Applied Materials Q3 revenue beats on AI demand

Applied Materials

13/08/2026 21:10

Overview
US semiconductor equipment maker's Q3 revenue rose 25% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company raised Semiconductor Systems revenue outlook for 2026, citing strong AI-driven demand

Outlook
AMAT expects Q4 revenue of $10.25 bln, plus or minus $500 mln
Company sees Q4 non-GAAP diluted EPS of $4.02, plus or minus $0.20
Company expects continued strong revenue growth in second half, led by DRAM and advanced packaging

Result Drivers
AI DEMAND - Co said rapid global adoption of AI is driving unprecedented demand for its materials engineering solutions
SEMICONDUCTOR SYSTEMS GROWTH - Co highlighted strong growth in DRAM, foundry-logic and advanced packaging as key revenue drivers
NEW PRODUCTS - Co introduced six new chipmaking systems for DRAM and advanced packaging, supporting next-generation chip production

Company press release: ID:nGNX8Q9cd7

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Beat
$9.12 bln
$8.99 bln (26 Analysts)
Q3 Adjusted EPS
Beat
$3.50
$3.39 (26 Analysts)
Q3 EPS
 
$3.17
 
Q3 Adjusted Net Income
Beat
$2.80 bln
$2.70 bln (23 Analysts)
Q3 Net Income
 
$2.54 bln
 
Q3 Adjusted Free Cash Flow
 
$2.33 bln
 
Q3 Adjusted Gross Margin
 
50.40%
 
Q3 Adjusted Operating Margin
 
34.00%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 34 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"
Wall Street's median 12-month price target for Applied Materials Inc is $650.00, about 18.6% above its August 12 closing price of $548.15
The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 31 three months ago

Reuters Recommended Reads
Aug 12 - Germany's Jenoptik H1 revenue rises on semiconductor equipment demand
Aug 12 - Coherent forecasts upbeat first quarter on robust AI demand
Aug 13 - SMIC Q2 revenue, margins rise on  higher wafer shipments, prices

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)