Applied Materials Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −2.98%.
Did AMAT Beat Earnings? Q1 2026 Results
Applied Materials delivered a clean beat in fiscal Q1 2026, posting non-GAAP EPS of $2.38 against a consensus estimate of $2.21, a 7.84% positive surprise, while revenue of $7.01 billion topped expectations by 1.92% despite slipping 2.1% year over year. The headline driver was a notable mix shift within Semiconductor Systems, where record DRAM revenue pushed that segment's share to 34% of sales from 27% a year ago, reflecting accelerating demand tied to AI memory buildouts. Applied Global Services also contributed meaningfully, with revenue climbing to $1.56 billion and operating margins expanding more than 300 basis points to 28.1%. For a company with a <a href="https://247wallst.com/investing/2025/12/18/the-chip-equipment-maker-that-quietly-turned-1000-into-11280-in-a-decade/">long history of compounding shareholder value</a>, the forward outlook added further weight to the results, with management guiding Q2 revenue to approximately $7.65 billion and non-GAAP EPS of roughly $2.64, while CEO Gary Dickerson projected the semiconductor equipment business would grow over 20% in calendar 2026, fueled by investment in leading-edge logic, high-bandwidth memory, and advanced packaging.
- Acceleration of industry investments in AI computing
- Record DRAM revenue in Semiconductor Systems (34% of segment revenue, up from 27% YoY)
- Record services and spares revenue in Applied Global Services
- High growth rates for leading-edge logic, high-bandwidth memory and advanced packaging
- Taiwan revenue surged to $1.72 billion from $1.18 billion year over year
“Applied Materials delivered strong results in our fiscal first quarter, fueled by the acceleration of industry investments in AI computing. The need for higher performance and more energy-efficient chips is driving high growth rates for leading-edge logic, high-bandwidth memory and advanced packaging. These are areas where Applied is the process equipment leader, and we expect to grow our semiconductor equipment business over 20 percent this calendar year.”
Applied Materials CEO, on the earnings call
Forward Guidance & Outlook
For Q2 FY2026, Applied Materials expects total revenue of approximately $7.65 billion, plus or minus $500 million, and non-GAAP diluted EPS of approximately $2.64, plus or minus $0.20. The CEO expects to grow the semiconductor equipment business over 20% in calendar year 2026, driven by acceleration of industry investments in AI computing, leading-edge logic, high-bandwidth memory, and advanced packaging.
AMAT YoY Financials
AMAT Revenue by Segment
AMAT Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.