Applied Materials, Inc. Q3 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Key Highlights: Applied Materials reported record results driven by AI infrastructure buildout, leadership in enabling technologies (foundry logic, DRAM, advanced packaging), and strong demand visibility from customers. The company expects to outgrow the wafer fab equipment (WFE) market in calendar 2026 and anticipates another strong growth year in 2027. Focus areas include services, process diagnostics/control, and output innovation products. EPIC strategy advancing with new partnerships and Silicon Valley center opening.

Financial Performance (Q3 FY2026 vs. Prior Periods)

  • Revenue: $9.1 billion (record), +15% sequentially, +25% year-over-year.
  • Non-GAAP Gross Margin: 50.4% (+40 bps seq, +150 bps YoY); 13th consecutive quarter of YoY expansion. Semiconductor Systems margin: 55.4% (+190 bps YoY).
  • Non-GAAP Operating Margin: 34% (record), +190 bps seq, +330 bps YoY. OpEx as % of revenue at lowest level in nearly 4 years.
  • Non-GAAP EPS: $3.50 (record), +22% seq, +41% YoY.
  • Semiconductor Systems Revenue: $7.0 billion (record), +18% seq, +27% YoY. DRAM (incl. HBM) +52% YoY to record levels; foundry logic at record on GAA/FinFET capacity adds.
  • Applied Global Services (AGS) Revenue: $1.8 billion (record), +22% YoY. Gross margin 35.6% (+180 bps YoY); op margin 30.1% (+280 bps YoY).

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Welcome to the Applied Materials Third Quarter of Fiscal 26 Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards, you will be invited to participate in a question-and-answer session. I would now like to turn the call over to Mike Sullivan, Corporate Vice President of Investor Relations. Please go ahead. Michael Sullivan: Good afternoon, everyone, and thank you for joining today's call. With me are Gary E. Dickerson, our President and CEO, and Brice A. Hill, our chief financial officer. Before we begin, I would like to remind you that today's call includes forward looking statements which are subject to risks and uncertainties that could cause our actual results to differ. Information concerning these risks and uncertainties is discussed in our most recent form 10 Q and other filings with the SEC. Today's call also includes non GAAP financial measures. Reconciliations to GAAP measures can be found in today's earnings press release and in our quarterly earnings materials, which are available on our website at ir.appliedmaterials.com. In addition, any comments regarding calendar 2026 refer to Q2 of this fiscal year through Q1 of fiscal 27 which will be a 14-week quarter. Next, I would like to remind you about our 2 special events during SemiCon West. On Monday afternoon, October 12th, we will host an unveiling of the new epic center in Silicon Valley, California. And on Tuesday morning, October 13th, we hope you will join G

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional