Applied Materials posts record $10.41B revenue as AI chip demand drives growth
Shares gained about 3% in extended trading after the semiconductor equipment maker issued stronger than expected quarterly guidance.
Applied Materials reported record fiscal fourth quarter revenue of $10.41 billion, exceeding analysts’ expectations of approximately $10.3 billion, as demand for advanced AI chips supported spending on semiconductor manufacturing equipment.
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 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.
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Applied Materials also expects adjusted earnings of about $4.35 per share, plus or minus $0.20, compared with analysts’ expectations of $4.26.
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.
The company attributed its growth to rising demand for advanced semiconductor manufacturing technologies as chipmakers expand capacity for AI processors and related infrastructure.
Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.
