Applied Materials Q3 2026 Earnings Beat, Guides Higher

Applied Materials reported stronger-than-expected Q3 2026 earnings on Aug. 13, 2026, and raised its fourth-quarter revenue outlook. The company attributed the momentum to rapid global adoption of artificial intelligence (AI), which is driving unprecedented demand for its materials-engineering equipment and supporting an optimistic outlook for 2027.

Record Revenue and Profitability

For the fiscal third quarter ended July 26, 2026, Applied Materials posted record revenue of $9.1 billion, a 25% increase year over year. GAAP earnings per share (EPS) were $3.17, while non-GAAP EPS rose 41% to $3.50. Operating income reached about $3.1 billion on both GAAP and non-GAAP bases. These results exceeded analysts’ estimates and reflected gains across the company’s materials-engineering businesses. The combination of higher revenue and expanded operating income drove the improved profit metrics for the quarter.

Raised Guidance on AI Demand

The company set fiscal fourth-quarter revenue guidance at approximately $10.3 billion, plus or minus $500 million, well above the analyst consensus of $9.5 billion. Applied Materials said in a press release that “the rapid global adoption of AI drives unprecedented demand for our materials engineering solutions.” Management also raised Semiconductor Systems revenue expectations for calendar 2026 and forecasted strong growth in 2027. This outlook reflects accelerated investment by chipmakers in equipment and materials needed for advanced AI-oriented chips.

Before the results, Applied Materials had guided third-quarter revenue to about $9.0 billion, plus or minus $500 million, and non-GAAP EPS to $3.36, plus or minus $0.20. The actual results exceeded that guidance and set the stage for the higher fourth-quarter target. Management’s comments and the company’s forecast signal continued robust spending on semiconductor equipment as AI chip adoption supports industry growth into 2027.