Applied Materials posts record $9.12 billion quarter as AI chip demand surges

Revenue Growth

Applied Materials just had its biggest quarter ever. The chip equipment giant reported fiscal third-quarter 2026 revenue of $9.12 billion, a record and a 25% jump from $7.30 billion a year earlier.

Core Business

The core of the business is the Semiconductor Systems segment. That is the unit selling the equipment chipmakers use to deposit, etch and shape materials on silicon wafers.

Advanced Logic and DRAM

Demand came from three areas: advanced logic, DRAM and advanced packaging. Semiconductor Systems brought in a record $7.04 billion, up 27% year over year.

Profitability

Profits rose faster than sales. Non-GAAP earnings per share hit a record $3.50, up 41% from the prior year. On a standard accounting basis, GAAP net income came in at $2.54 billion, up 43%.

Guidance and Outlook

For the fourth quarter of fiscal 2026, Applied Materials expects revenue of approximately $10.25 billion, plus or minus $500 million. It also guided to non-GAAP EPS of about $4.02, plus or minus $0.20. Both targets came in above prior analyst expectations.

Demand Visibility

Management also raised its Semiconductor Systems revenue outlook for calendar 2026. CEO Gary Dickerson pointed to demand visibility stretching into 2030, which he described as unprecedented.

Global Presence

China accounted for approximately 26% to 28% of revenue in recent quarters, representing a significant share for a company selling strategically sensitive technology.