Applied Materials Posts Record Q4 Revenue of $10.41B, Up 53%

What happened

Growth was driven by the Semiconductor Systems business: quarterly revenue of $8.00 billion, up 64% year over year, with record sales in Korea and Taiwan. DRAM equipment revenue hit an all-time high, making up 33% of Semiconductor Systems revenue, against 28% a year earlier. Advanced packaging also set a record.

Full fiscal 2026 revenue reached $34.45 billion, up 21%, with non-GAAP earnings of $12.89 a share, up 37%, the seventh consecutive year of growth. The company says leading-edge logic and DRAM factories are operating at full utilization, NAND is improving, and cloud capital spending remains a major industry catalyst.

Ahead of the print, Applied Materials shares fell 3.58% in the regular session to $380.95. GAAP earnings were $3.40 a share, held back by a $653 million unrealized loss on strategic investments; quarterly net income was $2.71 billion, up 43% year over year.

Guidance and outlook

For the first quarter of fiscal 2027, Applied expects revenue of $11.1 billion, plus or minus $500 million, a projected 58% year-over-year increase at the midpoint, and non-GAAP earnings of $4.35 a share, plus or minus $0.20, up 83% at the midpoint. Both guides sit above the average analyst estimate.

Management gave a longer view on the call: Semiconductor Systems revenue rising more than 40% in calendar 2026, wafer-fabrication equipment demand growing more than 30% in 2027, with Applied outgrowing the market; advanced packaging revenue up about 90% in calendar 2026 and inspection and metrology up more than 50%. The company is expanding capacity to double equipment output from the latest quarter’s level by 2028.

Key facts

1. Revenue: Fourth-quarter revenue of $10.41 billion, up 53% year over year to a record, above the roughly $10.3 billion analysts expected
2. Profit: Non-GAAP earnings of $4.16 a share, up 92%, above the $4.06 expected; GAAP earnings of $3.40 a share
3. Business: Semiconductor Systems revenue of $8.00 billion, up 64% year over year; DRAM equipment revenue at an all-time high, 33% of the segment
4. Full year: Fiscal 2026 revenue of $34.45 billion, up 21%; non-GAAP earnings of $12.89 a share, up 37%, the seventh consecutive year of growth
5. Outlook: Q1 fiscal 2027 revenue guided at $11.1 billion, plus or minus $500 million, up 58% at the midpoint; EPS of $4.35, plus or minus $0.20
6. Long term: Wafer fab equipment demand expected to grow more than 30% in 2027; capacity expansion aims to double equipment output by 2028