Applied Materials posts record $10.41 billion quarter, revenue up 53%, and guides to $11.1 billion

Applied Materials reported record fiscal fourth-quarter revenue of $10.41 billion on Thursday, up 53% from $6.80 billion a year earlier, and forecast $11.1 billion (plus or minus $500 million) for the current quarter, according to its earnings release filed with the SEC. Non-GAAP earnings were $4.16 a share, up 92%. Nasdaq data showed the stock at $378.01 at 8:01 AM ET Friday, down 0.77% from Thursday's $380.95 close, so the market is not treating the report as a surprise.

The number behind the headline: where the growth came from

Most of the jump sat in Semiconductor Systems, the business that sells the machines. Its revenue rose to $7.996 billion from $4.879 billion, up about 64%, and its operating margin widened to 38.8% from 29.3%. The customer mix shifted toward memory: DRAM was 33% of that segment's sales against 28% a year ago, which by our arithmetic from the filing's percentages is roughly $2.6 billion against $1.4 billion. Foundry and logic fell to 58% of the segment from 66%, though it still grew in dollars.

The services arm grew more slowly but steadily: Applied Global Services revenue was $1.896 billion, up 26% from $1.506 billion, at a 35.1% gross margin.

China is the figure to watch. It grew 35% in the quarter but its share fell to 25% from 29%, and for the full year it was $9.33 billion, up only 9% from $8.53 billion, or 27% of sales against 30%. Taiwan, where the leading-edge foundry capacity is, is now the largest region. US sales roughly doubled.

Cash and guidance

Applied generated record operating cash flow of $3.30 billion in the quarter and non-GAAP free cash flow of $2.616 billion. It returned $2.42 billion to shareholders: $2.00 billion of buybacks and $421 million of dividends. The CFO called it the largest quarterly buyback in more than eight years. For the year, revenue was $34.45 billion, up 21%, and non-GAAP EPS was $12.89.

The first-quarter midpoint of $11.1 billion is about 7% above the fourth quarter's $10.41 billion, with non-GAAP EPS guided to $4.35 (plus or minus $0.20). Reuters and Benzinga headlines both describe the outlook as above analyst expectations; we could not open their full pages, so we are not quoting the consensus figures.

Why it matters beyond one stock

Equipment orders are a lead indicator for chip capacity, which is what the AI buildout depends on. The report landed the day Nvidia's chief executive stepped down and the AI trade was under pressure (see our Nvidia coverage). Applied's results are a reminder that the spending upstream of Nvidia, in memory and foundry equipment, is still running at record levels. Applied itself closed Thursday 3.6% lower, and its shares sit 47.3% below their June 30 closing peak in our one-year chart data, so a record quarter has not stopped the stock from falling with the sector.

For small suppliers, machine shops and contractors that service fabs and data centers, equipment makers' guidance is a signal of how much work is queued.

Sources: Applied Materials Q4 FY2026 earnings release (SEC EDGAR 8-K Exhibit 99.1, filed Nov. 12, 2026); Nasdaq quote data, Nov. 12 close and Nov. 13 8:01 AM ET; Reuters and Benzinga headlines; Chronicle one-year chart data. Percent changes are our calculations from the filing's figures. This is market information, not investment advice.