Applied Materials posts record fiscal 2026 results, sees over 40% growth in Semiconductor Systems
Applied Materials reported record fiscal 2026 results with total revenue reaching $34.45 billion, a 21% jump from the prior fiscal year, as CEO Gary Dickerson expects the Semiconductor Systems business to grow more than 40% in calendar 2026.
The company's non-GAAP earnings per share for fiscal 2026 reached $12.89, up 37% year over year, with a non-GAAP gross margin of 50.1%, improving by 130 basis points. The fourth quarter particularly impressed, with revenue hitting $10.41 billion, a 53% increase from the same quarter in the previous year.
Semiconductor Systems Growth
The Semiconductor Systems segment was the standout performer, generating record annual revenue of $26.142 billion in fiscal 2026, up from $21.441 billion in fiscal 2025. This growth was driven by demand in foundry-logic, DRAM, advanced packaging, high-bandwidth memory, and broader AI applications.
Applied Materials also achieved record outcomes in three core technology areas: deposition, etch, and process control, further solidifying its market position.
the chip equipment segment is on track to grow more than 40% in calendar 2026 as AI demand keeps the order books full
Shareholder Returns
The company demonstrated its financial strength by returning $4.75 billion to shareholders through a combination of share buybacks and dividends during the fiscal year. This capital return strategy rewards investors while maintaining the company's focus on future growth opportunities.
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