Applied Materials reports Q3 record revenue, raises outlook
Applied Materials said third-quarter fiscal 2026 revenue was a record $9.1 billion and non-GAAP EPS was a record $3.50, while Q4 guidance calls for $10.25 billion in revenue and $4.02 non-GAAP EPS.
On Thursday, Applied Mat (NASDAQ: AMAT ) discussed third-quarter financial results during its earnings call.
The full transcript is provided below.
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The full earnings call is available at Watch the full earnings call below: Summary Applied Materials delivered record-breaking results in Q3 2026, with the highest quarter-on-quarter revenue growth in its history, driven by AI infrastructure demand.
The company has revised its revenue growth forecast upward and expects to grow faster than the overall market, with strong growth projected for 2027.
Applied Materials' EPIC center in Silicon Valley will enhance innovation and customer collaboration, and new partnerships have been formed with Broadcom, Screen, and UC Berkeley.
The company reported record Q3 revenue of $9.1 billion, up 25% year-over-year, and a record non-GAAP earnings per share of $3.50, up 41% year-over-year.
Guidance for Q4 2026 includes expected revenue of $10.25 billion and non-GAAP EPS of $4.02, with significant growth in DRAM and advanced packaging expected.
Applied Materials plans to double its manufacturing capacity by 2028, reflecting strong demand signals from customers and a robust growth outlook.
The company is leveraging AI to enhance product development, optimize production, and improve customer service solutions, contributing to margin expansion.
Management is confident in the company's ability to continue gaining market share and increasing margins, driven by strong demand in leading-edge foundry logic, DRAM, and advanced packaging.
Full Transcript OPERATOR Corporate Vice President of Investor Relations.
Please go ahead.
Mike Sullivan, Corporate Vice President, Investor Relations Good afternoon everyone and thank you for joining today's call.
With me are Gary Dickerson, our President and CEO, and Bryce Hill, our Chief Financial Officer.
Before we begin, I'd like to remind you that today's call includes forward-looking statements which are subject to risks and uncertainties.
Risks and uncertainties are discussed in our most recent Form 10-Q and other filings with the SEC.
Today's call also includes non-GAAP financial measures.
Reconciliations to GAAP measures can be found in today's earnings press release and in our quarterly earnings materials which are available on our website at ir.appliedmaterials.com.
In addition, any comments regarding calendar 2026 refer to Q2 of this fiscal year through Q1 of fiscal 2027, which will be a 14-week quarter.
Next I'd like to remind you about our two special events during SEMICON West.
On Monday afternoon, October 12th, we'll host an unveiling of the new EPIC center in Silicon Valley, California.
And on Tuesday morning, October 13th, we hope you'll join Gary, Bryce, and our business unit leaders for our Investor Breakfast presentation at the Yerba Buena Center in San Francisco.
You can join us in person or on a live webcast, and with that introduction, I'd now like to turn the call over to Gary Dickerson.
Gary Dickerson, President and CEO Thank you, Mike.
In our third fiscal quarter of 2026, Applied Mat delivered another set of record-breaking results, including the highest quarter-on-quarter revenue growth in the company's history.
The rapid global buildout of AI infrastructure, combined with Applied Mat'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.
As 2026 has progressed, customers have found new ways to address cleanroom space constraints and significantly increase their demand for tool deliveries.
In the past three months we have again made upward revisions to our revenue growth forecast for the year and we are confident we will grow faster than the overall market.
As AI computing drives unprecedented demand for semiconductors, there's a large gap between demand and supply for advanced chips.
To ensure our supply chain and field teams can support their ramps, our largest customers are giving us longer-term commitments and rolling eight-quarter forecasts.
This increased demand visibility gives us high confidence that 2027 will be another strong growth year for Applied Mat as customers move quickly to bring new fab capacity online while simultaneously optimizing yield and output of their existing production facilities.
We also see strong incremental demand for our advanced service solutions.
In my prepared remarks I will share my views on how AI is resizing and reshaping the semiconductor industry and its ability to realize the value of advanced technology.
I will describe the increasing value Applied Mat is delivering to our customers by accelerating their technology roadmaps, optimizing existing production capacity, and helping ramp new fabs faster.