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Applied Materials Beats Q4, Lifts Outlook as AI Spending Pipeline Takes Shape

Management highlighted AI-driven fab spending from late 2026 as the next demand leg.

Overview

  • Fiscal Q4 revenue came in at $6.8 billion with adjusted EPS of $2.17, topping estimates while total revenue fell about 3% year over year.
  • Gross margin registered 48% for the quarter, roughly in line with expectations.
  • Fiscal Q1 guidance calls for $6.85 billion in revenue plus or minus $500 million and adjusted EPS of $1.98 to $2.38, modestly above Street views.
  • CFO Brice Hill said the company is preparing operations and services to support higher demand beginning in the second half of 2026, citing AI-related investment.
  • Shares slipped roughly 3% after hours to $216.95 as export restrictions to China and a recent ~4% workforce reduction continue to weigh on the near term.