Applied Materials Beats Estimates With Record $10.41B Quarter on AI Chip Demand

Applied Materials didn't just beat the Street — it set a record. The semiconductor equipment maker posted fiscal fourth quarter revenue of $10.41 billion, clearing analysts' expectations of approximately $10.3 billion. Adjusted earnings came in at $4.16 per share, ahead of the roughly $4.06 analysts had penciled in.

The engine was chips. Applied Materials' Semiconductor Systems division pulled in $8 billion in revenue, up 64% from a year earlier, as chipmakers keep buying gear for advanced manufacturing. The company credited rising demand for advanced semiconductor manufacturing technologies as capacity expands for AI processors and related infrastructure.

Investors liked what they saw. Shares of Applied Materials (NASDAQ: AMAT) gained about 3% in extended trading after the numbers dropped, helped by guidance that blew past expectations.

For the first quarter of fiscal 2027, the company forecast revenue of approximately $11.1 billion, plus or minus $500 million, above the $10.89 billion Wall Street was modeling. It also guided adjusted earnings to about $4.35 per share, plus or minus $0.20, versus analyst expectations of $4.26.

Zoom out and the full fiscal year looks even louder. Applied Materials reported revenue of $34.45 billion, an increase of 21% from 2025, while adjusted earnings per share rose 37%, landing at $12.89.