Applied Materials delivers earnings and revenue above estimates, but Wall Street isn’t impressed
Applied Materials Inc. beat expectations on both earnings and revenue as it delivered its third-quarter financial results today, and followed up with strong guidance for the current quarter. However, its stock fell in the wake of elevated expectations from investors.
While the company is one of the biggest beneficiaries of the artificial intelligence boom, that trend means that it had a high bar to clear, and investors likely deemed its results weren’t impressive enough. Its stock fell more than 4% in the after-hours trading session.
The company reported earnings before certain costs such as stock compensation of $3.50 per share, up from $2.48 one year ago and above Wall Street’s consensus estimate of $3.40 per share. Revenue for the period increased 25% to $9.12 billion, surpassing the Street’s target of $9 billion.
Chief Executive Gary Dickerson (pictured) hailed what was another record-breaking quarter that saw the company deliver its largest-ever sequential revenue growth. “As the rapid global adoption of AI drives unprecedented demand for our materials engineering solutions, we are further raising our semiconductor systems revenue expectations for calendar 2026 and are confident we will grow faster than the market this year,” he said.
