Applied Materials Reports Record Earnings: Q4 Revenue Up 53%, Non-GAAP EPS Doubles
Applied Materials released record financial results for Q4 and FY2026, driven by strong AI demand.
US semiconductor equipment manufacturer Applied Materials, Inc. reported its financial results for the fourth quarter and fiscal year ended October 25, 2026, on November 12, 2026. The company achieved record quarterly revenue of $10.41 billion, an increase of 53 percent year over year. Non-GAAP earnings per share (EPS) reached $4.16, up 92 percent year over year.
For the full fiscal year 2026, total revenue was $34.45 billion, up 21 percent year over year. Full-year non-GAAP EPS was $12.89, an increase of 37 percent. Gross margins expanded significantly, with Q4 GAAP gross margin at 50.4 percent and non-GAAP gross margin at 50.6 percent, representing increases of 240 and 250 basis points respectively compared to the same period last year.
In terms of cash generation, the company produced record operating cash flow of $3.30 billion and free cash flow of $2.6 billion in the fourth quarter. It distributed $2.42 billion to shareholders through $2.00 billion in share repurchases and $421 million in dividends. The share buyback amount marked the largest quarterly repurchase in more than eight years.
CEO Gary Dickerson stated that AI continues to fuel strong incremental demand for semiconductors, positioning the company well for multi-year growth. CFO Brice Hill noted that technology leadership in critical areas of the wafer fab equipment market drove the significant year-over-year improvements in revenue and profitability.