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Applied Materials posts record fiscal 2026 results, sees over 40% growth in Semiconductor Systems

Applied Materials posts record fiscal 2026 results, sees over 40% growth in Semiconductor Systems

Photo: KyoRa Kee / Pexels

CEO Gary Dickerson says the chip equipment segment is on track to grow more than 40% in calendar 2026 as AI demand keeps the order books full

by Vivian Nguyen

2 min read

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Applied Materials just closed out the best year in its history, and its CEO thinks the next one could look even better.

The company reported record fiscal 2026 results, with total revenue reaching $34.45 billion, a 21% jump from the prior fiscal year. CEO Gary Dickerson then raised the stakes: he expects the Semiconductor Systems business to grow more than 40% in calendar year 2026.

The numbers behind the record

Start with profitability. Non-GAAP earnings per share for fiscal 2026 came in at $12.89, up 37% year over year.

The margin line backs that up. Non-GAAP gross margin for the year landed at 50.1%, an improvement of 130 basis points over the previous year.

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The fourth quarter did much of the heavy lifting. Revenue hit $10.41 billion, up 53% from the same quarter a year earlier.

Quarterly non-GAAP EPS reached $4.16.

Semiconductor Systems carries the load

The star of the report was the Semiconductor Systems segment. It generated record annual revenue of $26.142 billion in fiscal 2026, up from $21.441 billion in fiscal 2025.

The company pointed to several drivers. Demand tied to foundry-logic, DRAM, and advanced packaging all contributed, along with high-bandwidth memory and broader AI demand.

Applied also posted record outcomes in three core technology areas: deposition, etch, and process control.

Cash back to shareholders

Applied did not just book the gains. It returned $4.75 billion to shareholders over the fiscal year through a combination of share buybacks and dividends.

What this means

The most important number in this report may not be a result at all. It is the forecast of more than 40% growth for Semiconductor Systems in calendar 2026.

Fiscal and calendar years are different measuring periods, so the 40% figure and the fiscal 2026 results are not directly comparable.

Equipment makers sit upstream of the entire chip industry, so their order expectations function as an early read on how much chipmakers plan to spend.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.

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