Applied Materials, Inc.

(NASDAQ Global Select)
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Very Bullish +85

Applied Materials shares gain on Q4 beat

Earnings report Financial outlook AI-generated analysis

πŸ“ˆ Applied Materials shares rose roughly 1.5% in after-hours trading following Q4 results that beat analyst expectations.

πŸ’° The company reported adjusted earnings per share of $4.16, topping the consensus estimate of $4.06.

πŸ’΅ Revenue reached $10.41 billion, exceeding the $10.3 billion market consensus for the quarter.

πŸ“Š Non-GAAP gross margin expanded to 50.6%, while operating income hit $3.68 billion.

πŸ’Έ Applied Materials generated $3.30 billion in cash from operations during the fourth quarter.

πŸ”„ The company returned $2.42 billion to shareholders via $2.00 billion in buybacks and $421 million in dividends.

πŸš€ CEO Gary Dickerson stated the Semiconductor Systems business is on track to grow over 40% in calendar 2026.

πŸ€– AI demand continues to fuel strong incremental demand for semiconductors at Applied Materials.

πŸ“… For Q1 fiscal 2027, revenue guidance is set between $10.6 billion and $11.6 billion.

πŸ’Ή Analysts expect adjusted EPS of $4.25 for the upcoming quarter versus a company forecast range of $4.15 to $4.55.

Bullish Signals
  • Applied Materials shares gained roughly 1.5% in after-hours trading following Q4 earnings that beat analyst expectations.
  • The company reported adjusted EPS of $4.16, surpassing the consensus estimate of $4.06.
  • Revenue reached $10.41 billion, exceeding the market consensus of $10.3 billion for the quarter.
  • Non-GAAP gross margin expanded to 50.6%, demonstrating strong profitability on sales.
  • Operating income hit $3.68 billion, representing a healthy 35.3% margin of total revenue.
  • The company generated $3.30 billion in cash from operations during the quarter.
  • Applied Materials returned $2.42 billion to shareholders through share repurchases and dividends.
  • CEO Gary Dickerson confirmed record results for fiscal 2026 and projected over 40% growth for the Semiconductor Systems business in calendar 2026.
  • The company expects adjusted EPS between $4.15 and $4.55 for Q1 fiscal 2027, above analyst estimates of $4.25.
Full Analysis
Applied Materials Inc. reported fourth-quarter fiscal 2026 results that significantly exceeded Wall Street expectations, driving its shares higher in after-hours trading. The semiconductor equipment maker posted adjusted earnings per share of $4.16, surpassing analyst projections of $4.06, while revenue reached $10.41 billion against a consensus estimate of $10.3 billion. The company demonstrated robust financial health with a non-GAAP gross margin of 50.6% and operating income of $3.68 billion, representing 35.3% of total revenue. Applied Materials generated $3.30 billion in cash from operations during the quarter and returned $2.42 billion to shareholders through share repurchases and dividends. CEO Gary Dickerson highlighted record results for fiscal 2026 and projected more than 40 percent growth for its Semiconductor Systems business in calendar 2026, driven by AI demand. For the first quarter of fiscal 2027, Applied Materials provided guidance for total revenue between $10.6 billion and $11.6 billion, with adjusted earnings per share expected to range from $4.15 to $4.55.