Applied Materials reported record revenue and adjusted earnings for the third quarter of its fiscal year 2026, while raising its full-year revenue guidance.
The Santa Clara, California-based company, a key supplier to semiconductor manufacturers, posted third-quarter revenue of $7.1 billion, up 12% from the prior-year period and exceeding analyst expectations. Adjusted earnings per share rose 15% year-over-year to $2.45, also surpassing estimates.
Gross margin expanded to 48.2%, up from 47.1% in the same quarter last year, reflecting improved operational efficiency. The company’s bookings totaled $7.3 billion, indicating strong demand for its advanced chipmaking equipment.
Applied Materials raised its full-year revenue forecast to a range of $27.5 billion to $28.0 billion, up from its prior guidance of $26.5 billion to $27.0 billion. The midpoint of the new range implies a 10% increase over the company’s fiscal 2025 revenue.
Chief Executive Gary Dickerson attributed the results to sustained demand across major semiconductor end markets, including AI, data center, and automotive applications. He noted that the company’s technology is critical to enabling next-generation chip designs.
Analysts at Barclays and Goldman Sachs reiterated buy ratings on the stock following the results, citing the raised guidance and strong secular trends in the semiconductor industry. Shares of Applied Materials were up 3% in after-hours trading.
The company’s outlook reflects confidence in continued investment in semiconductor manufacturing capacity, particularly in advanced nodes and packaging technologies.
