Applied Materials Posts Record Fiscal Third-Quarter Revenue of $9.115 Billion

Applied Materials posted record fiscal third-quarter revenue of $9.115 billion for the period ended July 26, 2026, as stronger AI infrastructure demand lifted sales of semiconductor equipment and services.

Revenue increased 25% from $7.302 billion a year earlier. Applied Materials forecast fiscal fourth-quarter revenue of about $10.25 billion, plus or minus $500 million, and non-GAAP diluted earnings of $4.02 per share, plus or minus 20 cents.

Semiconductor Systems revenue rose to $7.04 billion from $5.564 billion. Foundry, logic and other products accounted for 67% of the segment, while DRAM represented 26% and flash memory 7%.

Applied Global Services revenue increased to $1.781 billion from $1.463 billion. GAAP net income rose 43% to $2.538 billion, or $3.17 per diluted share. Non-GAAP earnings per share increased 41% to $3.50.

“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,” Gary Dickerson, president and CEO of Applied Materials, said.

Demand remained strongest in DRAM, leading-edge foundry and logic, and advanced packaging. Some customer planning discussions now extend to 2030.

The company generated $3.04 billion in operating cash flow and returned $860 million to shareholders through $440 million in share repurchases and $420 million in dividends.

China accounted for $2.506 billion, or 28%, of fiscal third-quarter revenue. U.S. export regulations have restricted Applied Materials’ ability to provide certain products and services to Chinese customers. The company also paid a $253 million settlement to the Commerce Department’s Bureau of Industry and Security during fiscal second quarter over previously disclosed export-control compliance matters.

Applied Materials has also been working with semiconductor and memory companies at its EPIC Center, including Kioxia on AI memory technologies.