Applied Materials Posts Record Revenue on AI Chip Demand Surge
Event summary
- Applied Materials reported record revenue of $7.91 billion, up 11% year-over-year, for Q2 2026.
- GAAP EPS reached $3.51, a 33% year-over-year increase, while non-GAAP EPS was $2.86, up 20%.
- The company announced new EPIC Center partner engagements to accelerate next-generation semiconductor technologies.
- Applied Materials expects its semiconductor equipment business to grow more than 30% in calendar 2026.
- The company increased its quarterly cash dividend by 15%, marking nine consecutive years of dividend increases.
The big picture
Applied Materials' record quarterly performance underscores the surging demand for semiconductor equipment driven by AI infrastructure expansion. The company's strategic partnerships with major chipmakers like TSMC and SK hynix, along with its focus on advanced packaging technologies, position it to capitalize on the multi-year growth trajectory in the semiconductor industry. The acquisition of ASMPT Limited's NEXX business further strengthens its portfolio, enabling the development of larger-body AI accelerators.
What we're watching
- AI Infrastructure Growth
- How the rapid global build-out of AI computing infrastructure will sustain Applied Materials' revenue and profit growth.
- Operational Readiness
- Whether Applied Materials can maintain operational and supply chain readiness to support its customers' growth.
- Technology Commercialization
- The pace at which Applied Materials' EPIC Center engagements will accelerate the commercialization of next-generation semiconductor technologies.
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