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Jan 25
Applied Materials Q1 2026 Earnings Report
Applied Materials reported revenue of $7012000000 and net income of $2026000000 for the first quarter of fiscal 2026, with strong profitability driven by AI-related semiconductor demand.
Key Takeaways
Applied Materials delivered solid Q1 FY2026 results with $7012000000 in revenue and $2026000000 in net income. Profitability remained strong with a 49.0% gross margin and 26.1% operating margin, supported by record DRAM revenue and services growth.
Revenue reached $7012000000 for the quarter.
Net income increased to $2026000000 with diluted EPS of $2.54.
Non-GAAP EPS was $2.38 with a 49.1% non-GAAP gross margin.
Record DRAM revenue and services and spares revenue supported performance.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For Q2 FY2026, Applied Materials expects revenue of $7650000000 +/- $500000000 and non-GAAP diluted EPS of $2.64 +/- $0.20.
Positive Outlook
- Expected revenue midpoint of $7650000000 for Q2 FY2026.
- Non-GAAP EPS guidance midpoint of $2.64.
- Continued strong demand in AI and leading-edge logic.
- Strength in high-bandwidth memory and advanced packaging.
- Ongoing capacity expansion to support customer demand.
Challenges Ahead
- Revenue guidance range includes a potential downside of $500000000.
- EPS guidance range implies potential $0.20 downside.
- Exposure to export regulations and trade restrictions.
- Geopolitical and macroeconomic uncertainties.
- Potential additional acquisition-related or non-operational charges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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