01—Abstract
Summary
Summary of the 8-K filed November 12, 2026. Cited figures are marked; the original filing is the authoritative source.
Applied Materials (AMAT) reported exceptionally strong financial results for its fourth quarter and fiscal year ended October 25, 2026.
The company achieved record revenues in both periods, driven by significant year-over-year growth, particularly in the fourth quarter where revenue surged by 53% to $10.41 billiona. This top-line performance translated into substantial improvements in profitability, with record GAAP and non-GAAP earnings per share (EPS) and expanding gross and operating margins. The company highlighted its strategic initiatives, including the unveiling of the EPIC Center and new R&D partnerships, positioning it to capitalize on the growing demand for AI-driven semiconductor technologies.
Furthermore, Applied Materials demonstrated a strong commitment to shareholder returns, with significant share repurchases and dividend payments, underscoring its robust cash generation capabilities. The outlook for the first quarter of fiscal 2027 remains positive, indicating continued momentum.
02—Key points
Key Highlights
- Record fourth quarter revenue of $10.41 billion, a 53% increase year-over-year.
- Record fiscal year 2026 revenue of $34.45 billion, up 21% year-over-year.
- Significant expansion in profitability, with Q4 FY2026 non-GAAP EPS up 92% year-over-year to $4.16, and FY2026 non-GAAP EPS up 37% to $12.89.
- GAAP gross margin reached 50.4% in Q4 FY2026 and 50.0% for FY2026, with non-GAAP margins slightly higher.
- Record cash from operations of $3.30 billion in Q4 FY2026 and $8.87 billion for FY2026.
- Returned $2.42 billion to shareholders in Q4 FY2026 through $2.00 billion in share repurchases and $421 million in dividends.
- Unveiled the EPIC Center and announced four new R&D partnerships, emphasizing focus on AI and advanced chip technologies.
03—Questions
Frequently Asked Questions
What are the key drivers behind Applied Materials' strong revenue growth in fiscal year 2026?
The strong revenue growth is primarily attributed to the surging demand for semiconductors driven by AI technologies. Applied Materials' leadership in materials engineering and its expanded portfolio of enabling technologies for AI computing have positioned the company to capture this growth, particularly in its Semiconductor Systems business which is expected to grow more than 40% in calendar 2026.
How is Applied Materials returning capital to shareholders?
Applied Materials is actively returning capital to shareholders through a combination of share repurchases and dividends. In the fourth quarter of fiscal 2026, the company repurchased $2.00 billion of its stock and paid $421 million in dividends. For the full fiscal year 2026, share repurchases totaled $3.18 billion and dividends amounted to $1.57 billion, reflecting a strong commitment to shareholder value.
What is the significance of the new EPIC Center and its partnerships?
The EPIC Center is a state-of-the-art facility designed for collaborative semiconductor process technology and R&D. By bringing together chipmakers, equipment partners, and university researchers, it aims to shorten development cycles and accelerate the commercialization of new technologies. The four new R&D partnerships, including with Intel, KIOXIA, Besi, and UCLA, further strengthen Applied Materials' ability to innovate and address the complex challenges of the AI era.
What is the company's outlook for the first quarter of fiscal year 2027?
Applied Materials expects total revenue for the first quarter of fiscal 2027 to be between $11.10 billion and $11.60 billion, with non-GAAP diluted EPS projected to be between $4.35 and $4.55. This guidance indicates continued strong performance and growth into the next fiscal quarter.
04—Continue