Applied Materials Surges in After-Hours Trading After Record Quarter Smashes Estimates

Applied Materials (NASDAQ: AMAT) shares climbed around 1.7% in post-market trading on Wednesday after the semiconductor equipment giant delivered a record-breaking second quarter that comfortably exceeded Wall Street expectations on both the top and bottom lines.

The Santa Clara-based company posted revenue of $7.91 billion for the quarter ended April 26, 2026, up 11% year-over-year and ahead of the analyst consensus estimate of $7.69 billion.

Non-GAAP earnings per share came in at a record $2.86, topping the $2.68 consensus forecast and representing a 20% increase from the same period a year ago. On a GAAP basis, EPS surged 33% to a record $3.51.

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Non-GAAP gross margin reached 50.0%, while the company generated $845 million in cash from operations and returned $765 million to shareholders through buybacks and dividends. Applied also raised its quarterly dividend by 15% to $0.53 per share, marking nine consecutive years of dividend growth.

CEO Gary Dickerson struck a bullish tone, stating that Applied now expects its semiconductor equipment business to grow more than 30% in calendar 2026, driven by “the rapid global build-out of AI computing infrastructure.”

The company also announced a raft of new EPIC Center partnerships, including collaborations with TSMC, SK hynix and Micron Technology to accelerate next-generation chip development.

Looking ahead, Applied guided Q3 FY2026 revenue to approximately $8.95 billion and non-GAAP EPS of $3.36 — both figures pointing to continued strong momentum heading into the second half of the year.