10-QPeriod: Q3 FY2026

APPLIED MATERIALS INC /DE Quarterly Report for Q3 Ended Jul 26, 2026

Filed August 20, 2026For Securities:AMAT

Summary

Applied Materials Inc. (AMAT) reported strong financial results for the nine months ended July 26, 2026, with revenue growing 11% year-over-year to $24.0 billion and net income increasing by a substantial 45% to $7.4 billion. This growth was primarily driven by the Semiconductor Systems segment, which saw a 10% revenue increase, supported by strong demand from foundry, logic, and memory customers investing in advanced manufacturing technologies. The Applied Global Services (AGS) segment also performed well, with revenue up 18% due to increased service agreements and spares revenue. The company demonstrated improved profitability, with gross margin increasing from 48.9% to 49.8% and operating margin expanding from 30.5% to 30.9% year-over-year. This expansion was attributed to higher revenues, increased average selling prices, and lower material and manufacturing costs. Diluted earnings per share rose to $9.22, a significant increase from $6.29 in the prior year period. The company maintains a robust balance sheet with total assets growing to $43.5 billion and a solid cash position of $7.0 billion.

Key Highlights

  • 1Strong revenue growth of 11% year-over-year to $24.0 billion for the nine months ended July 26, 2026.
  • 2Net income surged by 45% to $7.4 billion for the nine months ended July 26, 2026.
  • 3Diluted earnings per share increased to $9.22 from $6.29 in the prior year.
  • 4Gross margin improved to 49.8% and operating margin expanded to 30.9% for the nine months.
  • 5Semiconductor Systems segment revenue increased 10%, driven by foundry, logic, and memory investments.
  • 6Applied Global Services (AGS) revenue grew 18%, indicating strong demand for services and spares.
  • 7Company ended the period with $7.0 billion in cash and cash equivalents, indicating strong liquidity.

Frequently Asked Questions

The substantial increase in revenue and net income was primarily driven by strong performance in the Semiconductor Systems segment, fueled by customer investments in advanced manufacturing technologies for foundry, logic, and memory chips. The Applied Global Services (AGS) segment also contributed positively with increased revenue from services and spares.

Profitability has improved, with gross margin increasing from 48.9% to 49.8% and operating margin expanding from 30.5% to 30.9% for the nine months ended July 26, 2026. This improvement is due to higher revenues, increased average selling prices, and reduced material and manufacturing costs.

Applied Materials maintains a strong financial position, with total assets reaching $43.5 billion as of July 26, 2026. The company ended the period with $7.0 billion in cash and cash equivalents, indicating robust liquidity and the ability to meet short-term obligations and fund ongoing operations.

The company settled an export controls compliance matter with the U.S. Commerce Department for $253 million, which was paid in fiscal year 2026. While the company is subject to various legal proceedings, it does not believe at this time that any of these matters will have a material effect on its consolidated financial condition or results of operations. Risk factors related to global trade and export regulations, particularly concerning China, remain a key consideration.