Applied Materials Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.24%.
Did AMAT Beat Earnings? Q2 2026 Results
Applied Materials delivered a strong second-quarter fiscal 2026 performance, posting non-GAAP EPS of $2.86 against the $2.66 consensus estimate, a 7.52% beat that extended the chipmaking equipment giant's streak to four consecutive quarters of exceeding analyst expectations. Revenue of $7.91 billion grew 11.4% year over year, powered chiefly by the Semiconductor Systems segment, which generated $5.96 billion as AI-driven demand for high-bandwidth memory lifted DRAM's share of segment revenue to 29% while foundry and logic held a commanding 67%. Margin expansion accompanied the top-line growth, with Semiconductor Systems operating margins widening to 35.1% from 32.8% a year ago, and Applied Global Services contributing $1.67 billion at a 29.2% operating margin. Analysts have flagged Applied's advanced equipment positioning in next-generation architectures like Gate-All-Around transistors as a key long-term catalyst, a view the company reinforced by raising its full-year semiconductor equipment growth outlook to more than 30% for calendar 2026. For the third quarter, Applied guided revenue to approximately $8.95 billion and non-GAAP EPS of approximately $3.36, signaling continued momentum.
- Rapid global build-out of AI computing infrastructure
- Strong leadership positions in leading-edge logic, DRAM and advanced packaging
- Foundry, logic and other representing 67% of Semiconductor Systems revenue
- DRAM revenue mix increasing to 29% from 27% year over year
- Non-GAAP gross margin expansion to 50.0% from 49.2% year over year
- Non-GAAP operating margin expansion to 32.1% from 30.7% year over year
“Applied Materials delivered record quarterly performance, and we now expect our semiconductor equipment business to grow more than 30 percent in calendar 2026.”
Applied Materials CEO, on the earnings call
Forward Guidance & Outlook
For Q3 FY2026, Applied Materials expects total revenue of approximately $8.95 billion (+/- $500 million) and non-GAAP diluted EPS of approximately $3.36 (+/- $0.20). Management now expects the semiconductor equipment business to grow more than 30% in calendar 2026, driven by the rapid global build-out of AI computing infrastructure and Applied's strong positions in leading-edge logic, DRAM, and advanced packaging.
AMAT YoY Financials
AMAT Revenue by Segment
AMAT Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.