Record Q3 performance: Applied Materials reported $9.1 billion in revenue, up 25% year over year, with record non-GAAP operating margin of 34% and EPS of $3.50. Management projected Q4 revenue of $10.25 billion and EPS of $4.02 at the midpoint. AI-driven demand remains strong: Growth is being led by advanced foundry logic, DRAM—including high-bandwidth memory—and advanced packaging, which are expected to represent about 80% of wafer-fabrication-equipment growth in 2026–2027.
Advanced packaging revenue is expected to rise more than 70% in calendar 2026. Capacity and services are expanding: Applied expects AGS revenue to grow more than 20% in 2026 and is preparing to double quarterly system-output capacity by 2028. The company also continues developing its EPIC Center to accelerate partnerships and co-innovation in semiconductor manufacturing.
MarketBeat Week in Review – 06/22 - 06/26 Applied Materials (NASDAQ:AMAT) reported record fiscal third-quarter 2026 results, with revenue, operating profit and non-GAAP earnings per share reaching new highs as demand for AI-related semiconductor manufacturing equipment continued to strengthen. President and CEO Gary Dickerson said the company recorded its highest quarter-over-quarter revenue growth in its history, supported by the global expansion of AI infrastructure and demand for advanced chips. He said customers have found ways to address clean-room space constraints and have increased their demand for tool deliveries, prompting the company to raise its revenue-growth expectations for calendar 2026. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be From Quantum to Clothing: Insider Trades Hit 3 Big Names "The rapid global build-out of AI infrastructure, combined with Applied's leadership positions in the most enabling and highest-value technologies for AI computing, provide the company with an exceptionally strong foundation for multi-year revenue and profit growth," Dickerson said.
Applied Materials generated fiscal third-quarter revenue of $9.1 billion, up 15% sequentially and 25% from a year earlier. Non-GAAP gross margin rose to 50.4%, increasing 40 basis points from the prior quarter and 150 basis points year over year. → Nebius' Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Applied Materials Stock Looks Pricey—Can AI Demand Justify the Rally? Non-GAAP operating margin reached a record 34%, up 190 basis points sequentially and 330 basis points year over year.
The company reported record non-GAAP EPS of $3.50, up 22% sequentially and 41% from the prior-year period. Chief Financial Officer Brice Hill said fiscal Q3 marked the company's 13th consecutive quarter of year-over-year gross-margin expansion. He attributed the performance to the value of the company's products and services in the AI ecosystem, as well as its value-based pricing approach and operating leverage. → On Holding's Price Stumble May Be an Opening for a Company Built to Run For the fiscal fourth quarter, Applied Materials projected: Revenue of $10.25 billion, plus or minus $500 million, representing 51% year-over-year growth at the midpoint.
Non-GAAP EPS of $4.02, plus or minus $0.20, representing 85% year-over-year growth at the midpoint. Semiconductor Systems revenue of approximately $7.9 billion, up 62% year over year. Applied Global Services revenue of about $1.84 billion, up 22% year over year.
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