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Applied Materials 8-K Report, Financial Results (May 14, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 14, 2026
Period End
May 14, 2026
Security
AMAT
In the record · 2016–202610-K1010-Q338-K102

AMAT filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 102 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’17Mar ’17
  2. Material agreement8-K · Aug ’19Aug ’19
  3. Leadership change8-K · Oct ’21Oct ’21
  4. Leadership change8-K · Jul ’25Jul ’25

01—Abstract

Summary

Summary of the 8-K filed May 14, 2026. Cited figures are marked; the original filing is the authoritative source.

Applied Materials reported record second-quarter fiscal 2026 results for the period ended April 26, 2026.

Revenue rose 11% year over year to $7.91 billiona, GAAP operating income grew 16% to $2.52 billion (31.9% margin), and GAAP diluted EPS was $3.51, up 33%. Non-GAAP diluted EPS was $2.86, up 20%. Management said it now expects its semiconductor equipment business to grow more than 30% in calendar 2026, citing AI infrastructure build-out and strength in leading-edge logic, DRAM, and advanced packaging.

It also said it has increased its build plan, inventory, and logistics capacity to meet demand. The GAAP EPS figure is flattered by a $685 millionb unrealized gain on strategic investments, which added roughly $0.80 per diluted share. Non-GAAP net income of $2.29 billion was about $520 million below GAAP net income of $2.81 billion.

Investors should anchor on the non-GAAP EPS of $2.86c and the operating results. Non-GAAP free cash flow fell 80% to $210 million, driven by a $1.75 billion working-capital build and capital expenditures that rose to $635 million from $510 million. Share repurchases slowed to $400 million, and dividends totaled $365 million.

For the third quarter of fiscal 2026, Applied guided to revenue of $8.95 billiond, plus or minus $500 million, and non-GAAP diluted EPS of $3.36, plus or minus $0.20. The company also raised its quarterly dividend 15% to $0.53 per share, its ninth consecutive annual increase, and agreed to acquire the NEXX advanced packaging deposition business from ASMPT.

Risks flagged in the filing include export controls, tariffs, customer concentration, and geopolitical conditions. The filing notes that the $253 million legal settlement with the Commerce Department (BIS) was recorded in the first quarter, not in the quarter reported here.

02—Key points

Key Highlights

  1. Record quarterly revenue of $7.91 billion, up 11% year over year, with semiconductor systems revenue of $5.97 billion (up 10%) and Applied Global Services revenue of $1.67 billion (up 17%).
  2. GAAP gross margin of 49.9% and non-GAAP gross margin of 50.0%, up about 0.8 points year over year; GAAP operating margin of 31.9%, up 1.4 points.
  3. Record GAAP diluted EPS of $3.51 (up 33%) and non-GAAP diluted EPS of $2.86 (up 20%); GAAP results include a $685 million unrealized gain on strategic investments.
  4. Q3 FY2026 guidance of $8.95 billion revenue (plus or minus $500 million) and non-GAAP diluted EPS of $3.36 (plus or minus $0.20), which includes a $0.04 per-share tax benefit from intra-entity intangible asset transfers.
  5. Management expects semiconductor equipment business growth of more than 30% in calendar 2026, and has increased build plans, inventory, and logistics capacity.
  6. Non-GAAP free cash flow fell 80% to $210 million on a $1.75 billion working-capital build and higher capex; cash and short-term investments totaled $8.24 billion at quarter end.
  7. Quarterly dividend raised 15% to $0.53 per share, and the company agreed to acquire the NEXX large-area advanced packaging deposition business from ASMPT Limited.

03—Questions

Frequently Asked Questions

  1. How strong was the quarter on an underlying (non-GAAP) basis?

    Non-GAAP results were solid: revenue rose 11% to $7.91 billion, non-GAAP gross margin was 50.0%, non-GAAP operating margin was 32.1% (up 1.4 points), and non-GAAP diluted EPS was $2.86, up 20%. Non-GAAP net income was $2.29 billion, up 18%.

  2. Why is GAAP EPS ($3.51) so much higher than non-GAAP EPS ($2.86)?

    The gap is mainly a $685 million unrealized gain on strategic investments, worth about $0.80 per diluted share, which is excluded from non-GAAP results. Investors should treat this as a mark-to-market gain on equity stakes rather than recurring operating income.

  3. What does the outlook imply for the rest of fiscal 2026?

    Third-quarter revenue is guided to $8.95 billion (plus or minus $500 million), implying continued year-over-year growth, and non-GAAP EPS is guided to $3.36 (plus or minus $0.20). Management's view that semiconductor equipment revenue will grow more than 30% in calendar 2026 points to a strong second half, though the filing does not provide full-year guidance.

  4. Why did free cash flow decline so sharply, and is it a concern?

    Non-GAAP free cash flow fell to $210 million from $1.06 billion a year earlier. The main drivers were a $1.75 billion working-capital outflow, including higher receivables and inventory, and capex of $635 million, up from $510 million. This reflects the build-out ahead of higher demand, but it weighs on near-term cash generation and shareholder returns.

  5. What are the key risks highlighted in the filing?

    The forward-looking statements cite export controls and licensing, tariffs and retaliatory measures, geopolitical conflict, customer concentration, the timing of technology transitions, and supply chain capacity. The $253 million BIS export-controls settlement, recorded in the first quarter, shows that compliance risk is real and has already had a financial impact.

04—Continue

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