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Applied Materials tops fiscal fourth-quarter estimates and raises outlook on AI chip demand

Applied Materials reported a 53% surge in fiscal fourth-quarter revenue to $10.41 billion and guided first-quarter fiscal 2027 results above expectations, lifted by booming semiconductor demand for artificial intelligence.

A circuit board displayed in front of a blurred Applied Materials logo
Image: @qz

Applied Materials posted record fourth-quarter fiscal 2026 revenue of $10.41 billion, climbing 53% year over year and topping analyst expectations of $10.3 billion, according to financial data reported by Wall St Engine and coverage from Quartz. Adjusted earnings per share jumped 92% from the prior year to $4.16, exceeding the consensus estimate of $4.05 as surging artificial intelligence chip demand spurred equipment orders.[1][2][4][5][7][8]

Profitability also outpaced Wall Street forecasts. Applied Materials delivered a non-GAAP gross margin of 50.6% compared to the 50.45% estimate, non-GAAP operating income of $3.68 billion versus an expected $3.62 billion, and non-GAAP free cash flow of $2.6 billion against an estimated $2.26 billion. The performance was driven by the Semiconductor Systems unit, which recorded an 64% jump in net revenue to $8.0 billion. Applied Global Services rose 26% to $1.9 billion, while Display, Corporate and Other contributed $517 million. In addition, the company generated $3.3 billion in cash from operations and distributed $2.42 billion to shareholders, including $2.00 billion in share buybacks and $421 million in dividends.[7]

For the full fiscal year 2026, revenue totaled $34.45 billion, an increase of 21% year over year, while adjusted earnings per share gained 37% to reach $12.89. Looking ahead, the company guided first-quarter fiscal 2027 revenue to $11.10 billion, plus or minus $500 million, surpassing consensus expectations of $10.89 billion. It projected adjusted earnings per share of $4.35, plus or minus $0.20, ahead of the $4.26 estimate. Company commentary attributed the momentum to AI driving strong incremental semiconductor demand, setting the stage for multi-year revenue and profit expansion.[2][3][6][7]

Key facts

  • Applied Materials reported fiscal Q4 2026 revenue of $10.41 billion, up 53% year over year and above the $10.3 billion estimate.
  • Q4 adjusted EPS reached $4.16, up 92% year over year, topping the $4.05 consensus projection.
  • Fiscal Q1 2027 revenue guidance was set at $11.10 billion plus or minus $500 million versus a $10.89 billion estimate, with adjusted EPS forecast at $4.35 plus or minus $0.20 versus a $4.26 estimate.
  • Semiconductor Systems segment net revenue climbed 64% year over year to $8.0 billion in Q4.
  • Q4 non-GAAP gross margin was 50.6% versus a 50.45% estimate, non-GAAP operating income was $3.68 billion versus $3.62 billion, and non-GAAP free cash flow was $2.6 billion versus $2.26 billion.
  • Full-year fiscal 2026 revenue grew 21% to $34.45 billion, with adjusted EPS climbing 37% to $12.89.
  • Applied Materials distributed $2.42 billion to shareholders in Q4, consisting of $2.00 billion in share buybacks and $421 million in dividends.

Sources · 5 sources

  1. SI

    SiliconANGLE@SiliconANGLEPost on X ·

    Applied Materials posts an impressive 53% jump in revenue as it beats expectations again https://t.co/BonqOLDYzj

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  2. QU

    Quartz@qzPost on X ·

    Applied Materials posted record revenue, up 53%, topping expectations on AI chip demand: The chip equipment maker expects fiscal first-quarter revenue of $11.​1 billion, plus or minus $500 million dlvr.​it/TWK79t https://t.co/cCKlK1vMk5

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  3. CB

    Crypto BriefingArticle ·

    Applied Materials posts record fiscal 2026 results, sees over 40% growth in Semiconductor Systems Applied Materials' growth signals robust semiconductor demand, potentially driving innovation and investment across the tech industry. The post Applied Materials posts record fiscal 2026 results, sees over 40% growth in Semiconductor Systems appeared first on Crypto Briefing .

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  4. CB

    Crypto BriefingArticle ·

    Applied Materials posts $10.41 billion fourth quarter as revenue jumps 53% Applied Materials' robust growth and strategic R&D investments signal a strong competitive position and potential industry leadership in semiconductors. The post Applied Materials posts $10.41 billion fourth quarter as revenue jumps 53% appeared first on Crypto Briefing .

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  5. CB

    Crypto BriefingArticle ·

    Applied Materials posts record $10.41B revenue as AI chip demand drives growth The surge in AI chip demand signals a transformative shift in semiconductor manufacturing, potentially reshaping tech industry dynamics. The post Applied Materials posts record $10.41B revenue as AI chip demand drives growth appeared first on Crypto Briefing .

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  6. TS

    The Straits Times@straits_timesPost on X ·

    Applied Materials forecasts quarterly revenue above estimates on strong AI chip demand https://t.co/hoVyKiSQKj

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  7. WS

    Wall St Engine@wallstenginePost on X ·

    APPLIED MATERIALS $AMAT Q4’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $10.41B (Est. $10.3B) 🟢; +53% YoY 🔹 Adj. EPS: $4.16 (Est. $4.05) 🟢; +92% YoY 🔹 Non-GAAP Gross Margin: 50.6% (Est. 50.45%) 🟢 🔹 Non-GAAP Oper Income: $3.68B (Est. $3.62B) 🟢 🔹 Non-GAAP FCF: $2.6B (Est. $2.26B) 🟢 Q1 Guide: 🔹 Revenue: $11.10B +/- $500M (Est. $10.89B) 🟢 🔹 Adj. EPS: $4.35 +/- $0.20 (Est. $4.26) 🟢 Fiscal 2026: 🔹 Revenue: $34.45B; +21% YoY 🔹 Adj. EPS: $12.89; +37% YoY Segment Net Revenue: 🔹 Semiconductor Systems: $8.0B; +64% YoY 🔹 Applied Global Services: $1.9B; +26% YoY 🔹 Display / Corporate and Other: $517M; +25% YoY Other Q4 Metrics: 🔹 GAAP Gross Margin: 50.4%; +240 bps YoY 🔹 GAAP EPS: $3.40; +43% YoY 🔹 Cash From Operations: $3.3B 🔹 Shareholder Distributions: $2.42B, incl. $2.00B buybacks and $421M dividends Comments: 🔸 “AI continues to fuel strong incremental demand for semiconductors and Applied has built the most-enabling portfolio to advance the AI-computing roadmap, putting us in a great position for multi-year revenue and profit growth.”

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  8. CB

    Crypto BriefingArticle ·

    Applied Materials earnings beat on profit, revenue Applied Materials' strong earnings highlight robust semiconductor demand, potentially boosting investor confidence and future growth prospects. The post Applied Materials earnings beat on profit, revenue appeared first on Crypto Briefing .

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