Particle.news
Download on the App Store

Applied Materials Raises Q4 Guide on Strength in DRAM and Packaging, Shares Fall

The $10.25 billion revenue outlook signals longer customer order visibility from AI-driven memory and packaging demand while leaving investors to weigh competition and China export risks.

Overview

  • Applied Materials reported fiscal Q3 revenue of $9.12 billion and adjusted EPS of $3.50, beating analyst estimates while GAAP EPS fell to $3.17 because of a $220 million unrealized investment loss.
  • The company forecast fourth-quarter revenue of about $10.25 billion and adjusted EPS of $4.02, a guide that exceeds Street estimates and implies sustained demand into the October quarter.
  • Management said customers are giving unusually long visibility into orders, highlighted rising DRAM mix to 26% of systems revenue and projected packaging revenue growth of more than 70% in calendar 2026.
  • Shares slid about 5% in after‑hours and premarket trading as investors reacted to elevated expectations after a >100% year‑to‑date gain and cited intensifying competition and possible limits from U.S. export controls on China.
  • The report follows similar strong results from peers and leaves the main open questions about whether extended order visibility will convert into on‑time deliveries, sustained pricing and margin expansion.