Applied Materials Raises Outlook as Semiconductor Equipment Demand Grows — 2nd Update

By Kelly Cloonan

Applied Materials expects stronger sales for its semiconductor equipment business this year than it previously forecast as demand for artificial intelligence computing continues to surge.

The boost to guidance came as the semiconductor-equipment maker reported higher profit and sales in its latest quarter, with both metrics beating Wall Street's expectations.

The stock ticked up 1.6% to $447.77 in after-hours trading. Through the market close shares have soared 71% year to date.

Chief Executive Gary Dickerson said Applied Materials' results mark a record quarterly performance, and the company expects its growth to continue alongside the rapid global buildout of AI computing infrastructure.

"AI adoption is accelerating and diversifying, fueling broad and durable demand for semiconductors and semiconductor equipment," Dickerson said during a call with analysts.

Dickerson said Applied Materials has improved visibility into customer orders, with its largest customers providing rolling eight-quarter forecasts so the company can prepare the required manufacturing capacity and service resources for their ramp ups.

"Given the unprecedented demand environment, we are working closely with our customers on longer-range planning," Dickerson said.

For the current fiscal third quarter, the company forecast adjusted per-share earnings of $3.16 to $3.56 and revenue of $8.45 billion to $9.45 billion. Analysts forecast adjusted earnings per share of $2.89 on revenue of $8.14 billion, according to FaceSet.

Applied Materials now forecasts its semiconductor equipment business will grow more than 30% this calendar year, Dickerson said, up from its prior forecast for an increase of more than 20%.

For the fiscal second quarter that ended April 26, profit came in at $2.81 billion, or $3.51 a share, up from $2.14 billion, or $2.63 a share, a year earlier.

Adjusted earnings per share were $2.86, compared with estimates of $2.68 a share according to analysts polled by FactSet.

Revenue climbed 11% year over year to $7.91 billion, compared with analyst estimates of $7.68 billion.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

May 14, 2026 18:12 ET (22:12 GMT)