Applied Materials Posts Higher 3Q Profit, Revenue on Continued AI Demand

By Elias Schisgall

Applied Materials reported a higher profit and revenue growth in the fiscal third quarter, as artificial-intelligence adoption continued to drive demand for the company's semiconductor solutions.

The semiconductor-equipment maker on Thursday reported net income of $2.54 billion, or $3.17 a share, compared with a profit of $1.78 billion, or $2.22 a share, a year earlier.

Stripping out certain one-time items, adjusted earnings were $3.50 a share. Analysts polled by FactSet were expecting $3.40 a share.

Revenue rose to $9.12 billion, up from $7.3 billion a year earlier and beating analysts' estimates of $8.99 billion.

In the company's semiconductor systems segment, revenue grew to $7.04 billion from $5.56 billion a year prior. Revenue from the applied global services segment rose to $1.78 billion from $1.46 billion.

"As the rapid global adoption of AI drives unprecedented demand for our materials engineering solutions, we are further raising our Semiconductor Systems revenue expectations for calendar 2026 and are confident we will grow faster than the market this year," Chief Executive Officer Gary Dickerson said.

The company is also expecting "another strong growth year" in 2027, Dickerson added.

For the current fiscal fourth quarter, the company said it expects adjusted earnings of between $3.82 and $4.22 a share, on revenue between $9.75 billion and $10.75 billion. Analysts were expecting fourth-quarter adjusted earnings of $3.71 a share on $9.55 billion of revenue.

The revenue projection includes around $7.9 billion in semiconductor systems revenue and $1.84 billion in applied global services revenue.

Shares of Applied Materials retreated 2.9% to $519.00 in after-hours trading on Thursday.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

August 13, 2026 16:48 ET (20:48 GMT)