Applied Materials Earnings Top Estimates, Guide Higher

Applied Materials earnings on Nov. 12, 2026 showed record quarterly and annual revenue and a record non-GAAP quarterly EPS. The company guided fiscal first-quarter 2027 above Wall Street targets, with external reporting linking the outlook to demand for advanced AI chips.

Quarter Results, Profitability, and Guidance

Applied Materials (AMAT) reported fiscal fourth-quarter revenue of $10.41 billion for the period ended Oct. 25, 2026, a company record and 53.0% above the prior-year quarter. Fiscal-year revenue reached $34.45 billion, up 21.0% year over year. The company posted GAAP EPS of $3.40 and a record non-GAAP EPS of $4.16, up 92.0% year over year, with net income of $2.72 billion. These results exceeded Wall Street consensus, which had forecast adjusted EPS near $4.06 on revenue around $10.3 billion.

Profitability remained strong. GAAP gross margin was 50.4%, and non-GAAP gross margin was 50.6%. GAAP operating income was $3.66 billion, or 35.1% of revenue, while non-GAAP operating income was $3.68 billion, or 35.3%. For the full fiscal year, GAAP gross margin was 50.0% and non-GAAP gross margin 50.1%. GAAP operating income was $11.1 billion, or 32.2% of revenue, and non-GAAP operating income was $11.4 billion, or 33.1%. Fiscal-year GAAP and non-GAAP EPS were $12.62 and $12.89, respectively.

The company forecast fiscal first-quarter 2027 revenue of approximately $11.1 billion, plus or minus $500 million, and non-GAAP diluted EPS of $4.35, plus or minus $0.20. This implies a revenue range of about $10.6 billion to $11.6 billion and non-GAAP EPS between $4.15 and $4.55. External reporting attributed the outlook to continued spending on advanced AI chips and semiconductor-manufacturing equipment. In an investor presentation at SEMICON West, management said it expects its materials-engineering position to enable it to outperform the wafer-fabrication-equipment market over coming years.

Cash Flow, Capital Returns, and R&D Initiatives

Applied Materials generated operating cash flow of $3.3 billion in the quarter and $8.9 billion for the fiscal year. It returned $2.4 billion to shareholders through $2.0 billion in share repurchases and $421 million in dividends. These returns reflect the company’s ability to convert elevated equipment demand and margin performance into shareholder distributions.

The company also unveiled the EPIC Center in Silicon Valley and added four research and development partnerships, bringing total announced EPIC engagements to 15. These initiatives emphasize materials and process development to support advanced-node manufacturing.

The record revenue, strong margins, substantial cash flow, and guidance above consensus suggest continued momentum into the fiscal first quarter, supported by demand for advanced AI chips.