Applied Materials Announces Fourth Quarter and Fiscal Year 2026 Results

Rhea-AI Summary

Applied Materials (AMAT) reported record fourth-quarter revenue of $10.41 billion, up 53 percent year over year, for fiscal 2026. GAAP diluted earnings per share rose 43 percent to $3.40, while non-GAAP EPS rose 92 percent to $4.16. GAAP gross margin reached 50.4 percent, up 2.4 percentage points, and operating margin increased to 35.1 percent from 25.2 percent. Quarterly operating cash flow was $3.30 billion, with $2.00 billion spent on share repurchases.

Full-year revenue rose 21 percent to $34.45 billion, and GAAP EPS increased 46 percent to $12.62. Applied expects first-quarter fiscal 2027 revenue of $11,100 million, plus or minus $500 million, and non-GAAP EPS of $4.35, plus or minus $0.20. It also entered an accelerated share purchase agreement to increase its Besi stake to approximately 20 percent and unveiled its EPIC Center, adding four R&D partnerships.

Positive

• Fourth-quarter revenue increased 53 percent year over year to $10,409 million.
• Fourth-quarter GAAP diluted EPS rose 43 percent year over year to $3.40.
• Fourth-quarter non-GAAP diluted EPS increased 92 percent year over year to $4.16.
• Fourth-quarter GAAP net income rose 43 percent year over year to $2,718 million.
• Fourth-quarter GAAP gross margin increased 2.4 percentage points to 50.4 percent year over year.
• Fourth-quarter GAAP operating margin rose to 35.1 percent from 25.2 percent year over year.
• Fourth-quarter operating cash flow reached a record $3.30 billion.
• Fourth-quarter non-GAAP free cash flow increased 28 percent year over year to $2,616 million.
• Share repurchases totaled $2.00 billion in the fourth quarter and $3.18 billion for fiscal 2026.
• Fiscal 2026 revenue increased 21 percent year over year to $34,446 million.
• Fiscal 2026 GAAP diluted EPS rose 46 percent year over year to $12.62.
• Fiscal 2026 non-GAAP diluted EPS increased 37 percent year over year to $12.89.
• Fiscal 2026 GAAP net income rose 44 percent year over year to $10,088 million.
• Fiscal 2026 GAAP gross margin increased 1.3 percentage points to 50.0 percent.
• Fiscal 2026 GAAP operating margin increased to 32.2 percent from 29.2 percent.
• Fiscal 2026 operating cash flow reached a record $8.87 billion.
• Fiscal 2026 non-GAAP free cash flow increased 9 percent to $6,196 million.
• Semiconductor Systems quarterly revenue rose to $7,996 million from $4,879 million year over year.
• Semiconductor Systems annual revenue increased to $26,142 million from $21,441 million.
• Semiconductor Systems quarterly gross margin rose to 55.0 percent from 52.7 percent year over year.
• Semiconductor Systems annual gross margin increased to 54.9 percent from 53.2 percent.
• Semiconductor Systems quarterly operating income rose to $3,101 million from $1,430 million year over year.
• Semiconductor Systems annual operating income increased to $9,277 million from $6,909 million.
• Applied Global Services quarterly revenue rose to $1,896 million from $1,506 million year over year.
• Applied Global Services annual revenue increased to $6,901 million from $5,742 million.
• Applied Global Services quarterly gross margin rose to 35.1 percent from 34.1 percent year over year.
• Applied Global Services annual gross margin increased to 35.0 percent from 33.5 percent.
• Applied Global Services quarterly operating income rose to $578 million from $433 million year over year.
• Applied Global Services annual operating income increased to $2,039 million from $1,547 million.
• Other category quarterly revenue rose to $517 million from $415 million year over year.
• Other category annual revenue increased to $1,403 million from $1,185 million.
• First-quarter fiscal 2027 revenue is expected at $11,100 million, plus or minus $500 million.
• First-quarter fiscal 2027 non-GAAP diluted EPS is expected at $4.35, plus or minus $0.20.
• Applied expects Semiconductor Systems growth of more than 40 percent in its calendar 2026.
• Besi accelerated share purchase agreement targets an investment of approximately 20 percent of outstanding shares.
• Long-term debt decreased to $5,233 million from $6,455 million at the prior fiscal year-end.

Negative

• Other category annual operating loss widened to $229 million from $167 million.
• Other category quarterly operating loss narrowed to $21 million from $151 million year over year.
• Quarterly interest and other expense, net, was $513 million, versus $626 million income a year earlier.
• Annual interest and other income, net, fell to $724 million from $1,251 million.
• Fiscal 2026 legal settlement expense totaled $253 million, versus none in fiscal 2025.
• Research, development and engineering expense rose to $4,184 million annually from $3,570 million.
• Marketing and selling expense increased to $954 million annually from $858 million.
• Short-term debt increased to $1,299 million from $100 million at the prior fiscal year-end.

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Key Figures

Q4 revenue: $10.41 billion Q4 GAAP diluted EPS: $3.40 Q4 non-GAAP diluted EPS: $4.16 +5 more

Q4 revenue

$10.41 billion

Fourth quarter FY2026; up 53% year over year

Q4 GAAP diluted EPS

$3.40

Fourth quarter FY2026; up 43% year over year

Q4 non-GAAP diluted EPS

$4.16

Fourth quarter FY2026; up 92% year over year

FY2026 revenue

$34.45 billion

Fiscal year 2026; up 21% year over year

FY2026 GAAP diluted EPS

$12.62

Fiscal year 2026; up 46% year over year

FY2026 non-GAAP diluted EPS

$12.89

Fiscal year 2026; up 37% year over year

Q1 FY2027 revenue outlook

$11,100 million ± $500 million

Expected first-quarter fiscal 2027 total revenue

Q1 FY2027 non-GAAP diluted EPS outlook

$4.35 ± $0.20

Expected first-quarter fiscal 2027

Previous Earnings Reports

4 past events · Latest: Aug 13

Same Type 4 events

1. Aug 13

   Q3 earnings

   24h Move

   -5.1%

   Record revenue and non-GAAP EPS growth; the reported price reaction was negative.

2. May 14

   Q2 earnings

   24h Move

   -0.9%

   Record revenue and EPS; the reported price reaction was negative.

3. Feb 12

   Q1 earnings

   24h Move

   +8.1%

   Revenue declined year over year, while the reported price reaction was positive.

4. Nov 13

   FY2025 earnings

   24h Move

   +1.3%

   Annual revenue and non-GAAP EPS increased year over year; the reported price reaction was positive.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap, accelerated share purchase agreement, cd-sem, +1 more

5 terms

gaap financial

"On a GAAP basis, the company reported gross margin of 50.4 percent"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"On a non-GAAP basis, the company reported gross margin of 50.6 percent"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

accelerated share purchase agreement financial

"Entered into an accelerated share purchase agreement to increase Applied’s investment"

An accelerated share purchase agreement is a quick method a company uses to buy back a large block of its own shares through an investment bank: the bank delivers shares to the company immediately while the final number and price are settled over a short period. For investors, it can shrink the number of shares outstanding and lift earnings per share like trimming a pie into fewer slices, but it can also use cash or borrowing and introduce short-term settlement or valuation uncertainty.

cd-sem technical

"a next-generation critical dimension scanning electron microscope (CD-SEM)"

CD‑SEM (Critical Dimension Scanning Electron Microscope) is a scanning electron microscope configured and calibrated to measure the widths, profiles and edge placement of tiny features on semiconductor wafers and photomasks. It forms a high‑resolution electron image of a chip's patterned surface and extracts numeric measurements of critical dimensions (line widths, spaces, sidewall angles) used to control lithography and process uniformity; it measures physical geometry, not electrical performance, and requires careful calibration and sample preparation because imaging conditions and surface coatings can affect measured values.

high-na euv technical

"patterning control challenges of high-NA EUV"

High-NA EUV is the next-generation form of extreme ultraviolet lithography that uses a higher numerical aperture (NA) optical system to print smaller features on semiconductor wafers. Increasing the NA improves imaging resolution by capturing steeper light angles, but it also reduces depth of focus and requires larger, more complex reflective optics, new reticle layouts and mask handling, and changes in fab infrastructure and exposure control. It is a manufacturing technology term describing tools and processes for making finer integrated-circuit patterns, not a material or product brand.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Record quarterly revenue $10.41 billion, up 53 percent year over year
• Quarterly GAAP gross margin 50.4 percent and non-GAAP gross margin 50.6 percent, up 240 basis points and 250 basis points year over year, respectively
• Quarterly GAAP EPS $3.40 and record non-GAAP EPS $4.16, up 43 percent and 92 percent year over year, respectively
• Record annual revenue $34.45 billion, up 21 percent year over year
• Annual GAAP gross margin 50.0 percent and non-GAAP gross margin 50.1 percent, both up 130 basis points year over year
• Record annual GAAP EPS $12.62 and record non-GAAP EPS $12.89, up 46 percent and 37 percent year over year, respectively
• Unveiled the EPIC Center in Silicon Valley and added four new R&D partnerships, bringing our total number of announced EPIC engagements to 15
  

SANTA CLARA, Calif., Nov. 12, 2026 (GLOBE NEWSWIRE) -- 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.

“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,” said Gary Dickerson, President and CEO. “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.”

“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,” said Brice Hill, Senior Vice President and CFO. “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.”

Results Summary

																	Change
	Q4 FY2026				Q4 FY2025				FY2026				FY2025				Q4 FY2026 vs. Q4 FY2025		FY2026 vs. FY2025
	(In millions, except per share amounts and percentages)
Revenue	$	10,409			$	6,800			$	34,446			$	28,368			53%		21%
Gross margin		50.4	%			48.0	%			50.0	%			48.7	%		2.4 points		1.3 points
Operating margin		35.1	%			25.2	%			32.2	%			29.2	%		9.9 points		3.0 points
Net income	$	2,718			$	1,897			$	10,088			$	6,998			43%		44%
Diluted earnings per share	$	3.40			$	2.38			$	12.62			$	8.66			43%		46%
Non-GAAP Results
Non-GAAP gross margin		50.6	%			48.1	%			50.1	%			48.8	%		2.5 points		1.3 points
Non-GAAP operating margin		35.3	%			28.6	%			33.1	%			30.2	%		6.7 points		2.9 points
Non-GAAP net income	$	3,321			$	1,732			$	10,301			$	7,607			92%		35%
Non-GAAP diluted EPS	$	4.16			$	2.17			$	12.89			$	9.42			92%		37%
Non-GAAP free cash flow	$	2,616			$	2,043			$	6,196			$	5,698			28%		9%

A reconciliation of the GAAP and non-GAAP results is provided in the financial tables included in this release. See also “Use of Non-GAAP Financial Measures” section.

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:

	Q1 FY2027
(In millions, except per share amounts)
Total revenue	$	11,100	+/-	$	500
Non-GAAP diluted EPS	$	4.35	+/-	$	0.20

This outlook for non-GAAP diluted EPS excludes known charges related to completed acquisitions of $0.01 per share and includes a net income tax benefit related to intra-entity intangible asset transfers of $0.04 per share, but does not reflect any items that are unknown at this time, such as any additional charges related to acquisitions or other non-operational or unusual items, as well as other tax-related items, which we are not able to predict without unreasonable efforts due to their inherent uncertainty.

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.

Semiconductor Systems	Q4 FY2026				Q4 FY2025				FY2026				FY2025
(in millions, except percentages)
Revenue	$	7,996			$	4,879			$	26,142			$	21,441
Foundry and logic		58	%			66	%			63	%			68	%
DRAM		33	%			28	%			30	%			26	%
Flash memory		9	%			6	%			7	%			6	%
Gross margin		55.0	%			52.7	%			54.9	%			53.2	%
Operating income	$	3,101			$	1,430			$	9,277			$	6,909
Operating margin		38.8	%			29.3	%			35.5	%			32.2	%
Non-GAAP Results
Non-GAAP gross margin		55.2	%			52.8	%			55.0	%			53.4	%
Non-GAAP operating income	$	3,115			$	1,442			$	9,581			$	6,958
Non-GAAP operating margin		39.0	%			29.6	%			36.6	%			32.5	%

Applied Global Services	Q4 FY2026				Q4 FY2025				FY2026				FY2025
(in millions, except percentages)
Revenue	$	1,896			$	1,506			$	6,901			$	5,742
Gross margin		35.1	%			34.1	%			35.0	%			33.5	%
Operating income	$	578			$	433			$	2,039			$	1,547
Operating margin		30.5	%			28.8	%			29.5	%			26.9	%
Non-GAAP Results
Non-GAAP gross margin		35.1	%			34.1	%			35.0	%			33.5	%
Non-GAAP operating income	$	578			$	434			$	2,039			$	1,549
Non-GAAP operating margin		30.5	%			28.8	%			29.5	%			27.0	%

Other	Q4 FY2026				Q4 FY2025				FY2026				FY2025
(in millions)
Revenue	$	517			$	415			$	1,403			$	1,185
Cost of products sold and expenses		(542	)			(385	)			(1,624	)			(1,171	)
Restructuring charges		4				(181	)			(8	)			(181	)
Operating income (loss)	$	(21	)		$	(151	)		$	(229	)		$	(167	)

Calendar Year Information

Applied's calendar 2026 refers to the period beginning with the second quarter of fiscal 2026 through the first quarter of fiscal 2027.

Use of Non-GAAP Financial Measures

Applied provides investors with certain non-GAAP financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including, as applicable, certain items related to mergers and acquisitions; restructuring and severance charges and any associated adjustments; legal settlement charges; impairments of assets; gain or loss, dividends and impairments on strategic investments; certain income tax items; and other discrete adjustments. On a non-GAAP basis, the tax effect related to share-based compensation is recognized ratably over the fiscal year. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.

Management uses these non-GAAP financial measures to evaluate the company’s operating and financial performance and for planning purposes, and as performance measures in its executive compensation program. Applied believes these measures enhance an overall understanding of its performance and investors’ ability to review the company’s business from the same perspective as the company’s management, and facilitate comparisons of this period’s results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Applied's ongoing operating performance. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.

Webcast Information

Applied Materials will discuss these results during an earnings call that begins at 1:30 p.m. Pacific Time today. A live webcast and related slide presentation will be available at https://ir.appliedmaterials.com. A replay will be available on the website beginning at 5:00 p.m. Pacific Time today.

Forward-Looking Statements
This press release contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, the plans and expectations for the EPIC Center, legal matters, our business outlook for the first quarter of fiscal 2027 and beyond, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; demand for semiconductor chips and electronic devices, including demand related to the development and use of AI technologies; our ability to meet customer demand, and our suppliers’ ability to meet our demand requirements; global economic, political and industry conditions, including changes in interest rates and prices for goods and services; global trade issues, changes in trade and export regulations, license requirements, and their interpretation, and our ability to obtain licenses or authorizations on a timely basis, if at all; changes in tariffs, any retaliatory measures, and our ability to mitigate the impact of tariffs; the effects of geopolitical turmoil or conflicts; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; cybersecurity incidents affecting us or our suppliers, customers or vendors; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; acquisitions, investments and divestitures; changes in income tax laws; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations; and other risks and uncertainties described in our filings with the Securities and Exchange Commission, including our most recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.

About Applied Materials

Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions that are at the foundation of virtually every new semiconductor and advanced display in the world. The technology we create is essential to advancing AI and accelerating the commercialization of next-generation chips. At Applied, we push the boundaries of science and engineering to deliver material innovation that changes the world. Learn more at www.appliedmaterials.com.

Investor Relations Contact:
Mike Sullivan (408) 986-7977
mike_sullivan@amat.com 

Media Contact:
Ricky Gradwohl (408) 235-4676
ricky_gradwohl@amat.com  

APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
	Three Months Ended							Twelve Months Ended
(In millions, except per share amounts)	October 25, 2026				October 26, 2025			October 25, 2026			October 26, 2025
Revenue	$	10,409			$	6,800		$	34,446		$	28,368
Cost of products sold		5,158				3,535			17,227			14,560
Gross profit		5,251				3,265			17,219			13,808
Operating expenses:
Research, development and engineering		1,129				917			4,184			3,570
Marketing and selling		250				212			954			858
General and administrative		218				243			733			910
Legal settlement		—				—			253			—
Restructuring charges		(4	)			181			8			181
Total operating expenses		1,593				1,553			6,132			5,519
Income from operations		3,658				1,712			11,087			8,289
Interest expense		68				71			274			269
Interest and other income (expense), net		(513	)			626			724			1,251
Income before income taxes		3,077				2,267			11,537			9,271
Provision for income taxes		359				370			1,449			2,273
Net income	$	2,718			$	1,897		$	10,088		$	6,998
Earnings per share:
Basic	$	3.43			$	2.39		$	12.71		$	8.71
Diluted	$	3.40			$	2.38		$	12.62		$	8.66
Weighted average number of shares:
Basic		793				794			793			804
Diluted		798				798			799			808

APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)	October 25, 2026			October 26, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	7,239		$	7,241
Short-term investments		2,100			1,332
Accounts receivable, net		8,998			5,185
Inventories		6,889			5,915
Other current assets		1,913			1,208
Total current assets		27,139			20,881
Long-term investments		4,756			4,327
Property, plant and equipment, net		5,854			4,610
Goodwill		3,875			3,707
Purchased technology and other intangible assets, net		339			226
Deferred income taxes and other assets		3,437			2,548
Total assets	$	45,400		$	36,299
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	1,299		$	100
Accounts payable and accrued expenses		6,696			5,333
Contract liabilities		3,585			2,566
Total current liabilities		11,580			7,999
Long-term debt		5,233			6,455
Income taxes payable		1,080			356
Other liabilities		1,401			1,074
Total liabilities		19,294			15,884
Total stockholders’ equity		26,106			20,415
Total liabilities and stockholders’ equity	$	45,400		$	36,299

APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In millions)	Three Months Ended								Twelve Months Ended
	October 25, 2026				October 26, 2025				October 25, 2026				October 26, 2025
Cash flows from operating activities:
Net income	$	2,718			$	1,897			$	10,088			$	6,998
Adjustments required to reconcile net income to cash provided by operating activities:
Depreciation and amortization		158				114				571				435
Restructuring charges		(4	)			179				8				179
(Gain) loss and impairments on investments, net		637				(522	)			(272	)			(792	)
Share-based compensation		174				156				719				668
Deferred income taxes		(333	)			(313	)			(308	)			639
Other		9				59				(2	)			31
Net change in operating assets and liabilities		(59	)			1,258				(1,936	)			(200	)
Cash provided by operating activities		3,300				2,828				8,868				7,958
Cash flows from investing activities:
Capital expenditures		(684	)			(785	)			(2,672	)			(2,260	)
Cash paid for acquisitions, net of cash acquired		4				—				(258	)			(29	)
Proceeds from asset sale		—				—				6				33
Proceeds from sales and maturities of investments		1,346				1,591				5,931				5,528
Purchases of investments		(1,346	)			(945	)			(6,839	)			(6,054	)
Cash used in investing activities		(680	)			(139	)			(3,832	)			(2,782	)
Cash flows from financing activities:
Debt borrowings, net of issuance costs		—				991				—				991
Debt repayments		—				(700	)			—				(700	)
Proceeds from commercial paper		101				103				500				503
Repayments of commercial paper		(100	)			(102	)			(500	)			(502	)
Proceeds from common stock issuances		135				132				266				261
Common stock repurchases		(2,000	)			(851	)			(3,177	)			(4,895	)
Tax withholding payments for vested equity awards		(133	)			(38	)			(570	)			(248	)
Payments of dividends to stockholders		(421	)			(365	)			(1,571	)			(1,384	)
Payments of debt issuance costs		—				(1	)			—				(3	)
Cash used in financing activities		(2,418	)			(831	)			(5,052	)			(5,977	)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents		202				1,858				(16	)			(801	)
Cash, cash equivalents and restricted cash equivalents — beginning of period		7,094				5,454				7,312				8,113
Cash, cash equivalents and restricted cash equivalents — end of period	$	7,296			$	7,312			$	7,296			$	7,312
Reconciliation of cash, cash equivalents, and restricted cash equivalents
Cash and cash equivalents	$	7,239			$	7,241			$	7,239			$	7,241
Restricted cash equivalents included in deferred income taxes and other assets		57				71				57				71
Total cash, cash equivalents, and restricted cash equivalents	$	7,296			$	7,312			$	7,296			$	7,312
Supplemental cash flow information:
Cash payments for income taxes	$	113			$	235			$	932			$	1,504
Cash refunds from income taxes	$	13			$	11			$	35			$	90
Cash payments for interest	$	54			$	68			$	246			$	239

Additional Information
	Q4 FY2026				Q4 FY2025				FY2026				FY2025
Revenue by Geography (In millions)
United States	$	1,320			$	655			$	4,284			$	3,063
% of Total		13	%			10	%			12	%			11	%
Europe	$	520			$	220			$	1,571			$	962
% of Total		5	%			3	%			5	%			3	%
Japan	$	619			$	448			$	2,606			$	2,273
% of Total		6	%			6	%			8	%			8	%
Korea	$	1,811			$	1,219			$	6,362			$	5,608
% of Total		17	%			18	%			18	%			20	%
Taiwan	$	2,916			$	1,834			$	8,818			$	6,857
% of Total		28	%			27	%			26	%			24	%
Southeast Asia	$	581			$	460			$	1,475			$	1,076
% of Total		6	%			7	%			4	%			4	%
China	$	2,642			$	1,964			$	9,330			$	8,529
% of Total		25	%			29	%			27	%			30	%
Employees (In thousands)
Regular Full Time		41.5				36.5

APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
	Three Months Ended								Twelve Months Ended
(In millions, except percentages)	October 25, 2026				October 26, 2025				October 25, 2026				October 26, 2025
Non-GAAP Gross Profit
GAAP reported gross profit	$	5,251			$	3,265			$	17,219			$	13,808
Certain items associated with acquisitions1		12				7				36				27
Non-GAAP gross profit	$	5,263			$	3,272			$	17,255			$	13,835
Non-GAAP gross margin		50.6	%			48.1	%			50.1	%			48.8	%
Non-GAAP Operating Income
GAAP reported operating income	$	3,658			$	1,712			$	11,087			$	8,289
Certain items associated with acquisitions1		14				11				51				45
Acquisition integration and deal costs		8				2				16				6
Impairment of goodwill		—				41				—				41
Legal settlement2		—				—				253				—
Restructuring charges3		(4	)			181				8				181
Non-GAAP operating income	$	3,676			$	1,947			$	11,415			$	8,562
Non-GAAP operating margin		35.3	%			28.6	%			33.1	%			30.2	%
Non-GAAP Net Income
GAAP reported net income	$	2,718			$	1,897			$	10,088			$	6,998
Certain items associated with acquisitions1		14				11				51				45
Acquisition integration and deal costs		8				2				16				6
Impairment of goodwill		—				41				—				41
Legal settlement2		—				—				253				—
Restructuring charges3		(4	)			181				8				181
Realized loss (gain), dividends and impairments on strategic investments, net		(18	)			(55	)			4				(66	)
Unrealized loss (gain) on strategic investments, net		653				(467	)			(296	)			(755	)
Foreign exchange loss (gain) related to purchase of strategic investment		—				—				—				23
Loss (gain) on asset sale		—				—				—				(44	)
Income tax effect of share-based compensation4		4				(1	)			—				—
Income tax effects related to intra-entity intangible asset transfers5		49				39				145				777
Resolution of prior years’ income tax filings and other tax items6		(27	)			(7	)			(24	)			313
Income tax effect of non-GAAP adjustments7		(76	)			91				56				88
Non-GAAP net income	$	3,321			$	1,732			$	10,301			$	7,607

1	These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets.
2	Charge of $253 million for settlement with the U.S. Commerce Department Bureau of Industry and Security to resolve a previously disclosed export controls compliance matter.
3	The restructuring charges related to a workforce reduction plan announced in the fourth quarter of fiscal 2025.
4	GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis.
5	Amount for the twelve months ended October 26, 2025, included changes to the income tax provision of $118 million from amortization of intangibles and a $659 million remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in the first quarter of fiscal 2025.
6	Amounts for the twelve months ended October 26, 2025 included the impact of the recognition of a $403 million valuation allowance against deferred tax assets related to corporate alternative minimum tax credits.
7	Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes.

APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
	Three Months Ended								Twelve Months Ended
(In millions, except per share amounts)	October 25, 2026				October 26, 2025				October 25, 2026				October 26, 2025
Non-GAAP Earnings Per Diluted Share
GAAP reported earnings per diluted share	$	3.40			$	2.38			$	12.62			$	8.66
Certain items associated with acquisitions		0.02				0.01				0.06				0.05
Acquisition integration and deal costs		0.01				—				0.02				0.01
Impairment of goodwill		—				0.05				—				0.05
Legal settlement		—				—				0.32				—
Restructuring charges		—				0.19				0.01				0.19
Realized loss (gain), dividends and impairments on strategic investments, net		0.02				(0.07	)			0.13				(0.08	)
Unrealized loss (gain) on strategic investments, net		0.68				(0.43	)			(0.42	)			(0.80	)
Foreign exchange loss (gain) related to purchase of strategic investment		—				—				—				0.03
Loss (gain) on asset sale		—				—				—				(0.04	)
Income tax effects related to intra-entity intangible asset transfers1		0.06				0.05				0.18				0.96
Resolution of prior years’ income tax filings and other tax items2		(0.03	)			(0.01	)			(0.03	)			0.39
Non-GAAP earnings per diluted share	$	4.16			$	2.17			$	12.89			$	9.42
Weighted average number of diluted shares		798				798				799				808

1	Amount for the twelve months ended October 26, 2025, included changes to the income tax provision of $0.14 per diluted share from amortization of intangibles and $0.82 per diluted share from a remeasurement of deferred tax assets resulting from new tax incentive agreements in Singapore in the first quarter of fiscal 2025.
2	Amounts for the twelve months ended October 26, 2025 included a $0.50 per diluted share impact of the recognition of a valuation allowance against deferred tax assets related to corporate alternative minimum tax credits.

APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
	Three Months Ended								Twelve Months Ended
(In millions, except percentages)	October 25, 2026				October 26, 2025				October 25, 2026				October 26, 2025
Semiconductor Systems Non-GAAP Gross Profit
GAAP reported gross profit	$	4,400			$	2,569			$	14,350			$	11,414
Certain items associated with acquisitions1		12				7				36				27
Non-GAAP gross profit	$	4,412			$	2,576			$	14,386			$	11,441
Non-GAAP gross margin		55.2	%			52.8	%			55.0	%			53.4	%
Applied Global Services Non-GAAP Gross Profit
GAAP reported gross profit	$	665			$	514			$	2,413			$	1,921
Non-GAAP gross profit	$	665			$	514			$	2,413			$	1,921
Non-GAAP gross margin		35.1	%			34.1	%			35.0	%			33.5	%
Semiconductor Systems Non-GAAP Operating Income
GAAP reported operating income	$	3,101			$	1,430			$	9,277			$	6,909
Certain items associated with acquisitions1		14				11				51				45
Acquisition integration and deal costs		—				1				—				4
Legal settlement2		—				—				253				—
Non-GAAP operating income	$	3,115			$	1,442			$	9,581			$	6,958
Non-GAAP operating margin		39.0	%			29.6	%			36.6	%			32.5	%
Applied Global Services Non-GAAP Operating Income
GAAP reported operating income	$	578			$	433			$	2,039			$	1,547
Acquisition integration and deal costs		—				1				—				2
Non-GAAP operating income	$	578			$	434			$	2,039			$	1,549
Non-GAAP operating margin		30.5	%			28.8	%			29.5	%			27.0	%

1	These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets.
2	Charge of $253 million for settlement with the U.S. Commerce Department Bureau of Industry and Security to resolve a previously disclosed export controls compliance matter.

Note: The reconciliation of GAAP and non-GAAP segment results above does not include certain revenues, costs of products sold and operating expenses that are reported within other and included in consolidated operating income.

APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE
	Three Months Ended
(In millions, except percentages)	October 25, 2026
GAAP provision for income taxes (a)	$	359
Income tax effect of share-based compensation		(4	)
Income tax effects related to intra-entity intangible asset transfers		(49	)
Resolution of prior years’ income tax filings and other tax items		27
Income tax effect of non-GAAP adjustments		76
Non-GAAP provision for income taxes (b)	$	409
GAAP income before income taxes (c)	$	3,077
Certain items associated with acquisitions		14
Acquisition integration and deal costs		8
Restructuring charges		(4	)
Realized loss (gain), dividends and impairments on strategic investments, net		(18	)
Unrealized loss (gain) on strategic investments, net		653
Non-GAAP income before income taxes (d)	$	3,730
GAAP effective income tax rate (a/c)		11.7	%
Non-GAAP effective income tax rate (b/d)		11.0	%

UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW
	Three Months Ended								Twelve Months Ended
(In millions)	October 25, 2026				October 26, 2025				October 25, 2026				October 26, 2025
Cash provided by operating activities	$	3,300			$	2,828			$	8,868			$	7,958
Capital expenditures		(684	)			(785	)			(2,672	)			(2,260	)
Non-GAAP free cash flow	$	2,616			$	2,043			$	6,196			$	5,698

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Applied Materials AMAT fourth-quarter fiscal 2026 earnings results?

Applied Materials reported revenue of $10,409 million and GAAP diluted EPS of $3.40, up 53 percent and 43 percent year over year, respectively. Non-GAAP diluted EPS increased 92 percent to $4.16. The fiscal year ended October 25, 2026.

What is Applied Materials AMAT guidance for the first quarter of fiscal 2027?

Applied expects revenue of $11,100 million, plus or minus $500 million, and non-GAAP diluted EPS of $4.35, plus or minus $0.20 for the first quarter of fiscal 2027.

What tax benefit and acquisition charges are reflected in Applied Materials fiscal 2027 first-quarter EPS guidance?

The non-GAAP EPS outlook includes a $0.04-per-share net income tax benefit related to intra-entity intangible asset transfers and excludes $0.01 per share in known charges related to completed acquisitions. It does not reflect unknown additional acquisition charges, other non-operational or unusual items, or other tax-related items.

What period does Applied Materials mean by calendar 2026 in its Semiconductor Systems growth outlook?

Applied's calendar 2026 begins with the second quarter of fiscal 2026 and runs through the first quarter of fiscal 2027. The company expects Semiconductor Systems growth of more than 40 percent over that period.

Which organizations are joining Applied Materials EPIC Center as new partners?

The four new EPIC Center partners are Intel, KIOXIA, Besi and UCLA Samueli School of Engineering, bringing announced engagements to 15. Intel joins as a founding partner, KIOXIA and Besi as innovation partners, and UCLA Samueli as a research partner.