Applied Materials Q2 2026 earnings beat on AI demand

Applied Materials posted grounds second-quarter gross of $7.91 billion, up 11% from a twelvemonth earlier, and raised its outlook for semiconductor instrumentality maturation connected the backmost of rising request for AI infrastructure.

The institution said it present expects its semiconductor instrumentality concern to turn much than 30% successful calendar 2026, up from a anterior forecast. Looking up to the fiscal 3rd quarter, the institution projected gross successful the scope of $8.95 cardinal and adjusted net astatine $3.36 per share, each carrying a borderline of $500 cardinal and $0.20, respectively. Wall Street had been modeling third-quarter gross of $8.09 cardinal and a $2.88 adjusted per-share profit, per Reuters.

Second-quarter adjusted net per stock came successful astatine $2.86, and GAAP diluted EPS reached a grounds $3.51, up 33% twelvemonth implicit year. Heading into the print, the statement estimation had called for $7.65 cardinal successful second-quarter gross and adjusted net of $2.66 per share, Yahoo Finance reported.

"Applied Materials delivered grounds quarterly performance, and we present expect our semiconductor instrumentality concern to turn much than 30 percent successful calendar 2026," CEO Gary Dickerson said successful a statement. "The accelerated planetary build-out of AI computing infrastructure combined with Applied's beardown enactment positions successful leading-edge logic, DRAM and precocious packaging supply an exceptionally beardown instauration for sustained, multi-year gross and nett growth."

The Semiconductor Systems conception brought successful $5.97 billion, a astir 10% summation from the prior-year quarter. The Applied Global Services part posted $1.67 billion, reflecting 17% maturation twelvemonth implicit year. Foundry, logic, and different applications represented 67% of the semiconductor systems gross mix, with DRAM astatine 29% and flash representation astatine 4%.

"This AI compute request is going to beryllium a multiyear driver," Dickerson told Bloomberg. "Our customers are giving america eight-quarter forecasts, truthful we person much longer-term visibility than immoderate clip I've been successful this industry."

To support gait with surging orders, CFO Brice Hill noted that Applied Materials has expanded manufacturing output, stocked up connected inventory, and strengthened its logistics network. "The maturation successful AI that Applied has been investing for is present successful afloat force," Hill said.

Non-GAAP gross borderline reached 50.0%, up from 49.2% a twelvemonth earlier. The institution generated $845 cardinal successful currency from operations and returned $765 cardinal to shareholders done $400 cardinal successful stock repurchases and $365 cardinal successful dividends. Applied Materials besides raised its quarterly currency dividend 15%, from $0.46 to $0.53 per share, marking 9 consecutive years of dividend increases.

The 4th besides saw Applied Materials grow the roster of collaborators astatine its EPIC Center, a Silicon Valley co-innovation hub, drafting successful chipmakers specified arsenic TSMC, SK hynix, and Micron Technology alongside universities and instrumentality suppliers to propulsion guardant enactment connected next-generation spot technologies.