Applied Materials reported strong earnings for its fourth quarter and fiscal year, which ended on October 25, 2026. The company achieved an adjusted earnings per share (EPS) of USD 4.16, surpassing analyst expectations of USD 4.13, while its revenue reached a record USD 10.41 billion, slightly exceeding the consensus estimate of USD 10.30 billion.
Record Revenue and Earnings Growth
Applied Materials’ fourth-quarter revenue increased by 53 percent compared to the previous year. On a generally accepted accounting principles (GAAP) basis, the company reported an EPS of USD 3.40, reflecting a 43 percent year-over-year increase. The non-GAAP EPS of USD 4.16 marked a 92 percent rise. For the entire fiscal year 2026, Applied Materials generated record revenue of USD 34.45 billion, up 21 percent from the previous year, with GAAP EPS at USD 12.62 and non-GAAP EPS at USD 12.89. The company also noted a record cash flow from operations of USD 8.87 billion.
Shareholder Returns and Future Investments
In the fourth quarter, Applied Materials returned USD 2.42 billion to shareholders, which included USD 2 billion in share repurchases and USD 421 million in dividends. The company has also entered into an accelerated share purchase agreement to increase its stake in Besi to approximately 20 percent of the company’s outstanding shares. CEO Gary Dickerson highlighted that demand for AI-driven semiconductors is a key factor in the company’s outlook, which is reflected in the significant revenue growth from the Semiconductor Systems segment.
Partnerships and New Technology Initiatives
Applied Materials announced the opening of the EPIC Center in Silicon Valley and revealed four new partnerships, bringing its total to 15. The new partners include Intel, KIOXIA Corporation, Besi, and the UCLA Samueli School of Engineering. Additionally, the company introduced the VeritySEM 20 metrology system designed for high-NA EUV patterning control.
Market Outlook and Guidance
Looking ahead, Applied Materials provided guidance for the first quarter of fiscal year 2027, projecting revenue in the range of USD 11.1 billion, with a margin of error of USD 500 million. This forecast does not account for potential acquisition-related charges or tax items. The company’s performance in the upcoming quarter will be closely watched, especially in light of the ongoing demand for memory products, which now represent 33 percent of the Semiconductor Systems revenue, up from 28 percent a year earlier.
