Applied Materials earnings beat on profit, revenue

Applied Materials, the Santa Clara, California-based leader in semiconductor equipment, announced record quarterly results for the period ended October 25, 2026. The company reported revenue of $10.41 billion, a 53 percent increase from the previous year, and adjusted earnings per share of $4.16, surpassing the analyst consensus estimate of $4.13.

On a non-GAAP basis, the company’s earnings per share rose 92 percent to a record $4.16, while GAAP earnings per share were $3.40, up 43 percent year over year. The results were driven by strong demand for its Semiconductor Systems, with DRAM now comprising 33 percent of that segment’s revenue, up from 28 percent a year earlier.

For the full fiscal year 2026, Applied Materials generated record revenue of $34.45 billion, a 21 percent increase from the prior year. The company also reported record annual non-GAAP EPS of $12.89 and record annual GAAP EPS of $12.62, which included a $253 million charge related to a settlement with the U.S. Commerce Department.

Gary Dickerson, President and CEO, highlighted the company’s performance and future outlook. “Applied Materials delivered record results in fiscal 2026, and we are on track to grow our Semiconductor Systems business more than 40 percent in our calendar 2026,” he stated.

The company also reported record quarterly free cash flow of $2.6 billion and distributed over $2.4 billion to shareholders during the quarter. This included $2 billion in share repurchases and $421 million in dividends, marking the largest quarterly share buyback in more than eight years.

Applied Materials announced an accelerated share purchase agreement to raise its investment in Besi to approximately 20 percent of the company’s outstanding shares. Additionally, the company unveiled the EPIC Center in Silicon Valley and entered into four new partnerships, bringing its total to 15. The new partners include Intel, KIOXIA Corporation, Besi, and the UCLA Samueli School of Engineering.

The company also introduced the VeritySEM 20 metrology system, designed for high-NA EUV patterning control. This new technology is part of Applied Materials’ ongoing efforts to support the semiconductor industry’s transition to more advanced manufacturing processes.

For the first quarter of fiscal 2027, Applied Materials guided for non-GAAP diluted EPS of $4.35 +/- $0.20. The company also provided a revenue range of $11.1 billion, plus or minus $500 million, for the upcoming quarter.

Investors will watch for the completion of the Besi accelerated share purchase, which is expected to raise Applied Materials’ stake to approximately 20 percent. The company will also report its Q1 FY2027 results, with analysts closely monitoring its ability to maintain growth in a competitive market.

The next major event for shareholders is the ex-dividend date on November 19, 2026, which will mark the next distribution after the $421 million in fourth-quarter dividends.