Applied Materials posts record $10.41B revenue as AI chip demand drives growth

The semiconductor equipment maker posted adjusted earnings of $4.16 per share, ahead of analysts' estimates of approximately $4.06. Its Semiconductor Systems division generated $8 billion in revenue, up 64% from a year earlier, reflecting increased demand for equipment used in advanced chip manufacturing.

Shares of Applied Materials (NASDAQ: AMAT) rose about 3% in after hours trading following the earnings release. For the full fiscal year, the company reported revenue of $34.45 billion, an increase of 21% from 2025, while adjusted earnings per share rose 37% to $12.89.

Strong Q1 Forecast

For the first quarter of fiscal 2027, the company forecast revenue of approximately $11.1 billion, plus or minus $500 million, above Wall Street estimates of $10.89 billion. Applied Materials also expects adjusted earnings of about $4.35 per share, plus or minus $0.20, compared with analysts' expectations of $4.26.

AI Chip Demand

The company attributed its growth to rising demand for advanced semiconductor manufacturing technologies as chipmakers expand capacity for AI processors and related infrastructure. This trend is expected to continue driving strong performance in the coming quarters.