Applied Materials reports Q3 revenue of $9B, raises Q4 guidance as AI chip demand surges

Applied Materials reported revenue near $9 billion for the fiscal third quarter ending in July 2026, representing roughly 25% growth compared to the same period last year. The company raised its revenue and profit forecasts for both calendar years 2026 and 2027. The $9 billion top line came in close to analyst expectations of approximately $9.04 billion. Applied Materials posted $7.91 billion in revenue in Q2 FY2026. Guidance issued in May had set Q3 revenue targets at $8.95 billion, plus or minus $500 million, with non-GAAP earnings per share projected at $3.36, plus or minus $0.20, with EPS expectations settling around $3.40. Applied Materials upgraded its semiconductor equipment growth outlook for 2026 to over 30%, a meaningful jump from earlier estimates that pegged growth around 20%. Margins are running at their highest levels in 25 years, according to stock analysts covering the company. Applied Materials supplies the tools that chipmakers like TSMC, Samsung, and Intel use to deposit, etch, and inspect the nanometer-scale layers that make up modern processors. CEO Gary Dickerson has positioned the company to capture share of what’s becoming a structural shift in semiconductor...