At its fiscal 2026 fourth-quarter earnings call, Applied Materials reported record revenue of $10.4 billion, up 53% year on year. It announced first-quarter revenue guidance of $11.1 billion.
Applied Materials reported fiscal 2026 fourth-quarter revenue of $10.4 billion, up 53% year on year. Non-GAAP earnings per share were $4.16, up 19% quarter on quarter and 92% year on year. Full-year revenue is expected to reach $34.4 billion, with non-GAAP gross margin projected at 50.1%.
The CEO said at the earnings call that demand for AI-driven advanced logic, DRAM and advanced packaging was outstripping equipment supply. The Semiconductor Systems business posted record revenue of $8.0 billion, while the AGS business also reached a new record.
First-quarter guidance calls for revenue of $11.1 billion (±$500 million) and non-GAAP EPS of $4.35 (±$0.20), with revenue expected to increase due to AGS. WFE demand in fiscal 2027 is expected to grow by more than 30% year on year, while advanced packaging is expected to grow by approximately 90% and the DRAM roadmap is expected to continue shifting.
As part of its long-term capacity expansion plan, the company will continue investing to double systems production capacity by 2028 and more than double manufacturing and laboratory capacity by 2030. It also outlined a policy of returning capital to shareholders, including share repurchases, at the end of each quarter while maintaining a high free-cash-flow payout ratio.