Applied Materials, Inc. (NASDAQ: AMAT) today reported results for its fourth quarter and fiscal year ended Oct. 25, 2026.

Fourth Quarter Results
Applied generated record revenue of $10.41 billion. On a GAAP basis, the company reported gross margin of 50.4 percent, record operating income of $3.66 billion or 35.1 percent of revenue, and earnings per share (EPS) of $3.40. On a non-GAAP basis, the company reported gross margin of 50.6 percent, record operating income of $3.68 billion or 35.3 percent of revenue, and record EPS of $4.16. The company generated record cash from operations of $3.30 billion and distributed $2.42 billion to shareholders through $2.00 billion in share repurchases and $421 million in dividends.Fiscal Year Results
Applied generated record revenue of $34.45 billion. On a GAAP basis, the company reported gross margin of 50.0 percent, record operating income of $11.09 billion or 32.2 percent of revenue, and record EPS of $12.62. On a non-GAAP basis, the company reported gross margin of 50.1 percent, record operating income of $11.42 billion or 33.1 percent of revenue, and record EPS of $12.89. The company generated record cash from operations of $8.87 billion and distributed $4.75 billion to shareholders through $3.18 billion in share repurchases and $1.57 billion in dividends.

Gary Dickerson, President and CEO"Applied Materials delivered record results in fiscal 2026, and we are on track to grow our Semiconductor Systems business more than 40 percent in our calendar 2026. AI continues to fuel strong incremental demand for semiconductors and Applied has built the most-enabling portfolio to advance the AI-computing roadmap, putting us in a great position for multi-year revenue and profit growth."

Brice Hill, Senior Vice President and CFO"With technology leadership in the most critical areas of the wafer fab equipment market, Applied Materials increased fiscal fourth quarter revenue by 53 percent year over year and non-GAAP earnings per share by 92 percent. We generated record quarterly free cash flow of $2.6 billion and distributed over $2.4 billion to shareholders, including the largest quarterly share buyback in more than eight years."

Recent Highlights

EPIC Center

• Unveiled the EPIC Center in Silicon Valley, the world's largest facility dedicated to collaborative semiconductor process technology and manufacturing equipment R&D. By bringing chipmakers, equipment partners and university researchers into the same building as Applied's scientists and engineers, EPIC enables parallel rather than sequential development of materials, equipment and process technology, resulting in shorter learning cycles and faster commercialization of the innovations that will power the AI era.
• Announced four new EPIC Center partnerships, bringing the total to 15 announced to date.
  • Intel will join EPIC as a founding partner to accelerate development of chipmaking innovations for next-generation transistors, interconnects and advanced packaging technologies. The collaboration will bring together cutting-edge capabilities from Applied's EPIC Center and Intel's R&D campus in Hillsboro, Oregon to shorten time-to-market of advanced semiconductor technologies essential to AI computing.
  • KIOXIA Corporation will join the EPIC Center as an innovation partner to advance next-generation memory technologies. Applied and KIOXIA will work together at the EPIC Center on advanced memory-cell and structure creation, multi-chip stacking architectures, and new materials engineering approaches designed to increase memory density and performance for the AI era.
  • BE Semiconductor Industries N.V. (Besi) will join the EPIC Center as an innovation partner. This is an expansion of Applied's longstanding strategic partnership with Besi and extends the companies' co-innovation beyond hybrid bonding into new interconnect architectures and applications supporting the semiconductor industry's AI-driven scaling roadmap.
  • The UCLA Samueli School of Engineering will join the EPIC Center as a research partner. Together with Applied's scientists and engineers, UCLA researchers will work to solve semiconductor materials and integration challenges with a focus on shortening the time it takes to bring breakthrough research to commercialization.

New Products and Technologies

• Introduced the VeritySEM 20 metrology system, a next-generation critical dimension scanning electron microscope (CD-SEM). The VeritySEM 20 system is engineered to address the patterning control challenges of high-NA EUV by using advanced eBeam metrology innovations and AI-driven process efficiencies to accurately measure thinner photoresists, support tighter process windows and enable faster recipe creation.

Corporate Initiatives

• Entered into an accelerated share purchase agreement to increase Applied's investment in Besi to approximately 20 percent of Besi's outstanding shares. The share purchase would add to Applied's current investment in Besi, which was initially made in April 2025.
• Hosted an Investor Breakfast Presentation during SEMICON West, where Applied executives presented the company's longer-term growth expectations and outlined how our leadership in materials engineering positions the company to outperform the wafer fab equipment (WFE) market over the coming years.

Business Outlook
Applied's total revenue and non-GAAP diluted EPS for the first quarter of fiscal 2027 are expected to be as follows:Fourth Quarter and Fiscal Year Reportable Segment Information
Effective in the first quarter of fiscal 2026, management moved our 200-millimeter equipment business to Semiconductor Systems. The business was previously included in Applied Global Services. Additionally, effective in the first quarter of fiscal 2026, management began fully allocating corporate support costs to our operating segments. Prior-period numbers have been recast to conform to the current-year presentation. Display operating segment financial results are included in the Other category balances below.