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Applied Materials Posts Record $10.41bn Revenue

Applied Materials reported record quarterly revenue and earnings after the US close today. Both edged past Yahoo Finance's average analyst estimates, and next-quarter guidance points above them too.

Applied Materials (NASDAQ: AMAT), which makes semiconductor manufacturing equipment for chipmakers, reported record fourth-quarter revenue of $10.41bn, up 53% from $6.80bn a year ago. Non-GAAP earnings per share, which exclude one-off items, also hit a record $4.16, up from $2.17 a year earlier.

The results came after the US close at 9 pm UK time. Shares had already fallen 3.6% to $380.95 during today’s session, before the results, and rose about 1.1% to $385 in after-hours trading.

AMAT.US

Yahoo Finance’s average analyst estimates, which are non-GAAP (normalised), were $10.3bn of revenue and $4.05 of earnings per share. The beat was real but small.

MetricQ4 FY26Q4 FY25Yahoo average estimateBeat
Revenue$10.41bn$6.80bn$10.3bn+1.06%
Non-GAAP EPS$4.16$2.17$4.05+2.72%

Earnings beat by more than revenue, alongside a non-GAAP gross margin of 50.6%, up from 48.1% a year ago.

Guidance is the firmer point. For the first quarter of fiscal 2027, Applied guided to revenue of $11.10bn at the midpoint, 2.40% above Yahoo’s $10.84bn, and non-GAAP EPS of $4.35, 2.35% above $4.25. That EPS guide includes a $0.04 net tax benefit, so it is slightly less strong underneath.

Bar chart showing Applied Materials revenue rising from a year ago to a record fourth quarter and a higher guidance midpoint for the next quarter
Applied Materials quarterly revenue, $bn; the Q1 FY2027 bar is the midpoint of company guidance

Applied also returned $2.42bn to shareholders in the quarter, including $2.00bn of buybacks, its largest quarterly buyback in more than eight years. Non-GAAP free cash flow was $2.616bn, against $2.043bn a year ago. GAAP EPS was $3.40 against $2.38, held back by a $653m unrealised loss on strategic investments, a paper loss on stakes rather than cash lost.

Chief executive Gary Dickerson said Applied remains on track to grow its Semiconductor Systems business by more than 40% in calendar 2026, with AI fuelling demand.

The earnings call starts at 1:30 pm Pacific, 9:30 pm UK time tonight, and will show whether the after-hours gain holds into Friday’s open.

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