Applied Materials earnings beat on profit, revenue
Adjusted EPS of $4.16 topped estimates while record revenue of $10.41 billion came in below them
Key takeaways
- Applied Materials reported record non-GAAP EPS of $4.16, above the analyst consensus estimate of $4.13.
- Record quarterly revenue of $10.41 billion rose 53 percent year over year, exceeding the $10.30 billion consensus estimate.
- Applied guided Q1 FY2027 non-GAAP diluted EPS of $4.35 +/- $0.20.
Applied Materials earnings beat on both adjusted EPS and revenue, with Adjusted EPS of $4.16 beat the analyst consensus estimate of $4.13 and revenue of $10.41 billion was about 1.1% above the approximately $10.30 billion consensus. The company reported results for its fourth quarter and fiscal year ended Oct. 25, 2026, according to the release. Quarterly revenue was a record and rose 53 percent year over year.
On a GAAP basis, Applied reported fourth-quarter EPS of $3.40, up 43 percent year over year, the company said. Non-GAAP EPS of $4.16 was a record and rose 92 percent. GAAP results for fiscal 2026 included a $253 million charge for a settlement with the US Commerce Department Bureau of Industry and Security.
Applied Materials earnings: the details
| Revenue | Record $10.41 billion, up 53 percent year over year |
|---|---|
| EPS (GAAP) | $3.40, up 43 percent year over year |
| EPS (adjusted) | Record non-GAAP $4.16, up 92 percent year over year |
| Margin | GAAP gross margin 50.4 percent; non-GAAP gross margin 50.6 percent |
| Guidance (prior → new) | Q1 FY2027 total revenue $11.1 billion +/- $500 million; non-GAAP diluted EPS $4.35 +/- $0.20 (previous range not stated in the release) |
| Segment that moved | Semiconductor Systems revenue $7.996 billion vs $4.879 billion in Q4 FY2025 |
| vs consensus | Adjusted EPS $4.16 vs $4.05 estimate; Revenue $10.41 billion vs $10.3 billion estimate |
- “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,” said Gary Dickerson, President and CEO.
- “We generated record quarterly free cash flow of $2.6 billion and distributed over $2.4 billion to shareholders, including the largest quarterly share buyback in more than eight years.”
For fiscal 2026, Applied generated record revenue of $34.45 billion, up 21 percent year over year, according to the release. Record annual GAAP EPS was $12.62 and record non-GAAP EPS was $12.89. Fiscal-year cash from operations was a record $8.87 billion.
In the fourth quarter, the company distributed $2.42 billion to shareholders, the release said. That included $2 billion in share repurchases and $421 million in dividends. Applied also entered an accelerated share purchase agreement to raise its investment in Besi to approximately 20 percent of Besi’s outstanding shares.
Applied unveiled the EPIC Center in Silicon Valley and announced four new partnerships, bringing the total to 15, the company said. The new partners are Intel, KIOXIA Corporation, Besi and the UCLA Samueli School of Engineering. It also introduced the VeritySEM 20 metrology system for high-NA EUV patterning control.
Background to the Applied Materials earnings
Applied Materials, Inc. describes itself as the leader in materials engineering solutions at the foundation of virtually every new semiconductor and advanced display in the world, according to the release. The Santa Clara, Calif. company trades on Nasdaq as AMAT. It reports Semiconductor Systems and Applied Global Services segments, with display results included in Other.
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What this means
For AMAT holders, the quarter shows revenue growth concentrated in Semiconductor Systems, the company said. DRAM rose to 33 percent of that segment’s revenue from 28 percent a year earlier. The Q1 FY2027 outlook excludes unknown items such as additional acquisition charges and other tax-related items.
Analysis
The quarter delivered records on both revenue and adjusted profit, beating consensus on each measure. Semiconductor Systems drove the gain, and CEO Gary Dickerson tied the outlook to AI-driven semiconductor demand.
Open questions remain. The Q1 FY2027 revenue range of $11.1 billion, plus or minus $500 million, is wide, and the outlook excludes certain acquisition-related and tax-related items. The larger Besi stake and EPIC Center partnerships could shape longer-term positioning, though their financial effect is not quantified.
What to watch
- 2026-11-19: AMAT goes ex-dividend at $0.53 a share. It marks the next shareholder distribution after $421 million in fourth-quarter dividends.
- Q1 FY2027 results versus guidance. Applied guided revenue of $11,100 million +/- $500 million and non-GAAP diluted EPS of $4.35 +/- $0.20.
- Completion of the Besi accelerated share purchase. It would raise Applied’s investment to approximately 20 percent of Besi’s outstanding shares.
The crypto angle
- Applied Materials Inc. has 6 tokenized versions across 5 known blockchains: Arbitrum One, BNB Smart Chain, Ethereum, Robinhood Chain, and Solana.
More market coverage: Crypto Briefing Markets
Source: GlobeNewswire, 2026-11-12 21:01 UTC
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.
