Applied Materials, Inc. · AMAT · FY2026 Q2 · Calendar Q2 2026

Applied Materials Posts Record Q2 on AI-Driven Demand, Gross Margin at 25-Year High

Applied Materials delivered record Q2 FY2026 results with revenue of $7.91 billion and EPS of $2.86, beating consensus on both lines. AI computing workloads -- including generative and agentic AI -- are driving demand for leading-edge logic, DRAM, and high-bandwidth memory packaging, which management expects to fuel over 30% wafer-fab equipment growth in 2026. Gross margin reached a 25-year high near 50%, with operating margin above 30%. New product launches across gate-all-around and etch technologies, the EPIC Center co-innovation platform with major foundry and memory partners, and the NEXX acquisition for panel-level packaging position Applied Materials across multiple growth vectors. The stock drifted materially higher after the report.

Reported After market closeNASDAQTechnology $410.39B market cap
90quality score

Company context

Snapshot as of publication

Applied Materials, Inc. engages in provision of materials engineering solutions used to produce semiconductors. The firm also focuses on design, development, production, and servicing of the critical wafer fabrication tools used for customers to manufacture semiconductors. It operates through the following segments: Semiconductor Systems and Applied Global Services (AGS). The Semiconductor Systems segment includes designing, development, manufacturing and sale of equipment used to fabricate semiconductor chips referred to as integrated circuits. The AGS segment engages in provision of services, spares, and factory automation software to customer fabrication plants globally. The company was founded on November 10, 1967 and is headquartered in Santa Clara, CA.

Earnings scorecard

Reported versus consensus
Reported EPS $2.86 Consensus $3
EPS surprise +6.7% Reported versus consensus
Reported revenue $7.91B Consensus $7.68B
Revenue surprise +3.0% Reported versus consensus

Market reaction

event-close to next-session close
Stock move -0.9% Event window
SPY move -1.2% Same window
Abnormal move +0.3% Stock minus SPY
Volume 1.8× Versus trailing sessions
Subsequent drift +34.2% Up to 20 sessions
AMATSPY benchmark

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Transcript intelligence

What changed

Revenue hit a record $7.91B with non-GAAP gross margin at its highest level in over 25 years. EPS of $2.86 beat the $2.68 consensus by 6.7%, and revenue beat the $7.68B estimate by 2.9%. Management introduced the EPIC Center collaboration platform with eight founding partners including TSMC, Micron, Samsung, and SK Hynix. The NEXX acquisition was announced to add panel-level packaging capabilities for larger-body AI accelerators. Agentic AI was highlighted as a new demand driver adding CPU-intensive workloads for DRAM and NAND.

Guidance delta

Guidance sentiment was maintained, with management reiterating its outlook for approximately 30% wafer-fab equipment growth in 2026. Capex outlook remains stable. Q3 guidance was described as robust. No upward or downward revision to the full-year growth framework was indicated.

Key takeaways

  • Record revenue of $7.91B and record earnings, with the highest gross margin in over 25 years.
  • AI-driven demand is shifting spend toward leading-edge logic, DRAM, and advanced packaging, expected to drive over 30% equipment growth in 2026.
  • Non-GAAP gross margin near 50% and operating margin above 30%.
  • New product introductions -- Trillium ALD, precision PECVD, Sym3 Z -- strengthen leadership in gate-all-around and etch technologies.
  • Applied Global Services expected to grow in the mid-teens, boosted by AI-enabled service innovations and an expanding installed base.

Management priorities

  • Master Class webcast on DRAM and advanced packaging (June 25).
  • Unveiling of the EPIC Center in Sunnyvale in October.
  • Continued roll-out of new products: Trillium ALD, precision PECVD, Sym3 Z.
  • Expansion of manufacturing capacity in the U.S., Europe, and Singapore.
  • Further development of AIx service suite and AI-driven automation.

Related earnings events

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INTC · FY2026 Q2 · Calendar Q3 2026Intel Beats on AI Strength, but Foundry Losses and Rising Capex Drag SharesMU · FY2026 Q3 · Calendar Q2 2026Micron Crushes Q3 on AI Memory Demand, Guides to $50B Q4 With 86% MarginsORCL · FY2026 Q4 · Calendar Q2 2026Oracle Q4 FY26: Revenue Up 21%, RPO Hits $638B, but $70B CapEx Plan Pressures Shares

Sources

  1. Earnings call transcript and parsed analysis · 2026-05-17T18:09:36.534115+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-28T08:01:35.735198+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-28T08:01:35.732290+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated . For educational purposes only; not investment advice.