rose 53% from a year earlier, and non-GAAP EPS rose 92% from $2.17. GAAP diluted EPS was $3.40, up from $2.38. The company reported a GAAP gross margin of 50.4%, and a non-GAAP gross margin of 50.6%.

Segment performance

Semiconductor Systems revenue was $8.00 billion, up from $4.88 billion a year earlier, with a non-GAAP operating margin of 39.0%. Applied Global Services revenue was $1.90 billion, up from $1.51 billion.

Fiscal year and cash returns

For fiscal 2026, revenue was a record $34.45 billion, up 21%, and non-GAAP diluted EPS was $12.89, against a consensus estimate of $12.79 for the year. The company generated $3.30 billion in operating cash flow in the quarter and record quarterly non-GAAP free cash flow of $2.62 billion. It distributed $2.42 billion to shareholders, including $2.00 billion in share repurchases, which CFO Brice Hill described as the largest quarterly buyback in more than eight years.

Outlook

For the first quarter of fiscal 2027, the company expects total revenue of $11.10 billion, plus or minus $500 million, and non-GAAP diluted EPS of $4.35, plus or minus $0.20. Analysts had expected next-quarter revenue of $10.74 billion and EPS of $4.21.

CEO Gary Dickerson said the company is on track to grow its Semiconductor Systems business more than 40% in calendar 2026. The company also said it opened the EPIC Center in Silicon Valley and announced four new EPIC partnerships, including Intel, KIOXIA, Besi and UCLA, bringing the total of announced EPIC engagements to 15.