Applied Materials beats Q3 estimates, guides above forecasts
Applied Materials reported third-quarter fiscal 2026 revenue of $9.12 billion and adjusted earnings of $3.50 per share, both above analyst estimates, and issued fourth-quarter guidance above forecasts.
Applied Materials Inc (NASDAQ: AMAT ) posted financial results for the third quarter of fiscal 2026 after the closing bell on Thursday.
Here’s a look at the key details from the print.
Applied Materials stock is trading in a range.
What’s the outlook for AMAT shares? Applied Materials Q3 Highlights Applied Materials reported third-quarter revenue of $9.12 billion, beating analyst estimates of $8.99 billion, according to Pro.
The chip equipment manufacturer reported adjusted earnings of $3.50 per share for the quarter, beating estimates of $3.40 per share.
Total revenue was up 25% year-over-year.
Gross margin was 50.3% in the third quarter, or 50.4% on an adjusted basis.
The company generated $3.04 billion in cash from operations and distributed $860 million to shareholders via share repurchases and dividends.
Applied Materials exited the third quarter with approximately $7.04 billion in cash and cash equivalents. “Applied Materials delivered another record-breaking quarter, including the highest sequential revenue growth in the company’s history,” said Gary Dickerson, president and CEO of Applied Materials. “As the rapid global adoption of AI drives unprecedented demand for our materials engineering solutions, we are further raising our Semiconductor Systems revenue expectations for calendar 2026 and are confident we will grow faster than the market this year.” Applied Materials guided for fourth-quarter revenue of $10.25 billion, plus or minus $500 million, versus estimates of $9.54 billion.
The company anticipates fourth-quarter adjusted earnings of $3.82 to $4.22 per share, versus estimates of $3.69 per share.
Applied Materials said it expects another “strong growth year” in 2027, citing increased demand visibility from customers.
Applied Materials management will discuss the quarter on an earnings call with investors and analysts at 4:30 p.m.
ET.
A link to the call has been provided below.
AMAT Stock Trades Higher/Lower After Earnings AMAT Price Action: Applied Materials shares were down 3.14% in after-hours, trading at $517.78 at the time of publication on Thursday, according to Pro.
The stock is up close to 100% year-to-date, which may explain some of the weakness in extended trading.
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