Applied Materials’ Guidance Puts Fourth-Quarter Revenue at $10.25 Billion
Key Facts
Applied Materials is heading toward its fiscal 2026 fourth-quarter results with revenue expected to reach $10.25 billion, plus or minus $500 million, and non-GAAP earnings per share of $4.02, plus or minus $0.20. The company said in its guidance that expected revenue would rise 51% year over year and EPS would increase 85% from the same period a year earlier. The outlook puts semiconductor manufacturing systems at the center of the expected results, alongside continued demand for advanced memory and packaging. The guidance followed a third quarter in which the company posted record revenue and EPS, raising the comparison base ahead of the results. Investors are watching for the call scheduled after the market close on November 12, with some positioning ahead of the results.
Quarterly revenue expectations are divided into about $7.9 billion for Semiconductor Systems, $1.84 billion for Global Services and $510 million for other revenue. Semiconductor Systems accounts for the largest share of the expected total, with Global Services and other revenue making up the remainder of the guidance. The company said Semiconductor Systems revenue is set to rise 62% year over year, while Global Services revenue is expected to increase 22%. Management links the strength of the outlook to a mix of demand for DRAM, advanced foundry logic and advanced packaging. The growth drivers cited by the company therefore extend beyond memory to include equipment for advanced chip production and related services.
Fiscal 2026 third-quarter results provide a measure of the company’s performance ahead of the current guidance: revenue was $9.12 billion, up 25% year over year, while non-GAAP EPS reached a record $3.50, up 41%. The growth rates the company expects for the fourth quarter exceed those of the previous quarter on the year-over-year comparisons included in its guidance. It also said DRAM revenue, including HBM packaging, rose 52% year over year in the third quarter to a record. That performance reflects the connection between demand for high-bandwidth memory and packaging and results for chipmaking equipment suppliers. The company expects packaging revenue growth to exceed 70% during calendar 2026, putting the business among the market’s closely watched growth drivers.
In a broader market context, Applied Materials said in October that advanced foundry logic, DRAM and advanced packaging could together drive about 75% of chipmaking equipment market growth between 2025 and 2030. Chief Executive Gary Dickerson tied that trajectory to the expansion of AI infrastructure, saying, "The global expansion of AI infrastructure buildouts is driving a new era of growth for semiconductor manufacturing equipment." The company added that it had built a leading position in the market’s fastest-growing areas. That estimate places the fourth-quarter outlook within a longer-term view of demand for chipmaking equipment, without removing the impact of demand timing and revenue mix on quarterly results. The near-term guidance focuses on revenue and EPS, while the company links the sector’s prospects to spending on AI infrastructure.
Lam Research announced on November 5 a new authorization to repurchase up to $25 billion of stock, saying the authorization supplements the remaining balance of its previous authorization. The company said the approval does not obligate it to buy any shares, so the announcement sets a ceiling for the authorization and does not guarantee its full execution. It also announced a quarterly cash dividend of $0.33 per share, payable on January 6, 2027, to shareholders of record on December 2, 2026. The announcement forms part of the sector backdrop ahead of Applied Materials’ results, but on its own it does not establish the reason for chip-equipment stocks’ moves in the November 9 session. In the U.S. market that day, The Associated Press reported that the S&P 500 was up 2.3% and the Nasdaq 2.6% by the time its report was published.
Applied Materials is scheduled to hold its fiscal 2026 fourth-quarter and full-year earnings call on November 12 at 4:30 p.m. Eastern time, with a live webcast, according to the company’s investor relations department. The call comes after the market close, while an Investing.com report said investors had positioned ahead of the results. The published guidance, including revenue and EPS forecasts and their breakdown by business segment, will be the benchmark when the actual results are announced. The quarterly figures will also test performance in the areas of demand highlighted by the company, led by DRAM, advanced foundry logic and packaging. The scheduled call is the next milestone in that process.