Applied Materials Beats Q4 Estimates: Record $10.41B Revenue, $4.16 EPS
Applied Materials reported record fiscal Q4 revenue of $10.41 billion, up 53%, and forecast first-quarter sales above estimates as AI chip demand stays strong.
Image: Wikimedia Commons / Retro-Computing Society of Rhode Island
SANTA CLARA, Calif., Nov. 12 — Applied Materials reported record fiscal fourth-quarter revenue of $10.41 billion, up 53 percent from a year earlier, and forecast first-quarter sales above Wall Street expectations, as spending on the equipment that makes advanced artificial intelligence chips keeps climbing.
The Santa Clara-based company said adjusted earnings reached $4.16 per share, up 92 percent from a year earlier and ahead of the $4.06 analysts expected, while revenue beat the $10.30 billion average estimate. Net income rose 43 percent to $2.72 billion.
Key takeaways
- Record quarterly revenue of $10.41 billion, up 53 percent year over year; adjusted earnings of $4.16 per share, up 92 percent.
- Full-year revenue of $34.45 billion, up 21 percent; adjusted earnings of $12.89 per share, up 37 percent.
- First-quarter fiscal 2027 guidance of about $11.10 billion in revenue, above the $10.89 billion average estimate.
- Shares fell 3.6 percent to $380.95 before the release, then steadied after hours.
Applied Materials Q4 2026 Results in Full: Revenue, EPS, Margins and Segments
The quarter capped the strongest year in the company’s history. Adjusted gross margin reached 50.6 percent, up 250 basis points from a year earlier, and adjusted operating income rose to $3.68 billion, or 35.3 percent of revenue. Cash from operations was $3.30 billion.
Semiconductor Systems, the division selling the machines chipmakers use to build advanced processors, produced $7.996 billion in quarterly revenue. Applied Global Services added $1.896 billion, and the remaining businesses contributed $517 million.
| Metric | Q4 fiscal 2026 | Q4 fiscal 2025 |
|---|---|---|
| Revenue | $10.41 billion | $6.80 billion |
| GAAP earnings per share | $3.40 | $2.38 |
| Adjusted earnings per share | $4.16 | $2.17 |
| Adjusted gross margin | 50.6% | 48.1% |
| Net income | $2.72 billion | $1.90 billion |
Applied Materials Q1 2027 Guidance: Revenue Forecast and AI Chip Demand
For the first quarter of fiscal 2027, Applied Materials forecast revenue of about $11.10 billion, plus or minus $500 million, and adjusted earnings of $4.35 per share, plus or minus 20 cents. Both figures sit above Wall Street expectations of $10.89 billion in revenue and $4.25 per share in adjusted earnings, according to data compiled by LSEG.
Chief executive Gary Dickerson said the Semiconductor Systems business is expected to grow by more than 40 percent in calendar 2026, as chipmakers keep adding capacity for AI accelerators and high-bandwidth memory. The same demand lifted other suppliers on Thursday: Cisco reported record quarterly revenue of $18.5 billion and raised its full-year outlook.
Applied Materials Stock After Earnings: Share Price Reaction Explained
The muted market reaction stands out against the size of the beat. Shares fell 3.6 percent to $380.95 in regular trading on Thursday, before the results were released, and were little changed after hours, holding near $380.52. The stock has risen about 48 percent this year, so much of the AI equipment boom was already reflected in the price.
Analysts tracked by TipRanks hold a Strong Buy consensus, with 24 buy ratings and one hold. CoreWeave also beat third-quarter expectations and raised its guidance this week.
Frequently Asked Questions
Did Applied Materials beat earnings estimates in Q4 2026?
Yes. Adjusted earnings of $4.16 per share beat the $4.06 estimate, and revenue of $10.41 billion beat the $10.30 billion average. Revenue rose 53 percent from a year earlier.
What is Applied Materials’ revenue forecast for the first quarter of fiscal 2027?
Revenue of about $11.10 billion, plus or minus $500 million, and adjusted earnings of $4.35 per share, plus or minus 20 cents. Both beat Wall Street expectations of $10.89 billion and $4.25 per share.
Why was Applied Materials stock little changed after reporting record earnings?
The 3.6 percent drop to $380.95 happened in regular trading before the results were released. After hours, the stock held near its close. The shares have risen about 48 percent this year, so strong AI equipment demand was already priced in.
How fast is Applied Materials’ Semiconductor Systems business growing?
It reached $26.14 billion in fiscal 2026, up from $21.44 billion the year before. Chief executive Gary Dickerson expects growth of more than 40 percent in calendar 2026, driven by chipmakers adding capacity for AI accelerators and high-bandwidth memory.
Applied Materials reports first-quarter fiscal 2027 results in February; Nvidia’s earnings on November 17 offer the next read on AI chip demand.
