Applied Materials 8-K
PositiveEarningsGuidance raised
AI-driven demand for DRAM, leading-edge logic and advanced packaging drives a higher CY2026 Semiconductor Systems outlook.
Filed 2026-08-13 16:03 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 FY2026 results with Q4 guidance. Applied Materials reported record revenue and record non-GAAP EPS, with growth driven by strong demand for materials engineering solutions as AI adoption expands. It raised its 2026 Semiconductor Systems revenue expectations and expects another strong growth year in 2027.
Key Figures
| Metric | Q3 FY2026 | Q3 FY2025 | Y/Y |
|---|---|---|---|
| Revenue | $9.12B | $7.30B | 25% |
| Operating income (GAAP) | $3.08B | $2.23B | 38% |
| Operating income (non-GAAP) | $3.10B | $2.25B | 38% |
| Net income (GAAP) | $2.54B | $1.78B | 43% |
| Net income (non-GAAP) | $2.80B | $1.99B | 41% |
| Diluted EPS (GAAP) | $3.17 | $2.22 | 43% |
| Diluted EPS (non-GAAP) | $3.50 | $2.48 | 41% |
| Operating cash flow | $3.04B | $2.63B | 15% |
| Free cash flow (non-GAAP) | $2.33B | $2.05B | 14% |
- Gross margin expanded 150 bp Y/Y to 50.3% GAAP and 50.4% non-GAAP; this was the 13th consecutive quarter of Y/Y gross-margin expansion.
- Semiconductor Systems revenue was $7.04B vs $5.56B Y/Y, and Applied Global Services revenue was $1.78B vs $1.46B. Management cited AI adoption and customer demand visibility, particularly for DRAM, leading-edge foundry-logic and advanced packaging.
- Shareholder distributions totaled $860M: $440M in repurchases vs $1.06B a year earlier, and $420M in dividends vs $368M. Weighted-average diluted shares were 800M vs 802M (down 0.25%). Cash and cash equivalents were $7.04B vs $7.24B at FY2025 year-end; total debt was $6.54B vs $6.56B.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Total revenue | Q4 FY2026 | $9.75B-$10.75B | — | — |
| Diluted EPS (non-GAAP) | Q4 FY2026 | $3.82-$4.22 | — | — |
The non-GAAP EPS outlook excludes $0.01 per share of known charges related to completed acquisitions, includes a $0.01 normalized tax benefit from share-based compensation and a $0.05 net tax benefit from intra-entity intangible asset transfers. CY2026 Semiconductor Systems revenue expectations were raised, without a figure stated; management also expects continued strong revenue growth in 2H CY2026 and another strong growth year in 2027.
Investor Takeaways
- Q4 revenue and non-GAAP EPS results vs the guided ranges will test whether demand sustains the record growth.
- Watch delivery against the raised CY2026 Semiconductor Systems revenue expectations and management’s strong-growth outlook for 2027.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3