Applied Materials Q4 Revenue Beats Expectations on Strong AI Chip Demand

On November 13, 2026, after the U.S. market closed on Thursday, Applied Materials, the largest semiconductor equipment maker in the United States, reported results for the fourth fiscal quarter of fiscal year 2026, covering the quarter that ended on October 25, 2026. The company said revenue and profitability both exceeded expectations and reached all-time highs, and it also issued a forecast that topped what the market had anticipated. Applied Materials attributed the strength to robust demand for semiconductor manufacturing equipment amid the AI buildout, adding that strong demand for advanced AI chips should keep driving customer spending on its equipment.

Revenue for the fourth fiscal quarter came to $10.41 billion, up 53% year over year and above the $10.3 billion consensus average from analysts surveyed by FactSet. Within that total, semiconductor systems net sales reached $8.0 billion, an increase of 68% from a year earlier and higher than the $7.94 billion estimate. Applied Global Services net sales were $1.9 billion, up 17% year over year, beating the $1.85 billion forecast, while other net sales contributed $517 million. Under U.S. GAAP, net income was $2.718 billion, or $3.40 per share, compared with $1.9 billion, or $2.38 per share, in the prior-year period. Adjusted earnings per share hit a record $4.16, up from $2.17 a year earlier and above the $4.06 analyst expectation, and adjusted gross margin came in at 50.6%, versus 48.1% in the previous year and a 50.4% projection. Full-year revenue for fiscal year 2026 also set a record. In after-hours trading on Thursday, the company's shares rose, with the gain at one point reaching 3%. With the results and forward outlook now public, the company's next steps remain to be seen.