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Applied Materials Beats Q3 Estimates and Raises 2026 Equipment Growth Above 30% as Shares Slip

The strong quarter points to sustained AI-driven demand but leaves investors weighing a high valuation and the timing of orders and deliveries.

Overview

  • Applied Materials reported fiscal third-quarter revenue of about $9.12 billion and adjusted EPS of $3.50, beating Street forecasts and lifting net income to roughly $2.54 billion.
  • The company raised its revenue and profit outlooks for calendar 2026 and 2027 and upgraded its 2026 semiconductor equipment growth outlook to more than 30 percent.
  • For the fiscal fourth quarter the firm guided revenue near $10.25 billion (± $500 million) and adjusted EPS around $4.02 (± $0.20), with gross margins at multi‑year highs.
  • Despite the beat and stronger guidance, the stock fell more than 5% in extended trading as options markets had priced an implied post‑earnings move of roughly 7% and showed a bearish put skew.
  • Investors will now watch whether multi‑year customer visibility on AI, memory, foundry/logic and packaging orders converts into timely deliveries and sustained pricing to justify the stock’s elevated forward P/E.