Applied Materials Beats Q4 Estimates on 53% Revenue Growth, Guides Q1 Above $11 Billion on AI Demand

AMAT reported fiscal fourth-quarter results after the close on November 12, with revenue of $10.41 billion, up 53.1% from a year earlier, and adjusted earnings of $4.16 per share, up 92%. Both topped consensus estimates of $10.3 billion and $4.06. GAAP EPS was $3.40, and adjusted gross margin was 50.6% (press release). For fiscal 2026, revenue reached $34.45 billion, up 21%, and adjusted EPS was $12.89, up 37%.

The core equipment business drove the quarter. Semiconductor Systems revenue rose to $7,996 million from $4,879 million a year earlier, roughly two-thirds growth, and Zacks reports that all three segments beat estimates. CEO Gary Dickerson said the segment is on track to grow more than 40 percent in calendar 2026.

For the first quarter of fiscal 2027, Applied guided revenue to $11.1 billion, plus or minus $500 million, with adjusted EPS of $4.35, plus or minus $0.20, according to the company's release. Reuters reported the forecast came in above estimates on strong AI chip demand. Management said it expects 2027 to be another record year, with wafer fab equipment spending growing more than 30% (TradingKey).

The stock reaction was muted: shares rose about 0.5% after hours, trading near $381.81 overnight, per TradingKey. Stifel kept its Buy rating but trimmed its price target to $600 from $650, while the average target across 34 analysts tracked by TradingView fell to $605.88 from $643.26. Whether AI-driven foundry, logic and memory orders keep 2027 equipment spending on that 30%-plus path is the key question for the stock.