Applied Materials posted record second-quarter revenue of $7.91 billion, up 11% from a year earlier, and raised its outlook for semiconductor equipment growth on the back of rising demand for AI infrastructure.
The company said it now expects its semiconductor equipment business to grow more than 30% in calendar 2026, up from a prior forecast
Looking ahead to the fiscal third quarter, the company projected revenue in the range of $8.95 billion and adjusted earnings at $3.36 per share, each carrying a margin of $500 million and $0.20, respectively. Wall Street had been modeling third-quarter revenue of $8.09 billion and a $2.88 adjusted per-share profit, per Reuters. Second-quarter adjusted earnings per share came in at $2.86, and GAAP diluted EPS reached a record $3.51, up 33% year over year.
Heading into the print, the consensus estimate had called for $7.65 billion in second-quarter revenue and adjusted earnings of $2.66 per share, Yahoo Finance reported. “Applied Materials delivered record quarterly performance, and we now expect our semiconductor equipment business to grow more than 30 percent in calendar 2026,” CEO Gary Dickerson said in a statement. “The rapid global build-out of AI computing infrastructure combined with Applied’s strong leadership positions in leading-edge logic, DRAM and advanced packaging provide an exceptionally strong foundation for sustained, multi-year revenue and profit growth.” The Semiconductor Systems segment brought in $5.97 billion, a roughly 10% increase from the prior-year quarter. The Applied Global Services division posted $1.67 billion, reflecting 17% growth year over year. Foundry, logic, and other applications represented 67% of the semiconductor systems revenue mix, with DRAM at 29% and flash memory at 4%. “This AI compute demand is going to be a multiyear driver,” Dickerson told Bloomberg. “Our customers are giving us eight-quarter forecasts, so we have more longer-term visibility than any time I’ve been in this…