Applied Materials posts $10.41 billion fourth quarter as revenue jumps 53%

The chip equipment maker beat estimates on revenue and earnings, capping a fiscal year with record cash flow. Adjusted earnings came in at $4.16 per share, a 92% year-over-year increase. Both numbers topped Wall Street's expectations.

Applied Materials (NASDAQ: AMAT) released the results on November 12, 2026. The quarter wrapped up a fiscal year that ended October 25, 2026.

Strong margins

The bottom line moved even faster than the top line. Non-GAAP earnings per share climbed 92% to $4.16, meaning profit per share nearly doubled in a single year.

Margins tell the efficiency story. Quarterly non-GAAP gross margin hit 50.6%, an improvement of 250 basis points from a year earlier.

Annual performance

Zoom out to the whole fiscal year and the growth looks steadier but still impressive. Annual revenue totaled $34.45 billion, up 21% from the prior year.

Full-year non-GAAP earnings per share reached $12.89, a 37% increase. Gross margin for the year came in at 50.1%, up 130 basis points year-over-year.

The comparison between the quarter and the year is worth pausing on. Fourth-quarter growth of 53% ran well ahead of the full-year pace of 21%, which suggests momentum built as the year went on rather than fading.

Record cash returns

Cash generation also set a record. Operating cash flow for the year reached $8.87 billion, the highest in company history.

Applied Materials sent $4.75 billion of that back to shareholders through dividends and stock buybacks.

Future outlook

The company's Semiconductor Systems business, its core equipment segment, is projected to grow more than 40% for calendar year 2026.

Applied Materials is also investing in collaboration. Following the unveiling of its EPIC Center, a research and development facility in Silicon Valley, the company has announced 15 R&D partnerships tied to the center.