Applied Materials has reported record quarterly revenue of $10.41 billion, up 53% on a year earlier, as demand for the equipment used to make advanced chips continued to surge on the back of artificial intelligence spending.

The semiconductor equipment maker, based in Santa Clara, California, published the results for its fourth quarter and full fiscal year after the US market closed on Thursday 12 November 2026. Adjusted earnings per share reached a record $4.16, up 92% year on year and ahead of the roughly $4.06 analysts had expected.

What Applied Materials reported

Revenue for the three months ended 25 October 2026 was $10.41 billion, compared with $6.80 billion in the same quarter a year earlier. On a GAAP basis, earnings per share were $3.40, up 43%, while gross margin was 50.4%. Record operating income of $3.66 billion represented 35.1% of revenue.

For the full fiscal year, Applied Materials generated record revenue of $34.45 billion, up 21% from $28.37 billion in fiscal 2025. Annual GAAP earnings per share were a record $12.62, and non-GAAP earnings per share were a record $12.89.

The company generated record cash from operations of $3.30 billion in the quarter and returned $2.42 billion to shareholders, through $2.00 billion of share repurchases and $421 million in dividends. Its chief financial officer, Brice Hill, said it was the largest quarterly share buyback in more than eight years.

Guidance points to another record quarter

Applied Materials also gave a strong outlook for the first quarter of fiscal 2027, forecasting total revenue of $11.10 billion, plus or minus $500 million, and non-GAAP earnings per share of $4.35, plus or minus $0.20. Both figures would be records if achieved.

Semiconductor Systems, the division that sells equipment to chipmakers, remained the engine of growth. Its revenue reached $8.00 billion in the quarter, up from $4.88 billion a year earlier, with foundry and logic customers accounting for 58% of the division's sales and DRAM makers 33%.

Chief executive Gary Dickerson said the company was on track to grow its Semiconductor Systems business by more than 40% in calendar 2026. "AI continues to fuel strong incremental demand for semiconductors and Applied has built the most-enabling portfolio to advance the AI-computing roadmap," he said.

Shares recover after hours

Applied Materials shares closed the regular session 3.6% lower at $380.95, caught in a broad sell-off in chip stocks, but rose about 2% in after-hours trading to around $389 once the results were released.

The stock had been under pressure in recent days. It fell sharply on 5 November as investors worried about semiconductor spending, before recovering with other chip equipment stocks earlier this week. The results will be read as the latest test of whether AI infrastructure spending is holding up after a volatile month for the sector.

Why the results matter for AI spending

Applied Materials supplies the machines that fabricate chips, so its order book is an early indicator of how much chipmakers expect to invest. The company also unveiled its EPIC Center in Silicon Valley during the quarter, a research facility where chipmakers and equipment partners work together, and announced four new partnerships for the centre, including Intel as a founding partner.

Investors will now listen to the company's earnings call for detail on demand from memory-chip makers, where prices have risen sharply, and on whether the strong first-quarter guidance reflects orders already in hand or expectations of new business.

Sources: Applied Materials / GlobeNewswire and EBC.