Applied Materials Announces Third Quarter 2026 Results

Rhea-AI Summary

Applied Materials (NASDAQ: AMAT) reported record Q3 FY2026 revenue of $9.12 billion, up 25% year over year. GAAP gross margin was 50.3%, operating income $3.08 billion (33.7% margin), and GAAP EPS $3.17, up 43%. Non-GAAP EPS reached a record $3.50, up 41%, with non-GAAP operating margin of 34.0%.

The company generated record operating cash flow of $3.04 billion and non-GAAP free cash flow of $2.33 billion (+14%), returning $860 million via buybacks and dividends. Q4 FY2026 guidance calls for revenue of $10.25 billion ± $0.5 billion and non-GAAP diluted EPS of $4.02 ± $0.20. Semiconductor Systems revenue was $7.04 billion with a 37.7% operating margin; Applied Global Services revenue was $1.78 billion with a 30.1% operating margin. Applied highlighted multiple new DRAM, 3D NAND, and advanced packaging systems, expanded EPIC Center partnerships, a new $500 million Singapore campus, and a joint development agreement for next-generation smart eyewear.

Positive

• Revenue $9.1B, up 25% year over year in Q3 FY2026
• GAAP EPS $3.17, up 43% year over year
• Record non-GAAP EPS $3.50, up 41% year over year
• GAAP operating margin 33.7%, up 3.1 percentage points year over year
• Record operating cash flow $3.04B; non-GAAP free cash flow $2.33B (+14% YoY)
• Semiconductor Systems revenue $7.04B with GAAP operating margin 37.7%
• Applied Global Services revenue $1.78B with operating margin 30.1%
• Q4 FY2026 revenue guidance $10.25B ± $0.5B
• Q4 FY2026 non-GAAP diluted EPS guidance $4.02 ± $0.20
• New $500M Tampines Campus in Singapore expands cleanroom capacity

Negative

• Other segment reported Q3 FY2026 operating loss of $118M versus $4M loss prior year
• Short-term debt increased to $1.30B from $100M at October 26, 2025
• Year-to-date legal settlement expense of $253M recorded in fiscal 2026
• Contract liabilities rose to $3.27B from $2.57B, increasing deferred performance obligations

News Explained

At the July 26, 2026 quarter end, Applied Materials reported $7,037 million in cash and equivalents, $2,196 million in short-term investments and $5,268 million in long-term investments, against $1,299 million of short-term debt and $5,245 million of long-term debt, adding a balance-sheet liquidity snapshot to the reported results.

Market reaction after Q3 FY2026 earnings report: AMAT -5.34%

-5.34% $506.00 1.8x vol

15m delay

-5.34% Vs previous close

$506.00 Last Price

$501.70 $563.75 Day Range

$401.74B Market Cap

1.8x Rel. Volume

Following this news, AMAT has declined 5.34%, reflecting a notable negative market reaction. Our momentum scanner has triggered 30 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $506.00. Trading volume is above average at 1.8x the average, suggesting increased trading activity.

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Market Context

Matched earnings events averaged a -2.18% 24-hour move for AMAT. That record adds a mixed-response b...

Analysis

Matched earnings events averaged a -2.18% 24-hour move for AMAT. That record adds a mixed-response benchmark to this quarter’s results; low short positioning and insider Net Selling remain relevant risk factors.

Key Figures

Revenue: $9.12 billion GAAP gross margin: 50.3 percent GAAP EPS: $3.17 +5 more

8 metrics

Revenue $9.12 billion Q3 FY2026; up 25 percent year over year

GAAP gross margin 50.3 percent Q3 FY2026

GAAP EPS $3.17 Q3 FY2026; up 43 percent year over year

Non-GAAP EPS $3.50 Q3 FY2026; up 41 percent year over year

Cash from operations $3.04 billion Q3 FY2026

Shareholder distributions $860 million Q3 FY2026; $440 million repurchases and $420 million dividends

Q4 revenue outlook $10,250 million +/- $500 million Q4 FY2026

Q4 non-GAAP diluted EPS outlook $4.02 +/- $0.20 Q4 FY2026

Previous Earnings Reports

5 past events · Latest: May 14 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 14	Q2 earnings report	Positive	-0.9%	Record Q2 revenue, raised outlook, and new EPIC partnerships
Feb 12	Q1 earnings report	Positive	+8.1%	Q1 results and Q2 revenue and EPS outlook
Nov 13	FY2025 earnings report	Positive	+1.3%	Record annual revenue and Q1 FY2026 outlook
Aug 14	Q3 earnings report	Positive	-14.1%	Record Q3 results alongside weaker Q4 revenue forecast
May 15	Q2 earnings report	Positive	-5.3%	Strong Q2 results and Q3 revenue and EPS projection

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

Pattern Detected

Matched earnings events produced mixed reactions, with two aligned positive responses and three divergences, averaging -2.18%.

Key Terms

non-gaap, dram, pecvd

3 terms

non-gaap financial

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

dram technical

"particularly in DRAM as well as leading-edge foundry-logic"

A dram is a small, traditional unit used to measure either mass or liquid volume in manufacturing and pharmaceuticals — roughly 1.77 grams for a weight dram or about 3.7 milliliters for a fluid dram, similar to a small teaspoon or a couple of drops. Investors care because dram-based measurements affect drug dosing, packaging sizes, labeling compliance and raw-material usage, which in turn influence production costs, inventory counts and regulatory risk.

pecvd technical

"Producer Avila 2 PECVD: improves the mechanical stability"

PECVD (plasma-enhanced chemical vapor deposition) is a manufacturing technique that uses a plasma to deposit very thin material layers onto surfaces, commonly used for chips, solar panels, LEDs and protective coatings. It matters to investors because the process affects product performance, manufacturing cost, and production yield—like a more precise spray-paint that can be applied at lower heat, improving quality and scaling potential, which can influence a maker’s competitiveness and margins.

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

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• Record revenue $9.12 billion, up 25 percent year over year
• GAAP gross margin 50.3 percent and non-GAAP gross margin 50.4 percent
• GAAP EPS $3.17 and record non-GAAP EPS $3.50, up 43 percent and 41 percent year over year, respectively
• EPIC Center R&D partnerships expand to 11 engagements with leading chipmakers, universities and innovation partners
  
  

SANTA CLARA, Calif., Aug. 13, 2026 (GLOBE NEWSWIRE) -- Applied Materials, Inc. (NASDAQ: AMAT) today reported results for its third quarter ended July 26, 2026.

Third Quarter Results

Applied generated record revenue of $9.12 billion. On a GAAP basis, the company reported gross margin of 50.3 percent, record operating income of $3.08 billion or 33.7 percent of revenue, and earnings per share (EPS) of $3.17.

On a non-GAAP basis, the company reported gross margin of 50.4 percent, record operating income of $3.10 billion or 34.0 percent of revenue, and record EPS of $3.50.

The company generated record cash from operations of $3.04 billion and distributed $860 million to shareholders through $440 million in share repurchases and $420 million in dividends.

“Applied Materials delivered another record-breaking quarter, including the highest sequential revenue growth in the company’s history,” said Gary Dickerson, President and CEO. “As the rapid global adoption of AI drives unprecedented demand for our materials engineering solutions, we are further raising our Semiconductor Systems revenue expectations for calendar 2026 and are confident we will grow faster than the market this year. Based on the increased demand visibility we are receiving from our customers, we expect another strong growth year for Applied Materials in 2027.”

“Applied Materials achieved its 13th consecutive quarter of year-over-year gross margin expansion, demonstrating the increasing value we create by enabling better chips, systems and fab returns,” said Brice Hill, Senior Vice President and CFO. “We expect continued strong revenue growth in the second half of the calendar year, particularly in DRAM as well as leading-edge foundry-logic and advanced packaging. Looking further ahead, we are making additional manufacturing capacity investments to support projected demand through the end of the decade.”

Results Summary

	Q3 FY2026				Q3 FY2025				Change
	(In millions, except per share amounts and percentages)
Revenue	$	9,115			$	7,302			25%
Gross margin		50.3	%			48.8	%		1.5 points
Operating margin		33.7	%			30.6	%		3.1 points
Net income	$	2,538			$	1,779			43%
Diluted earnings per share	$	3.17			$	2.22			43%
Non-GAAP Results
Non-GAAP gross margin		50.4	%			48.9	%		1.5 points
Non-GAAP operating margin		34.0	%			30.7	%		3.3 points
Non-GAAP net income	$	2,795			$	1,989			41%
Non-GAAP diluted EPS	$	3.50			$	2.48			41%
Non-GAAP free cash flow	$	2,330			$	2,050			14%

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

New Products and Technologies

• Introduced six new chipmaking systems for DRAM and advanced packaging.
  • Enhanced Centura™ Prime™ Epi: selectively grows doped silicon germanium and silicon phosphorous in transistor source/drain regions, combining advanced strain engineering with precise doping control. The result is higher drive current and transistor efficiency, enabling faster, more power-efficient DRAM and high bandwidth memory (HBM).
  • Opta™ Quad CMP: engineered specifically for advanced packaging, the Opta Quad continuously monitors wafer conditions during polish and dynamically adjusts in real time, improving within-wafer uniformity and total thickness variation control, which is particularly critical for hybrid bonding.
  • Nokota™ VMax™ 2 ECD: high-precision copper plating across a broad range of applications for next-generation packaging, from TSV fill for 3D stacking to fine-pitch interconnects such as microbump formation. Nokota VMax 2 introduces Adaptive Pattern Tuning (APT), which dynamically shapes the electric field to correct for layout-driven variation and improve plating uniformity across the wafer.
  • Producer™ Avila™ 2 PECVD: improves the mechanical stability of ultra-thin DRAM dies by depositing stress-balanced dielectric films around TSVs, enabling reliable stacking of 12, 16 and future high-layer-count HBM designs.
  • VeritySEM™ 7AP Metrology: critical dimension eBeam metrology enables precise measurement of features on thick, heterogeneous and highly warped substrates common in HBM and chiplet architectures. VeritySEM AP systems automatically reconfigure to support a range of sizes and materials, while delivering sub-10nm sensitivity—orders of magnitude better than optical tools.
  • SEMVision™ G7AP Defect Analysis: extends Applied’s leadership in eBeam defect analysis into advanced packaging, enabling high-resolution defect review and automated classification across silicon, organic and glass substrates. The system can accelerate yield learning by helping customers quickly distinguish critical defects from nuisance signals.
• Introduced new deposition and etch systems that help chipmakers extend scaling in logic and memory to deliver higher performance, improved energy efficiency and better manufacturing yield for next-generation AI chips.
  • Centris™ Spectral™ SiN ALD: leverages innovative microwave plasma technology to deliver uniform silicon nitride deposition in challenging 3D structures.
  • Producer™ Selectra™ Mo Etch: selectively removes molybdenum for wordline separation to enable 3D NAND scaling.
• Unveiled SENZ™, an integrated ambient visual platform that combines waveguide optics, light engine, sensing, vision correction and electronic dimming technology in a single system designed for AI-powered next-generation display smart glasses.
  
  

Corporate Initiatives

• Announced three additional EPIC Center partnerships. The EPIC Center is designed to dramatically reduce the time it takes to commercialize breakthrough technologies from early-stage research to full-scale manufacturing.
  • Broadcom Inc. will join EPIC as an innovation partner to accelerate development of advanced chip packaging technologies critical to next-generation AI systems.
  • The University of California, Berkeley will join the EPIC Center as a research collaborator. Working side by side with Applied’s scientists and engineers, UC Berkeley faculty and students will pursue high-impact research programs to accelerate the material and process innovations that are foundational to AI computing.
  • SCREEN Semiconductor Solutions Co., Ltd. (SCREEN SPE) will join the EPIC Center as an innovation partner, bringing together SCREEN SPE’s expertise in wafer cleaning technology with Applied's leadership in materials engineering to develop co-optimized process solutions for the world’s most advanced chips.
• Expanded our manufacturing and R&D operations in Singapore to support the global build-out of AI infrastructure. The new US$500 million Tampines Campus more than doubles Applied’s advanced cleanroom capacity in Singapore and strengthens the company’s global manufacturing footprint.
• Announced a long-term joint development agreement with EssilorLuxottica to accelerate the commercialization of next-generation intelligent optical systems for augmented reality and AI-powered smart eyewear.
• Published our latest Impact Report highlighting how Applied is progressing toward its sustainability goals and helping reduce the resources required to manufacture the semiconductors and technologies that support more energy-efficient computing in use.
  
  

Business Outlook

Applied’s total revenue and non-GAAP diluted EPS for the fourth quarter of fiscal 2026 are expected to be as follows:

	Q4 FY2026
(In millions, except per share amounts)
Total revenue	$	10,250	+/-	$	500
Non-GAAP diluted EPS	$	4.02	+/-	$	0.20

This outlook for non-GAAP diluted EPS excludes known charges related to completed acquisitions of $0.01 per share, includes the normalized tax benefit of share-based compensation of $0.01 per share and includes a net income tax benefit related to intra-entity intangible asset transfers of $0.05 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.

Third Quarter 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	Q3 FY2026				Q3 FY2025
(in millions, except percentages)
Revenue	$	7,040			$	5,564
Foundry, logic and other		67	%			69	%
DRAM		26	%			22	%
Flash memory		7	%			9	%
Gross margin		55.3	%			53.4	%
Operating income	$	2,657			$	1,837
Operating margin		37.7	%			33.0	%
Non-GAAP Results
Non-GAAP gross margin		55.4	%			53.5	%
Non-GAAP operating income	$	2,673			$	1,849
Non-GAAP operating margin		38.0	%			33.2	%

Applied Global Services	Q3 FY2026				Q3 FY2025
(in millions, except percentages)
Revenue	$	1,781			$	1,463
Gross margin		35.6	%			33.8	%
Operating income	$	536			$	400
Operating margin		30.1	%			27.3	%
Non-GAAP Results
Non-GAAP gross margin		35.6	%			33.8	%
Non-GAAP operating income	$	536			$	400
Non-GAAP operating margin		30.1	%			27.3	%

Other	Q3 FY2026				Q3 FY2025
(in millions)
Revenue	$	294			$	275
Cost of products sold and expenses		(412	)			(279	)
Operating income (loss)	$	(118	)		$	(4	)

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 fourth quarter of fiscal 2026 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; 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; demand for semiconductor chips and electronic devices; 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; our ability to meet customer demand, and our suppliers’ ability to meet our demand requirements; 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							Nine Months Ended
(In millions, except per share amounts)	July 26, 2026				July 27, 2025			July 26, 2026			July 27, 2025
Revenue	$	9,115			$	7,302		$	24,037		$	21,568
Cost of products sold		4,529				3,740			12,069			11,025
Gross profit		4,586				3,562			11,968			10,543
Operating expenses:
Research, development and engineering		1,100				901			3,055			2,653
Marketing and selling		249				224			704			646
General and administrative		162				204			515			667
Legal settlement		—				—			253			—
Restructuring charges		—				—			12			—
Total operating expenses		1,511				1,329			4,539			3,966
Income from operations		3,075				2,233			7,429			6,577
Interest expense		68				66			206			198
Interest and other income (expense), net		(100	)			396			1,237			625
Income before income taxes		2,907				2,563			8,460			7,004
Provision for income taxes		369				784			1,090			1,903
Net income	$	2,538			$	1,779		$	7,370		$	5,101
Earnings per share:
Basic	$	3.20			$	2.23		$	9.29		$	6.32
Diluted	$	3.17			$	2.22		$	9.22		$	6.29
Weighted average number of shares:
Basic		794				798			794			807
Diluted		800				802			799			811

APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)	July 26, 2026			October 26, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	7,037		$	7,241
Short-term investments		2,196			1,332
Accounts receivable, net		7,691			5,185
Inventories		6,564			5,915
Other current assets		1,607			1,208
Total current assets		25,095			20,881
Long-term investments		5,268			4,327
Property, plant and equipment, net		5,606			4,610
Goodwill		3,873			3,707
Purchased technology and other intangible assets, net		315			226
Deferred income taxes and other assets		3,365			2,548
Total assets	$	43,522		$	36,299
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	1,299		$	100
Accounts payable and accrued expenses		5,787			5,333
Contract liabilities		3,271			2,566
Total current liabilities		10,357			7,999
Long-term debt		5,245			6,455
Income taxes payable		880			356
Other liabilities		1,414			1,074
Total liabilities		17,896			15,884
Total stockholders’ equity		25,626			20,415
Total liabilities and stockholders’ equity	$	43,522		$	36,299

APPLIED MATERIALS, INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In millions)	Three Months Ended								Nine Months Ended
	July 26, 2026				July 27, 2025				July 26, 2026				July 27, 2025
Cash flows from operating activities:
Net income	$	2,538			$	1,779			$	7,370			$	5,101
Adjustments required to reconcile net income to cash provided by operating activities:
Depreciation and amortization		151				113				413				321
Restructuring charges		—				—				12				—
(Gain) / loss and impairment on investments		229				(294	)			(909	)			(270	)
Share-based compensation		169				158				545				512
Deferred income taxes		(49	)			280				25				952
Other		(15	)			10				(11	)			(28	)
Net change in operating assets and liabilities		14				588				(1,877	)			(1,458	)
Cash provided by operating activities		3,037				2,634				5,568				5,130
Cash flows from investing activities:
Capital expenditures		(707	)			(584	)			(1,988	)			(1,475	)
Cash paid for acquisitions, net of cash acquired		(87	)			—				(262	)			(29	)
Proceeds from asset sale		—				—				6				33
Proceeds from sales and maturities of investments		1,351				793				4,585				3,937
Purchases of investments		(1,970	)			(2,176	)			(5,493	)			(5,109	)
Cash provided by (used in) investing activities		(1,413	)			(1,967	)			(3,152	)			(2,643	)
Cash flows from financing activities:
Proceeds from issuance of commercial paper		99				100				399				400
Repayments of commercial paper		—				(100	)			(400	)			(400	)
Proceeds from common stock issuances		—				—				131				129
Common stock repurchases		(440	)			(1,056	)			(1,177	)			(4,044	)
Tax withholding payments for vested equity awards		(128	)			(33	)			(437	)			(210	)
Payments of dividends to stockholders		(420	)			(368	)			(1,150	)			(1,019	)
Payments of debt issuance costs		—				—				—				(2	)
Cash used in financing activities		(889	)			(1,457	)			(2,634	)			(5,146	)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents		735				(790	)			(218	)			(2,659	)
Cash, cash equivalents and restricted cash equivalents—beginning of period		6,359				6,244				7,312				8,113
Cash, cash equivalents and restricted cash equivalents — end of period	$	7,094			$	5,454			$	7,094			$	5,454
Reconciliation of cash, cash equivalents, and restricted cash equivalents
Cash and cash equivalents	$	7,037			$	5,384			$	7,037			$	5,384
Restricted cash equivalents included in deferred income taxes and other assets		57				70				57				70
Total cash, cash equivalents, and restricted cash equivalents	$	7,094			$	5,454			$	7,094			$	5,454
Supplemental cash flow information:
Cash payments for income taxes	$	169			$	436			$	819			$	1,269
Cash refunds from income taxes	$	6			$	4			$	22			$	79
Cash payments for interest	$	73			$	51			$	192			$	171

Additional Information

	Q3 FY2026				Q3 FY2025
Revenue by Geography (In millions)
United States	$	1,367			$	683
% of Total		15	%			9	%
Europe	$	483			$	160
% of Total		5	%			2	%
Japan	$	839			$	713
% of Total		9	%			10	%
Korea	$	1,521			$	1,160
% of Total		17	%			16	%
Taiwan	$	2,025			$	1,843
% of Total		22	%			25	%
Southeast Asia	$	374			$	195
% of Total		4	%			3	%
China	$	2,506			$	2,548
% of Total		28	%			35	%
Employees (In thousands)
Regular Full Time		38.9				36.1

APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
	Three Months Ended								Nine Months Ended
(In millions, except percentages)	July 26, 2026				July 27, 2025				July 26, 2026				July 27, 2025
Non-GAAP Gross Profit
GAAP reported gross profit	$	4,586			$	3,562			$	11,968			$	10,543
Certain items associated with acquisitions1		11				7				24				20
Non-GAAP gross profit	$	4,597			$	3,569			$	11,992			$	10,563
Non-GAAP gross margin		50.4	%			48.9	%			49.9	%			49.0	%
Non-GAAP Operating Income
GAAP reported operating income	$	3,075			$	2,233			$	7,429			$	6,577
Certain items associated with acquisitions1		16				11				37				34
Acquisition integration and deal costs		5				1				8				4
Legal settlement2		—				—				253				—
Restructuring charges3		—				—				12				—
Non-GAAP operating income	$	3,096			$	2,245			$	7,739			$	6,615
Non-GAAP operating margin		34.0	%			30.7	%			32.2	%			30.7	%
Non-GAAP Net Income
GAAP reported net income	$	2,538			$	1,779			$	7,370			$	5,101
Certain items associated with acquisitions1		16				11				37				34
Acquisition integration and deal costs		5				1				8				4
Legal settlement2		—				—				253				—
Restructuring charges3		—				—				12				—
Realized loss (gain), dividends and impairments on strategic investments, net		(7	)			16				22				(11	)
Unrealized loss (gain) on strategic investments, net		220				(314	)			(949	)			(288	)
Foreign exchange loss (gain) related to purchase of strategic investment		—				—				—				23
Loss (gain) on asset sale		—				—				—				(44	)
Income tax effect of share-based compensation4		10				7				(4	)			1
Income tax effects related to intra-entity intangible asset transfers5		33				32				96				738
Resolution of prior years’ income tax filings and other tax items6		(46	)			460				3				320
Income tax effect of non-GAAP adjustments7		26				(3	)			132				(3	)
Non-GAAP net income	$	2,795			$	1,989			$	6,980			$	5,875

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 nine months ended July 27, 2025, included changes to the income tax provision of $94 million from amortization of intangibles and a $644 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 three and nine months ended July 27, 2025 included the impact of the recognition of a $410 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								Nine Months Ended
(In millions, except per share amounts)	July 26, 2026				July 27, 2025				July 26, 2026				July 27, 2025
Non-GAAP Earnings Per Diluted Share
GAAP reported earnings per diluted share	$	3.17			$	2.22			$	9.22			$	6.29
Certain items associated with acquisitions		0.02				0.01				0.04				0.04
Acquisition integration and deal costs		0.01				—				0.01				—
Legal settlement		—				—				0.32				—
Restructuring charges		—				—				0.01				—
Realized loss (gain), dividends and impairments on strategic investments, net		(0.01	)			0.02				0.02				(0.02	)
Unrealized loss (gain) on strategic investments, net		0.31				(0.39	)			(1.01	)			(0.36	)
Foreign exchange loss (gain) related to purchase of strategic investment		—				—				—				0.03
Loss (gain) on asset sale		—				—				—				(0.04	)
Income tax effect of share-based compensation		0.02				0.01				—				—
Income tax effects related to intra-entity intangible asset transfers1		0.04				0.04				0.12				0.91
Resolution of prior years’ income tax filings and other tax items2		(0.06	)			0.57				—				0.40
Non-GAAP earnings per diluted share	$	3.50			$	2.48			$	8.73			$	7.25
Weighted average number of diluted shares		800				802				799				811

1	Amount for the nine months ended July 27, 2025, included changes to the income tax provision of $0.12 per diluted share from amortization of intangibles and $0.79 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 three and nine months ended July 27, 2025 included a $0.51 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								Nine Months Ended
(In millions, except percentages)	July 26, 2026				July 27, 2025				July 26, 2026				July 27, 2025
Semiconductor Systems Non-GAAP Gross Profit
GAAP reported gross profit	$	3,892			$	2,970			$	9,950			$	8,845
Certain items associated with acquisitions1		11				7				24				20
Non-GAAP gross profit	$	3,903			$	2,977			$	9,974			$	8,865
Non-GAAP gross margin		55.4	%			53.5	%			55.0	%			53.5	%
Applied Global Services Non-GAAP Gross Profit
GAAP reported gross profit	$	634			$	494			$	1,748			$	1,407
Non-GAAP gross profit	$	634			$	494			$	1,748			$	1,407
Non-GAAP gross margin		35.6	%			33.8	%			34.9	%			33.2	%
Semiconductor Systems Non-GAAP Operating Income
GAAP reported operating income	$	2,657			$	1,837			$	6,176			$	5,479
Certain items associated with acquisitions1		16				11				37				34
Acquisition integration and deal costs		—				1				—				3
Legal settlement2		—				—				253				—
Non-GAAP operating income	$	2,673			$	1,849			$	6,466			$	5,516
Non-GAAP operating margin		38.0	%			33.2	%			35.6	%			33.3	%
Applied Global Services Non-GAAP Operating Income
GAAP reported operating income	$	536			$	400			$	1,461			$	1,114
Acquisition integration and deal costs		—				—				—				1
Non-GAAP operating income	$	536			$	400			$	1,461			$	1,115
Non-GAAP operating margin		30.1	%			27.3	%			29.2	%			26.3	%

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)	July 26, 2026
GAAP provision for income taxes(a)	$	369
Income tax effect of share-based compensation		(10	)
Income tax effects related to intra-entity intangible asset transfers		(33	)
Resolutions of prior years’ income tax filings and other tax items		46
Income tax effect of non-GAAP adjustments		(26	)
Non-GAAP provision for income taxes(b)	$	346
GAAP income before income taxes(c)	$	2,907
Certain items associated with acquisitions		16
Acquisition integration and deal costs		5
Realized loss (gain), dividends and impairments on strategic investments, net		(7	)
Unrealized loss (gain) on strategic investments, net		220
Non-GAAP income before income taxes(d)	$	3,141
GAAP effective income tax rate(a/c)		12.7	%
Non-GAAP effective income tax rate(b/d)		11.0	%

UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW
	Three Months Ended								Nine Months Ended
(In millions)	July 26, 2026				July 27, 2025				July 26, 2026				July 27, 2025
Cash provided by operating activities	$	3,037			$	2,634			$	5,568			$	5,130
Capital expenditures		(707	)			(584	)			(1,988	)			(1,475	)
Non-GAAP free cash flow	$	2,330			$	2,050			$	3,580			$	3,655

FAQ

What were Applied Materials (NASDAQ: AMAT) Q3 2026 earnings results?

Applied Materials reported Q3 FY2026 revenue of $9.12 billion and GAAP diluted EPS of $3.17, with record non-GAAP EPS of $3.50. According to the company, GAAP operating income was $3.08 billion and non-GAAP operating income was $3.10 billion, both with margins above 33%.

How did Applied Materials’ revenue and EPS grow year over year in Q3 2026 (AMAT)?

Applied Materials’ Q3 FY2026 revenue grew 25% year over year to $9.12 billion. GAAP EPS increased 43% to $3.17, while non-GAAP EPS rose 41% to $3.50. According to the company, GAAP and non-GAAP gross margins expanded by 1.5 percentage points over Q3 FY2025.

What guidance did Applied Materials give for Q4 FY2026 revenue and EPS (AMAT)?

Applied Materials expects Q4 FY2026 total revenue of about $10.25 billion ± $0.5 billion and non-GAAP diluted EPS of $4.02 ± $0.20. According to the company, this EPS outlook excludes known acquisition-related charges and includes specified tax benefits, while other unforeseen items are not included.

How did Applied Materials’ Semiconductor Systems and Applied Global Services segments perform in Q3 2026?

In Q3 FY2026, Semiconductor Systems revenue was $7.04 billion with GAAP operating margin of 37.7%. Applied Global Services revenue reached $1.78 billion with operating margin of 30.1%. According to the company, both segments also showed higher non-GAAP margins compared with Q3 FY2025.

How much cash did Applied Materials generate and return to shareholders in Q3 2026?

Applied Materials generated record Q3 FY2026 cash from operations of $3.04 billion and non-GAAP free cash flow of $2.33 billion. According to the company, it returned $860 million to shareholders during the quarter, including $440 million in share repurchases and $420 million in dividends.

What new AI and advanced packaging products did Applied Materials launch in Q3 2026?

Applied Materials introduced six new systems for DRAM and advanced packaging, including Opta Quad CMP, Nokota VMax 2 ECD, and VeritySEM 7AP. According to the company, it also launched new deposition and etch systems to extend scaling for next-generation AI chips in logic and memory.

What are Applied Materials’ new EPIC Center partnerships and investments in 2026?

Applied Materials added EPIC Center partnerships with Broadcom, UC Berkeley, and SCREEN SPE to accelerate chip and packaging innovation. According to the company, it also opened a new $500 million Tampines Campus in Singapore, expanding manufacturing and R&D capacity for global AI infrastructure demand.