More from AMAT Q3 2026

Applied Materials, Inc.

AMAT2026 Q3Technology

1mo

AI infrastructure buildout creates demand-supply imbalance and tool ramp visibility

Management attributed record results to rapid global build out of AI infrastructure combined with Applied’s enabling technology leadership for AI computing.
Customers found new ways to address clean room space constraints, which management said is significantly increasing demand for tool deliveries.
Applied cited rolling 8-quarter forecasts and longer-term commitments from largest customers to support supply chain and field team ramps.
Management linked the visibility to high confidence that 2027 will be another strong growth year, given ongoing multiyear demand conversations.
Brice emphasized strengthened demand outlook across leading indicators, including positive returns for cloud investors and enterprise customers.

Applied Materials, Inc.

AMAT2026 Q3Technology

1mo

Financial Performance Summary

Applied Global Services revenue of $1.8 billion, up 22% year over year; AGS gross margin of 35.6% and operating margin of 30.1% (both up year over year).
Cash flow and capital return: record operating cash flow over $3.0 billion; capex $707 million; free cash flow $2.3 billion; $860 million distributed to shareholders (including $420 million dividends and $440 million buybacks).
Non-GAAP gross margin of 50.4%, up 40 basis points sequentially and 150 basis points year over year, marking the 13th consecutive quarter of year-over-year gross margin expansion.
Non-GAAP operating margin of 34%, up 190 basis points sequentially and 330 basis points year over year (record operating margin).
Record non-GAAP EPS of $3.50, up 22% sequentially and 41% year over year.
Record Q3 fiscal 2026 revenue of $9.1 billion, up 15% sequentially and 25% year over year (company reported as “record breaking results”).
Semiconductor Systems revenue of $7.0 billion, up 18% sequentially and 27% year over year; DRAM (including HBM packaging) grew 52% year over year to record levels.

Applied Materials, Inc.

AMAT2026 Q3Technology

1mo

These communications are valuable to our company and our own supply chain partners, who are scaling with us to support our customers' growth forecast.

Gary E. Dickerson

CEO, Applied Materials, Inc.

Context

Gary discussed how customers’ rolling multi-quarter commitments improve demand visibility and enable the supply chain to ramp alongside customer growth plans. He tied strong demand signals to customers finding ways to address clean room space constraints and to increasing tool delivery demand. He also described how longer-term commitments and rolling 8-quarter forecasts support ramps for supply chain and field teams. The quote highlights that this visibility benefits both Applied and its supply chain partners.

More from AMAT Q3 2026

Applied Materials, Inc.

AMAT2026 Q3Technology

1mo

AI infrastructure buildout creates demand-supply imbalance and tool ramp visibility

Management attributed record results to rapid global build out of AI infrastructure combined with Applied’s enabling technology leadership for AI computing.
Customers found new ways to address clean room space constraints, which management said is significantly increasing demand for tool deliveries.
Applied cited rolling 8-quarter forecasts and longer-term commitments from largest customers to support supply chain and field team ramps.
Management linked the visibility to high confidence that 2027 will be another strong growth year, given ongoing multiyear demand conversations.
Brice emphasized strengthened demand outlook across leading indicators, including positive returns for cloud investors and enterprise customers.

Applied Materials, Inc.

AMAT2026 Q3Technology

1mo

Financial Performance Summary

Applied Global Services revenue of $1.8 billion, up 22% year over year; AGS gross margin of 35.6% and operating margin of 30.1% (both up year over year).
Cash flow and capital return: record operating cash flow over $3.0 billion; capex $707 million; free cash flow $2.3 billion; $860 million distributed to shareholders (including $420 million dividends and $440 million buybacks).
Non-GAAP gross margin of 50.4%, up 40 basis points sequentially and 150 basis points year over year, marking the 13th consecutive quarter of year-over-year gross margin expansion.
Non-GAAP operating margin of 34%, up 190 basis points sequentially and 330 basis points year over year (record operating margin).
Record non-GAAP EPS of $3.50, up 22% sequentially and 41% year over year.
Record Q3 fiscal 2026 revenue of $9.1 billion, up 15% sequentially and 25% year over year (company reported as “record breaking results”).
Semiconductor Systems revenue of $7.0 billion, up 18% sequentially and 27% year over year; DRAM (including HBM packaging) grew 52% year over year to record levels.

Applied Materials, Inc.

AMAT2026 Q3Technology

1mo

These communications are valuable to our company and our own supply chain partners, who are scaling with us to support our customers' growth forecast.

Gary E. Dickerson

CEO, Applied Materials, Inc.

Context

Applied Materials, Inc.: 13th consecutive quarter of year-over-year gross margin expansion

More from AMAT Q3 2026

Applied Materials, Inc. 2026 Q3: AI infrastructure buildout creates demand-supply imbalance and tool ramp visibility

Applied Materials, Inc. 2026 Q3: Financial Performance summary

More from AMAT Q3 2026

More from AMAT Q3 2026

Applied Materials, Inc. 2026 Q3: AI infrastructure buildout creates demand-supply imbalance and tool ramp visibility

Applied Materials, Inc. 2026 Q3: Financial Performance summary