Applied Materials Posts Record Q3 Revenue of $9.1 Billion, All-Time High EPS
Applied Materials reported record fiscal Q3 2026 revenue of $9.115 billion, an all-time high. Net income rose 43% year-over-year to $2.538 billion, while adjusted EPS hit a record $3.50.
- Applied Materials posted record Q3 revenue of $9.115 billion, with net income up 43%
- Shares fell 2.48% to $534.54 after the earnings release
Applied Materials announced in an SEC 8-K filing that it posted record fiscal Q3 2026 revenue of $9.115 billion, an all-time high. Adjusted earnings per share (EPS) also hit a new record of $3.50.
📊 Price at time of writing (Aug 14, 2026, 05:04 KST)
$534.54 ▼ -2.48%
Q3 Earnings at a Glance
The company makes semiconductor manufacturing equipment. Q3 revenue came in at $9.115 billion, up 25% year-over-year. The gain reflects a surge in orders for memory and advanced packaging equipment as demand for AI chips keeps climbing. Gross margin (the share of revenue left after subtracting cost of goods sold) reached 50.3%, improving year-over-year for the 13th straight quarter.
- Revenue: $9.115 billion, up 25% year-over-year
- Earnings per share (EPS): GAAP $3.17 (+43%), adjusted $3.50 (+41%) — both year-over-year
- Operating income: $3.08 billion, 33.7% of revenue
- Net income: $2.538 billion, up 43% year-over-year
Outlook for Next Quarter
CEO Gary Dickerson said on the earnings call that the company is raising its fiscal 2026 semiconductor equipment revenue outlook to reflect rising demand driven by AI adoption. He added that he expects the company to return to strong growth again in 2027. CFO Brice Hill said revenue growth should continue in the second half of the year, led in particular by DRAM, advanced foundry/logic, and advanced packaging. Specific revenue and profit targets for the next quarter were not disclosed in the release.
Market Reaction
As of 5:04 a.m. KST on the 14th, the day after the earnings release, Applied Materials shares were trading at $534.54, down 2.48% from the previous close. Investing.com reported that the options market had priced in a 7.5% swing around the earnings release. Trefis noted that the stock had already rallied sharply as demand outpaced the company's ability to fulfill orders, while TradingView also reported strength in the stock heading into the release. Even though both revenue and adjusted EPS set all-time highs, shares fell after the announcement. The exact margin by which results beat Wall Street estimates was not disclosed in the release.
This article was automatically generated based on the original SEC 8-K filing and international media reports, with the goal of delivering key data quickly after the announcement. Readers are advised to check the company's official filing before making trading decisions. Prices reflect the time of writing and may differ from current levels.
AMATFrequently Asked Questions
What's the difference between GAAP EPS and adjusted (non-GAAP) EPS?
GAAP EPS reflects earnings per share under U.S. accounting standards, including one-time costs, while adjusted (non-GAAP) EPS excludes certain one-time items. Applied Materials posted GAAP EPS of $3.17 and adjusted EPS of $3.50 this quarter, with the adjusted figure coming in higher.
Revenue hit a record, so why did the stock fall?
The release doesn't give a specific reason for the drop. However, international media noted that the stock had already rallied significantly ahead of the earnings release, and the options market had priced in a wide 7.5% swing around the announcement.
What's the outlook for next quarter?
The company didn't disclose specific figures, but management said it is raising its fiscal 2026 semiconductor equipment revenue outlook on strong AI demand and expects growth to continue into 2027.
How did the company return capital to shareholders?
The company returned a total of $860 million to shareholders this quarter, including $440 million in share buybacks and $420 million in dividends.
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