Applied Materials Reports Record Revenue, Stock Surges on Strong Outlook
Translated & summarized from Ice by baba
Applied Materials reported record fourth-quarter revenue of $10.41 billion and adjusted EPS of $4.16, beating expectations. The company's stock saw a significant year-to-date increase of 48.2% in 2026, driven by strong performance in its semiconductor systems segment. CEO Gary Dickerson anticipates another record year in 2027, with the Israeli PDC division's inspection and metrology business being a key growth factor.
The story in 6 lines · by baba
- Applied Materials reported record Q4 FY2026 revenue of $10.41 billion and adjusted EPS of $4.16.
- The company's stock has risen 48.2% year-to-date in 2026.
- Semiconductor systems revenue surged 64% to approximately $8 billion, driving growth.
- Applied Materials forecasts Q1 FY2027 revenue between $10.6 and $11.6 billion.
- CEO Gary Dickerson expects another record year in 2027.
- The Israeli PDC division's inspection and metrology business is a key growth driver.
Applied Materials announced record-breaking financial results for its fourth fiscal quarter of 2026, which concluded on October 25. The company reported revenues of $10.41 billion, a new high, and adjusted earnings per share (EPS) of $4.16, surpassing analyst expectations of $4.05. Reported EPS increased by 43% to $3.40.
Despite a slight dip of 3.58% in regular trading to $380.95 on November 12, the stock saw a post-earnings rise of 0.76% to $383.83. Over the past week, the stock has climbed 19.3%, though it has fallen 23.4% in the last month. Year-to-date, Applied Materials' stock has appreciated by 48.2% in 2026.
The significant revenue growth was primarily driven by the semiconductor systems segment, which saw its revenue jump approximately 64% to around $8 billion. This division accounted for about 86% of the company's quarterly revenue increase, with its operating profit more than doubling to $3.1 billion. Equipment for memory production, including DRAM and flash memory, also gained market share, increasing from 34% to 42% of the segment's sales.
For the full fiscal year 2026, Applied Materials achieved record revenues of $34.45 billion, a 21% increase. While sales in China grew by about 35% to $2.64 billion, its share of total revenue decreased from 29% to 25% due to faster overall company growth.
Looking ahead to the first quarter of fiscal year 2027, Applied Materials projects revenues between $10.6 billion and $11.6 billion, with the midpoint of $11.1 billion exceeding the analyst forecast of $10.89 billion. The company anticipates adjusted EPS to be between $4.15 and $4.55.
CEO Gary Dickerson expressed optimism for another record year in 2027, noting that customers are requesting earlier equipment deliveries. He highlighted the inspection and metrology business within the company's Israeli PDC division as a key growth driver, projecting over 50% revenue growth for this area in calendar year 2026 and strong growth in 2027. Dickerson stated that this segment is one of three reasons Applied Materials is outperforming the silicon wafer production equipment market.