Applied Materials reported record fiscal third-quarter 2026 revenue of $9.12 billion, marking a 25% increase compared to $7.30 billion in the same period last year. The company's non-GAAP earnings per share reached a record $3.50, reflecting a 41% year-over-year growth, while GAAP net income rose 43% to $2.54 billion.
The Semiconductor Systems segment remains the primary revenue driver for the company. Applied Materials anticipates that revenue from advanced packaging will expand by more than 70% throughout the 2026 calendar year. Additionally, the Applied Global Services division, which provides maintenance and upgrades, saw its revenue grow by 22% to reach $1.78 billion.
For the fourth quarter of fiscal 2026, the company projects revenue of approximately $10.25 billion, with a margin of error of $500 million. The non-GAAP earnings per share are forecast at about $4.02, plus or minus $0.20. These projections exceed previous analyst estimates, supported by strong demand for AI infrastructure.
CEO Gary Dickerson noted that demand visibility for the company's technology extends into 2030. Recent financial reports indicate that the Chinese market accounts for approximately 26% to 28% of the company's total revenue. The firm also reported a non-GAAP gross margin of 50.4% and an operating margin of 34% for the quarter.
