Applied Materials 8-K

Summary

Q4 and FY2026 results with Q1 FY2027 guidance. AI-driven semiconductor demand helped lift Q4 revenue to a record $10.41B, up 53% Y/Y versus 25% Y/Y growth in Q3. The company also reported record annual revenue of $34.45B, up 21% Y/Y.

For Q1 FY2027, the revenue guide midpoint is $11.1B vs Q4’s $10.41B; non-GAAP diluted EPS is guided to $4.15-$4.55, with the midpoint up 4.6% Q/Q vs Q4’s $4.16. Management said it is on track for Semiconductor Systems revenue growth of at least 40% Y/Y in calendar 2026.

Developments

• The EPIC Center, a Silicon Valley facility for collaborative semiconductor process technology and manufacturing-equipment R&D, was unveiled; four new partnerships bring announced engagements to 15. Intel will work on next-generation transistors, interconnects and advanced packaging; KIOXIA on memory technologies; Besi on interconnect architectures; and UCLA on semiconductor materials and integration.
• VeritySEM 20, a critical-dimension scanning electron microscope, was introduced to measure thinner photoresists and support tighter process windows for high-NA EUV patterning.
• Applied entered an accelerated share purchase agreement to increase its investment in Besi to approximately 20% of Besi’s outstanding shares, adding to its investment first made in April 2025.

Results with guidance

Metric	Guided for Q4 FY2026	Q4 FY2026 actual	FY2026	Q1 FY2027 guide
Non-GAAP diluted EPS (non-GAAP)	$3.82-$4.22	$4.16 (in line)+92% Y/Y, +19% Q/Q	$12.89+37% Y/Y	$4.15-$4.55+4.6% Q/Q at midpoint (better than reported)

Earlier guidance from the 8-K filed 2026-08-13.

Results without guidance

Metric	Q4 FY2026	Change	FY2026
Revenue	$10.4B	+53% Y/Y, +14% Q/Q	$34.4B+21% Y/Y
Operating income	$3.66B	+114% Y/Y, +19% Q/Q	$11.1B+34% Y/Y
Net income	$2.72B	+43% Y/Y, +7.1% Q/Q	$10.1B+44% Y/Y
Non-GAAP net income (non-GAAP)	$3.32B	+92% Y/Y, +19% Q/Q	$10.3B+35% Y/Y
Diluted EPS	$3.40	+43% Y/Y, +7.3% Q/Q	$12.62+46% Y/Y
Operating cash flow	$3.30B	+17% Y/Y, +8.7% Q/Q	$8.87B+11% Y/Y
Capital expenditures	$684M	-13% Y/Y, -3.3% Q/Q	$2.67B+18% Y/Y
Non-GAAP free cash flow (non-GAAP)	$2.62B	+28% Y/Y, +12% Q/Q	$6.20B+9% Y/Y
Cash and cash equivalents	$7.24B	-0.0% Y/Y, +2.9% Q/Q	—
Gross margin	50.4%	+2.4 pp Y/Y, +0.1 pp Q/Q	50.0%+1.3 pp Y/Y
Non-GAAP gross margin (non-GAAP)	50.6%	+2.5 pp Y/Y, +0.2 pp Q/Q	50.1%+1.3 pp Y/Y
Operating margin	35.1%	+9.9 pp Y/Y, +1.4 pp Q/Q	32.2%+3.0 pp Y/Y

What moved the numbers

• Q4 Semiconductor Systems revenue was $8.00B vs $4.88B a year earlier, with operating income of $3.10B vs $1.43B. Applied Global Services revenue was $1.90B vs $1.51B, with operating income of $578M vs $433M.
• An unrealized loss on strategic investments of $653M added $0.68 per diluted share to the Q4 GAAP/non-GAAP earnings difference. FY2026 also included a $253M legal settlement charge, with a $0.32 per diluted share impact.
• Q4 capital returned to shareholders was $2.42B: $2.00B of repurchases and $421M of dividends. For FY2026, repurchases were $3.18B and dividends were $1.57B; weighted-average diluted shares were 799M vs 808M in FY2025.

Other guidance (1)

Metric	Period	Guidance
Semiconductor Systems Revenue	Calendar 2026	at least 40% growth Y/Y

Figures extracted from the filings and checked against their text; changes and verdicts computed from them.