News
Applied Materials reports quarterly revenue of $7.01 billion and issues positive forecast
Thursday, February 12, 2026 at 11:02 PM
Applied Materials reported quarterly revenue of $7.01 billion, representing a 5% sequential increase. The company provided optimistic guidance for the upcoming quarter, forecasting $7.65 billion in revenue, driven by growth in its Semiconductor Systems segment.
Context
In its fiscal first quarter 2026 results reported in February, Applied Materials achieved its highest gross margins in 25 years. The company’s non-GAAP gross margin climbed to 49.1%, representing a total expansion of 700 basis points since Gary Dickerson became CEO in 2013. This profitability milestone is primarily driven by the "tipping point" of artificial intelligence demand, which has accelerated investments in leading-edge logic, high-bandwidth memory (HBM), and advanced packaging—sectors where the firm holds a dominant market position.
For the quarter ending January 25, 2026, Applied Materials delivered $7.01 billion in revenue, exceeding the midpoint of its own guidance. Management expects this momentum to continue, forecasting second-quarter revenue of approximately $7.65 billion and a further increase in non-GAAP gross margin to 49.3%. With the company projecting more than 20% growth for its semiconductor equipment business in calendar 2026, these record margins underscore its ability to capture premium value as the AI supply chain undergoes a massive structural expansion.
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