EarningsQ3 2026 Earnings Report
DE:AP2 Q3 2026 EPS Results
Actual EPS€3.12
Consensus EPS€3.03
Beat/MissBeat by +€0.09
One Year Ago EPS€2.21
DE:AP2 Q3 2026 Revenue Results
Actual Revenue€8.12B
Expected Revenue€8.02B
Beat/MissBeat by +€106.97M
YoY Revenue Growth+24.83%
Earnings Announcement Details
QuarterQ3 2026
Date08/13/2026
TimeAfter Close
Conference CallThursday, August 13, 2026
DE:AP2 Upcoming Earnings
Applied Materials's next earnings date is estimated for November 12, 2026, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:AP2 Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized numerous record metrics (revenue, operating profit, EPS), strong demand driven by AI (particularly in DRAM, leading-edge logic, and advanced packaging), expanding product pipeline and strategic EPIC partnerships, and robust cash generation and capacity investments. Near-term challenges include ramp-related costs that temper immediate margin expansion, display/mix effects, supply-chain/clean-room constraints, and some guidance uncertainty (wide Q4 range and no FQ1 guide). On balance, the positives—strong multi-segment growth, margin expansion to date, product momentum, and multi-year customer visibility—outweigh the lowlights.Company Guidance
Record Revenue and Strong Top-Line Growth
Fiscal Q3 revenue of $9.1B, up 15% sequentially and 25% year-over-year; fiscal Q4 guidance of $10.25B ± $0.5B, implying ~51% year-over-year growth.
Record Profitability and EPS Expansion
Non-GAAP gross margin 50.4% (up 40 bps sequentially, 150 bps YoY); non-GAAP operating margin 34% (up 190 bps sequentially, 330 bps YoY); non-GAAP EPS $3.50 (up 22% sequentially, 41% YoY); Q4 EPS guidance $4.02 ± $0.20 (up ~85% YoY).
Semiconductor Systems Outperformance
Semiconductor Systems revenue hit a record $7.0B, up 18% sequentially and 27% YoY; company expects to outgrow the market and raised expectations for the year.
DRAM and Advanced Packaging Strength
DRAM revenue (including HBM packaging) grew 52% YoY to record levels; company expects overall packaging revenues to grow >70% in calendar 2026 and very strong growth in 2027.
Applied Global Services (AGS) Momentum
AGS revenue $1.8B, up 22% YoY; AGS gross margin 35.6% (up 180 bps YoY) and operating margin 30.1% (up 280 bps YoY); AGS expected to grow >20% in calendar 2026 and sustain mid-teens long-term growth.
Product and Technology Pipeline
Announced 6 new products this quarter (Sentura Prime epitaxy, Avila, Dakota VMAX, OptiQuad CMP, and two e-beam systems); strong pipeline in metrology, e-beam, optical inspection, and output-innovation products that reduce clean room space or increase wafer-per-area.
Commercial and Strategic Wins
EPIC partnerships expanded to 11 engagements (including Broadcom, SCREEN, UC Berkeley); new EPIC Center in Silicon Valley moving toward operations and first R&D tool installation next week.
Operational Scale-Up and Cash Generation
Operating cash flow > $3B, CapEx $707M, free cash flow $2.3B; returned $860M to shareholders (dividends $420M, repurchases $440M) with $12.8B buyback authorization remaining; nearly doubled manufacturing space over several years and opened a new manufacturing center in Singapore.
Increased Customer Visibility and Long-Term Demand
Customers providing longer-duration commitments and rolling 8-quarter forecasts (some multi-year visibility to 2030), enabling stronger supply chain planning and confidence in 2027 growth.
Headcount and Capacity Investments
Added >1.5k people this quarter in worldwide manufacturing and AGS support, including >1k customer support engineers; planning capacity expansions to enable up to double quarterly system output from current levels by 2028.
DE:AP2 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed