Applied Materials reported record third-quarter fiscal 2026 revenue of $9.12 billion, up 25% year-over-year, alongside record non-GAAP earnings per share of $3.50. The performance was driven by accelerating demand for materials engineering solutions essential for AI infrastructure, particularly in high-bandwidth memory (HBM) and advanced packaging transitions.

Key Highlights

  • Semiconductor Systems revenue reached a record $7.04 billion, surpassing the $6.9 billion estimate and growing 26.5% year-over-year.
  • Non-GAAP gross margin expanded 150 basis points to 50.4%, marking the company's 13th consecutive quarter of year-over-year margin expansion.
  • China revenue exposure decreased to 28% of total sales, down from 35% in the prior-year period, as the company navigates tightening trade regulations.
  • Management issued strong fourth-quarter revenue guidance with a midpoint of $10.25 billion, suggesting significant sequential growth acceleration.