Applied Materials

Applied Materials reported Q3 FY2026. EPS came in at $3.50 against a $3.40 consensus, beat by 2.9%. Revenue was $9.1B versus $9.0B expected, beat by 1.3%. Gross margin was 50.3%, up 40 bps from last quarter.

Applied Materials reported a strong Q2 FY2026, with both revenue and EPS exceeding street estimates. The company's revenue of $7.91 billion and EPS of $2.86 represent a 3.0% and 6.7% surprise, respectively. This print underscores the company's continued leadership in the semiconductor equipment market and its ability to capitalize on key growth areas.

Applied Materials cleared a modest Q1 bar, but the investable surprise is that services, gross margin, and leading-edge process exposure are absorbing a China and systems air pocket better than the headline revenue decline suggests. The market may still be pricing AMAT as a wafer-fab-equipment cycle call, while this print argues for a higher-quality mix call into Q2 FY2026 if $7.65 billion guidance and 49.3% gross margin hold.

Applied Materials cleared Q3 estimates, but the investable point is the mix reset embedded in guidance: the market likely priced the $2.48 EPS beat as late-cycle WFE resilience, while management is telling investors near-term revenue steps down before gate-all-around, DRAM, and advanced packaging become the next measurable leg. The variant view is that Q4 weakness should not be capitalized as structural share loss, because the print already shows leading-edge foundry and metal deposition carrying the business while ICAPS and 200-millimeter equipment are the pressure points.